The news from Australia this week that China has suspended exports from four Australian beef processors is a reminder of just how fickle international trade can be. The suspension comes at a time when China is getting back to normal after COVID-19, with demand for beef imports increasing.

In April, Australia exported 26,173t of beef to Greater China (including Hong Kong and Taiwan), a 25% increase on March and a 12% increase on beef exports in April 2019, according to meat and livestock Australia. This brought Australia’s total beef exports to China for the first four months of this year to just over 89,000t – an 8% increase compared with the same period in 2019.

Minister comments

Australian trade minister Simon Birmingham told a press conference that the reason given for the suspension was “minor technical errors in relation to labelling or other technical requirements” going back over a year.

This suspension follows on from another spat between the two nations over China imposing an 80% tariff on barley imports from Australia.

Another explanation being floated is that the moves are a Chinese response to the Australian Prime Minister’s call for a COVID-19 inquiry.

Despite problems at the start of 2020 with oversupply, the spread of COVID-19 and lockdown, China has recovered quickly and will be the world’s leading importer of beef and pig meat this year, according to USDA forecasts.

Australia, along with Brazil, Uruguay, Argentina and New Zealand supply over 95% of the beef imported by China. Irish exports to China have also been increasing, with CSO figures showing 1,420t exported in the first two months of 2020.