Looking forward, US beef exports heading to Asia will likely increase with the new agricultural trade agreements with Japan and China opening further opportunities for US beef.
Global export figures for 2019 have been published, with 7.3 million tonnes swt of beef/veal being exported on a global scale last year.
Brazil firmly established itself as the top exporter by volume, followed by Australia, India and the US.
However, while Australia sits behind Brazil in terms of volume exported, it betters its larger rival when comparing the total value of beef exports.
A 9% increase in export volume, combined with an average US exchange rate of 69.5 cents enabled Australia’s beef export value to expand by 17% on 2018.
The prominent recipient of this growth was China, who as a single destination for Australian beef, contributed US$1.85 billion for the year, up a staggering US$883 million from 2018. Australia’s second most valuable market was Japan, contributing US$1.63 billion, back 3% on 2018.
Brazil
Brazil finished 2019 as the top exporter by volume, shipping a whopping 1.57 million tonnes swt, a year-on-year increase of 16%. Export conditions in Brazil are favourable, with low currency rates enticing overseas buyers, while beef production continues to improve, driven by research and development into productivity and a growing feedlot sector.
Exports to China fell just shy of 500,000 tonnes swt, up by 54% on 2018 and accounting for 32% of all Brazilian exports in 2019.
Hong Kong and Egypt are the other major markets for Brazil, both taking 225,000 tonnes swt and 153,000 tonnes swt respectively. However, significant growth in the Chinese market has meant that Brazilian exports to these other markets has dropped off.
India
India exports frozen boneless carabeef, predominantly serving the South-East Asian markets Vietnam (426,000 tonnes swt), Malaysia (111,000 tonnes swt) and Indonesia (93,000 tonnes swt, year ending November). Supported by a large dairy industry, Indian buffalo meat (IBM) is primarily destined for commodity markets in developing nations.
Reports indicate that in 2020, competitive pressure from other nations will negatively impact Indian exports to Vietnam and Iraq, with other markets such as Russia and Jordan expected to pick up their share of IBM.
United States
The United States is a key competitor for Australia, shipping beef to over 130 different destinations, with a significant presence in Australia’s high value markets such as Japan and South Korea. South Korea is a major growth market for the US, with beef exports up 8% year on year.
The US enjoy a tariff advantage over Australia when exporting to South Korea, with the 2020 tariff set to 16% (and a safeguard volume of 318,000) compared to Australia’s 21.3% (safeguard volume of 174,087 tonnes). Looking forward, US beef exports heading to Asia will likely increase with the new agricultural trade agreements with Japan and China opening further opportunities for US beef.
https://www.mla.com.au/prices-markets/market-news/australia-becomes-the-most-valuable-beef-exporter-in-2019/