Australia is facing greater competition in key exports markets, the flow-on effect of major beef producing nations recording rises in production.
US beef production has continued to climb throughout 2018, permitting exports to reach a record 980,000 tonnes swt in 2017-18. Increased US presence has been particular evident in North Asia – exports to Japan increased 16% in 2017-18 and shipments Korea were up 14% (roughly back on par with levels pre-discovery of BSE in the US).
Meanwhile, beef production in all major South American suppliers increased last year and the region is forecast to produce more beef over the next two years, further expanding their export footprint as a result. One likely recipient of additional supply from South America is China, one of Australia’s fasting growing export markets so far this year.