October 13, 2004

Australia Increases Beef Exports To US

Australia exported 80,076 metric tons of beef in September. The figure is up 12 percent (8,594 tons) compared with the same period last year, according to Meat and Livestock Australia.

MLA said this is the second highest September total on record, behind 1994. More than 91 percent of beef exported was destined for Japan, the United States, or Korea. The US was the single largest destination for Australian beef exports in September at 36,733 metric tons -- 6 percent higher than last year and a record for September. However, MLA added that Japan accounted for the majority of the year-on-year increase in exports, up 26 percent (6,478 metric tons) from last year to 31,120 tons -- also a record for September.

Strong demand in Japan for Australian beef and relatively high prices continue to make Japan a lucrative market for Australian beef exports. Exports to Korea also rose, gaining 44 per cent from last year to 5,461 metric tons.

While exporter returns from beef exported to Japan have been high, shipments to the US have risen considerably in the past two months, as Australian exporters use the remainder of their annual US beef quota entitlements.

Australia has a 378,214-metric ton beef quota to the US, allocated to Australian beef exporters by the Australian government. The quota allocation received by each exporter is calculated using a formula based on individual beef export performance to the United States and the world on a three-year moving average.