Meat and Livestock Australia reports that contributing to the decline in shipments in 2009 was a contraction in beef production throughout the second half of the year, along with the high dollar and recession conditions in key exports markets.

MLA says the main influencing factor for Australian beef exports in 2009 was the rapid rise of the dollar which, combined with the impact of recession and the fallout from the global financial crisis, restrained returns to Australian exporters from Japan and the US during 2009.

However, on a positive note, South East Asia continued to develop as a significant market for Australian beef, underpinned by a record volume of beef to Indonesia.

Japan maintained its position as Australia’s largest beef export destination in 2009, with shipments for the year back 2pc on 2008, at 356,567t.

The high dollar created very difficult trading conditions for Australian exporters during the second half of 2009, which was further complicated by recession and deflationary conditions in Japan.

Despite Australian shipments to the US increasing 7pc in 2009 to 251,479t, exports remained 16pc below the average for the past five years at 299,125t.

Again, the high dollar impacted shipments to the US in 2009, with product diverted to more lucrative markets, while sluggish US consumer demand and a surge in dairy cow slaughter also impacted demand for Australian beef.

Despite increased competition from the US and a very sluggish start to the year, with exports back 27pc in the first quarter of 2009, Australian beef shipped to Korea exceeded forecasts, totalling 115,481t – down 9pc on the previous year.

Indonesia clearly established itself as Australia’s fourth largest beef export destination in 2009, receiving a record 51,816t – up 57pc on the previous calendar year high of 33,016t.