August 8, 2011

Australian beef exports to the US fall 9% on-year

Australia's July beef shipments to the US declined on-year for the 12th consecutive month, and even eased 9% on the previous month, to 15,733 tonnes swt.

Over the past 12 months, the decline in manufacturing beef exports has contributed to 73% of the overall export volume decline to the US, as the strong Australian dollar and competition from other markets impacts on trading conditions in the US.

A beef cut resilient to the overall declining export trend to the US has been thin flank. Over the past two years, thin flank exports each month have averaged a 6% increase year-on-year.

Imported beef values in the US this week were relatively steady on week ago levels, with the imported 90CL cow beef indicator remaining unchanged at US$1.88/lb CIF. A slight depreciation in the Australian dollar helped to lift the value back to Australian exporters.

While in US dollar terms the imported 90CL cow beef indicator is currently 17% above year ago levels, in Australian dollar terms it is 1% above 2010 levels.