2018 was another year of surging demand for beef imports in China, with volumes topping 1m tonnes for the first time.

It was also the year that Ireland finally commenced beef exports to China, though they are limited to frozen beef cuts from cattle under 30 months.

Commercial business commenced for the now six approved Irish factories in July and up to the end of November, a total of 1,257t of Irish beef had been exported to China, according to CSO data.

Irish exports

While this volume is minuscule in the context of overall Irish beef exports, which were 573,000t in 2018, and Chinese imports of 1,039,388t (source: Meat and Livestock Australia), it does reflect the potential for Irish beef in China despite the constraints.

In the month of November alone, 308t was exported from across the six factories and with up to another 12 factories believed to be in the process of obtaining approval for exporting to China, we can visualise China quickly becoming a market for in excess of 10,000t.

If, as is expected, the approval is widened to include offal and the remainder of Irish factories secure approval, China clearly has the potential to become a very substantial market for Irish beef.

Growth of Chinese imports

The growth in the Chinese market has been the biggest development in the global beef industry this century. As recently as 2006, they imported just 1,161t which is less beef than Ireland exported to China between June and November last year.

The Irish stand at SIAL Shanghai in May 2018 where Irish beef was on display and samples for first time since BSE ban.

It is only in the past five years that the Chinese market for beef imports really took off.

In 2012, it was a 61,000t market, jumping to 294,000t in 2013 and stabilising in 2014 at 298,000t. In 2015, it surged again to 473,000t and increased steadily over 2016 and 2017 to 580,000t and 695,000t.

Last year, it surged again, topping 1m tonnes at 1,039,000t, which is almost twice the total volume of Irish beef exports.

Suppliers

Five countries supply virtually all China’s beef imports. Top supplier in 2018 was Brazil, sending 322,000t, followed by Uruguay on 219,000t, Argentina 180,000t, Australia 173,000t and New Zealand 111,000t.

All of these countries increased their supplies to China in 2018 and Australia and New Zealand both benefit from a free trade agreement with China in which they are working towards a zero tariff. Of the South American countries Brazil and particularly Argentina have the potential to export further quantities should the demand arise in China in 2019.

Slowing down

The economy is slowing down but still growing and the outbreak of African swine fever in the pig herd has led to a massive culling of pigs in the country. While this has led to a big oversupply of pigmeat in the short term, it is predicted that there will be a deficit later this year which could drive further demand for beef.

China will remain the world’s largest net importer of beef in 2019 and beyond.

Mark Goodman (left), managing director of ABP International and John Loughman, group quality control manager, ABP International Division, overseeing the first consignment of Irish beef to be exported to the Chinese market from ABP Clones in 2018.