Aussie beef safe from Japan recession

Kate Dowler

Weekly Times Now - Australia

November 18, 2008

RECESSION in Japan is not tipped to dramatically hit sales of Australian beef.

Meat and Livestock Australia's regional manager for Japan, Samantha Jamieson spoke The Weekly Times yesterday from Tokyo.

She said exports to Japan for the year-to-date were down only 3 per cent on the same period last year.

"We really aren't seeing exports drop off at the moment," she said.

But the recent plummet of the Australian dollar meant stock bought earlier in the year, at relatively higher prices, was proving difficult to clear.

Ms Jamieson said buyers had high expectations that the exchange rate savings would be passed on in the marketplace immediately, which was not the case, as was slowing sales in the short-term.

"But the outlook for demand is stable," she said.

"Once the exchange rate settles we expect the cheaper prices to stimulate demand further."

Meat industry predictions in Japan pointed to stable beef prices and consumption of Australian beef.

However total beef consumption may decline slightly.

Australian beef sales may even benefit from the recession in Japan, as consumers turned away from more expensive locally produced beef.

"So we're expecting demand for Australian beef to remain firm and there not to be a huge fall off in exports," she said.

weeklytimesnow.com.au

Asian slowdown worse than expected and will bite commodities says analyst

ABC Rural - Australia

Tuesday, 18/11/2008

A leading commodities analyst has warned the prices for base metals, oil and iron ore will fall even further as China's manufacturing sector slows.

Returning from a two week tour of the country, the ANZ's Mark Pervan says the slowdown is worse than first thought.

He says massive share market losses have reduced the wealth of China's top 20 per cent and they've stopped spending on homes and cars.

Mr Pervan expects commodity prices to continue to slide over the next year.

"Base metals might see another 10 to 15 per cent downside, I mean this is really a sentiment driven market and it's a very negative sentiment view at the moment," he says.

"In the iron ore market, I've made a very bold call and suggested that prices could halve next year. [What about oil?] Oil's got another 20 per cent downside."

abc.net.au