June 13, 2011

Australian beef exports to the US decrease

Beef and veal exports from Australia to the US from January-May this year are 22% less than year ago levels at 63,531 tonnes swt.

In comparison, the five-year average for Australian beef and veal exports over this period totalled 107,737 tonnes swt.

Reports indicate supplies from Australia continue to remain very limited, adding further pressure to an already tight imported beef supply situation. Additionally, New Zealand cattle slaughter has started to head into its seasonal decline, while beef imports from Canada remain 26% below year ago levels.

In terms of prices, imported and US domestic lean manufacturing beef prices have fallen from record highs as US end-users remain cautious about locking in large volumes, and US domestic cow slaughter remains high.

Despite the recent falls, prices in US dollar terms for both imported and domestic lean manufacturing beef remains approximately 17% above year ago levels. The impact of the Australian dollar though has certainly been felt (particularly over the past month), with the imported 90CL cow beef indicator in Australian dollar terms now 10% below year ago levels.