Intense competition in the global beef market
Constrained global supply has increased beef prices and the competition between importers, according to a recent MLA analysis. Cattle slaughter figures in Australia, Brazil and Argentina are down on year-ago levels and some other countries, such as the US, are securing internal supplies to cover the demand expected in the grilling season.
"Limited supplies and firm global demand are driving an upwards trend in export prices, with major import markets competing for product. Furthermore, the new strain of African Swine Fever (ASF) across Asia poses an additional threat to food supply and will likely underpin elevated prices in the near term.
Australian beef exports in April declined relative to March volumes, reaching 72,500 tonnes shipped weight (swt), equating to a 22% decline on April levels last year. Feed supplies across major cattle regions are ample and have allowed producers to both retain female stock and limit the number of cattle they send for processing. While this is positive for producers looking to rebuild herds, the availability of exportable beef is constrained, with beef export volumes now back 24% year-on-year to reach just 272,000 tonnes swt for the year-to-April, well short of the 358,000 tonnes swt exported this time last year.
Across categories, grain-fed beef exports remain relatively stable, back just 7% on 2020 volumes for the year-to-April. Comparatively, grass-fed exports are now back 31% for the same period," says the market report. Japan and South Korea are the main markets for Aussie beef, while China, the world's largest importer, seems to increase imports from other traditional suppliers.
The Chinese market has absorbed 20% more beef imports in the first three months of the year and Brazil, Argentina, Uruguay and New Zealand are the main suppliers in this market, with year-to-March imports from each market up 33%, 19%, 47%, and 28% respectively. Beef imports from Canada reached 1,121 tonnes, +44% YoY, while those from the US increased by 1,500% compared with the same quarter last year, to reach 31,058 tonnes.
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