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Dollar surge now hurting meat exporters
14 Jul 2003
The $AUD's surge is already hitting exports of lamb and beef to the United States, according to Meat and Livestock Australia. Higher prices in Australian saleyards, particularly for lamb, are contributing to the situation.
Overall, beef and veal exports stood at just over 900,000 tonnes during 2002-2003, marginally above 2001-2002. For the US market alone, worth over $1.8 billion, sales slipped 13 per cent to 349,800 tonnes.
MLA said this was due to a decline in US demand for manufacturing beef, particularly for the food service sector, as well as an increase in US domestic supplies of manufacturing beef and the appreciating $AUD.
The situation was similar in the lamb market, with sales to the US down five per cent. And sales to Papua New Guinea, Australia's second largest lamb market, dropped 50 per cent on the back of the stronger $AUD.
Exporters are fearful about the impact of the beef import tariff in Japan, Australia's second largest beef market. Tariffs will increase from 38.5 per cent to 50 per cent from August 1.
Saleyard prices are also exerting pressure on lamb exports. Lamb prices hit a record 445 cents per kilogram in the week ending July 11, with some lambs going for $79 a head. The MLA says the high prices are due to the end of the drought, with farmers keen to get stock to rebuild their flocks.
Butchers say that the most attractive cuts at present are the cheaper ones. They reported their worst sales for the year in the week ending July 11.
Tradingroom.com.au, 13/7/03.
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