Australian exporters face logistical challenges

 2022 has been a challenging year for exporters around the world and these challenges have been felt in the Australian red Meat industry. However, Australian exporters have found ways to get products to buyers and take advantage of record high prices.

A key example of this is exports to China . In 2021, the port of Shanghai received about 67% of Australian beef destined for China . IT soon fell to 28% of imports in April as the Shanghai lockdown affected ports and reduced demand for many product categories, including the most perishable goods such as beef.

Despite this, exports to China were up slightly overall compared to last year as most cargo bound for Shanghai was diverted to the ports of Ningbao, Qingdao and Tianjin. The port of Tianjin almost doubled its cargo traffic to 2,800 tons per month, while Ningbao and Qingdao recorded a combined fourteen-fold increase in cargo traffic compared to last year, which now accounts for 24% of imports.

Notably, all three of these ports are in northern China, away from the more central port of Shanghai. These impressive logistical efforts reflect the resilience of Australian exporters and set the industry optimistic for the end of the year when production is expected to pick up.

Meanwhile, the North American 90CL Index - a key indicator of Australian Export prices - is up 20% from 2021, with average export prices trading at near-record highs. At the same time, the U.S. Department of Agriculture (USDA) forecasts that U.S. beef exports will fall by 4% this year, weakening competition in Japan and South Korea, while a resurgent tourism industry will increase demand in high-value markets around the world. .