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News.com.au
3 days ago
- Business
- News.com.au
What's driving China's hunger for Aussie beef as exports soar
Grain-fed beef exports to China have ballooned more than 40 per cent this year – and it's not only because of the Asian superpower's trade war with the US. Australia has broken records in the beef export industry so far in 2025, up 15 per cent year-on-year, to reach more than 567,000 tonnes by May. Among the biggest movers has been grain-fed exports to Greater China – which includes Taiwan and Hong Kong – rising 41 per cent to 57,000 tonnes alone. Overall beef exports to Greater China are up 30 per cent this year, rising to 117,000 tonnes in the latest data. These figures reveal how Australian beef exporters have been a big winner of Beijing and Washington's ongoing trade war sparked by Donald Trump's tariff regime. Meat & Livestock Australia general manager of markets Andrew Cox explained the uptick in trade to China had also coincided with a repairing of the political relationship between the two countries in recent years. China only lifted the last of its unofficial trade sanctions on Australian products like meat, wine and barley in December last year, which stemmed from tensions between Beijing and the previous federal government. 'And then of course, more recently, there's been some increased demand because our key competitor in that premium space in China, the US, has been effectively shut-out due to the trade relationship between China and the US.' China previously imported AU$2.5 billion worth of American meat but those products have virtually disappeared from supermarket shelves since Mr Trump's 'Liberation Day' as both countries hit each other with tariffs above 100 per cent. The growing middle class China's growing middle class and rising incomes have seen beef become a more popular source of protein – particularly premium cuts like wagyu – than it was historically. A snapshot collated by Meat & Livestock Australia shows 74 per cent of affluent Chinese consumers believe Australian beef is 'the most delicious', while it also scored highly for freshness and safety. Mr Cox, who has been in the industry for 20 years, said he remembered when Chinese trade figures were a 'rounding error' on the export database. 'Now they're the world's biggest beef importer and it's got more runway to grow,' he said. 'We've seen urbanisation, an emerging and growing middle class numbering in the hundreds of millions. And they have a demand for quality and safe protein.' Tammi Jonas, a farmer and spokeswoman for the Australian Food Sovereignty Alliance, predicted China to hoover up Aussie beef after the tariffs were announced in April. 'China has just turned immediately and said, 'Yep, that looks great. We'll have more Australian beef',' she told this week. Ms Jonas, however, has also warned of the potential for beef prices in Australian grocery stores to go up as exporters send more stock overseas. 'China buys a full range of everything from cheaper cuts to the more expensive ones,' she said. 'They have a rapidly growing middle class, so they demand more of the premium beef than historically they did. 'And Japan is the same, they both like a lot of the premium cuts from here. 'So that's direct competition with premium cuts in Australian supermarkets.' Tariffs and US trade The US President, in his April 2 speech, singled out an unbalanced beef trade as justification for slapping a blanket 10 per cent tariff on all Australian-made products. 'They won't take any of our beef. They don't want it because they don't want it to affect their farmers and, you know, I don't blame them, but we're doing the same thing right now, starting at midnight tonight,' Mr Trump said. Despite this, US importers have taken in 167,000 tonnes of Australian beef in 2025 – with its 32 per cent growth outstripping that of China. Australia's meat exports to the US totalled around $4 billion in 2024, while America has been dealing with drought conditions that have squeezed domestic cattle supply. It was revealed on Friday that the Australian government was considering relaxing biosecurity laws to allow more American beef into the country as part of tariff negotiations. Beef from the US was banned in 2003 after the breakout of mad cow disease, and since 2019 there have been strict conditions for meat products to enter Australia. The move has seen some pushback from farmers, with National Farmers Federation president David Jochinke telling the Sydney Morning Herald that protecting biosecurity was paramount for the industry. 'Let's be abundantly clear, our biosecurity isn't a bargaining chip,' he said. 'We have the world's best standards, backed by science, and that's how it needs to stay.' Cattle Australia chief executive Chris Parker on Friday said US beef producers have had access to Australian markets since 2019, provided they could show animals were born raised and slaughtered in the US. 'Our position is that the US needs to be able to demonstrate it can either trace cattle born in Mexico and Canada, or has systems that are equivalent to Australia's traceability, before imports of meat could occur from non-US cattle,' Dr Parker said. 'Cattle Australia is in ongoing communication with the Federal Government regarding this issue and the vital importance that our science-based biosecurity system is not compromised as part of trade discussions with any country.' Domestic prices So far beef prices has remained steady for farmers, as demand from importers means strong paydays along the supply chain, Ms Jonas said. 'The big exporters (in Australia) are rubbing their hands and just filling that market rapidly,' she said. 'And the more that market opens up, the more pressure it puts on domestic pricing. 'So supermarket beef, like we like we said several months ago, supermarkets beef is definitely going to keep going up in price.' Mr Cox said predicting prices was like weather forecasting but added that Australia already exported 75 per cent of the beef produced here. 'For the Australian farmer to be sustainable for that cultural sector, we need customers all around the world,' he said. 'We produce more food than we eat domestically and we're highly reliant on export markets.'
ABC News
4 days ago
- Business
- ABC News
Grilling season demand for Aussie beef outweighs Trump tariffs
It has been more than two months since Donald Trump's "liberation day" tariffs were announced, which included a 10 per cent tariff on imported Australian beef. But US demand for lean beef has far outweighed the tariff and exports have been surging. "In terms of volume, I don't think Trump's tariffs have had an impact at all," Rabobank analyst Angus Gidley-Baird said. "Year to date, beef exports are up over 30 per cent and if we continue at this pace, we'll go very close to pushing our quota limit for the first time (which is about 450,000 tonnes)." According to Meat and Livestock Australia, 167,722 tonnes of beef have been shipped to the US so far this year, which is up 32 per cent. Beef exports to China are also rising, with 117,341 tonnes exported, up 30 per cent on last year. General manager of meat processing company, The Midfield Group, Dean McKenna, said Donald Trump's tariffs were "one of the best things" that had happened to his business. "I wish he went 50 per cent [tariff]," he told Queensland Country Life. The United States cattle herd is at its lowest point since the 1950s because of drought. The supply of lean beef for America's famous hamburgers is tight. Going into its summer "grilling season" the United States has been relying on beef imports, which has coincided with Australia producing record amounts. "The US needs a lot [of lean beef] and Australia has a lot to sell, especially the way the prices are at the moment," Mr Gidley-Baird said. US cattle and beef prices are at record highs and are expected to rise further in 2026, making imported Australian beef very competitive — despite the 10 per cent tariff. According to Rabobank the average finished cattle price in the US is over $US4.50 a kilogram live-weight ($A6.92/kg), compared to about $US2.25 a kilogram for Australian cattle ($A3.46/kg). Beef made headlines on Friday, when it was suggested Prime Minister Anthony Albanese was willing to "loosen or compromise biosecurity rules" for US beef imports. A claim the PM quickly denied. As previously explained by ABC Landline, Australia does not have a ban on United States beef, as long as it comes from cattle born, raised and slaughtered in the US. The Australian government has been assessing a request from the US to expand its access, to include beef from cattle that it has imported from Mexico and Canada and then slaughtered in the US. Yet at the moment, the US has a ban on importing Mexican cattle because of an exotic pest called new world screwworm. Cattle Australia chief executive, Chris Parker, said the US would need to prove it can be like Australian beef exporters, which adhere to strict traceability standards. "Our position is that the US needs to be able to demonstrate it can either trace cattle born in Mexico and Canada, or has systems that are equivalent to Australia's traceability, before imports of meat could occur from non-US cattle," he said. Australia has not imported any beef from the US since 2005 for a few reasons including price. Australia also has plenty of its own beef. In 2024, Australia produced more beef than ever before, turning off 2.57 million tonnes of beef, of which a record 1.34 million tonnes was exported around the world. So imagine if Australia exported iron ore for $100 a tonne and was then criticised for not importing American iron ore for $200 a tonne. As meat analyst Simon Quilty recently told Landline, importing US beef is not viable. "I don't see us being swamped by American beef, in fact I'd say for the next five years, even if the US had open access, we'd see next to nothing coming out of America." Watch ABC TV's Landline at 12:30pm on Sunday or on ABC iview.
News.com.au
22-05-2025
- Business
- News.com.au
AACo operating profit lifts 14 per cent to 58.4 million
Australian Agricultural Company Chief Executive David Harris says demand for Australian beef is 'building' globally. Australia's oldest and biggest cattle producer, AACo, has had a strong year, notwithstanding the threat of US tariffs on Australian beef exports and the threat from the Greens to ban live cattle exports. The company said on Thursday operating profit was $58.4 million, up 14 per cent, with revenue growing 15 per cent to almost $388 million.
CNA
22-05-2025
- Business
- CNA
Chinese demand fuels surge in Australian beef exports amid global trade uncertainties
RUTHERFORD, New South Wales: Australian beef exports climbed to near-record levels last month, bolstered by increased demand from China amid global trade uncertainties. Last month, Australia exported more than 127,000 tonnes of beef. This is close to the highest-ever monthly total, which was 130,000 tonnes recorded for October 2024 beef exports. China is currently Australia's second largest beef export market after the United States. The bumper month comes as the US' beef exports to China have been disrupted, but observers told CNA that it is too early to attribute the recent uplift in exports to US President Donald Trump's tariffs. Some believe the surge in exports was due to record supply. 'In the short term anyway, it opens up a US$2.5 billion gap which Australians are primed to take advantage of. And the reality is we've already seen exports to China up 40 per cent just this year,' said Roger Montgomery, founder and chairman of Montgomery Investment Management. STRONG LIVESTOCK SALES 2025 is looking to be the biggest year on record for Australia's cattle industry, with China likely to source any shortfall in its prime beef supplies from the country. Meanwhile, the popularity of Australian beef is being felt in livestock markets across the nation, including in the small rural community of Rutherford. Local stock agent Tony Bowe, who has been selling livestock most of his life, recognises the importance of these sales. He said he believes the current volatility triggered by the Trump tariffs and the possible repercussions bode well for the Australian market. 'Those uncertainties in the world are definitely going to help our industry,' said Bowe. 'I think going forward in 12 months' time, we'll see a very big lift in the cattle market and the livestock industry in Australia.' Compared to industrial-scale saleyards across Australia, the Rutherford market is small but it plays a vital role in the livestock supply chain. Many of the cattle there are bought for the long-term because of their size. 'There's always a bargain to be had by buying an animal that nobody else wants for whatever reason,' said cattle farmer and buyer Stephen Low. 'But they're good quality cattle here and the prices are not as much as I would have found here last month.' MEETING RISING DEMAND Younger cattle are purchased for fattening to be sold and exported at a later date. Much of it will be to China and other Asian countries if the trade uncertainties continue. Cattle farmer and buyer Dave Payne said that the current trade volatility will help create more opportunities to export products to China, South Korea and Japan. Australian livestock is subject to high standards of biosecurity, contributing to sustained buyer confidence. But observers said there are many other factors at play. 'Prices could go up if volumes don't meet that demand,' said Montgomery. 'But we've got to remember it's a competitive market. The US could come back and Brazil's always there ensuring that we have to innovate.'
Times
11-05-2025
- Business
- Times
Will Statesman Starmer offer up a welfare U-turn to soothe MPs?
Varun Chandra, the prime minister's business adviser, was still fielding frantic calls from the United States as he prepared to leave a Sky Arts party on Thursday night at the Sessions Arts Club in fashionable Clerkenwell, central London. For weeks he had been working long hours to secure a US trade agreement, which included making two visits to Washington to join the talks that had culminated in the joint announcement by Sir Keir Starmer and President Trump earlier that day. Chandra was then accosted by a woman. Raising the trade deal, and specifically the agreement to cut taxes on beef exports and imports, the woman, who was growing increasingly irate, said: 'You've stitched up the farmers!' Such is the lot of a UK government
