With Irish approval to export beef to China thought to be very close, it is worth examining just how significant a buyer of beef China continues to be.

In China, beef isn’t viewed as a staple food product, with rice still the basic food required to feed the population. In the meat protein category, pigmeat is the main product. Hence, these sectors have a greater focus and protection than red meat, which is categorised as more of a luxury than essential product.

Brazilian beef to China

The potential of the Chinese market is best demonstrated by Brazil. In May 2017, following a stopover and farm visit in Ireland, the Chinese president travelled to Brazil where export approval was granted with immediate effect.

Since then, Brazil has made good use of that approval. In 2017, sales of beef and offal from Brazil to China and Hong Kong reached 460,000t which is just 100,000t less than Ireland’s total exports. That figure was an increase of 147,000t on the 312,000t exported in 2016, the first full year of trading after the lifting of the ban on Brazil by China.

Argentina, Uruguay and Australia

The surge in Chinese demand isn’t just confined to Brazil. Argentina, historically one of the largest beef exporters in the world before the export taxes imposed in 2006 acted like a ban, has been enjoying a surge in sales to China. The election of a new free-market-orientated president at the end of 2015 has seen export tariffs replaced with export incentives.

As a result, Argentinian beef exports have been on the increase. In the first 11 months of 2017, Argentinian beef exports reached 188,000t, up one-third on the same period in 2016.

The other big exporter to China from South America is Uruguay, which has grown its exports to 211,000t in 2017 for beef and offal. Elsewhere, Australia also increased its beef exports to China to over 110,000t in 2017 which represents a 17% increase on the 2016 figure, according to Meat and Livestock Australia.

China is now effectively a 1m tonne beef import market

All of this means that China is now effectively a 1m tonne beef import market. Ireland is now in the final stage of obtaining approval to supply this market and it is expected that there will be significant sales from the beginning.

Minister for Agriculture Michael Creed with Chinese Minister Zhi Shuping in Dublin last year.

It will not be on the same scale as Brazil, which moved from zero to 460,000t in one and a half year. However, the Irish meat industry, including processors that have already established strong links with the Chinese market, expects it to become the most important export market after the UK in a short time.

With the Irish slaughter numbers expected to stay around 1.75m or higher and the threat of Brexit hanging over the industry, access to China would be very welcome news for Irish beef farmers.

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