Meat & Livestock Australia (MLA) released figures yesterday that Australia had exported a record tonnage for 2008 .
Exports for the past calendar year reached 957,479 tonne swt – up 2% from 2007 (941,400 tonnes swt) and surpassing the previous record high of 953,932 tonnes swt set in 2006 (Department of Agriculture, Fisheries and Forestry – DAFF)
The jump in shipments commenced in April, with increased supplies (after a low March quarter) and surge in demand from Russia.
The 30-40% decline in the A$ over the second half of the year proved to be a mixed blessing. It reduced the relative prices of Australian beef to key export markets but, together with the global financial crisis and deteriorating economic conditions, also disrupted trade.
Japan easily maintained its place as Australia’s largest beef export market in 2008, with exports falling 4% year-on-year, to 364,302 tonnes swt. Whilst exports for 2008 remained 10% below the record volume of 405,794 tonnes swt in 2006, it was still a very strong result given the low grainfed beef supply, higher A$ during the first half of the year and increased competition from the US later in the year.
Given the significant decline in the number of cattle on feed in Australia during 2008, grainfed shipments to Japan for 2008 declined 13% year-on-year, to 149,183 tonnes swt, making up 41% of total shipments – the lowest grainfed percentage since 2003.
Exports to the US for 2008 totalled 234,779 tonnes swt, down 23% year-on-year and the lowest level since 1997.
Exports to the US were very sluggish for the first nine-months of the year, falling 34% year-on-year, influenced by a stronger A$ and increased exports to Russia. However, the final three months of the year saw a sharp turnaround in exports to the US, as the fall in the A$ assisted a 23% jump in exports.
Increased competition from US beef in Korea during the second half of 2008 contributed to a 15% decline in Australian exports for the calendar year, to 127,207 tonnes swt. Australian beef and veal exports to Taiwan also declined 7% year-on-year, to 27,098 tonnes swt.
2008 saw Russia emerge as Australia’s fourth largest beef market, with the Commonwealth of Independent States (CIS – almost all to Russia), taking a record 72,035 tonnes swt. This was despite shipments almost ceasing over the final few months of 2008, due to payment and credit issues stemming from the global financial crisis.
A sharp fall in competition from Brazil was largely behind the surge in demand from Russia, South East Asia and the European Union in 2008. Shipments to Indonesia (33,019 tonnes swt), the Philippines (14,143 tonnes swt), Singapore (8,061 tonnes swt) and Malaysia (6,183 tonnes swt) increased 23%, 314%, 46% and 87%, respectively. Similarly, exports to European Union doubled in 2008, to a record 11,863 tonnes swt.
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