Australia: Beef exports to Southeast Asia fall

Total beef exports to Southeast Asia (SEA) fell 25% year-on-year in February. With a limited number of approved suppliers, beef exports to Malaysia have fallen sharply due to limited domestic supplies. Despite the overall decline in beef exports to Southeast Asia, Singapore, Thailand and Vietnam showed moderate growth.

Prolonged restrictions and closures of catering outlets, limited supply of livestock led to a decrease in beef trade at the beginning of the year. For Southeast Asia (SEA), total volumes for the first two months of 2021 are down 25% year-over-year.

The biggest drop in Australian beef exports was to Malaysia, down 68% year-over-year in the first two months of 2021. The number of approved suppliers of Australian beef to Malaysia is limited as the market maintains a strict import regime. Supply constraints and the current supply shortage in Australia are the main catalysts for the decline in overall volumes. The sharp decline in Malaysian beef exports is also exacerbated by a strong Australian DOLLAR.

Increased numbers of Australian livestock held for restocking purposes led to a slight increase in grain beef exports, especially chilled beef, which rose by 22% in the 12 months to February.

Exports to Indonesia followed similar trends, down 21% in January and February from a year ago. Continued financial uncertainty and social restrictions on catering have put downward pressure on beef exports, with importers looking to avoid excess stocks. However, despite a year-on-year decline in total exports, volumes have been steadily increasing since November, when Indonesia began easing COVID-19- related restrictions .

Despite the overall decline in EXPORT volumes, shipments to Singapore and Vietnam remained stable in the first two months, at the level of last year. More households are choosing to eat home-cooked meals rather than dine out, which has helped reduce further losses in the catering sector for Australian beef exports.