August 24, 2011

Australian beef exports to Chile show substantial increase

Australia's beef exports to Chile have increased by 247% in July, on-month, totalling 2,041 tonnes swt, in preparation for upcoming national day celebrations and to cater for limited South American supplies.  

Shipments from Australia to Chile during the first seven months of 2011 were also the highest on record, at 6,339 tonnes swt - up 157% on the same period in 2010. Shipments for 2011 are also 108% higher than during the seven months to July in 2008 - when total Australian exports for the calendar year reached a record 9,831 tonnes swt.

In 2011, the main cuts exported from Australia include thick flank/knuckle (36% of the total), blade (11%), topside/inside (11%), silverside/outside (10%) and chuck roll (7%).

During 2011, Chile has been experiencing economic conditions similar to those prior to the GFC, with stable domestic beef production (accounting for 50% of total domestic consumption) and tight supplies available from neighbours Argentina, Brazil and Paraguay. Additionally, growing disposable income among Chileans is increasing demand for higher priced proteins, notably beef.

Total Chilean beef imports for the first seven months of 2011 were down 9% on-year, to 62,739 tonnes swt, with average prices increasing 24%, to a record US$6,011/tonne. Tight supplies and dear Paraguayan beef was the main contributor to the decline, falling 26% year-on-year, to 34,825 tonnes swt - at an average price of US$6,133/tonne. Although shipments from Brazil and Argentina were slightly higher on-year, volumes were much lower when compared with mid-2000's levels.

While prices are expected to ease in early September, short supplies from the region are expected to result in higher year-on-year average prices for the remainder of 2011 and into 2012.