NewsBite

New high set in July as major beef markets dominate

Beef exports have hit a new high as bigger carcass weights and strong international demand impact numbers. See the latest figures – and who our biggest customers are.

'Strength to strength': Agriculture Minister touts Australian food production industry

Beef exports hit a record monthly high in July as bigger carcass weights and strong international demand impact Australian numbers.

The 129,998 tonnes exported last month are 5 per cent higher than the previous record set in March 2015.

And they are significantly up on the same month last year (34 per cent) and 22 per cent higher than June.

The United States was Australia’s biggest export customer, up 61 per cent year-on-year and taking 30 per cent of all beef.

And while the US led the way, Japan’s intake of 26,297 tonnes put it in second place, where that nation imported 48 per cent more beef this year compared to last.

Korea came in at third place with 20,331 tonnes, up 20 per cent year-on-year.

The only major market to take less than last year was China, where exports of 16,249 tonnes were down 3 per cent.

Grass-fed beef exports were the highest since June 2015, with 93,022 tonnes shipped while grain-fed exports were the highest on record at 36,986 tonnes.

And exports rose whether they were chilled or frozen, with both categories the highest on record.

Meat and Livestock Australia global analyst Tim Jackson said long running trends seen in the US, where cattle numbers were falling, were “meaningfully affecting Australian export volumes and distribution”.

“Slowing US production means that the US has less beef for domestic consumption, but also less beef available for export,” Mr Jackson said.

“Lower US exports created space in the market for Australian product.”

Currency movements have played a hand in the increased export numbers.

“The Australian dollar (lower) certainly had an effect – in particular, it’s made Australian beef much more competitive in the US,” Mr Jackson said.

“But that has more bearing on the distribution of exports, rather than the total amount.”

In its global beef market update, MLA said there was likely to be a surplus of beef from South America which would also come into play.

Slaughter rates had lifted in Brazil and Argentina due to drought, and 70 per cent of South American beef usually goes to China.

“The sluggish pace of imports in the Chinese market has depressed South American export pricing, and reduced processor profitability as cattle supply rises,” the report said.

“This has led to a diversification in export markets, as South American exporters tap price-sensitive markets.”

China remains the world’s largest beef importer so any decrease in its take could affect global beef prices.

“If export volumes into China begin to materially decline, it would accelerate the diversification of South American exports further and likely put considerable pressure on cattle prices,” the report said.

Add your comment to this story

To join the conversation, please Don't have an account? Register

Join the conversation, you are commenting as Logout

Original URL: https://www.weeklytimesnow.com.au/livestock/new-high-set-in-july-as-major-beef-markets-dominate/news-story/c32b16c90e451301ad0e5b867fd7b6d4