February 13, 2023

Australian beef exporters look to resume deliveries to China

 

 

Some Australian beef exporters, whose exports to China have been suspended due to quality and other issues, are seeking to fully resume trade with China, the Global Times learned.

 

Amid gradually improving ties, there are growing expectations for a recovery of bilateral trade between Australia and China, with more interactions expected between industry groups of both countries, an insider said.

 

There could be gains in particular for beef, a key Australian export, despite some uncertainties and variables, a meat industry insider said. "We have been in close talks with an industry representative group," the person said, without offering details.

 

In 2020, China suspended beef imports from six Australian beef suppliers due to quality and other issues found in customs inspection.   

 

While the overall beef trade continued, soured bilateral relations between both countries pushed many Chinese companies and consumers to seek other suppliers.

 

In the same year, China imported 253,675 tonnes of Australian beef, accounting for 12% of total beef imports during the period. This was the lowest volume in four years and a decrease of 6.5 percentage points in market share from 2019, according to data from the General Administration of Customs of China.

 

Still, Australia has been one of the major suppliers of beef to China. Last year, Australian beef exports to the Chinese mainland dropped 2% year-on-year to 175,127 tonnes, according to Meat & Livestock Australia.

 

Casino Food Co-op chief executive officer Simon Stahl told the Australian Broadcasting Corp that losing the Chinese market had cost the business millions of dollars. But as demand has boomed and trade ties have improved, there's rising speculation about the possible resumption of beef exports for some Australian producers.

 

However, China is also ramping up local beef production for its home market while reducing heavy reliance on any single supplier. Last year, its domestic beef supply accounted for 73% of its overall beef consumption. In the country's 14th Five-Year Plan period (2021-25), the self-sufficiency rate of beef is expected to reach 85%.

 

- Global Times