W10 Beef Update: Record-Breaking Performance in Australian and Bolivian Red Meat Export

Published 2024년 3월 15일

In W10 in the beef landscape, Australia's red meat industry is thriving, buoyed by robust demand and increased production, leading to record export volumes. In Feb-24, combined lamb and mutton exports hit an all-time high of 52.4 thousand mt, driven by strong slaughter volumes. The US and China emerged as key markets, with significant YoY growth. Beef exports also surged, nearing Feb-19 levels, with Japan leading the pack and substantial growth seen in the US and China. Meanwhile, Bolivia's beef export sector experienced a surge in 2023, particularly driven by Chinese demand, with export volumes reaching record highs. The Bolivian government's decision to lift export restrictions on certain agricultural products could further boost the sector's growth, signaling promising opportunities for continued expansion.

Australian Red Meat Exports Surged in Feb-24

Australia's red meat industry is capitalizing on favorable market conditions, driven by rising production and strong demand in key export markets, translating to record export volumes. The strong demand in key markets like the United States (US), China, and Japan, coupled with declining global supply, positions Australian red meat exporters for continued success in the foreseeable future.

Combined lamb and mutton exports reached a record high of 52.4 thousand metric tons (mt) (shipped weight) in Feb-24, exceeding typical seasonal trends and marking the highest monthly export volume ever recorded. This growth is attributed to high slaughter volumes at the beginning of 2004. The US remained the leading lamb export market, with year-on-year (YoY) growth of 36% to 7.543 thousand mt. China also witnessed significant growth (15% YoY) reaching 5.215 thousand mt. Mutton exports experienced a 37% YoY increase to 21.3 thousand mt, with China remaining the largest market (6.639 thousand mt). Notably, Saudi Arabia saw the most significant growth (161% YoY) in mutton exports, reaching 1.796 thousand mt.

Beef exports increased by 33% YoY to 93.8 thousand mt, nearing Feb-19 levels and marking the fourth-highest monthly export on record. Japan emerged as the largest beef export market (23.8 thousand mt) for the first time since Feb-23, with a significant YoY increase of 43%. The US and China also experienced substantial growth (83% and 26% YoY, respectively), reaching 21.3 thousand mt and 15.8 thousand mt. This surge in exports to Japan is particularly promising, coinciding with a decline in global beef cold storage holdings (14% in Japan and 12% in the US), indicating strong global demand amidst declining production in some regions. The US became the leading export market for goat in Feb-24, with a 143% YoY increase to 2,149 mt, representing 55% of total goat exports. Other major markets also witnessed growth, with South Korea (+52% YoY), Trinidad and Tobago (+176% YoY), and Taiwan (+366% YoY) experiencing significant increases in import volumes.

Chinese Demand Drove Bolivian Beef Exports Surge in 2023

Bolivia's beef export sector experienced a remarkable growth surge in 2023, primarily driven by Chinese demand. Continued expansion of the export quota and the recent policy changes aimed at boosting foreign currency reserves suggest the potential for further growth in the sector. Beef export volumes reached a record high of 29.3 thousand mt in 2023, representing a 38% YoY increase. The value of beef exports also increased by 6% YoY in 2023, reaching USD 136 million. China emerged as the primary destination for Bolivian beef, accounting for 87.3% of both export volume and value. Other export markets with significantly lower volumes included Ecuador, Hong Kong, Peru, Congo, Brazil, and Malaysia.

As of Nov-23, domestic beef production reached 316.1 thousand mt, with domestic demand estimated at 290 thousand mt. This surplus of approximately 26 thousand mt creates the potential for continued export growth. The Bolivian government has increased the meat export quota for 2024 from 25 thousand to 37 thousand mt, confident that domestic demand will remain fully satisfied. In Feb-24, as part of a “10-point agreement” between the Bolivian government and the private sector aiming to increase foreign currency reserves, export restrictions on soybeans, rice, and sorghum were lifted. This policy shift could potentially influence the dynamics of the agricultural export sector, including beef.