April 16, 2013

 

China's accreditation of meat facilities set to benefit Australian exporters

 

 

China's decision to accredit 28 cold store facilities and four additional red meat plants in Australia may benefit Australian meat exporters.

 

The decision marks the first step in a system-wide approach to approval of meat storage facilities for shipping.

 

The deal, announced as a result of Prime Minister Julia Gillard's trip to China, means exporters can save money by consolidating large loads of meat for shipping.

 

Processors will be able to store their product and export it when commercially viable in response to demand.

 

The deal also recognised Australia's own certification systems for cold stores and allowed for facilities to be added to the already-approved 28 facilities without special consent from China.

 

Last year, Chinese imports of Australian beef surged nearly 250% on 2011, at 27,300 tonnes. Imports of Australian sheep and mutton were also up sharply on 2011 shipments.

 

Trade minister Craig Emerson said that this week's deal will help clear the way for continued significant growth in Australian red meat exports to China.

 

The approval and listing of additional red meat processors and cold stores will be formalised shortly by China, after sourcing arrangements and expected export volumes have been recorded.

 

Australian Meat Industry Council's John Langbridge said the cold storage regulatory relaxations were of significant value, especially in reducing costs and challenges in storing product before shipment.

 

Part of Australia's beef trade into China includes a range of slow-moving items, which tend to accumulate in storage until volumes are consolidated to the point of a possible shipment. The new regulation will assist in managing this process. 

 

The new regulation will also help multi-site processors like JBS, Teys Australia, Nippon and Greenhams which want to accumulate similar product from different company plants before export.