Australia beef exports ‘rescued’ after China ban by demand from US, South Korea

Name: Australia and China cooperation too valuable for 'nonsensical' decoupling
Uploaded: 2020-07-17T23:30:19.000Z
Duration: 7 min 34 s
Description: Australia and China cooperation too valuable for 'nonsensical' decoupling

Australian beef exporters in May capitalised on supply shortages in the US and South Korea due to coronavirus disruptions

But with US production coming back online in June, new markets for Australian beef may not last

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Australian beef exporters turned to markets in the US and South Korea after China placed a ban on four Australian abattoirs. Photo: Bloomberg

Su-Lin Tan

Published: 7:30am, 18 Jul 2020Updated: 7:46am, 18 Jul 2020

A slump in US beef production in May as a result of the coronavirus pandemic has "rescued" Australian beef exports hurt by a Chinese ban on four of its abattoirs, export data shows, though new demand is unlikely to last long term.

The Australian state of Queensland – home of three of the four meat processors banned from exporting to China in May due to labelling and compliance issues – redirected most of its excess beef to the United States and South Korea, traditionally a big importer from the US, according to Meat & Livestock Australia (MLA), the nation’s red meat and livestock research and marketing body.

The Australian government has said negotiations with China over the four suspended abattoirs, which accounted for about 20 per cent of Australian beef exports to the country, were ongoing with no signs of relief.

“Queensland exports have pivoted towards the US and South Korea, as volumes to these markets lifted substantially in June relative to pre-suspension levels,” MLA said in an update late last week.

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Australia and China cooperation too valuable for 'nonsensical' decoupling

The volume of Queensland’s chilled and frozen beef exports to the US in June was 153 per cent higher than in January, while exports to South Korea last month exceeded January’s level by 77 per cent, according to data from the Australian Department of Agriculture, Water and the Environment.

Exports to the US in June were 30 per cent above the same month last year, while export volume to South Korea was the highest since December 2018.

However, the “rescue” will not last nor does it signal permanent new markets for excess Australian beef, with production in the US now getting back on track, MLA warned.