Australian beef export volumes low

Australian beef exports are at their lowest for a decade. But this month could see low volumes again, as supply chain issues continue to unkink.

Beef exports last month were at their lowest for more than a decade.

Just 43,362 tonnes of beef was exported from Australia in January, according to the latest export figures from the Department of Agriculture, which is 13 per cent lower than last year and 30 per cent below the five-year average.

It’s also the lowest January volume since 2011.

Thomas Elder Markets analyst Matt Dalgleish said this was reflective of the high global price for Australian beef cattle and the continuing tight domestic supply scenario.

Low throughput as meat processors struggled to deal with the latest wave of Covid-19 infections also had an impact.

But, lower export volumes may continue into February, as the supply pipeline works itself out post processors coming back online fully.

“I suspect there might be more impact in February from the processor issue, as there is a wholesale chain and there would have been cold stores in the pipeline pre-Christmas, so lower volumes might spill over into February,” Mr Dalgleish said.

The low volume wasn’t directed at any one market, all were affected, with Japan the only destination to take more than 10,000 tonnes.

According to Mr Dalgleish Australian beef exports to Japan recorded the lowest monthly figure since January 2002 with 10,214 tonnes shipped. This is down 19 per cent on last January and 37 per cent below the five-year average.

The second biggest destination for the month was South Korea, which increased its volume by 10 per cent on last year to 9288 tonnes.

China was the third largest destination last month, taking 8780 tonnes — 4 per cent lower than last January and 21 per cent below the five-year average. This is despite more bans being placed on Australian abattoirs for export into China.

“China’s volume was a pleasant surprise, it is under the average, but when you consider the bans on abattoirs it is still a relatively good amount,” Mr Dalgleish said.

There was only 6758 tonnes of beef shipped to the US, also 4 per cent lower than last year and 44 per cent below the five-year average.

It comes as Meat and Livestock Australia is forecasting an increase in export volumes this year, in its latest cattle industry projections.

MLA predicts beef exports to total 1.06 million tonnes for the year.

MLA market information manager Stephen Bignell said following a challenging 2021 for export markets, Australian beef will enter a significant high-value export market when the Australia-UK Free Trade Agreement comes into effect later this year.

“As many countries continue to recover from the pandemic, demand for Australian beef is expected to grow in line with improving supply of cattle from the second half of 2022,” he said.