December 7, 2007

Tight entries for US beef imports

Beef in-quota imports to the US from their three biggest supplier countries have been slightly down in the calendar year to 19 November 2007.

Uruguay was the only large importer to register increased volumes, with in-quota entries of 16,533 tonnes, year-to-date, 8 percent better than the same period in 2006 and with 82.7 percent of its quota filled. Uruguay has also had out of quota entries of almost 98,000 tonnes over the same period.

Imports of Australia beef have totalled 244, 030 tonnes, 1 percent lower that 2006 with only 61.3 percent of its quota filled. Beef imports from New Zealand were 150,072 tonnes, 8 percent lower than 2006, with 70.3 percent of their quota filled. Imports of Canadian beef year-to-date for 2007 were 233,688, 6 percent lower than the same period 2006. Due to the North American free trade agreement, Canada is not subject to a quota.

The last quarter has seen imports subdued, with weak demand and both Australia's and New Zealand's currency appreciating against the greenback. Also, competition from Uruguay strengthened as it switched its focus back on the US market, with Brazil making further inroads into its EU and Russian markets. Demand overall has been flat in the manufacturing market with E.coli, rising fuel costs and low consumer confidence playing a part.

Australia remains the largest supplier of imported beef to the US. However, with the impact of the Canadian border opening to older cattle and beef yet to be felt, this could change significantly going into 2008.