Australia-Beef exports booming.

AUSTRALIA-BEEF EXPORTS.

Australia-record beef exports in february.The lower A$ and strong manufacturing beef demand continues to attract more beef towards the export market, with a record volume of Australian beef shipped during February. Exports for the month were up 20% year-on-year, at 79,781 tonnes swt – exceeding the previous February record set in 2007 (Department of Agriculture, Forestry and Fisheries).

Underpinning the record shipments for February were sharp increases to the US, South East Asia, namely Indonesia, and Taiwan, while volumes to Japan for the month were similar to last year. The only major market to record a significant decline for February was Korea, which was back 20% year-on-year, at 8,432 tonnes swt – although this was almost double the volume sent during January (4,232 tonnes swt).

The lower A$ has made Australian beef more affordable in the US, enabling a 72% year-on-year rise in shipments, to 27,657 tonnes swt – the largest February total since 2002. For the first two months of 2009, Australian beef exports to the US were up 59% on the same period last year, at 43,276 tonnes swt.

With the US economy in recession, demand for Australian manufacturing beef remained strong, especially from the fast food sector, as US consumers look towards cheaper meal alternatives. Also assisting shipments to the US was the absence of competition for Australian beef from Russia and low demand from Korea.

Australian beef and veal exports to Japan during February totalled 29,800 tonnes swt – similar to the 29,933 tonnes swt for the same period last year. While recession conditions in Japan have had an impact on consumer demand and export prices, particularly for the dearer beef cuts, shipments have been maintained at relatively high levels, largely due to the lower A$ and steady supply. Exports to Japan for the first two months of 2009 were up 11% year-on-year, at 51,705 tonnes swt.

An unexpected highlight for February was a record monthly volume of beef to Indonesia, at 4,517 tonnes swt – smashing the previous monthly high of 3,762 tonnes swt set in April last year, and almost triple the volume shipped year-on-year. February also saw increased exports to the Philippines (up 65%), Singapore (up 5%) and Hong Kong (up 46%), while exports to Taiwan (2,088 tonnes swt) and China (379 tonnes swt) increase 87% and 92%, respectively, year-on-year.

Buying from Russia is yet to resume, after falling abruptly in October/November last year, following the global credit crisis – February saw only 457 tonnes swt of Australian beef shipped to the Commonwealth of Independent States (CIS), namely Russia.