A record volume of Australian beef and veal was exported during 2008, despite a slow start to the year and the high $A during the first six months.
Japan maintained its place as our biggest beef export market.
Exports for the past calendar year reached 957,479 tonne swt – up 2pc from 2007.
This beats the previous record high of 953,932 tonnes in 2006.
The jump in shipments started in April, with increased supplies (after a low March quarter) and a surge in demand from Russia.
The 30–40pc decline in the $A over the second half of the 2008 year proved to be a mixed blessing.
It reduced the relative prices of Australian beef to key export markets.
But exports still faced the full blast of the global financial crisis and deteriorating economic conditions, and disrupted trade.
Japan easily maintained its place as Australia’s largest beef export market in 2008, with exports falling 4pc year-on-year, to 364,302 tonnes swt.
Although exports for 2008 remained 10pc below the record volume of 405,794 tonnes in 2006, it was still a very strong result given the low grainfed beef supply, higher $A during the first half of the year and increased competition from the US later in the year.
Given the significant decline in the number of cattle on feed in Australia during 2008, grainfed shipments to Japan for 2008 declined 13pc year-on-year, to 149,183 tonnes, making up 41pc of total shipments – the lowest grainfed percentage since 2003.
Exports to the US for 2008 totalled 234,779 tonnes, down 23pc year-on-year and the lowest level since 1997.
Exports to the US were very sluggish for the first nine-months of the year, falling 34pc year-on-year, influenced by a stronger $A at the start of the year and increased exports to Russia.
However, the final three months of the year saw a sharp turnaround in exports to the US, as the fall in the $A assisted a 23pc jump in exports.
Increased competition from US beef in Korea during the second half of 2008 contributed to a 15pc decline in Australian exports for the calendar year, to 127,207 tonnes.
Australian beef and veal exports to Taiwan also declined 7pc year-on-year, to 27,098 tonnes.
2008 saw Russia emerge as Australia’s fourth largest beef market, with the Commonwealth of Independent States (CIS – almost all to Russia), taking a record 72,035 tonnes.
This was despite shipments almost ceasing over the final few months of 2008, due to payment and credit issues stemming from the global financial crisis.
A sharp fall in competition from Brazil was largely behind the surge in demand from Russia, South East Asia and the European Union in 2008.
Shipments increased to:
• Indonesia (33,019 tonnes swt) up 23pc,
• The Philippines (14,143 tonnes swt) up 314pc,
• Singapore (8,061 tonnes swt) up 46pc and
• Malaysia (6,183 tonnes swt) up 87pc.
Similarly, exports to European Union doubled in 2008, to a record 11,863 tonnes swt.
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