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China overtakes Japan for Aus beef exports
Paul Brescia
China is now the top export market for
Australian beef, overtaking Japan by 700 tonnes, accounting for 24.5 per cent,
from 9.5 per cent in July 2017.
Meat and Livestock Australia has released its report on the July 2019 figures, Australia’s biggest month in four years, which it says is representative of strong export demand, a weak Australian dollar and high levels of slaughter across the country.
As the MLA explains in its report, Japan and the US have traditionally been the most prominent destinations for Australian beef. Over the past twelve months, shipments to China were up 96% on year-on-year in July.
Global export demand is primarily being generated from China, with June marking a new record for the most beef imported in a month by a single country, at 133,700 tonnes swt.
Explaining the increase, China is seeking alternative meat proteins to fill the space left by the ongoing African Swine Fever (ASF) epidemic and resulting nationwide pork shortages.
The MLA believes that increasing middle-class household incomes and shifting taste preferences are underpinning demand for higher quality meat, such as Australian beef.
In its release it notes, “Tightening regulations from Chinese government officials has resulted in less meat coming in from grey channels (such as Vietnam and Hong Kong), particularly Indian buffalo meat. As a result, Chinese buyers are actively pursuing key world exporters for direct supply. Argentina has emerged as a leading supplier of beef to China, as the devaluation of the Peso and loosening of export controls have made their product increasingly competitive, while a temporary self-imposed ban on Brazilian beef to China in June proved just a minor speed bump.”
Australian beef exports (year-to-July) Source: MLA
- Japan: 169,000 tonnes, down 9% on 2018
- US: 147,000 tonnes, up 7% on 2018
- China: 146,000 tonnes, up 65% on 2018
- South Korea: 96,000, up 5% on 2018
- Indonesia: 33,000 tonnes, down 9% on 2018
Top suppliers of beef to China (Year-to-June) Source: MLA
- Argentina: 151,000 tonnes, up 126% on 2018
- Brazil: 149,000 tonnes, up 12% on 2018
- Uruguay: 142,000 tonnes, up 30% on 2018
- Australia: 126,000 tonnes, up 62% on 2018
- New Zealand: 102,000 tonnes, up 85% on 2018
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