Chinese meat exports strong despite overall softening
Despite the enduring volatility of the coronavirus outbreak, Australian meat exports into the key markets of China and the US remain relatively stable.
AUSTRALIAN red meat exports last month dropped almost 6 per cent compared with the same time last year.
But despite the enduring volatility of the coronavirus outbreak, Australian exports into the key markets of China and the US remained relatively stable.
According to recent data from the Department of Agriculture, Australian red meat exports for June totalled 874,916 tonnes, a drop of almost 6 per cent compared with the 930,751 tonnes in June last year.
Thomas Elders Markets analyst Matt Dalgleish said while beef exports eased in June and were tracking below seasonal average trends, exports were still “within the normal ranges”.
“It’s notable China dipped in June, albeit from high levels, while Japan softened, which could be due to their move back into a lockdown phase that has impacted their food service sector there,” Mr Dalgleish said.
Exports into China last month reached 178,628 tonnes, a 4.3 per cent drop on the 186,813 tonnes exports in June 2019.
The US – another key market for Australia – imported 162,087 tonnes of Australian red meat last month, a mere 1.3 per cent decline on the 164,234 tonnes imported same time last year.
The US was the top destination for Australian beef exports last month at 26,000 tonnes, a 30 per cent lift compared to June 2019.
But total Australian beef exports into the US were down 7 per cent compared with the first six months of 2019.
“The US is on the mend,” Mr Dalgleish said.
“And they are taking more from Australia probably due to their meat works shutdowns in April.
“They needed to source more from imports.”
The total volume of sheep meat exports were also trending down, according to Mr Dalgleish.
“It’s probably more reflective of the tight local supply than issues with demand,” he said.
“The US had a very strong start to 2019 … but recent volumes are on the upper end of a normal seasonal range.
“China saw a COVID-19 dip in February, but other than that it has been tracking above the average trend,” Mr Dalgleish said.
“The real issue is with mutton, and Middle Eastern demand being lower.”
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