August 3, 2023

 

Australia's July beef export volume still picking up

 

 

 

Australia's monthly beef export volume continued to gather pace in July, headlined by another leap in volume consigned to the United States.

 

The gradual lift in slaughter volumes in winter has driven more trade into Australia's key export markets around the world – at the same time as US beef exports have declined.

 

Australian shipments to all markets last month topped 97,305 tonnes, the second highest volume seen since 2020 when drought was still fueling heavy rates of slaughter across eastern Australia.

 

July export volume was 3,300 tonnes of 3.5% higher than June, and 22,300 tonnes or 30% higher than July last year when Australian beef herd recovery after drought was still hampering production volume.

 

Calendar year-to-date for the seven months to the end of July, beef exports have soared to 575,684 tonnes, a 102,200 tonnes improvement on the same seven months last year.

 

Virtually all major and emerging customer markets have lifted volume, but the US is clearly the standout in recent trade performance.

 

Last month, Australia's shipments to US east and west coast ports topped 23,910 tonnes – the biggest monthly volume seen since 2019 – up another 3,300 tonnes or 16% on June shipments, and 120% or 14,000 tonnes higher than July last year. June was the first month in at least three years where the US featured as Australia's largest volume export customer, having placed third or fourth behind Japan, China and South Korea for long periods since 2020.

 

For the calendar year to the end of July, Australia's exports to the US have totaled 112,950 tonnes, up from 70,500 tonnes the same period the year before.

 

Japan was Australia's second largest offshore beef customer last month, taking 17,732 tonnes, down about 1,100 tonnes on the previous month, and back a similar amount compared with July last year. For the first seven months of trade in 2023, volume to Japan has reached 120,225 tonnes, about 7,000 tonnes or 2% behind last year.

 

South Korea continues to fill an important and stable role for Australian export beef, taking 16,960 tonnes, up 17% on the previous month, and plus 13% on July last year. Calendar year to date, South Korean volume has reached 104,080 tonnes, some 18,000 tonnes or 21% higher than last year as available Australian production volume has grown.

 

For the first time in the past 12 months, China has slipped to fourth place in volume rankings in Australian beef exports, accounting for 16,807 tonnes during July – down 14% from the month before, but still 34% higher than July last year.

 

For the calendar year to date, China has now taken 115,746 tonnes, almost 30,000 tonnes or 35% higher than last year. Part of the reason for this year's jump was the impact from Brazil's earlier temporary suspension in trade into China after the detection of an atypical case of BSE in March this year. Australian beef was used to partially fill the void, in the absence of much larger Brazilian shipments until May.

 

Among smaller and emerging markets, trade into Indonesia continued to grow last month, reaching 6,887 tonnes and a 18% jump on the previous month and 74% better than the period this time last year. Seven-month trade has hit 38,184 tonnes, up 75% on last year.

 

The Middle East region including seven customer countries was down a little last month at 2,154 tonnes, while seven-month trade has reached 14,769 tonnes, down about 1,000 tonnes on the previous year.

 

July represented the second month of trade in Australian beef into the United Kingdom following the activation of a new free trade agreement, which now sees exports arrive tariff-free.

 

While stocks were evidently run-down during May to take advantage of the tariff relief, trade during June and July was notably quiet. Just 304 tonnes of Australian beef was shipped in July – virtually all chilled, boneless. That followed trade of just 273 tonnes the month before.

 

- Beef Central