Australia Sets New Beef Export Record for July Despite Lower Slaughter Rates

Australia’s beef exports hit an unprecedented level in July, reaching 129,998 tonnes and setting a new monthly record. This achievement surpasses the previous high of 123,464 tonnes recorded in March 2015, despite current slaughter rates being approximately 30,000 head per week lower than during the 2015 drought period.

The July figures represent a 22% increase from June’s exports and a 34% rise compared to July of the previous year. For the year to date, Australian beef exports total 731,408 tonnes, a 27% increase over the same period in 2023. This is impressive but still falls short of the 2015 record of 768,253 tonnes, reflecting the extraordinary conditions of that year.

In addition to the overall export record, July also saw a significant peak in grainfed beef exports, reaching 36,976 tonnes. This marks a new high for grainfed exports, reflecting the growing trend towards grainfed beef in Australia’s production system. Despite the lower slaughter rates, the record was achieved due to several factors, including increased carcase weights and a shift in demand from domestic to export markets.

The factors contributing to this record include:

• Increased Carcase Weights: Current adult cattle carcase weights are around 315 kg, up from 280 kg during the 2015 drought. This increase is partly due to the greater adoption of lotfeeding since 2015, which has contributed to heavier carcase weights.
• Domestic Market Shifts: Domestic demand for beef has been relatively flat, especially in the food service sector, due to economic conditions and cost of living pressures. This has led to a shift of beef from the domestic market to export channels.
• Logistical Issues: Some exporters faced logistical challenges in June, such as container access problems, which may have delayed shipments into July. Additionally, there was some buildup of stock in cold storage during June.

Major export markets have all experienced substantial growth. The United States, Australia's largest export customer, imported 38,540 tonnes in July, marking a 34% increase from June and a remarkable 61% rise from the previous year. This reflects the US’s strong demand for beef and its ability to secure imports from Australia despite competition.

Japan, another key market, saw its imports rise to 26,297 tonnes, a 48% increase from July last year. For the year to date, exports to Japan have reached 160,207 tonnes, a 33% increase over the previous year. The rise in Japanese imports is partly due to a decline in US beef exports to Japan, which has been offset by increased Australian shipments.

South Korea also saw significant growth, with exports reaching 20,331 tonnes in July, up 26% from the previous month and 20% from the previous year. Year-to-date exports to South Korea have totalled nearly 110,000 tonnes, a 5% increase over last year.

Smaller and emerging markets also showed strong performance in July. Exports to Indonesia surged 30% from June to 6,940 tonnes, while year-to-date exports have risen 6%. Shipments to Taiwan, the Philippines, Canada, Thailand, and Vietnam all saw notable increases, reflecting broader global demand for Australian beef.

Analysts suggest that these record figures could signal the start of a new global trade cycle. The decline in US beef slaughter rates is expected to put pressure on US beef exports, creating opportunities for Australian beef. As the US beef herd shrinks and domestic demand remains strong, Australian beef exports are anticipated to remain robust through the end of 2024 and into 2025. Some analysts even predict that 2024 could surpass previous export records, such as the 1.23 million tonnes achieved in 2019.

It’s noteworthy that just two years ago, in 2022, Australian beef exports had hit a 19-year low of 854,000 tonnes due to a focus on herd rebuilding after a severe drought. The remarkable recovery and record-setting volumes in 2024 highlight the dynamic nature of the beef export market and Australia’s significant role in global beef trade.

Source https://www.beefcentral.com/