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Australia Could Hit Canadian Beef Import Quota

27 May 2015
Meat & Livestock Australia

CANADA - Strong beef exports to Canada so far this year suggest Australia could hit the annual 35,000 tonnes tariff-free quota, a According to the April issue of Steiner Consulting’s Canada Meat Market Report.

Meat and Livestock Australia said that Canadian authorities issued almost 12,000 tonnes to Australian exporters for the year-to-April period, up 21 per cent year-on-year.

If the quota is exceeded, Australian product will be imposed a 26.5 per cent tariff.

This has already occurred with Uruguay, Australia’s second largest competitor in the market after the US, which has hit its quota of almost 12,000 tonnes.

Canada is Australia’s ninth largest market (based on 2014 volumes), accounting for just 3 per cent of total exports.

Year-to-April Australian beef exports to Canada were 46 per cent higher than the corresponding period last year, at just over 14,000 tonnes according to data from the Department of Agriculture, which was made up mostly manufacturing beef (81 per cent).

The discrepancy between Australian export and Canadian import volumes is due to the time goods are at sea, shrinkage and spoilage. While imported beef in cold storage remains high, up 37 per cent year-on-year, Steiner Consulting point out that this increase is off a low base and domestic Canadian stocks of grinding beef remain tight.

The limited domestic cattle and beef supplies in Canada reflect a trend which is present across North America – which has continued to support domestic and imported beef prices.

In March, 90CL import prices into Canada averaged A$6.53/kg (C$6.37/kg), up 21 per cent year-on-year, and, while they eased in Canadian dollar terms by mid-April, the falling A$ saw prices remain steady, at about A$6.51/kg (C$6.23/kg).

TheMeatSite News Desk

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