Business as usual despite FMD threat

FMD may have spooked producers in Australia but our overseas customers for red meat are buying just as much as they always have.

The threat of foot and mouth disease has failed to hurt Australian red meat exports to date despite a fall in July, analysts say.

While the 74,949 tonnes of beef exported in July were down 6000 tonnes year-on-year, or about 7 per cent, Meat and Livestock Australia manager for market insights Dr Vereena Rooney said fluctuations were not uncommon throughout the year.

“Australia does not have FMD and as such there has been no FMD associated impact on exports,” Dr Rooney said.

Workers in boning and packing rooms have kept busy with the steady stream of exports.

“Both May and June 2022 beef exports increased compared to 2021 figures, at 79,995 tonnes (up 5 per cent year on year) and 79,554 tonnes (up 8 per cent year on year) respectively.”

Dr Rooney said mutton exports for July this year were up 21 per cent compared to last year at 8446 tonnes.

“(July exports are) continuing a strong year for mutton exports which year to date are 76,222 tonnes, an increase of 9 per cent on 2021,” she said.

Lamb exports for July 2022 were steady at 25,178 tonnes but year to date, are 160,810 tonnes, which is a 2 per cent increase over a similar time frame last year.

And while talk of FMD may have spooked markets, the dip in values could have an upside in exports.

Dr Rooney said constrained livestock supply had been a driver for strong cattle and sheep prices which ultimately flowed through into export prices.

“In addition, as a high quality product, exported Australian red meat is often targeting premium market segments, and commanding premium pricing,” she said.

“Recent falls in Australian dollar valuation will make Australian red meat more affordable, therefore increasing our competitiveness relative to some other suppliers in the international market.”

Dr Rooney said producers could be reassured that it was business as usual for meat exporters, albeit with the constraints of finding labour and containers.

“The outlook for Australian red meat remains positive, with continuing strong demand based on the consistent quality, safety and nutrition that Australian beef, sheepmeat and goat meat is known to offer our international customers,” she said.