December 02, 2003

Constrained Australia Beef Imports To Taiwan See Switch to NZ Beef

Taiwan beef imports in the calendar year to August totalled 48,571 tons, according to CETRA (China External Trade Development Council) statistics.  This is a 14% rise (or 6,020 ton increase) on the same time last year, with the largest increase registered for New Zealand (up 32%) followed by the US (17% higher) and Australia (up 2%).  Australia's share of the imported beef market accounted for 44%, followed by NZ at 34% and the US at 21%.

Factors limiting the expansion of Australian beef imports to Taiwan in 2003 have been a substantial increase in imported prices since the beginning the year due to the strong A$, tighter supply and high imported prices available in alternative markets such as the US and Japan. 

For example, compared with last year, the imported price of Australian tenderloins has risen from NT$420/kg to NT$630/kg, knuckles from NT$120/kg to NT$170/kg, shin/shank from NT$115/kg to NT$175/kg and intercostals up from NT$125/kg to NT$185/kg.

Many importers believe that tight supply has meant that exporters have been reluctant to provide quotes to importers.  Consequently, some importers have switched from Australian to NZ beef.

According to trade sources, NZ frozen beef volumes to Taiwan have shown a significant increase between March and June this year when NZ frozen chuck tender and knuckle were 10% cheaper than similar Australian product.  Although this price difference has now narrowed, there have been no significant signs that importers will revert to Australian beef over the short-term.

Despite a shortage of beef predicted in Taiwan over the remainder of the year, limited orders are expected from Taiwan with a December 2003 delivery date. 

Rather, many expect that importers will place large orders with a shipment arrival date for the beginning of January 2004.  This will allow them to take advantage of the expected new tariff of NT$10/kg (reduced from NT$15/kg for special quality beef and NT$17/kg for other beef) and to meet demand for the approaching Chinese New Year.