Lamb exports to US hit record but beef volumes struggling

Australian beef exports are in sharp contrast to skyrocketing lamb volumes being driven by the recovery of the US from Covid-19. FULL DETAILS

Lamb export consignments from Australia to the US are strong.

Australian lamb exports have risen in the past month by 26 per cent on the five-year average, showing surging global demand for the quality red meat.

Total lamb exports have also lifted in the past financial year, up 1 per cent, and while a lift of 1 per cent “doesn’t sound like much, it is when you look at what is happening elsewhere”, according to Thomas Elder Markets analyst Matt Dalgleish.

The figure sat in stark contrast to the quantities of Australia’s beef exports, which have dropped abruptly in the past financial year, down 16 per cent. Mutton exports were also down, 15 per cent.

Much of the lift in the hunger for Australian lamb has come from the United States, Mr Dalgleish said, as the high-end food service trade rebounds strongly from Covid-19.

Life in the US is returning to normal thanks to vaccination rates of almost 70 per cent in the adult population.

Lamb export consignments from Australia to the US were the stellar performer in June, posting a 19 per cent gain on volumes from the May result to see 7842 tonnes shipped.

This is the largest monthly volume of Aussie lamb exports to the US on record.

According to the latest Department of Agriculture figures, Australia exported 908,000 tonnes of beef in 2020-21; 264,000 tonnes of lamb and 132,000 tonnes of mutton.

The lamb lift was also thanks to “robust demand in China”, and the fact that Australia was the main global exporter of sheepmeat.

The dip in beef exports was attributed to the drought, herd rebuilding and high domestic pricing, making our beef extra dear on the international market.

The trade tensions with China had also led to a downturn in exports of Australian beef to that destination, at a time when the US competition in that market was ramping up following former President Trump’s trade deal.

“That deal has lead to a significant increase in flow (of beef exports) from the US into China,” Mr Dalgleish said.

“We were seeing a greater penetration of our beef into China, but there is now a risk that we will not be in the position to make the most of that opportunity, with greater competition from the US.

“It is really a broader trade issue, but we are seeing that opportunity eroding somewhat.

“Tight supplies here and our high prices have not helped.”

However, despite the decrease in beef export volumes, Mr Dalgleish said it was unlikely this would have a considerable impact on saleyard prices “this season and potentially, also into next year”.

“Given the lower slaughter Meat and Livestock Australia have forecast there should not be a huge dent in prices for a year or two, until we rebuild numbers.”

MLA last week reported the Eastern states slaughter reached its highest level for 2021 so far, at 105,921, with yardings rebounding after a month of decline. Cow slaughter numbers lifted 37 per cent.

MORE

CLIMATE SAVY PRODUCERS TO HIT PAY DAY

METHANE-CUTTING SEAWEED UNDER FIRE

REAL PROFITABILITY OF CATTLE FARMING REVEALED