June 2, 2008

Australia eyeing red meat export opportunities in China

Banking on booming meat demand in China, the Australian meat industry is pushing to expand its exports of red meat to the country.

A delegation led by Meat and Livestock Australia (MLA) has visited more than 140 importers and retailers over a 10-day visit.

Although China is still mostly supplied by domestic production, its sheer size presents an exciting opportunity, according to Glen Thompson, MLA's regional manager for Southeast Asia and China.

Australia's red meat industry is seeking opportunities particularly in the lower-value cuts bound for mid-level foodservice and retail. China's beef consumption, at 6 kilogrammes per capita, is only a fifth of its pork consumption.

China historically has been a small importer of beef but has a larger market for beef variety meats.

Since 2003, Australia has been the main supplier of China's direct beef imports, when mad cow disease caused the US to exit from the market. Although China agreed to open its market to US beef in June 2006, they have not reached agreement on resumption conditions.

China's pork shortage in recent years has also meant greater demand for beef.

Beef exports to the Greater China region ( including Hong Kong) were 150 percent higher during the first quarter of 2008, compared with the same period last year. US exports in the quarter to the region increased nearly 300 percent and totaled 11,461 tonnes, compared with a 77 percent increase in Australian exports for a total of 3,030 tonnes,

Although Brazil with exports increasing 268 percent to 24,162 tonnes, is the largest supplier to the region, Beijing has yet to approve any Brazilian plants for direct export to China.