Australian exports of chilled beef to the US have ground to a halt due to a fall in demand, according to Queensland rural lobby group AgForce.

Spokesman David Pietsch said demand for Australian chilled beef in the US has fallen due to an oversupply of beef in the US market, reported ABC News. This oversupply has formed as a result of foreign bans on US beef exports due to the BSE case discovered in the US in December.

Pietsch said Australia's beef industry is hoping the lower demand in the US will be offset by growth in demand in other export markets.

"I guess we are hoping that will be offset by our ability to divert that product into some of the Asian markets of Japan and Korea where the United States at the moment are locked out, so we are still sort of hopeful that we can place that product into those other alternative markets," Pietsch was quoted by ABC News as saying.