Port of Melbourne red meat exports bounce back to pre-COVID levels

Packaged beef made up more than 41 per cent of total red meat exports, followed by lamb and mutton, carcasses, and sides.

Port of Melbourne chief executive Saul Cannon said red meat continued to be a key driver in export volumes, representing the fifth-largest container export commodity group.

The meat export sector had experienced significant growth in the past year, with October 2023 exports up 23 per cent from the previous year.

In October, the port exported 4984 twenty-foot equivalent units in October 2023 - 3.27 per cent up on the previous peak.

That was in November 2019, when 4,826 TEU were exported.

During the height of the pandemic, red meat export volumes plummeted to 2,554 TEU, in January 2021.

"The new peak recorded in October 2023 signals a robust recovery in the post-COVID landscape," Mr Cannon said.

Episode 3 analyst Matt Dalgleish said while there had been a recovery in saleyard pricing, Australia was still at "comparatively competitive levels.

"I think we are going to see good, strong robust export levels at least until the first quarter of next year," he said.

"US demand has been increasing through the back end of this year, so since about the middle of the year, demand has picked up.

"They have been reducing their cold stores of beef as they get further into their herd liquidation, they are into their fourth year now, their production and their export capacity is dropping.

"They are looking for alternatives and given our livestock prices our meat is pretty competitive."

Drought, caused by El Nino, had seen a long-term herd reduction.

"As part of the diplomatic thaw with China, even though there are still abattoirs that are locked out for the moment, volumes have been increasing," he said.

"If you look away from beef and towards sheep meat, China has had the strongest year on record for mutton imports from Australia."

He said the Middle East, which was price sensitive, had also increased its volumes from Australia "because of the nature of our pricing.

"You have multiple parts of the world who are looking for quality, inexpensive red meat, and we have it."

Australian Meat Industry Council chief executive Patrick Hutchinson said supply was now readily available.

"It hadn't been in the past number of years," Mr Hutchinson said.

"It's great to see this increase in the export market, it just goes to show that we can continue to compete and we will continue to compete

"But we need to be cognisant of the fact cash is king, price is a very strong determinant."

He said recent rain in south-eastern Australia would have an impact on supply.

"What does that look like for supply, and therefore price," Mr Hutchinson said.

He said processors were again having to compete against restockers.

"We are doing back into the cycle again, with no discussion about on market intervention," he said.

"No doubt price will be creeping up back up, based on the amount of supply we have, but if you look at the slaughter records and data over the last six months, we are seeing 30-60 per cent increase, year on year, on slaughter rates.

"More product is there and because more product is in supply it will, no doubt, becheaper."

He said market volatility was now more likely - "volatility (is about) just add, or remove, water."

"With all this rain, a few people can stand outside and enjoy the cold shower that comes with it and start to really look at the clear market fundamentals, that are operating at the moment," he said.

"Producers were encouraged to increase their breeding herds and flocks, and they did that, and the market has responded accordingly - we are all working towards a happy medium."

A lot was made about processors recouping margins, but they were also facing large increases in the cost of energy and labour, he said.

"Logistics issues remain, especially with (stevedore) DP World's issues and strikes, particularly at this time of year, imports take precedent over exports, so it continues to be a difficult process for us to be going through," he said.

Any "explosion" in exports and processing numbers always led to a lower cost.

"When your price is a little bit more attractive, you are the best quality and you are the most reliable, everyone is going to be taking it in as best as they can, and that's what we are seeing."

.