Little Chance for Australia to Capitalise on Spare Beef Quota
RUSSIA – US beef import quota, after being banned from the Russian market in February, is unlikely to be met by any other suppliers this year due to time constraints.
8 November 2013
2 minute read
Meat and Livestock Australia has said 60,000 tonnes of US assigned quota beef has been freed up after sitting idle for most of the year.
But the organisation added: “Despite the reallocation of the quota, the fact that it comes so late in the quota year, which operates on a calendar year basis, means that supplying countries, including Australia, will struggle to capitalise on the increased tonnage.”
Futhermore, MLA cited competitive prices from South American as another concern, where traders are also keen to profit from the redistribution.
This would continue year’s trend as Australian beef export to Russia have been ‘sluggish’ due to cheaper South American beef impacting on the price Russians have been willing to settle frozen beef.
At best the quota shake-up would only impact Australian trading in a minor way. Australia shares 407,000 tonnes of quota, whereas the US and European Union both have 60,000 tonnes each.
“Shipping times to St Petersburg are in excess of 50 days, leaving no time for product to arrive and clear customs before the end of the quota year,” said an MLA spokesperson.
“The majority of Australian frozen beef shipped to Russia in 2013 has been destined for the east coast of the country, arriving in the port of Vladivostok. Shipping times to Vladivostok in most cases are below 30 days, meaning that theoretically Australian product could arrive before the end of the quota year.”
TheCattleSite News Desk
