Global demand for Australian beef rising
Australia’s market share in Japan and Korea is continuing to lift as the United States emerges as the number one export destination for beef in Q1 2024, according to a new global market update from Meat & Livestock Australia (MLA). MLA’s latest Global Beef Market Update (GBMU) has shown that the outlook for Australian beef in the global market remains strong.
MLA’s Global Supply Analyst, Tim Jackson, said that overseas supply dynamics have a strong impact on the Australian beef industry.
“Australia exported over 70% of beef production in 2023. Although a small part of global production, Australia is a major player in export markets,” Mr Jackson said.
“So far in 2024, the United States has emerged as the largest market for Australian beef.”
“A long running destock in the US has driven American production down. This has boosted demand for Australian beef in the United States itself, but also in Japan and South Korea, where the US competes with Australia for imported share.”
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The GBMU was developed to provide a clear picture of the global market in an accessible format. The report includes information about beef production and trade from the major beef exporting countries, as well as analysis of the global economy, weather and input prices.
Mr Jackson notes that the outlook for Australian exports is strong according to the report.
“Alongside the decline in US production, South American slaughter has been very high as drought conditions persist in key cattle producing regions. As conditions normalize, production is likely to decline, further reducing the global supply of beef,” Mr Jackson said.
“Despite low consumer confidence, unemployment remains low in most advanced countries, and inflation has been falling in most of our export markets. At the same time, a weak Australian dollar has made Australian beef more competitive on the global market.”
A key consideration for the rest of the year is the economic performance of China.
China is the world’s largest beef importer and second largest economy. It has seen a slowdown in key economic indicators, as well as below-trend consumer sentiment since mid-2022.
