Decline of Australian chilled beef shipments to Japan

In 1995, Australian chilled beef shipments to Japan totalled 211,654 tonnes, a massive 95% share of total Australian chilled beef shipments. By 2001, chilled beef to Japan as a share of total chilled beef exports had declined to 84%. Discovery of BSE in North American cattle caused market disruptions from late 2003 and Australian chilled beef to Japan had dropped to 75% of total chilled exports. See below chart from DA figures.

Japan continued to purchase a lower proportion of total beef shipments from Australia in the form of chilled beef. The major slide in Australian chilled beef shipments to Japan continued from 2005 even when Australian chilled beef exports to other markets began to increase. The reduction has continued in recent years right up until the latest fiscal year ended June 2016. Japan chilled beef shipments totalled 123,764 tonnes for the past 12 months, a share of only 40% of total chilled beef exports. This trend is worrying as chilled beef prices drive the whole export beef category value and Japan is a premium market. Australian chilled exports have increased to a range of markets. USA has been strong but has dropped over the past 12 months with lower beef production. Korea has been steady but EU has been flat and Middle East chilled beef shipments have trended down.

Source: DA