Australian cattle industry reacts to US beef imports relaxation

News.com.au

4 days ago

Australian beef leaders believe that the future of our $75 billion industry depends on the federal government's decision to relax import laws on US beef being a correct choice.
Cattle Australia has called for an independent review into the bombshell decision, announced on Thursday, saying there was 'simply too much at stake' for the nation's biosecurity.
Industry figures were 'unsurprised' at the call and don't expect much demand for American beef, with one likening it to 'selling ice to the Eskimos'.
The decision came after a '10-year process' and was not directly linked to ongoing tariff negotiations with the US, despite Donald Trump criticising the beef trade imbalance between the two nations, the government said.
US beef has been allowed into Australia since 2019 but now cattle born in Canada and Mexico will also be available for import after a biosecurity assessment.
Cattle Australia chief Will Evans told ABC radio on Thursday the body had to trust the government's process, stressing bureaucrats 'made the assessment themselves'.
'When you have a $75 billion industry relying on them not making this mistake, I am sure they have been cautious in their decision-making,' he said.
But Mr Evans in a statement also said it was 'a little disappointing' the government did not 'provide industry with the full details' before making the announcement.
Later on Thursday afternoon, Cattle Australia called for an independent scientific panel to review the government's decision.
'While we have been given assurances … we believe an independent scientific assessment is a sensible and prudent way forward. This must occur before imports commence,' he said.
'There is simply too much at stake when it comes to Australia's world-leading biosecurity status not to get a second opinion.
'Given the Minister's confidence she should have no issue appointing an independent panel to take the highest level of precaution in protecting the Australian beef industry.'
Mr Evans earlier said Australia's beef industry was self-sufficient and any imports of US beef were 'unlikely to have any effect on the market', stressing that the US 'cannot currently meet its own needs, with Australia exporting almost 400,000 tonnes of beef to the US in 2024'.
In fact, US beef prices have been hitting record levels domestically with a nine per cent growth since January alone. Ground beef is retailing at about US$9 for one pound (450g).
Despite the Australian government's protestations otherwise, the Trump administration has heralded the move as a 'major trade breakthrough' gained through the President's tariff agenda.
In a statement titled 'Make Agriculture Great Again Trade Wins: President Trump Secures Greater Ag Market Access to Australia for American Beef', US Agriculture Secretary Brooke Rollins congratulated Mr Trump.
'This is yet another example of the kind of market access the president negotiates to bring America into a new golden age of prosperity, with American agriculture leading the way,' she said.
James Jackson, a beef and cattle farmer and ex-president of NSW Farmers, told news.com.au he 'can't think of a reason' why Australian businesses would import more expensive US beef.
'There may be sort of bespoke restaurants, you know, guaranteed American (beef) … Texan steak or something like that,' he said. 'People may do it, but I seriously doubt it.
'The main reason there wasn't beef coming into Australia was that the economics of it weren't there, and the Americans didn't tidy up their traceability enough.'
Previously, concerns over mad cow disease prevented the import of beef products from cows born in Canada and Mexico – which were regularly brought into US supply chains.
The US now says it can trace all cattle to the farm and through the supply chain, after its farmers had long resisted more stringent regulations.
Mr Jackson said the timing of the announcement was a 'bit suspicious' when Prime Minister Anthony Albanese was hoping to negotiate on aluminium tariffs with the US, but did not believe there would have been any compromise on biosecurity.
Tammi Jonas from the Australian Food Sovereignty Alliance also said the timeline made it appear the government was 'kowtowing to Trump' but added she did not foresee much impact.
'I suspect that it's more about filling seasonal gaps,' she said.
'So if we have massive drought here you'll see an increase in imports from the US, I would imagine.
'But the only ones who stand to benefit from this, of course, are the major processors, the multinationals.'
Agriculture Minister Julie Collins told reporters in Canberra on Thursday the decision was 'the culmination of what has been a 10-year process'.
'The US has been able to bring beef into Australia since 2019. In 2020 they asked (for) expanded access.
'This process now is at conclusion and has taken around five years to conclude, purely based on science and a rigorous assessment by my department.'
She said the risk assessment was conducted by experts and 'Australia's biosecurity system is world renowned for a reason'.
Mr Trump was also US President in 2020, near the end of his first term after winning the 2016 election.
Nationals Leader David Littleproud said on Thursday afternoon he was 'gobsmacked' at the move and suggested there was a 'real risk' to health and biosecurity.
'It's a huge call from our Federal Government to come out with something like this,' he said.
'And I guess it exposes us, I think it exposes us immensely. It's of immense concern.
'I don't know how what's changed apart from probably some political pressure from the US?'
Tim Ryan, chief of the Australian Meat Industry Council, said the move was 'not necessarily a surprise' and the council had been engaged in the process for several years.
'We raised previous concerns with what was on the table. The assurances we gain from the government as part of this decision have met those concerns that we previously raised,' he said.
But Mr Ryan said he the commercial drivers of US beef arriving in Australia were 'pretty limited'.
'We're not expecting really any beef to arrive in Australia from the United States,' he said.
'At the end of the day, Australia produces the best beef in the world. We're an efficient producer of product like that. It's a bit like selling ice to the eskimos, but that said, we still need to follow the rules of trade.
'We rely on reciprocal treatment when we send our products all around the world, us accepting the United States' beef along the same terms is really a win for rules.'