Total red meat exports to the region increased 51% year-on-year to 15,638 tonnes (t) swt, while beef exports reached a month record of 5,485t swt, nearly double the volumes recorded in April 2012. Lamb exports to MENA were up 15% year-on-year for the month, while mutton exports were up 39%.
“The MENA region has been a growing destination for Australian beef over the past decade, with beef shipments going from 7,094t swt in 2003 to 32,737t swt in 2012. The current outlook for 2013 is for record beef shipments, with the volume of beef exported in the first four months of the year totalling 19,306t swt, a more than twofold increase when compared year-on-year,” said MLA analysts.
They stated that the export rise had been driven by strong demand from Saudi Arabia, which imposed a ban on Brazilian beef in late 2012 following the discovery of BSE in the country.
“Exports to Saudi have totalled 9,233t swt year to date (a ninefold increase), while Kuwait (1,490t swt, a twofold increase) and Iran (2,319t swt, up from zero in 2012) have also seen strong growth in shipments,” they said.
However, they added that exports to the United Arab Emirates (UAE) and Jordan slowed slightly in the first four months of 2013 as the result of competition from Brazilian beef diverted from Saudi Arabia.
United Arab Emirates
Beef exports to UAE, Australia’s biggest red meat market in the Middle East, fell 15% in January to April 2013, although the losses were experienced primarily in frozen beef volumes.
Chilled beef export remained steady and lamb exports have increased 28% so far this year compared to the same period in 2012.
The MLA analysts said that the latest Business Monitor International (BMI) country report on the UAE painted a “positive picture” for food consumption in the country, with consumption forecast to grow by 6.25% every year for the next five years.
They added that the increase in food consumption would be driven by population growth and rising incomes, which would also help drive premiumisation in the country.
“The UAE was reportedly at the forefront of the premiumisation trend leading up to 2009, before the economic crisis put a significant dent in consumer confidence. Any re-emergence in premiumisation would likely benefit Australian high-quality chilled beef and lamb exports, which are well positioned at the high end of the market,” they said.