June 23, 2004

Australia Meat Exports To China Could Rise In Time

Australian meat exports to China, particularly pork, could rise in time, in part reflecting an expected Westernization of the Chinese diet, Australia's chief commodities forecaster said Monday.

The government's Australian Bureau of Agricultural and Resource Economics said it sees increased meat export opportunities as China's economy expands further, urbanization continues and demand for animal protein grows.

"With population and resource constraints limiting expansion of China's meat production, demand for imported meat, particularly pig meat, is expected to grow over the medium term to satisfy increasing demand," Abare said in its quarterly Australian Commodities publication.

"Western dietary influences are also likely to contribute to the growing demand for animal protein in China, particularly for beef," it said.

Australia is a major global supplier of meat, particularly beef and sheepmeat.

At present though, China is a small, relatively price sensitive market for Australian meat exports, Abare said.

Australian meat exports to China, excluding poultry, totaled 8,172 metric tons in the first five months of this calendar year, up 9.4% from 7,467 tons in the year-earlier period, according to the latest official export data.

Of the exports in the latest 5-month period, 54%, or 4,388 tons, was sheepmeat, mostly frozen lamb, the figures show. Pork accounted for just 4% of the exports to China in the same period.

Abare also said 4,400 tons of poultry meat were exported to China in 2003.