Beef exports slump due to Australien dollar

by Editor
Wednesday, July 09, 2008

Beef and veal exports fell 4.5 percent in 2007-08. That means a fall to 930,319 tonnes from the record in 2006-07. This development is reflecting a fall in beef supplies and the higher Australian dollar, according to Meat and Livestock Australia.

MLA is reporting that beef exports to the US in 2007-08 fell 21 percent to only 240,000 tonnes, the lowest for 10 years.

It says this reflected the low US dollar, sluggish consumer demand and better prices in other markets.

Similarly, the ongoing threat of a US return, a higher Aussie dollar and fall in grainfed product availability saw a 9 percent fall in shipments to Japan (365,310 t) and 7 percent decline to Korea (146,000 t).

In contrast, demand was buoyant across a range of secondary markets, led by Russia.

Exports to the Commonwealth of Independent States (almost all to Russia) hit a record 45,584 t, up from only 8000 t the previous year, MLA says.

This was due to growing demand, falling local and EU supplies and a sharp easing in competition from Brazil and Argentina.

These factors also explain an 80 percent jump in exports to our main South East Asian destinations of Indonesia, Singapore and the Philippines (47,517 t), a 63 percent rise to China and Hong Kong (5136 t) and 28pc rise to the EU (9265 t).

In the month of June, beef and veal exports fell 13 percent from the record quantity sent in May, due principally to lower beef supplies.

At 81,861t, MLA says exports were still 8 percent higher than June 2007 and 1 percent above the five-year average.