Exports lift on back of dry conditions

February exports were up year-on-year for both beef and sheepmeat, with little relief from persistent dry conditions across much of eastern Australia elevating turn-off.

Beef

Beef exports for February totalled almost 95,000 tonnes shipped weight (swt), an increase of 11% on the 2018 levels and underpinned by elevated grassfed cattle slaughter and a weakened Australian dollar.

Demand growth has been led by China – the third largest destination in February and just shy of volumes to the US – which recorded a 65% lift on 2018 levels, at just over 19,000 tonnes swt. Expanding volume to China is on the back of a demand surge throughout 2018 that pre-dated the advent of African Swine Fever and has been underpinned by a number of factors including the growing number of affluent consumers.

Total grainfed beef exports eased 4% year-on-year in February, at 24,000 tonnes swt, which limited tonnage to Japan. However, shipments to Korea expanded for a second consecutive month following the return of lower tariffs under the 2019 import safeguard. Australian beef exports to Korea were up 6% year-on-year, at just under 14,000 tonnes swt, with frozen grassfed chuck roll leading the growth.

Despite growing domestic supplies, beef shipments to the US expanded 15% year-on-year in February, to almost 20,000 tonnes swt, with elevated cow slaughter in Australia underpinning a 17% lift in frozen manufacturing exports.

Sheepmeat

Lamb exports in February rose to just over 25,000 tonnes swt, an increase of 14% year-on-year. The US drove increased demand in February – typical for this time of year when late season lambs are becoming too heavy for some markets. The US remains Australia’s largest lamb market, recording a 37% year-on-year increase to 7,000 tonnes swt.

Lamb exports to China expanded 3% year-on-year in February, to almost 5,000 tonnes swt, while chilled lamb carcase exports to Iran continued to lead growth in the Middle East, increasing four-fold to 1,400 tonnes swt.

February mutton exports jumped 35% on last year, to just over 17,000 tonnes swt, as ongoing dry conditions force many to make difficult turn-off decisions. Exports to China, now Australia’s largest market for mutton, almost tripled on 2018 levels, to just over 6,000 tonnes swt in February, as the country continues the grapple with domestic supply shortages.

Goat

In contrast to beef and sheep exports, goatmeat exports have dropped since 2017, off the back of lower slaughter. February levels dropped to just shy of 2,000 tonnes swt, back 21% year-on-year. As goats are predominantly sourced from rangelands in western NSW, the ongoing drought has resulted in producers harvesting reduced numbers, impacting exports.

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