Rural Bank’s Commodity Overview Insights for August 2024 reveal record-breaking beef exports to the US, Japan, and South Korea, highlighting the strong international demand for Australian beef.

According to Travis Wentriro, Regional & Rural Network Manager at Raine & Horne Group, this thriving export market is expected to sustain or boost profitability for cattle farmers, which could, in turn, drive up the value of rural properties used for cattle production.

 “The growing export demand may also spur investment in rural areas, further supporting property values,” Travis added.

National exports concluded the month at 129,998 tonnes, reported Rural Bank[i]. This is the highest monthly volume on record, breaking the previous record set in March 2015 by five%. 

The US continued to show firm demand for Australian beef, with a 34% month-on-month rise to just over 38,500 tonnes. The reduction in their domestic supply has continually translated into a more robust market for imports, which has provided greater export opportunities for Australian producers. The 90CL Boneless beef trimmings price into the US has now hit a record, at 987.9Ac/kg, further illustrating their appetite for Australian beef. 

Exports to China also recorded firm growth of 23% month-on-month. However, economic constraints and logistical issues in China have limited significant growth throughout 2024. 

 Beef exports to Japan also lifted marginally, with elevated demand a byproduct of reduced US supply. Exports to Japan rose 2.7% in July and 48.3% year-on-year. Similarly, South Korea continues to import substantial volumes of Australian beef due to reduced US availability. Exports to South Korea lifted 26.4% month-on-month, which is also 19.9% higher than last year.

 National weekly slaughter rates in July were consistent with the previous two months, averaging just over 140,000 head—an increase of 1% from June’s 139,500 head. Although stable, these rates were 15.6% higher year-on-year and 29.6% above the five-year average.

Travis added, “Ongoing export demand, especially from the US, coupled with stable slaughter rates, suggests a positive long-term outlook for cattle farming. 

 “This could result in sustained or gradually increasing rural property values as the profitability of cattle farming remains strong.”

Contact your local Raine & Horne Rural agent to learn more about the current property market conditions in your area and the key factors driving these trends.

[i] https://www.ruralbank.com.au/knowledge-and-insights/publications/insights/cattle/insights-august-2024/