Industry Economic Update: December 2021

KEY TAKEAWAYS:

• • Beef export volumes remained 17% below average in the Dec quarter due to reduced slaughter, with the 2021 yearly exports 18% below the 5 year average. Japan continued as Australia’s dominant market for chilled beef and overall beef exports. South Korea increased its share of both chilled and frozen imports to become Australia’s 2^nd largest beef market for 2021.
  • Sheepmeat exports were 8% below the 5 year average for the Dec quarter, taking the 2021 total sheepmeat exports to 3% below average, pulled down by mutton exports (10% below average) while lamb exports were relatively flat at 1% above average. China remained the largest market overall, and the primary market for Australian Frozen lamb and mutton. The USA remained the primary chilled lamb market, and the second largest frozen lamb and mutton market after China.
  • Goatmeat exports were 22% above average for the Dec quarter of 2021, reflecting a recovery of the goat herd and increased slaughter. However, yearly export volumes remained 15% below the 5 year average. The USA increased its share of goatmeat exports to 66%, while South Korea overtook Taiwan as Australia’s second largest export market with 11%.
  • Pork exports continued to track above average, with exports for the 10 months to Oct (the most recent month for pork) 19% above average, reflecting increased pork production levels. Singapore remained Australia’s dominant chilled export market and pork market overall, while South Korea and the Philippines moved into the top five with large increases in their shares of Australian pork exports.
  • Australia’s export Market Concentration Index (MCI) can be calculated based of export data. The MCI provides one indicator of an industry’s export risk exposure. An MCI near 0 reflects highly diverse export markets generating reduced risk from any individual country risk, and an MCI of 1 reflects highly concentrated export markets with a high exposure to individual country risk. In 2021, the MCI for beef exports remained unchanged from 2020 at 0.17, the MCI showed increased market concentration for lamb (from 0.14 to 0.15), mutton (0.20 to 0.22) and goatmeat (0.40 to 0.46), while pork decreased export market concentration from 0.20 to 0.19.