Beef export values down significantly
According to figures released by the Australian Bureau of Statistics, the value of Australian beef exports during September fell 21% compared with the same period last year, to $A352.3 million. The decline in value was largely driven by a fall in the volume shipped during the month, due to high cattle prices and reduced production in Australia during September. Total export values to the US and Japan – Australia's two main markets – fell considerably, while export values to Korea significantly increased.
Australian beef export values to the US during September declined 49% on last year, to $A95.6 million. The value of frozen exports, typically the lower value manufacturing cuts, TRIM fell by a greater extent than the chilled exports, with weaker foodservice demand in the US decreasing the chilled returns. In addition, the recent removal of the quota management system to the US has reduced the incentive for exporters to fill their US beef quotas before the end of the year.
With trade to Japan quiet during September, the value of beef exports eased 17%, to A$154.7 million. Uncertainty surrounding the re-entry of US beef exports contributed to the reduced volumes shipped, as importers resisted purchasing Australian beef. Offer prices from Japanese buyers were significantly lower than both in previous months and than year ago levels.
Beef export values increased significantly to Korea during September, surging 57%, to $A54.5 million. Volumes shipped for the month also increased considerably, as product was redirected from the Japanese market.
Australian beef exports for the first nine months of 2005 are valued at A$3.480 billion, a 4% increase on the same period last year.