Australian beef producers continue to face competition from key international competitors while domestic herds are rebuilding, a cattleman’s information day has heard.
Stuart Bear, Rabobank, delivered the latest update on how international markets were influencing Australia’s beef industry at the Cattleman Information Day in Cardwell, hosted by Santa Gertrudis breeders David and Jean Bridgeman.
Speaking based on information from the bank’s analysts, Mr Bear said the domestic market was currently balanced between a shortfall in supply, and increased supply and softening prices on the international market.
He said the market was starting to “turn a bit”, but interest from restockers remained strong.
“Prices have eased but are still at historically high levels,” Mr Bear said.
“In general there’s been good Autumn rains in south eastern Australia but its been patchy in northern and central Queensland.
“For producers in North Queensland we are still seeing rebuilding herds and that will be an ongoing process assuming they’ve had the rains.”
Mr Bear said global trading in beef had increased in the last 12 months, driven by the increased production in the US and Brazil.
“The increase in trade has been supply driven rather than demand and as a result prices have been softening,” Mr Bear said.
Mr Bear said Japan remained the major destination for Australian beef.
“In the year to the end of April Australian beef exports decreased by 20 per cent due to shortage of supply,” Mr Bear said.
“Exports to the US fell by 41 pc, exports to China fell by 31 pc, exports to Korea fell 5 pc and exports to Japan rose slightly.
“In Japan, they still prefer locally produced Wagyu and see that as a superior product but there has been trend by the younger generation to eat more leaner beef.
“US exports have been rebuilding into Japan and China.
“Brazil has also been gaining large access into the Chinese market and have replaced Australia as the number one provider of beef into China.
“It has softened the prices for beef into China but beef imports are still expected to grow into China over next four to five years.
“They still have a strong appetite for that beef in the upper and middle income base. Demand is expected to grow at a reasonable rate and there are still opportunities for Australia to export into that market if it has got sufficient supply.”
Mr Bear said the largest growth in boxed beef exports in the last 12 months has been to Indonesia.
“It’s increased 40 pc for the year to April,” Mr Bear said. “Beef consumption continues to increase in Indonesia and they are looking for a range of sources for their beef.”
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