March 26, 2012

EU beef import quotas not filled for 2011

The majority of EU beef's Tariff Rate Quotas (TRQ's) and the sheep meat TRQ's were not filled during 2011, according to the International Meat Trade Association (IMTA) and the European Commission's Taxation and Customs.

The majority of Australian beef is shipped to the EU under both the High Quality Beef (HQB) 'Hilton' beef quota (7,150 tonnes Australian access) and the HQB grainfed beef quota (20,000-tonne access shared with eligible nations).

The 'Hilton' quota is administered on a financial year basis and has a total allocation of 65,250 tonnes, with 23,333 tonnes unallocated in 2010-11. Argentina is the largest quota holder, at 28,000 tonnes - filling 93% of its allocation in 2010-11. Brazil (allocation of 10,000 tonnes) and the US and Canada (11,500 tonnes) however, fell well short of using their full quota allocations, using only 5% respectively. In 2010-11 Australia used 90% of its allocation, while in the three preceding years utilised 99% of the allocated total.

The HQB grainfed quota was opened in 2009, with Australia gaining access in January 2010. Access is shared between the US, Australia, New Zealand, Uruguay and Canada and administered on a financial year basis. In 2010-11, 90% of the 20,000 tonnes was utilised, with Australia shipping 4,038 tonnes of grainfed product. The grainfed quota is to increase to 48,200 tonnes in August 2012.

Other beef TRQ's, of which Australia has access, were also significantly under supplied in 2011. The manufacturing beef TRQ, of which there is global access of 63,703 tonnes, was only 22% utilised, while the frozen thin skirt TRQ, with 1,500 tonnes of access, was only 53% utilised.

The sheep meat TRQ, to which Australia has access to 19,186 tonnes out of a total allocation of 285,202 tonnes, was also underutilised in 2011. New Zealand, which has access to 227,854 tonnes, fell well short of shipping its allocation, reaching only 181,715 tonnes - 46,139 tonnes short of their allocation. Argentina, the second largest quota holder, with access of 23,000 tonnes, only shipped 4,196 tonnes for the past year. In contrast, Australia shipped 99% of its total allocation, totalling 19,045 tonnes. The total global quota shortfall was 68,176 tonnes - with the resulting shortage of product contributing to an increase in the price of both sheep meat and live prices. 

With the stalling of the current Doha round of WTO negotiations and an Australian-EU comprehensive Treaty Agreement still to be completed, significant short-term increases in market access for Australian beef and sheep meat to the EU look limited, with the exception of the increase in the HQB grainfed beef quota in August 2012.