China again featured as a key part of the story behind Australian exports during April, helping compensate somewhat for further reductions in trade into traditionally strong markets like the US and Japan.
In fact, just under 40pc of all Australian exports in April went to ‘other’ customer countries, apart from the ‘big three’ destinations of the US, Japan and Korea – possibly a monthly record (see this morning’s separate April export trade summary).
Compare the figure with 28pc ‘other’ for the first three months in 2012, and just 7pc back in 2005.
Although it fell just short of setting yet another monthly volume record, the strength of buying demand for Australian beef out of China continues to amaze stakeholders, with another 11,654 tonnes consigned out of Australia during the month.
That fell only 650t short of the previous month’s all-time record, and contrasts sharply with April last year – before the trade started to explode – when only 311t was consigned.
For the ten months of the 2012-13 financial year to date, China has now taken more than 70,000t of Australian beef, compared with just 6200t for the same period a year earlier.
By any standards, that is extraordinary market growth. Not since the rapid, but ultimately short-lived explosion in trade into Russia in 2008 has Australia seen an export market emerge with such vigour.
The figures again easily place China as Australia’s third largest export customer for the month, behind Japan and the US, but considerably stronger (by volume, not by value) than Korea.
While the longer term outlook for Australian beef to China is still somewhat uncertain, every month that passes is helping build confidence for the future of the trade, with Australian shipments for 2013 now estimated to exceed 80,000t for the year.
Current Chinese interest is said to be centred on offals and less-valued beef cuts, while trimmings trade is said to be subdued. Watch this space.
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