September 10, 2009

Australia exported 29,645 tonnes swt of beef to Japan in August, up one percent on-year, but three-percent below the five-year average due to the market's subdued economy and cautious buying behaviour of Japanese importers.

Australian exporters were caught in between the strengthening Australian dollar and sluggish Japanese demand in August.

Though the Australian dollar has increased, export prices to Japan in US dollar terms weakened in most categories during August. But the downward price trend failed to boost volumes as buyers bought on a hand-to-mouth basis to avoid overstocking.

Chilled beef exports in August were nine-percent higher than a year ago at 13,178 tonnes, helped by the low export prices and consistent demand from the Japanese retail sector.

In contrast, frozen shipments declined four percent from last year to 16,467 tonnes, reflecting slow sales in the foodservice sector, excluding fast food businesses.