28 February 2011

The value of the Australian livestock export industry exceeded A$1 billion for the second year running in 2010, delivering $1.012 billion in export revenue to the Australian economy. 

While livestock export trade experienced reduced export volumes in 2010 due to tough trading conditions in key sheep, cattle and goat markets, the trade delivered strong returns for Australian producers in 2010, reflected in the solid revenue performance.

A total of 873,573 cattle worth A$679 million were exported from Australia in 2010. While this reflects a decrease of 8% on 2009 volumes, it also reflects an increase of $17 million to the value of the trade, and the industry’s highest ever export earnings for live cattle exports.

 

Australia’s largest cattle market, Indonesia, was down 33% to 520,987 head following its enforcement of 350kg weight restrictions and reduced permit allocations for the year.

However, the cattle trade to the Middle East expanded in 2010, helping to offset the reduction in export numbers to Indonesia. Overall the Middle East cattle trade grew by 134% in 2010, up from 96,000 head to 226,547 head on the back of the reopening of the Egypt trade and the establishment of the cattle trade to Turkey.

Live sheep exports were also down in 2010, with numbers reducing by 17% to just over 2.978 million head for the year, due to drought conditions in Western Australia and limited domestic sheep flock supply. However the value of the live sheep trade remained steady at A$323 million.

Goat exports totalled 81,895 head, down 16% on the previous year due to the increased price of live goats and tighter economic conditions in the key market of Malaysia. The value of the trade was A$10.3 million, down from A$11.5 million in 2009.

MLA Livestock Exports Manager Michael Finucan said that while volumes had decreased across all species, the solid revenue performance was a win for Australian livestock producers.

"The high returns that producers across Australia were able to secure for their livestock demonstrate the importance of the livestock export trade to many rural and regional communities across Australia," Mr Finucan said.

"To have a record live cattle trade value in 2010 when exports to Indonesia were substantially restricted was a particularly good result for the industry.

"It was encouraging to see Egypt and Turkey emerge as key markets for heavier Australian cattle that could no longer be exported to Indonesia. Egypt took 56,441 head, and Turkey 66,002 head.

"Turkey was also an important market for Australian sheep last year, taking 224,285 head. The largest market for sheep was Kuwait, taking 1,076,455 head, and the second largest market was Bahrain with 515,731 head," said Mr Finucan.

Sheep volumes were down significantly in 2010 as they were in 2009, with sheep exports dropping below 3 million for the first time in 20 years.

"This decline in volume doesn’t reflect demand for our sheep, which continue to be sought after by our customers in the Middle East, but instead a tight supply which has restricted our ability to meet the needs of our customers," said Mr Finucan.

Malaysia was again the largest market for goats, taking 67,675 head, with all exported via air.

Delivery rates remained high in 2010 with over 99% of all Australian livestock delivered fit and healthy at their destinations after being well cared for during the journey.

Further information on the industry’s contribution to the economy, and in particular to the wider red meat industry and regional and remote areas, will be presented by Derek Quirke from the Centre for International Economics at the ABARES Outlook 2011 conference on Wednesday 2 March.

More information can be found at http://www.daff.gov.au/abare-brs/outlook/program

Further information on 2010 figures can be found in the Live Export Market Report, an extensive statistical report outlining a detailed summary of Australianexports of cattle, sheep and goats.

Information on the industry’s improvements to animal welfare during 2010 can be found be found in the Year in review 2010. 

 

 


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For further information contact Anna Inglis, Livestock Exports Communications Manager, 02 9463 9189 or 0416 189 775.

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