CHINA has followed through with flagged plans to resume importing United States beef, lifting a ban that has existed since mad cow disease was found in the States in 2003.
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An official statement from China’s General Administration of Quality Supervision, Inspection and Quarantine said the ban on imports of US bone-in beef and boneless beef for livestock under 30 months had been removed, with conditions, effective immediately.
Australian beef exporters and producers have taken a pragmatic approach, saying they support free and open markets.
Cattle Council of Australia president Howard Smith said while the move introduced more competition for Australia in this market, Australian beef remained well-placed given its strong reputation for a safe, high-quality product and its established position within a number of key sectors in the market.
Market analysts in Australia say it is expected technical details such as traceability, inspection and quarantine protocols will be nutted out quickly to allow US suppliers to beginning shipping product.
Commonwealth Bank agri commodities analyst Madeleine Donlan said China had moved more rapidly on this than what was anticipated.
“US meat packers have been saying ‘this is great news, but we’ll believe it when we see it’,” she said.
The bank’s agri commodities daily alert said looming administration changes in the US appear to be a good motivator for China deepening economic ties.
Beef processors pointed out Australia had still been competing with US during the 13-year ban as significant volumes came into China via grey channels.
Ms Donlan said it was difficult to put figures on the amount of beef smuggled over borders however US Department of Agriculture figures on volumes going into Hong Kong and Vietnam far exceeded the amount likely to be consumed in those countries.
Mr Smith said volumes to China had slowed this year due to reduced cattle availability, increased competition in the market and strong demand from other key markets for Australian beef such as Japan and Korea.
“China’s ongoing economic growth and the increasing wealth of the middle class population means the market for beef will continue to grow,” he said.
“This year imports to China have grown by over 50pc, highlighting the strong growth potential for beef in this market.
“The industry will continue to focus on highlighting competitive advantages around our food safety credentials and our clean green image.
“Australia’s beef industry is targeting key segments where the industry can extract the greatest value for our product and identify those consumers in the upper middle class and affluent population who are willing to pay a premium for Australian product.”
