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Australian beef exports up in 2009 19 Jun 2009

The value of Australia's beef and veal exports during the first four months of 2009 was up 14% year-on-year, as the benefit of the lower Australian dollar offset weaker export demand and beef prices due to the global economic slowdown.
Australian beef exports up in 2009
Exports in January to April were valued at A$1.47 billion – the second highest start to a year on record after 2007 (Global Trade Atlas).
 
The increased export returns have not translated into higher saleyard prices, with hides and co-product prices remaining subdued. Also, overall export demand remains somewhat sluggish, with recessions, tight credit, currency volatility and lower competition between key markets for Australian beef impacting beef prices, especially for more expensive cuts.
 
Japan remains Australia’s highest value beef export market, with returns up 9% for the first four months of the year, at A$635 million. While export volumes for the same period were back 1% year-on-year, the benefit of the lower A$ against the yen, averaging 33% lower in January to April, combined with improved supply and demand for chilled grainfed beef, offset the demand impacts from the recession in Japan.
 
The value of Australian beef and veal exports to the US jumped significantly during the first four months of 2009, up 68%, to A$400 million – the highest start to a year since 2003. Much of the increase in shipments was due to a 53% jump in volumes and the A$ averaging 26% lower year-on-year. However, somewhat masked by the significant overall rise in chilled beef volumes to the US so far in 2009 has been the decline in the average tonnage value of chilled beef, which was back 11% year-on-year, as the recession impacts demand, pressuring higher valued Prime and Choice beef prices lower.
 
In contrast to Japan and the US, the value of Australia’s beef and veal exports to Korea has contracted in 2009, with lower volumes and prices influenced by increased US imports, sluggish consumer demand and large beef stocks at the start of the year. The value of exports in January to April were back 35% year-on-year, to A$152 million – the lowest level since 2004.
 
With a 48% increase in beef volumes to Indonesia between January and April, export returns were up 81%, at a record A$51 million. Other markets to record year-on-year increased returns so far in 2009 include Canada, Taiwan, China, Hong Kong, Singapore and the Philippines.
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