🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

Australia's red meat exports surge as US beef production falls

Published 02/06/2024, 11:43 PM
Updated 02/06/2024, 11:45 PM
© Reuters
LCc1
-

CANBERRA (Reuters) - Australia's red meat exports rocketed last year as a plunge in livestock prices made its products more competitive at a time when beef production in rival exporter the United States is falling.

Shipments accelerated as the year went on, pushing exports of sheep meat to a record high and beef exports to their highest since 2019, trade data showed.

Australia is one of the world's biggest shippers of red meat. Its exports are likely to be even larger in 2024 thanks to low U.S. beef output and strong Chinese demand, said Matt Dalgleish at agricultural consultants Episode 3.

Australian cattle and sheep prices plummeted to multi-year lows last year as dry weather triggered a sell-off by farmers worried they wouldn't have enough grass to feed animals, many of which were sent to slaughter.

In the United States, meanwhile, drought has shrunk the cattle herd to its smallest since 1951 and beef prices have risen sharply.

Australia exported 607,878 tons of sheep and goat meat last year, up from 478,350 tons in 2022, and 1.18 million tons of fresh and frozen beef, up from 926,576 tons the year before, trade data accessed through Trade Data Monitor show.

The sheep meat exports were worth $3.1 billion, down from 2022's record high of $3.4 billion due to lower prices.

The beef exports were worth $7.6 billion, the most ever recorded.

For sheep meat, the biggest driver of the increase in exports was China, which took 204,446 tons from Australia last year, the most on record.

Shipments of beef increased to China, South Korea and the United States, three out of four of Australia's main export markets for the meat.

Rainfall in recent months has greened pastures and led to a partial recovery in livestock prices, but Australian red meat remains competitive, Dalgleish said.

Last year also saw a slight uptick in exports of live sheep and cattle from Australia, though levels remained far below past highs.

 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.