22 April 2008

2 minute read

Oceania

To the end of March Australia had exported 4,740 tonnes of beef to Russia.

The major reason for the dramatic increase has been due to a reduction in beef supplies from South America as a result of trade restrictions and high prices.

Meat & Livestock Australia's Regional Manager for Europe and Russia, David Jones said that Australia was in a strong position to fill any void left by South American beef exporters.

"Australia's reputation as a reliable exporter of clean, safe and high quality beef and the ability to supply a range of products to suit various sectors in the market has allowed us to satisfy the demands of the Russian beef market," Mr Jones said.

"Our goal is to maintain the gains we have made through proving that Australia is a reliable supplier of quality beef. The Russian beef market has huge potential and we will be doing all we can to build and continue expanding Australian beef's market share.

"An encouraging sign is that during the March quarter we've seen a significant increase in the volume of Australian silverside/outside, chuck and blade and thick flank/knuckle cuts sent to Russia - none of which were exported during the same three month period last year."

South America is the largest exporter of beef to Russia, however several domestic issues have worked against their beef export industry recently. A foot-and-mouth disease related ban imposed in late 2005 has prevented several major Brazilian beef producing states from exporting beef to Russia. However, several Brazilian meat processing facilities were last week approved for export to Russia, but these facilities will not be able to export until the bans are lifted on the states – namely Moto Grosso do Sul and Parana - where these facilities are located.

Tighter cattle supplies, the rising Brazilian real and strong local beef demand have also led to significant increases in Brazilian beef prices; to levels close to or above Australian beef in most cases.

The Argentine government’s suspension of beef exports – Russia's second largest supplier of beef products after Brazil – has also contributed to the recent increase in demand for Australian product in Russia. Argentine exports have resumed this week but remain under government limits and export taxes.

While Russian beef consumption remains low at 15.73kg/capita (54 per cent below the 1991 level at the time of the USSR break-up), the United States Department of Agriculture has forecast total beef consumption to rise 40,000 tonnes in 2008, to 2.46 million tonnes.

TheCattleSite News Desk