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Australian beef and cattle exports fell in 2016/17 as a 16% reduction in cattle slaughter impacted export volumes Rural Bank's 2016/17 Australian Agriculture Trade Performance report showed. Beef exports to the US declined -39%, the most out of Australia's major markets. 

Australia's beef exports are concentrated to four major markets with Japan, USA, South Korea and China accounting for 77% of volume. In 2016/17 Japan was the only country to increase import volume from Australia, up 3.3%. Exports to the US declined most by a whopping -39%, followed by China fell -20% and South Korea fell -5%.

Australia Beef Exports Japan US

Australia Beef and Cattle Export Highlights

  • Cattle prices hit record levels in Australia in 2016/17 with the eastern young cattle indicator averaging 661c/kg, up 14% on 2015/16.
  • High domestic beef prices supported a 1% increase in the average export price despite global prices trending lower due to increased global production, led by the US and Brazil.
  • Australian beef production is likely to increase in 2017/18 leading to greater export volumes.
  • Export prices are likely to trend lower as competition into major markets increases, but still remain above historical average levels.
  • Reduced cattle supply also affected live exports with 42% less cattle exported to Vietnam and a 6% drop to Indonesia.

Australia Beef Exports Value

Rural Bank said Australia's agricultural exports rose by $3.9 billion to almost $50 billion in the last financial year, mainly because of a bumper year for grain and fibre. Cotton production in Australia is expected to lift slightly in 2017/18, further boosting exports.

Source: AUSTRALIAN AGRICULTURE TRADE PERFORMANCE 2016/17

From The Traders Community Research Desk

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