September 9, 2010

 

China buys more beef in 2009-10

China has emerged as a major beef importer in the wake of the global financial crisis.

 

Beef exports from Australia, the US, New Zealand and Brazil to South-east Asia and China all reached record levels in 2009-10, thanks to a booming population and vibrant economic growth.

 

Australian beef exports to South-east Asia and China during 2009-10 jumped 20% compared to previous year to a record 131,292 tonnes shipped weight, according to Meat and Livestock Australia (MLA).

 

This follows strong on-year growth (Australian beef exports to South-east Asia and China gained 36% last year) and means the combined regions now account for close to 17% of all Australian beef exports.

 

Aaron Iori, MLA's South-east Asia and China regional manager, said Australian beef would increasingly be required to fill a growing gap between local beef production and consumption in China.

 

"It is a country that, yes, has its own beef population, but despite that fact, still relies on the importation of beef. We are servicing a premium product into this market to go head-to-head with high-quality local product," Iori said.

 

Strong economic growth had created a larger middle class and attracted investment from modern, international retailers in China, resulting in a shift away from traditional wet markets, he said.

 

The arrival of international brands and subsequent development in the food service industry had created greater demand for manufacturing beef and alternative cuts especially, he added.

 

"Just over half of all beef exports to China is used in further processing . . . it's either blended with local product or used in its own right," Iori said.

 

"International brands with a sense of integrity rely on imported product or use reputable local suppliers or a blend of both."

 

But while beef consumption was improving, the biggest constraint remained price.

 

"The Chinese (per capita) eats 36kg of pork, 27kg of seafood, 9kg of poultry and just 4.5kg of beef annually," he said.

 

National Australia Bank senior economist David de Garis said during the global recession and recovery, Australian exporters were more globally competitive and actually increased their market share.

 

In contrast, advanced economies such as the US, Europe and Japan were hit hard by the global financial crises and are still struggling to sustain their recoveries, de Garis added.