October 31, 2013

China's import of Australian red meat up 46% in September

Meat and Livestock Australia (MLA) reports that during September, China's import of Australian red meat registered as the second highest volume on record at 52,620 tonnes.

Australia's share of China's imported red meat increased from 37% in September 2012 to 46% in September 2013, at 24,106 tonnes swt (Global Trade Atlas, China Customs).

During September this year, China's beef imports were the highest volume on record, at 29,113 tonnes swt - up from 5,275 tonnes swt in September 2012.

For seven consecutive months, China's imported beef volumes have exceeded 20,000 tonnes swt, underpinning total imports during the year-to-September being significantly higher (794%) on-year, at 209,385 tonnes swt.

Volumes from Australia during September were up 12% from the previous month, at 15,879 tonnes swt, accounting for 55% of the beef market share. While Uruguay remained the second largest beef supplier to China during September, at 6,795 tonnes swt, the monthly volume was down 11% on the previous month. This caused Uruguay's market share to decrease from 26% in September last year, to 23% in September 2013.

In contrast, China's intake of Canadian beef rose 80% on August, and 437% above September last year, at 2,976 tonnes swt, placing Canada as the third largest supplier to China during September - albeit, only slightly higher than New Zealand at 2,694 tonnes swt. However, New Zealand continued to dominate China's imported sheep meat market.

Out of the 23,506 tonnes swt imported, more than half the volume (61pc, or 14,398 tonnes swt) was supplied by New Zealand during September. Imports of Australian sheep meat were up 126% on-year, at 8,227 tonnes swt.

Chinese retail prices during September indicated further price rises in the market, with both boneless beef and bone-in sheep meat hitting all-time highs (Ministry of Agriculture of the People's Republic of China).

Chicken carcase and boneless pork prices were also each up 2% on the past month, however, both prices were still 3% lower than at the beginning of the year.