August 3, 2020

Australia's June beef exports to Japan up 58% on May 

Japan is helping to drive Australia's beef exports as Japanese restaurants saw 75% of pre-pandemic normal traffic, supporting a positive outlook, according to Farm Weekly.

The country is on par with China in terms of being Australia's biggest beef export market by value, with demand seemingly enduring the COVID-19 pandemic well.

The latest Australian Government beef trade figures show exports to Japan were up 58% in June on the previous month - which was exceptionally low due to pandemic impacts - but analysts said the rebound has been a positive development in Australia's export portfolio.

Despite volumes being down 2% for the first six months of this year, beef export values to Japan have held - some months, they have been slightly higher.

Japan has been one of Australia's beef top export markets for two decades. Strong retail sales in the country continue to maintain the momentum of the beef trade between Japan and Australia, said MLA's regional manager for Japan and Korea, Scott Walker, in a podcast programme.

Increases in delivery and take-out had also contributed. According to Walker, 62% of beef consumed in Japan was imported and well-established relationships and a strong network of customers for Australian beef had paid dividends this year.

While the pandemic poses some challenges for Australia's key red meat markets, beef exports have performed well through 2020 so far, back just 3% on 2019 levels, reaching 550,000 tonnes shipped weight for the year-to-June, according to MLA.

MLA's July update of cattle projections included an upward revision to beef exports, with shipments now expected to exceed one million tonnes for the year, which would put it at a 17% decline on 2019 levels.

- Farm Weekly