February Boasts Record Volumes of Beef Exports

AUSTRALIA - Beef and lamb exports posted record volumes in February due to the combination of a lower A$, strong manufacturing beef demand and US and Middle East lamb demand.

6 March 2009

2 minute read

Oceania

According to Meat and Livestock Australia (MLA), beef exports for the month were up 20 per cent year-on-year, at 79,781 tonnes swt – exceeding the previous February record set in 2007 (Department of Agriculture, Forestry and Fisheries, DAFF).

Meanwhile lamb exports lifted 15 per cent year-on-year, to 15,540 tonnes swt – also the highest February volume on record (DAFF), supported by higher lamb slaughter across the southern states during the month.

Underpinning the record beef shipments for February were sharp increases to the US, South East Asia, principally Indonesia, and Taiwan, while volumes to Japan for the month were similar to last year.

The lower A$ has made Australian beef more affordable in the US, enabling a 72 per cent year-on-year rise in shipments, to 27,657 tonnes swt – the largest February total since 2002.

For the first two months of 2009, Australian beef exports to the US were up 59 per cent on the same period last year, at 43,276 tonnes swt.

With the US economy in recession, demand for Australian manufacturing beef remained strong, especially from the fast food sector, as US consumers look towards cheaper meal alternatives.

An unexpected highlight for February was a record monthly volume of beef to Indonesia, at 4,517 tonnes swt – smashing the previous monthly high of 3,762 tonnes swt set in April last year, and almost triple the volume shipped year-on-year.

The only major market to record a significant decline for February was Korea, which was back 20 per cent year-on-year, at 8,432 tonnes swt – although this was almost double the volume sent during January (4,232 tonnes swt).

Driving the lamb export increase for the month was a 37 per cent jump in shipments to the US, to 4,700 tonnes swt – the second highest monthly volume on record behind October 2007.

While credit remains tight in the US, the lower A$ helped to boost export sales for the peak Easter demand period in the US. Demand for Australian lamb in the Middle East continued at pace during February, and was also bolstered by low stocks in the market.

Shipments to the region increased 38 per cent year-on-year, to 2,370 tonnes swt, with exports to Jordan increasing seven-fold, to 910 tonnes swt.

Lamb demand out of Dubai remained firm despite some easing in the tourism sector due to the global economic turmoil, with lamb exports during the month increasing two per cent year-on-year, to 740 tonnes swt.

The only key market in the region to record a fall in shipments was Saudi Arabia, where volumes declined 59 per cent year-on-year, to 179 tonnes swt.