Australian beef and veal exports for the 2022 calendar year were the lowest in 19 years, at 854,592 tonnes swt – 4% below the previous year and 30% below the drought induced levels of 2019 (DAFF). Underpinned by another year of very low cattle slaughter, as the wet year continued to sustain the “retain and rebuild” phase of the Australian cattle herd, this was the third consecutive calendar year decline.
Looking at historical yearly volumes, the record year was set in 2014, when exports totalled 1.287 million tonnes, as the US gobbled up over 30% of all shipments. The dominance of the traditional big four export destinations continued in 2022, with Japan, Korea, China, and the US accounting for 78% of the annual total.
The ranking of the top four export markets was unchanged from 2021, as Japan maintained its mantle of Australia largest export market, despite exports slipping 8% on last year, at 214,305 tonnes swt. Korea just held onto second place for 2022, with a 3% decline to 160,725 tonnes swt, followed closely by China, at 158,086 tonnes swt – up 7% annually. Impacted the most by the very tight supply of manufacturing beef out of Australia, the US finished in fourth place for 2022, down 8% on the previous year, at 133,925 tonnes swt.
The key influence on the lower export volumes is the sustained rebuild and expansion of the Australian beef cattle herd. The ongoing retention of females on farm to bolster breeding numbers and the increased purchases of trade cattle going back to the paddock has dwindled slaughter numbers - leading to less beef available for export. Beyond the seasonal influences, supply chain challenges and economic uncertainties caused by the COVID-19 pandemic along with fluctuating exchange rates have also contributed to the overall decline.