Beef export doldrums

Livestock | 5th October 2020 | By Matt Dalgleish

The Snapshot

  • Trade figures for September show continued pressure on beef export markets with volumes slipping a further 7% from the August levels.
  • After six months of declining volumes Japan registered a 4% gain in volumes during September to see 20,500 tonnes swt consigned.
  • Australian beef exports to China continue to ease with an 11% decline posted for September to see 10,387 tonnes shipped.
  • In terms of market share of Australian beef exports China has slipped from second place to third place at just under 20%. USA has regained the second spot at nearly 22% of Australian beef export flows.

The Detail

The Department of Agriculture, Water and Environment (DAWE) trade figures for September show continued pressure on beef export markets with volumes slipping a further 7% from the August levels, down to 72,619 tonnes swt.

This represents a level 20,000 tonnes below the average September seasonal pattern, which is 21% under the five-year trend for this time in the year. A stark contrast from the 105,373 tonnes traded for September 2019.

In terms of key export destinations for Australian beef, Japan holds the number one position in market share during 2020 at 25%. After six months of declining volumes Japan registered a 4% gain in volumes during September to see 20,500 tonnes swt consigned.

While it is a positive signal to see some signs of recovery in Japanese beef demand from Australia the September volumes still represent levels 11% under the seasonal five-year trend.

Australian beef exports to China continue to ease with an 11% decline posted for September to see 10,387 tonnes shipped. Compared to the 2019 season, current flows of Australian beef to China are running 22% below the cumulative January to September volumes from last year.

In terms of market share of Australian beef exports China has slipped from second place to third place at just under 20%. USA has regained the second spot at nearly 22% of Australian beef export flows.

The USA managed to outperform China in market share despite registering a 16% easing in volumes from August to September with 15,826 tonnes swt of beef shipped from Australia. This represents a level 24% below the five-year average trend for the September period.

Tags

  • Beef
  • Cattle
  • Exports