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TheBeefSite Newsletter - 11 December 2013

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TheBeefSite
Wednesday 11th December 2013.
Michael Priestley - Editor

Michael Priestley
Editor


MSD Animal Health

Novus International

Australia to Face Competition For Key Markets

Interesting trade dynamics are in store for the US and Australian beef sectors, as markets vie for custom in 2014.

This week, the Department of Agriculture Fisheries and Forestry predicted a ‘promising outlook’ for Australian farm products, while for US beef, although less pessimistic than it was, the forecast remains lower for 2014. 

On the one hand, Australia's beef and veal exports are tipped to reach a record 1.1 million tonnes swt, growing 12 per cent in value. On the other, analysts see competition in key markets arising from US and Brazil. 

Following Japan’s 30 months of age rule introduction in February, the US has capitalised on opportunities to access the Japanese market, pushing Australian beef out, according to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) quarterly agricultural commodities outlook.

Consequently, analysts predict Australian exports to Japan to fall six per cent.

Further problems face Australia in the form of diplomatic tensions with Indonesia, which could result in cattle imports being halted.

Phone tapping accusations reported in the media could lead to a limited number of cattle permits being distributed to Australia, unless Australia reacts with a sufficient diplomatic response. 

This could leave Brazil as a new supplier, as Indonesia begins to assess alternative sources.

In contrast to diplomatic struggles, the ABARES report outlined some markets that would develop in 2014, such as the US manufacturing market.

This follows US production concerns after cow liquidation amid high feed prices forage scarcity through 2012. The Organisation for Economic Cooperation and Development has forecast US beef production and export dips in the coming year.

Similar forecasts were given in the latest World Agriculture Supply and Demand Estimates report from the US Department of Agriculture, although not as low as previous reports, at 11.02 million tonnes cwt in 2014.

Where Australia looks set to get the better of the US is in the Republic of Korea. The ABARES report explained that higher US beef prices would allow a five per cent rise in shipped weight beef.

The report added: “The decline in tariffs imposed on imports of US beef has been largely offset by higher US beef prices.

“The effect of the Korea–United States Free Trade Agreement on the relative shares of Korean beef imports has so far been minimal.

China is also expected to buy more Australian beef this year to satisfy expanding demand. In total, 160,000 tonnes more beef is predicted to be shipped to China, a 74 per cent increase. 


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Global Beef Industry News

   United States

Live Cattle Bulls Still Fading, Tuesday
Cattle Futures: December Contract Posts Gains as Other Near Contracts Close Lower
Webinar Discusses Use of Geosynthetics in Agriculture, Aquaculture
NFU Board to Congress: Do Not Abandon 2013 Farm Bill
CME Grains Turn Weaker in Aftermath of USDA Supply and Demand Report
Bears and Bulls Now On Level Playing Field
Cattle Futures: Selling Slows Monday, Contracts Close Higher
Cattle Outlook: Beef Exports Up During October
October Beef Exports Continue Surge
CME: Growth in October Beef, Pork Exports
Major Losses as Futures Fade, Thursday
Cattle Futures: Pits Report Triple Digit Losses, Thursday
Using, Not Buying, Livestock Gross Margin for Cattle
Cattle Futures: 'Bitter Cold' Sweeps Across Plains, February Closes at 19 Day High, Wednesday
USDA Discovers Weapon to Fight FMD
New, Comprehensive Strategy to Reduce Salmonella in US
Conference Committee Must Act Now to Pass Farm Bill this Year
FMD NEWS: USDA Discovers Weapon to Fight FMD
February Markets Remain Bullish, Tuesday
Cattle Futures: Weakness in Pork and December Contract Sees February Close Lower, Tuesday
Wyckoff's Weekly Livestock Outlook: Mixed Futures at Start of Week
CME: Weekly Cow, Sow Slaughter Likely to Stay Light

   Global

Novus to Launch Customized Version of Global Corporate Website
Farm Animal Welfare Rising up the Business Agenda
Africa Steps up Focus on Statistics for Better Agriculture
Antimicrobial Resistance: Our Race Against Bacteria

   China

China's Farm Produce Prices Slightly Higher
Chinese Agri-food Prices Down Slightly in November
China's Farm Produce Prices Rise Slightly

   Colombia

Brucellosis and Tuberculosis Success 'Model' For Elsewhere

   Uruguay

Uruguayan Cattlemen Granted Angus Brand by European Union

   Australia

Australian Forecasts for Beef, Veal, Dairy Products High
MLA: Weekly Cattle Summary
Victoria Government Pushes for Alpine Grazing Return

   United Kingdom

Will Changes in Surveillance for Animal Disease Increase Protection?
Union Backing for Red Tape Recommendations
Farmers Thank the Nation for Backing British Farming
Comparing Quarterly Feed Prices
Retailers Stocking more British Beef and Lamb
Cuts to Farm Animal Health Surveillance Could Risk New Diseases Going Undetected
Movement Rules to Be Simplified, Announces Wales Government
Autumn Statement: A 'Positive Effect' on Farming
Genetics Now Next Step for Dairy Bull Calves
Improved Approach to Detecting Animal Disease
Increasing Government Support for UK Agriculture
Approach to Animal Disease Surveillance to be Improved
West Country Beef Receives European Special Status
Watch Out for Scour This Winter
Sustainable Farming: The Benefits of Trees
Response to House of Commons Findings on Future Ag Policy

   Mexico

Bachoco Family Trust Reduces Shareholding
Mexico Elected to Lead Regional Committee of FAO Livestock Development

   European Union

Brussels Plans Visibility Boost for Farmers Who Sell Locally
Beef Working Group Moving to Sustainable Principles
Call for Fair Practices All Along Food Chain
Making More From Beef: Geographical Indication

   Brazil

Russian Mission Completes Inspection of Brazilian Beef Establishments
Costa Rica Agrees to Semen and Embryo Imports

   Viet Nam

Viet Nam Processor To Buy 10,000 Canadian Cattle

   Austria

Fleckvieh: Versatile Cattle For the Future
Groundbreaking Ceremony for New Erber Group Campus

   Bolivia

Foot and Mouth Treatments Given Two Week Extension

   India

Kerala Government Ban Cattle and Meat Imports
Study Aims for New Solution for Bovine Tuberculosis

   Sweden

HKScan Acquires Associate Company Höglandsprodukter AB

   Ireland

Japan BSE Ban Lift Worth 2 Billion to Irish

   South Africa

South Africa to Host Global Conference on Agriculture

Events/Promotions

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The Drost Project - A Visual Guide to Porcine, Pig Reproduction.
Beef Summit Brazil - 10th - 11th December
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