Australia-beef exports slow down.

RUSSIAN TRADE AT A STANDSTILL.

Exporters face continued problems with credit and stocks and fear of even weaker demand for beef.

"These problems and the resultant absence of substantive buying from South Korea and Russia continue to delay the anticipated lift in sales and prices of Australian beef arising from the competitive Australian dollar," MLA said in its weekly market review.

South Korea and Russia were the third- and fourth-largest export markets for Australian beef in 2008, after Japan and the US Australia is the second largest beef exporter after Brazil , in an annual trade worth about A$4.5 billion a year.

MLA said any timing for the resumption of buying by South Korea and Russia , and an associated lift in prices from Japan and the US, remain uncertain, but could still commence by March or April.

In the face of searing temperatures, pastures in southern Australian cattle districts are drying out and starting to deteriorate, prompting producers to sell their beasts and grab the money on offer now for fear of prices falling further, it said.

A national indicator price for trade steers of 330-400 kilograms slipped 16 cents, or 4.9 per cent, to A$3.13 a kilogram carcass weight, while an indicator price for Japanese ox-grade of 500-600 kg fell 8 cents, or 2.6 per cent, to $2.98/kg, MLA reported.

It didn’t provide any export data, which typically is issued monthly by the government.

As previously reported, beef exports to South Korea fell 32 per cent on month and 44 per cent on year in December to 9,412 metric tonnes. Total exports to South Korea fell 15 per cent in 2008 to 127,206 tonnes.

Exports to Russia in December remained low at 267 tonnes, but contributed to total exports in 2008 of 72,214 tonnes, up 14-fold from the previous year.

Australian beef exports to Russia boomed from April as Russia diversified its sources of purchase, but then withered as the impact of the global financial crisis crushed the trade.