Gang of four all show gains

Livestock | 5th October 2021 | By Matt Dalgleish

The Snapshot

  • September 2021 beef exports volumes lifted by 3.5% to 79,843 tonnes as increased flows to Japan, South Korea, China and the USA supported the total trade volumes.
  • Japan remains the standout destination for Australian beef product in 2021 with consignments here consisting of 26.9% of the market share of the beef trade out of Australia this year.
  • The battle for second place is rather hotly contested with South Korea on 17.7%, China at 16.5% and the USA recording 16.3% of the total trade.
  • During September Australian beef consignments to Japan increased nearly 5%, meanwhile beef exports to South Korea gained nearly 6%.
  • Chinese demand for Aussie beef exports lifted 4% from the August levels and flows to the USA managed a fraction over a 12% increase on the month.

The Detail

The latest release of the Department of Agriculture, Water and Environment (DAWE) beef export data hit today for the month of September and it shows some improvements to trade volumes to all of the top four trade destinations.

September 2021 beef exports volumes lifted by 3.5% to 79,843 tonnes as increased flows to Japan, South Korea, China and the USA supported the total trade volumes. For the first time this year monthly volumes outperformed the 2020 season with levels sitting 10% ahead of the levels seen this time last season. Despite the improved beef flows, total export volumes are still running 8% under the five-year average levels recorded for September.

Japan remains the standout destination for Australian beef product in 2021 with consignments here consisting of 26.9% of the market share of the beef trade out of Australia this year. The battle for second place is rather hotly contested with South Korea on 17.7%, China at 16.5% and the USA recording 16.3% of the total trade.

During September Australian beef consignments to Japan increased nearly 5% on the prior month to hit 21,435 tonnes swt. This is the third highest monthly flows seen this year to Japan and levels sit just 4% under the five-year average seasonal pattern for September.

Beef exports to South Korea gained nearly 6% during September to record 13,639 tonnes swt for the month. Mirroring the Japanese experience this is the third highest monthly flows seen during 2021 and beef exports to South Korea are bang on the five-year average seasonal trend.

Chinese demand for Aussie beef exports lifted 4% from the August levels to hit 12,435 tonnes swt in September. It must be something in the foreign water in September as this is also the third highest monthly flows seen this season. Beef volumes from Australia to China are currently running just 8% below the seasonal trend for September, according to the five-year average pattern which is a remarkable effort given the trade tensions seen this year and the beef export restrictions that still hover over some of the Aussie beef export participants.

Australian beef flows to the USA have had their strongest month so far this season with 15,237 tonnes exported in September. This is just over a 12% increase on the August export volumes and represent levels that are just 15% under the five-year trend for August.

While 15% under the trend seems to be a fair degree below what could be considered normal it is a pretty solid effort considering that average volumes from January to August 2021 have been running 44% under the trend. Indeed, the September 2021 beef trade levels to the USA are just 589 tonnes under the volumes set in September 2020.

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Tags

  • Beef
  • Cattle
  • Exports
  • Trade
  • USA
  • China