MLA says it's worth noting, however, that Australia's beef shipments last May were the third highest on record, boosted by record exports to Russia - a hard act to follow.

The $A appreciated 9pc during May, moving from US72¢ to just below US80¢ by the end of the month (averaging US76.3¢).

While the $A, in May, was 20pc below that of the same month last year (94.9US¢), it has now appreciated 25pc against the $US and 35pc against the Japanese yen since the start of February, making our beef exports suddenly more expensive to major export customers.

And the volatility has added to the already difficult trading conditions.

Export performance in May included:

• Japan: Beef exports during May slipped back 2pc, with steady demand for chilled beef partially offset by reduced frozen buying.

As recessionary conditions continue to bite, consumer demand at the retail and fast food level, however, remain positive, while demands in other food service segments remain weak.

• US: Shipments to the US continue to track significantly above last year’s low levels, up 38pc in May.

• Korea: Negative consumer sentiment towards US beef continues to subdue all beef imports into that market, with many importers facing financial difficulties after being forced to sell stocks of high priced US beef at reduced prices.

This disruption has impacted Australian exports, which fell 24pc in May.

• Other markets: Those which recorded significant growth year-on-year for the first five months of 2009 include Hong Kong (up 131pc) and China (up 121pc), Indonesia (up 33pc), Taiwan

(up 25pc) and Canada (up 140pc).