October 4, 2004

Jump In Australian Live Cattle Exports

The value of Australian live cattle exports for August rose 38 percent to A$45 million compared with the same month in 2003. This figure is the highest August value on record, according to figures released by the Australian Bureau of Statistics.

"The increased export value was in spite of the number of cattle exported for the month falling 10% on last year to 56,630 head, the lowest August total since 1998," Meat and Livestock Australia added.

The record August export value can be primarily attributed to increased exports of highly valued dairy cows to China, which are used for breeding purposes, MLA said. In August, 9,000 Australian cattle were shipped to China, worth A$18 million -- an average of A$1,993 per head -- compared to the same period last year when no cattle where sent to China. So far this year, there has been an overall reduction in demand for Australian live cattle.

Shipments for the first eight months of 2004 have fallen 20 percent compared with the same period last year, reaching a record low 423,041 head. Much of the decline in exports can be attributed to the effects of a stronger Australian dollar, which has made Australian cattle more expensive in many Southeast Asian markets.

Another contributing factor to the decline in exports has been the increased competition from less expensive protein sources such as Indian buffalo, particularly in Australia's three largest markets - Indonesia, the Philippines, and Malaysia.

The largest fall in live cattle exports for the month was to Malaysia, which dropped 90 percent to only 830 head compared with last year. Other markets in which exports fell significantly include the Philippines (9,200 head) and Indonesia (29,899 head), with shipments falling 11 and 4 percent, respectively.

On a more positive note, MLA said recently released figures from Japan's Ministry of Finance have revealed that Australia continues to be the main source of Japan's beef imports. In August, Japan imported 40,762 metric tons of beef, of which 37,425 tons -- or 92 percent -- was sourced from Australia.