October 1, 2013

A Rabobank report revealed that Chinese beef consumption is expected to rise further at a faster pace than domestic production, increasing the reliance on imports to satisfy demands.

The report indicates the good news for Australian exporters as China can not meet its beef demands.

Report co-author, Rabobank senior animal proteins analyst, Sarah Sivyer warns, however, that while the Australian beef industry sees long-term growth and potential within the Chinese market, so too do competitors from around the world.

"Currently both Australia and New Zealand have a significant head start due to direct trade and market access which gives them the opportunity to establish and cement long term strategic partnerships along the supply chain," she said.

Sivyer said beef exporters across the globe are now looking to China in an attempt to understand whether this demand surge will plateau or if the need for beef imports will continue to grow.

More than 60% of beef consumption in China occurs outside the home, a stark contrast to the consumption channels of both pork and poultry. "Even though beef represents a small percentage of meat consumption, the growth in absolute volume is expected to increase by 25% in the next 10 years, sparked by the introduction of Western-style food and quick service restaurants (QSRs) such as McDonalds," Sivyer said.