8 November 2010

2 minute read

Oceania

Exports of Australian beef to Russia surge to 38,436 tonnes as volumes to the US decline.

Exports of Australian beef to the Middle East up 58 per cent year to date. Opportunities for Australian beef in South East Asia and China as protein consumption grows.

Recent beef industry taskforce meetings reemphasised the need to grow new and emerging markets for beef in light of Australia’s traditional markets enduring a prolonged economic downturn.

MLA International Market and Economic Services General Manager Peter Barnard said there are positive signs in markets such as Russia, the Middle East, South East Asia and China at a time Australia’s mature markets are struggling.

“While our long-term customers in Japan and the US continue to face economic adversity and decreased consumer confidence, and competition increasing in Korea, emerging markets are experiencing growth. Conditions are ideal for us to ramp up our international marketing programs and capitalise on the opportunity to build and develop the profile of Australian beef in these markets,” said Dr Barnard.

Exports of Australian beef to Japan are down three per cent this year to date, due largely to the low US$ making US beef more competitive in that market. The weakening of the US$ against the A$ has also seen volumes of Australian beef to the US decrease by 25 per cent.

“Russia has imported more than 38,000 tonnes of Australian beef in the year to date – a significant proportion of the export volume normally sold to the US. This is not only due to currency but also reduced supplies from South America” he said.

In the Middle East, Australian exports have grown from 4,374 tonnes in 2007 to 15,753 tonnes in 2009. The trend has continued in 2010, with exports for the first ten months of 2010 to the Middle East rising 59 per cent, to over 19,000 tonnes. Within the region, the Gulf Co-operation Council (GCC), comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates, has undergone rapid economic growth due to high oil prices and increased demand for support services.

“In South East Asia and China, Australian beef exports to October 2010 are up by four per cent year on year, following a 35 per cent increase in 2009, with this export growth driven by demand in developing Asian markets such as Indonesia, China and the Philippines. Total population in this region is estimated at 1.9 billion – 27 per cent of the world’s total population – and with income growth comes increased consumption of proteins including beef.”

Dr Barnard noted that Australia is well positioned as a reputable, and in many cases a, long-term supplier across the region.

TheCattleSite News Desk