Red meat export volumes reach four-year high as international demand increases

Meat and Livestock Australia is predicting record high lamb exports by the end of the year after demand from North America, China and Saudi Arabia pushed total red meat exports to a four-year high in October.

Meat and Livestock Australia global supply analyst Tim Jackson said red meat exports rose 5 per cent from September and 39 per cent from October 2022 to reach 177,665 tonnes, “the highest monthly figure since September 2019”.

Mr Jackson said as cattle, lamb and mutton slaughter numbers continued to rise, export volumes had been rising alongside them.

Beef

“Beef exports rose 7 per cent from September and 44 per cent year-on-year to 105,131t, the highest overall beef export volume seen since 2019,” he said.

“Exports to North America have been the clear standouts in volume terms, lifting 118 per cent YoY in October to 31,577t.

Mr Jackson said China was the second-largest export market in October, with exports lifting 37 per cent YoY to 19,675t.

“So far in 2023, Australia has exported 171,587t of beef to mainland China, which puts Australia on-track to go over the 196,349t quota-free limit set out in the Australia-China FTA before the end of the year, which would trigger the quota safeguard and impose an additional tariff on subsequent Australian exports,” he said.

He said demand from Japan was beginning to return in October, after having trended below year-ago levels earlier in the year, to lift 5 per cent YoY to 16,563t.

Lamb and mutton

Lamb exports fell 3 per cent from September but lifted 17 per cent YoY to 30,604t, while mutton exports lifted 23 per cent from September and 51 per cent YoY to 20,197t.

“Combined, the 50,801t of exported sheepmeat was the largest on record, and follows several record breaking months in 2023,” Mr Jackson said.

North America was the largest export market for lamb during October at 7142t.

“Exports to the US actually fell 20 per cent YoY to 5641t, but exports to Canada lifted 46 per cent YoY to 1400t,” he said.

“Without the lift in Canadian import volumes, China would have been the largest market, which lifted 14 per cent YoY to 6038t.”

China remained the largest market for mutton, with exports lifting 57 per cent YoY to 10,195t in October.

The second-largest market for mutton was the Middle East and North Africa region, where exports spiked 166 per cent YoY to 3697t.

“Much of this was driven by exports to Saudi Arabia, which lifted 255 per cent YoY to 1261t, but mutton exports to all major markets in the region lifted by at least 100 per cent from October last year,” Mr Jackson said.

“Healthy export volumes and increasing diversification of export markets suggest that Australia is well placed to capitalised on the increases in supply that MLA forecasted in the June Cattle and July Sheep projections.

“Already, beef, mutton and goat exports are all higher than the 2022 calendar year, and we are likely to see record high lamb exports by the end of 2023.”