AUSTRALIA – The “unprecedented” rate of beef shipments from Australia to a hungry US market could mean administrators allocate the final portion of beef quota as early as next week.
This is according to market analysts at Meat and Livestock Australia (MLA) who say 82 per cent of quota was reached on Friday 21 August.
MLA has attributed the rapid movement of beef due to strong US demand for imported products and high Australian cattle slaughter.
They say ministers will allocate the final fifteen per cent of quota, after which a tariff is imposed of 21.1 per cent.
The last 15 per cent of allocated quota will be tradeable,” explained an MLA spokesperson.
“It can be transferred in the 10 business days after the quota is triggered, meaning that exporters without quota can purchase volumes from those with quota.
“Other options open to exporters looking to ship to the US are to apply for quota that may be available in the uncommitted pool at the end of the allocation process; apply for 2016 US beef quota with the knowledge that the product will not be allowed to clear US customs until 2016, and must be held in bond storage until then; or exporters can ship beef to the US out of quota, but this will attract a tariff of 21.12 per cent.”
Some exporters with little or no allocation remaining may make it difficult to export beef to the US for the remainder of the year, MLA added.
TheCattleSite News Desk
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