Australia-Record meat sales to Middle East.

AUSTRALIA-RECORD MEAT SALES TO THE MIDDLE EAST.

The Middle East and Africa region continues to order increased volumes of Australian red meat, despite decreased oil revenue, the repatriation of subcontinental workers, and a downturn in construction activity.

March lamb volumes totalled 3,579 tonnes swt, up 62pc on March 2008 and 19pc on March 2007.

UAE remains the major market in the region for Australian lamb with a 22pc increase in exports to 1,133 tonnes swt in March.

However, the stellar performer was Jordan at 1,105 tonnes, 475pc higher than last year’s. While the Jordanian market has grown strongly over recent years, some of this growth is believed to be attributed to product destined for re-export into other regional markets.

A ten fold increase in volumes during March was seen in Kuwait due to the same reason.

With beef, Australian exports also saw substantial growth in March to the Middle East and Africa, up 29pc on March 2008 to 1,025 tonnes swt.

There has been a change in the product composition towards butt cuts: topside, knuckle and rump, at the expense of the premium cuts such as tenderloin, and to a lesser extent striploin.

This trend has been evident in the retail sector and at mid-tier restaurants and buffets.

The competitive value delivered by Australian product with the decline in the $A compared to competitors has also assisted sales throughout the region.

Offal has also seen dramatic growth over the month with 1,082 tonnes swt exported, an increase of 24pc on March 2008. Shipments were primarily made up of livers and kidneys.

This market is dominated by Saudi Arabia, but the last two years have seen increased volumes to the UAE, from 82 tonnes swt in March 2007 to 155 tonnes swt in March 2009.

With mutton, volumes to the region reached 5,789 tonnes swt in March, 2pc up on March 2008.

Saudi Arabia remains the major destination within the region, and saw an increase of 34pc on March last year, following on from a strong February.

UAE is suffering from the slowdown in construction and the expatriation of the sub-continental workforce.

However, it did witness an increase in imports in March to finish the month at 1,215 tonnes swt, which again has been attributed to demand from re-export markets.

Supply from a diminishing Australian flock will continue to restrain exports of this product, with Saudi buyers reported to be seeking supply from South American suppliers to make up the shortfall.