China an up-and-coming market for Australian beef

The emerging China market may hold the key for revitalising Australia's beef export market in the first half of 2010, despite exporters predicting the next six months will be the toughest in 20 years.

China's growing demand for beef have exporters feeling upbeat. China currently consumes six million tonnes of beef a year but domestic production can only satisfy a quarter of this demand.

In recent years, Chinese farmers have chosen to raise pigs and poultry instead of beef cattle because of the long production cycles and lean profit margins. This is good news for Australian beef producers.

In 2008–09, China took more than 11% of Australian beef exports. In the past 12 months, Australia shipped a record 5,286 tonnes of beef to China, up 97%.

China's expanding food service and restaurant sectors have kick-started new beef-focused restaurants in major cities such as Beijing and Shanghai.

Meat and Livestock Australia regional manager for South-East Asia and greater China, Aaron Iori said the potential to increase beef exports was enormous.

Currently the largest percentage of Australian beef product going into China is manufacturing beef and demand for loin cuts is growing, he said.

While manufacturing beef will continue to be a big driver for increased exports, retail growth for Australian beef and growth in the food service market is also increasing, he added.