August 1, 2011

Philippines' 2010-11 beef imports stabilise on-year

Beef shipments into the Philippines rose 2% on-year during 2010-11, to 101,589 tonnes swt, as new record volumes from Australia, New Zealand and US more than offset import falls from India and Brazil.

Carabeef imports from India eased 1% during 2010-11, although India remained the largest beef supplier of carabeef to the Philippines during 2010-11, with a 42% market share of total beef imports. Despite a steady rise in Indian carabeef production and exports expected for 2011, increased demand for carabeef from other regions such as the Middle East resulted in reduced shipments to the Philippines.

Beef imports from Brazil into the Philippines also fell 18% on-year, to account for 10% of the total imports during 2010-11. Increased Brazilian cattle prices over the past year, coupled with strong domestic demand contributed to less competitive priced beef available for the Philippines.

Over the 12 months to June 2011, the Philippines imported 4% and 12% more Australian and New Zealand beef, with Australia and New Zealand the second (23%) and third (12%) largest suppliers of imported beef into the market. Imports from the US, assisted by the weak US dollar, were also the highest on record, representing 10% of Philippines' total beef imports.

Beef imports into the Philippines are expected to remain supported by firm demand over the short term, despite the local government's tightening fiscal policy, following rising commodity prices in recent months.