00:00This week episode three is taking a look at sheep meat exports. When we look at total export volumes for
00:05July, they were down 29% compared to last July, so a bit of an adverse reaction there.
00:11Across the different segments of the market, China was down 35% and Chinese demand has been quite weak most
00:18of this year.
00:18I think it's a bit of a reaction to very high livestock prices here domestically in Australia and China is
00:24a price sensitive market.
00:26Outside of China and the US, if we look at the other markets, we've seen a drop of 33%
00:31compared to last July.
00:33And a lot of those other markets are, of course, the Middle Eastern region. Access through the Strait of Hormuz
00:38is still problematic.
00:40So we're seeing several of those destinations showing below average trade flows.
00:45There are a handful that saw a bit of a lift in higher trade flows, but those ones were few
00:50and far between and it were those destinations that had a better geographical access,
00:54not necessarily relying on the Strait of Hormuz.
00:57And when we look to the US, that's one that has been strong most of this year, but in July
01:02we did see a 5% drop this July compared to last July, so starting to soften a little bit.
01:08The big concern in the US, though, is this inquiry into imported meat, imported lamb product.
01:14That's a worry because 80% of what goes into the US from an import perspective of sheep meat is
01:19from Australia.
01:20And if we get an adverse outcome of that inquiry, we could see a punitive tariff.
01:26Some are suggesting about 30% being applied to imported product.
01:31So that would be a disaster for the Australian sheep meat sector.
01:34We have to keep an eye on that one.
01:36We'll see when you've got nothing on.
01:37We'll see you next time.
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