April 24, 2013

China's beef imports from Australia rise as illegal trade declines

Following crackdown on illegal imports in China, China is now Australia's third largest beef export destination.

Australian beef shipments to China grew by 2,200% in the first quarter of this year, totalling 29,000 tonnes, compared to just 1,200 tonnes for the same period last year.

Rabobank's senior analyst of animal protein, Sarah Sivyer said that China no longer allows so-called "grey channel" trade, like buffalo from India and beef from Vietnam.

"I do not think the Chinese decided to start eating beef overnight, it's not as simple as that. It's very much a result, most analysts will agree, of the grey channels tightening up. From our perspective, we actually increased our formal or direct trade into China and we are hoping that we will be able to sustain that for the coming months out through to the end of 2013," she said

Australia's top two beef markets remain Japan and the US, with Korea now fourth largest, by month. But she said the price for Australian farmers is depressed due to a lot of cattle being sent to market because it's so dry here.