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Competition Impacting Aussie Beef Trade with Japan

17 September 2013
Meat & Livestock Australia

AUSTRALIA - The decline in Australian beef exports to Japan during August illustrates the ongoing changing portfolio of the Australian beef trade, which is now increasingly influenced by demand from emerging markets, as well as the growing competition from the US in Japan.

Australian beef shipments to Japan during August were down 13 per cent year-on-year, to 24,761 tonnes swt – the lowest August volume since 2003. Chilled beef exports declined substantially (down 21 per cent , to 8,926 tonnes swt), on the back of increased brisket (shortplate) and chuck roll supplies from the US.

The fall in frozen beef exports was partially mitigated by an increase in manufacturing beef shipments (up 12 per cent , to 10,166 tonnes swt) – a product the US does not target into Japan.

Declines in key Australian cuts to Japan, such as brisket, chuck roll and hindquarter, were heavily influenced by the demand from China and Korea, reinforcing the growing demand for Australian beef outside of Japan. The influx of frozen shortplate from the US into Japan, and the US’ inability to trade beef with China, has also influenced the changing destinations for Australian brisket.

Total shipments to Japan during the first eight months of 2013 have amounted to 197,632 tonnes swt, 6 per cent below the same time last year.

TheCattleSite News Desk

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