Australia Beef Exports to Reach Record in 2009 on Currency Drop

By Madelene Pearson

Jan. 29 (Bloomberg) -- Beef shipments from Australia, the world’s second-largest exporter of the meat, may rise to a record in 2009 driven by a decline in the local currency.

Total beef and veal exports may rise 3 percent to an all time high of 990,000 tons, up from 957,478 tons in 2008, Sydney- based Meat & Livestock Australia said today in an e-mailed report. The nation’s beef and veal output may gain 2 percent, it said.

The Australian dollar has plunged 25 percent against its U.S. counterpart in the last year making it cheaper for overseas customers to buy Australian products. Declines in the currency are likely to offset uncertainty over global beef demand caused by the global financial crisis, Meat & Livestock Australia said.

“Underpinned by the lower Australian dollar, the Australian industry is forecast to enter a period of stronger export demand and cattle prices, once the current trading and financial uncertainties recede,” the group said.

Exports to Japan, the U.S. and South-east Asia are forecast to rise in 2009, it said. Sales to Japan, the biggest buyer of Australian beef, may increase 3 percent in 2009, while sales to the U.S. and South-east Asia are forecast to gain 38 percent and 13 percent respectively.

Brazil is the world’s top beef exporter.

To contact the reporter on this story: Madelene Pearson in Melbourne on mpearson1@bloomberg.net