7 October 2009

1 minute read

Oceania

Australian beef and veal exports to Japan in September fell eight per cent year-on-year, to 27,734 tonnes sw. Trading was impacted by various factors, such as Japan’s recessive economy and sluggish consumer demand along with the rising Au$, and subsequent reduction in meat packing operations in Australia as exporter returns are squeezed.

Australia sent 13,314 tonnes of chilled beef (up eight per cent on last year) and 14,420 tonnes of frozen beef (down 20 per cent) to Japan during September, according to data from the Department of Agriculture, Fisheries and Forestry.

The increase in chilled items was assisted by soft export prices from Australia due to reduced competition from other markets. Chilled beef export prices to Japan in September were estimated to have been 10 per cent and 15 per cent lower than a year ago in US$ and AU$ terms, respectively. The relatively firm performance by the Japanese retail sector also contributed to the upward trend.

In contrast, frozen volumes to Japan remained subdued in September, compared with last year’s relatively high volumes (27 per cent above the five-year average). The slow performance of the foodservice sector – a volume user of Australian frozen beef – impacted demand, as well as Japanese buyers’ cautious buying behavior to avoid risks of overstocking.

TheCattleSite News Desk