Australian beef exports in July totaled just under 93,000 metric tons shipped weight (swt)—a 9 percent increase year-on-year. While the rise was off a low base from year-ago levels, this marks the first year-on-year increase in Australian beef exports in 24 months, according to Meat & Livestock Australia (MLA).
Calendar year-to-date beef exports now stand at 566,000 metric tons swt, a decline of 8 percent compared to the first seven months of 2016. However, in MLA’s latest cattle projections (http://tinyurl.com/MLA-Cattle), an upwards revision to the Australian production forecast for 2017, underpinned by increased eastern states cattle slaughter and heavier average carcass weights, should see beef exports match the 1.02 million metric tons swt last year.
Export summary
Japan continues to uphold its position as Australia’s largest export market (in volume terms). Beef shipments to Japan totaled 27,000 metric tons swt in July—up 12 percent from year-ago levels. High domestic Wagyu prices and excellent seasonal conditions in Japan have supported the demand for imported beef.
Furthermore, Australia looks well-positioned to benefit from the recent trigger of the Japanese imported frozen beef quota. The U.S., Australia’s key competitor in supplying the Japanese market, will attract a 50 percent tariff on frozen beef exported to Japan until March 2018. Australia is sheltered from the tariff increase under the Japan Australia Economic Partnership Agreement (JAEPA).
Shipments to the U.S. in July were up 19 percent year-on-year, at just over 23,000 metric tons swt. The rise was despite Australian exports to the U.S. being challenged by a number of factors including rising U.S. beef production and a stronger Australian dollar.
Exports to Korea remained relatively unchanged year-on-year, at 14,000 metric tons swt. Calendar year-to-July exports are back 18 percent year-on-year, at 81,000 metric tons swt, largely due increasing U.S. presence. However, the long-term prospects for this market are forecast to remain strong.
Beef exports to China increased 10 percent year-on-year, to almost 9,000 metric tons swt. Demand for Australian beef—particularly high quality grass-fed product—remains strong in China, however the presence of lower-value Brazilian product continues to be a challenge. For the calendar year-to-July, volumes to China were 8 percent higher, at 60,000 metric tons swt.
In other markets in July, exports to Indonesia increased 15 percent year-on-year, to 5,300 metric tons swt. Shipments to the EU (1,500 metric tons swt) and Taiwan (2,800 metric tons swt) fell 2 percent and 6 percent year-on-year, respectively. — MLA
