AUSTRALIAN beef has cemented its place as a superior product worthy of extra dollars in China on the back of its natural and healthy image.
The key now is to secure favour with the even more valuable, higher-end demographic willing to pay an extended premium for freshness.
Against a backdrop of cheaper, frozen boxed beef from Brazil flooding into China, it will likely be chilled beef that will pave the way for Australian beef to gain the most value from what is its fourth largest export market.
This is the message emerging both from the latest beef export volume figures and direct from prominent beef importers in China.
Frozen grassfed beef volumes to China dropped 34 per cent year-on-year for the January to April period, while chilled beef lifted 28pc, according to the Australian Bureau of Statistics.
Meat and Livestock Australia said a significant intake of frozen beef from Brazil had a large impact on the market since Brazil regained access mid-2015, pushing Australia into second place as the largest direct supplier.
China has also imported greater volumes of frozen beef from Uruguay, New Zealand and Canada this year compared to first quarter 2015.
Goldrich International, one of China’s largest red meat importers, has gone from taking 100pc of its beef from Australia three years ago to 70pc from Brazil this year.
Goldrich last year imported an average 300 containers, or 6500 tonnes, per month.
The company’s general manager Grace Gao said Brazil was ‘forced to focus on China’ and so adjusted its price to be 10 to 20pc less than Australia’s, up to 30pc on some cuts.
“Brazil has nice volume and can offer at a cheaper price,” she said.
Australia, however, currently has exclusive access for chilled beef into China and the demand for that was increasing, she said.
It was increasingly being requested by the high-end restaurants Goldrich has on its customer list, Ms Gao said.
Goldrich sells via three channels: Frozen carcases to local abattoirs to fulfill their production capacity when they can’t get a stable supply of livestock; wholesalers (Goldrich’s main market) and hotel chains and supermarkets.
The company also sources from Uruguay, New Zealand, Canadan and Argentina, and is building relationships with Mongolia and Costa Rica, but Ms Gao said Australian beef was perceived to be superior ‘to all others’.
“Because it is natural, healthy, from grassland, without chemicals, Australian beef has a different consumer, one that will pay more,” she said.
Marketing work put in by MLA had been very effective, she said.
“It has pushed people to think about using other cuts,” she said.
“Australian beef is seen as important for health, especially for ladies to keep fit.
“That message has really filtered through.
“Parents want their babies to eat red meat.
“Some budgets have reduced by 25pc due to the slowing economy but longer term, ten years out, there is a very bright future for Australian beef in China as demand grows.
“The younger generation have travelled oseas more and want western style food. Even those who have not travelled want this.”
Goldrich is based in the northern port city of Dalian, where tourism is a significant industry.
Tourist operator Peter Jiang agreed Aussie beef had a superior image but said price was still a big factor.
“We know there is very little disease in Australia and beef from here is good and natural and many Chinese are willing to pay a little more for that,” he said.
“Now we are becoming more aware of what is fresh but only a small percentage of people here can afford to pay more again for that.
“For me personally, it is not going to be worth it to have fresh beef - it is worth it to pay for healthier beef but not necessarily fresh.”
For Dalian restaurateur Maggi Li, Western style steaks are a menu feature but the price differential for Australian product is still too great.
Her Olive Garden Italian Restaurant serves local and Canadian steaks.
“Many more Chinese people today like beef than ten years ago and young people really like steaks,” she said.
But Australian beef was too expensive and too difficult to make profitable just yet, she said.
The trick for Australian marketers, it seems, will be to position chilled beef within the reach of a distinct demographic.
Ms Gao would certainly like to see more Australian abattoirs approved to supply chilled beef to China in order to lift competition and put downward pressure on prices.
Shan Goodwin travelled to China thanks to Wellard Rural Imports.
