Australia’s beef exports to China grew by a whopping 55 per cent to 151,402 tonnes during the 12 months ending September.
While the bulk of the beef was frozen, MLA shipping figures show a 66pc growth in chilled exports for the year to 10,000 tonnes.
In the first nine months of this year total beef exports to China have maintained their growth, reaching 116,164 tonnes, up 55pc year-on-year but chilled sales climbed by 96pc to 8097 tonnes.
Australia now dominates China’s chilled beef imports with minor competition from New Zealand.
Imports of chilled beef into China have increased from almost zero in 2007 but could make up more than 50pc of the market by 2027 as China’s increasingly cashed-up middle classes get a taste for high-quality chilled beef.
Australia is keen to maintain its stranglehold on premium chilled beef imports because of the high returns on offer.
Peak body, the Australian Meat Industry Council, believes China’s beef consumption is likely to grow in the high single digits annually with Australia well-poised to meet the higher-end demand once chilled access has been improved.
Grassfed beef dominated Australia exports to China in the year ending September, jumping 48pc to 108,732 tonnes. During the same period grainfed sales rose a thumping 78pc to 42,670 tonnes.
Total exports to China have recovered from a slide in recent years to soar near the 154,000 tonnes shipped during calendar 2013 when the market really took off.
ABARES, the national commodity forecaster, is tipping Australia’s beef exports to China in 2018-19 will hit a record 168,000 tonnes despite the ongoing impacts caused by drought.
Global beef imports into China were estimated by MLA to have grown 46pc in the first eight months of 2018.
China’s appetite for imported beef is expected to keep growing and so is the competition Australia faces from the likes of the US, Brazil, Argentina and Uruguay.
China is now the biggest export beef market for the three South American countries.
Brazil and Uruguay are pushing hard into the market. In the first three months of the year their exports represented 30pc and 24pc respectively of the total Chines import market.
The United States’ recent trade tensions with China may provide a free kick to its competitors, at least in the short term.
Pork is by far the most popular meat choice of China’s 1.4 billion people but the country has a domestic cattle herd of 50 million head which can’t meet local demand for beef.
