November 18, 2015

Aussie beef exports to reach record high

Australia's beef exports this year is expected to reach record high, surpassing the A$7.79 billion (US$5.5 billion) reported in 2014.

Exports in the nine months through September already reached A$6.98 billion (US$5 billion).

Australian Agriculture and Water Resources Minister Barnaby Joyce, who was visiting Tokyo, said Tuesday, Nov. 17, that Japan, which imports 60% of its beef consumption, was competing with the US for Australian beef. The number of cows raised in the US has reportedly decreased due to droughts in major beef-producing regions including Texas.

Australia's beef exports to Japan alone increased 21% to A$1.3 billion (US$924,000), although in terms of volume they remained flat at 210,000 tonnes.

On the other hand, Australia's beef exports to the US during the first nine months rose 65% year-on-year to A$2.4 billion (US$1.7 billion). In terms of volume, Australian beef exports to the US in the period grew 24% to 340,000 tonnes.

Australia is the world's third-largest beef exporter with demand for the product rising. As a consequence, the price of Australian beef has swelled by nearly 70% in the past two years to over A$3 (US$2.13) per kilogramme from around A$1.8 (US$1.3).

Several Japanese companies including NH Foods have set up operations in Australia and much of the exports from the country are from these companies, according to Joyce.

Joyce said this arrangement benefits both Japanese and Australian businesses.