Beef exports from Australia to the US have significantly decreased and the situation is expected to continue for some time.

The number of cattle coming forward for slaughter in Australia this year and next will fall to levels not seen in over two decades, leading to a fall in production.

The first half of 2016 saw a 18% fall in exports, with the US significantly down.

Australia is the largest supplier of imported beef into the US and an estimated 70% is manufacturing beef.

US domestic production moving up

According to the beef and lamb section of the UK Agriculture and Horticulture Development Board (AHDB), while lower production levels in Australia have had an effect, US demand for this type of product from Australia has eased as its own production has moved up, and amid import competition from Canada and Mexico.

The picture is similar in Japan, where Australia is the major beef supplier but has seen its exports fall by 10% despite a trade agreement with Tokyo.

Brazil has proven to be a competitor for Australia in the Chinese market, with Australian exports down by almost a third year on year. Brazil has higher production and a sluggish domestic demand, says AHDB, and is making a mark on the global market.

With Brazil soon to become a supplier to the US and part of the same quota as Ireland, there is the potential for Brazil to fill the quota alone, squeezing Ireland out.

Despite the fall in production, the meat marketing agency AHDB says there are positives, with shipments to South Korea, Indonesia and the Philippines all on the up.

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