Aussie red meat exports to Japan ease in August

Red meat exports to Japan during August declined year-on-year across the board, influenced by the combination of high Australian livestock prices, slow demand after the summer holiday season, and concerns over plentiful stocks in the market.

That said, buyers’ interest for beef is said to have improved since late August, suggesting a recovery in volume in September.

Beef

• Beef exports to Japan during the month fell 22% from last year to 20,971 tonnes swt, with decreases in both chilled (down 20%) and frozen (down 24%) beef. Besides sluggish demand, high imported beef stocks in the market (30% above last year, as at July) has reportedly made buyers more cautious. The year-to-date volume stands at 187,489 tonnes swt, on par with the corresponding time in 2014.
• Export values to Japan during January to July this year were 29% higher than last year, at A$1.05 billion, or 20% of Australia’s total export revenue.

Sheepmeat

• Lamb and mutton exports to Japan in August totalled 481 tonnes swt (down 30% year-on-year) and 228 tonnes swt (10% lower), respectively. Firm demand from both established (US, the Middle East, Singapore and Malaysia) and emerging (Korea, Indonesia) markets maintained strong competition for Japanese buyers who also had relatively high stocks in the market.
• The year-to-August volume for lamb and mutton stand at 5,737 tonnes swt (17% below from the same time last year), and 2,053 tonnes swt (down 33%), respectively.