China lifts ban on Australian meat exporters before beef-heavy festival season
19 Dec 2023 --- China has lifted a ban on meat exports from three Australian companies. This development, announced by Australia’s trade and agriculture ministers, allows for the resumption of meat shipments to China from this month, pending completion of final administrative processes by both countries.
The suspension of meat exports was initially implemented in 2020 and early 2022 due to reported COVID-19 cases among workers in Australian abattoirs.
Since the end of COVID-19 pandemic, a gradual improvement has be seen in trade relations between the two countries, especially regarding F&B products, with China recently removing tariffs on Australian barley and making progress in resolving issues related to wine levies.
In a statement to Food Ingredients First, Patrick Hutchinson, CEO at the Australian Meat Industry Council (AMIC), says: “We are glad to see movement and action on some of the outstanding issues that will allow the affected plants to reenter the market.”
“We hope this represents a restabilization of the trade in meat to China, which will also allow for a process and pathway for new access to the market.”
Dominance in meat imports
Since 2019, China has held the position as the world’s leading meat importer, maintaining this status even after experiencing recent declines in imported meat volumes.
China stands as a major consumer of beef, with its import volumes consistently increasing in recent years. According to customs data, the country’s beef imports have more than doubled, from 1.04 million tons in 2018 to 2.69 million tons in 2022.
The country is one of the largest international buyers of Australian beef. The lifting of restrictions applies to facilities operated by Teys in Naracoorte, Australian Lamb Company in Colacand and JBS in Brooklyn.
“We will continue to advocate strongly for all remaining suspended plants to also regain access to China as a matter of priority,” Hutchinson states.
The country's substantial mid-income population and its increasing appetite for meat have propelled it to the top of global rankings.“There are Australian export meat processors that have been seeking to gain access to China for a number of years, and we hope that this development paves the way for them to soon be able to supply Chinese consumers with Australia’s top quality, safe meat and meat products.”
Meat-heavy holidays
With the traditional holiday season just a month away, the Chinese craving for meat is on the rise, reaching its zenith during the weeklong Spring Festival. During this period, consumers would usually flock to stores to stock up on fresh food, particularly meat, to prepare for the Chinese New Year feast.
Despite increasing prices, the holiday season’s heightened appetite for meat could drive up imports. During the festive season, beef usually serves as a main dish in most Chinese households, making it relatively insensitive to price fluctuations.
As restrictions are lifted post-pandemic, the accessibility of imported meat products on the Chinese market may even lead to an increase in demand due to “revenge spending,” the rush to purchase more after the food comes back to the market for many Chinese consumers.
By Sichong Wang
