Analysis Cattle & Beef
Beef export Australia heading towards record
The Australian beef export continues to rise, but seems to have reached its peak for now. The United States remains the largest export market, but exports to Japan are also increasing. However, exports to South Korea are decreasing and are likely to remain so.
In Australia, the supply of beef remains ample, allowing the country to maintain its export at a high level. According to the most recent data, the country exported 16% more in September than the previous year. The total export volume for that month was 114,000 tons. However, exports decreased by 6% compared to August. This is not entirely surprising, as market analysts believe. In July and August, exports were exceptionally high.
In the first nine months of the year, exports were 25% higher than in the same period the previous year. The total export reached over 967,000 tons. Market expectations are that total exports this year will reach around 1.36 million tons. If this prediction comes true, it will significantly surpass the previous record of 1.23 million tons.
High US exports remain dominant
Once again, the United States was the main export destination. The total export to the country was over 37,000 tons, an increase of 52% compared to September 2023. Normally, the United States barely imports beef, but the country itself is one of the world's largest exporters.
This year, beef production in the United States is facing challenges, resulting in significantly higher beef imports than in previous years. This is due to drought in the main production areas, leading to the lowest livestock numbers since 1951. The demand for trimmings, in particular, is greater than the supply. In the first nine months of the year, the country exported 272,000 tons of beef to the US, an increase of 67%. Market expectations are that high exports will continue. The drought in the United States is not expected to ease anytime soon.
Asian exports also on the rise
Asian exports are also high. Exports to Japan increased to 17,100 tons in September, a 5% increase from the previous year. However, exports were 13% lower than in August. In the first 9 months of the year, Australia exported 197,000 tons, a 28% increase from the same period the previous year.
On the other hand, exports to China decreased by 15% to 16,000 tons. However, exports increased by 7% compared to August. Throughout the year, exports to the Asian country have been disappointing. Exports in the first 9 months of 2024 were 10% lower than the previous year. The total export for this period was 137,500 tons.
South Korea exports decline
It is noteworthy that exports to South Korea have decreased by 4%. The total export is just under 16,000 tons. Earlier, exports to the country were growing. Throughout the year, Australia exported 143,000 tons of beef to the Asian country, which is 4% more than in the same month the previous year. It may not be surprising if exports to the country remain lower than the rest of the year. Australia has nearly fulfilled the quota for tariff-free trade between the two countries.
