August 27, 2004

Australian Beef Faces Tough Competition In Taiwan

Australia's beef trade to Taiwan declined over the first five months of 2004. Imports of Australian beef fell 4% to 12,808 tons between January and May compared to year ago levels. The decline was attributed to strong competition from New Zealand, in addition to limited Australian supplies and higher saleyard prices due to strong export demand.

In the calendar year to May, Taiwan imported 28,372 tons of beef, of which 45% was from Australia, 52% from New Zealand and 3% from other suppliers.  However, beef imports from Australia in April and May were slightly higher than imports from New Zealand.  During 2004, New Zealand has continued to expand its chilled beef volumes, a trade traditionally dominated by the US.

A recent United States Department of Agriculture report estimates that beef consumption in Taiwan will ease by 17% to 63,200 tons for 2004. This is due primarily to the US beef ban.  The report also forecasts that if the market remains closed to the US next year, consumption in Taiwan for 2005 will rise slightly to 64,700 tons as New Zealand and Australia continue to replace US products.