In September, Australian beef exports experienced a slight dip of 6% from August, but still managed to remain 12% above the record set in July. This drop was not a cause for concern, as beef exports were still significantly high at 16% above September 2023 and a whopping 34% above the five-year average.
The rolling 12-month average of beef exports has been on a steady rise, with the peak value reaching just over 112,000 tonnes back in 2014-2015. Currently, the 12-month rolling average stands at 106,000 tonnes. To break records this time around, the strong export levels we are witnessing will need to be sustained for at least another four months.
One of the driving forces behind Australian beef exports has been the US market. Beef exports to the US have been consistently 50-60% higher than the same period last year for the past three months, doubling the five-year average. This increased demand from the US market has been a significant contributor to the overall surge in beef exports.
On the flip side, beef exports to Japan have seen a decline in August and September compared to peak numbers in June and July. While slaughter rates have remained consistent, the type and weight of cattle being exported have likely driven these fluctuations. During late winter and spring, there is a decrease in heavy grass-fed cattle hitting the market, with processors opting for cows to meet the demand from the US market.
The shift in market share can be clearly seen when comparing exports to the US, China, and South Korea. The US market has managed to grab a larger share this year, while exports to China have maintained relatively stable figures for close to 19 months. On the other hand, exports to South Korea seem to fluctuate more depending on cattle slaughter rates and beef availability.
Despite the dominance of the ‘big 4’ markets, other countries are still contributing significantly to Australian beef exports. Indonesia holds the fifth position, receiving 7% of total beef exports. This diversification of markets is beneficial for beef pricing, as evidenced by the current export prices holding strong despite the abundant supply.
With the Australian beef export industry showing resilience and adaptability in the face of changing market dynamics, there are several key factors to consider for sustaining this positive trend:
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Market Diversification: Continuously exploring and tapping into new markets can help mitigate risks associated with over-reliance on a few key markets.
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Quality Control: Maintaining high standards of quality and consistency in beef production is crucial for meeting the varying demands of different markets.
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Industry Innovation: Embracing new technologies and practices can enhance efficiency and competitiveness in the global market.
- Sustainable Practices: Implementing sustainable farming practices not only ensures long-term viability but also resonates well with environmentally conscious consumers in export markets.
In conclusion, the Australian beef export industry continues to thrive, driven by strong demand from key markets like the US while also benefiting from diversification across various regions. By staying attuned to market trends, maintaining quality standards, and embracing innovation, the industry is poised for continued growth and success in the global arena.
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