There were great expectations in January when it was announced that Ireland could recommence beef exports to China following the suspension from May 2021 when a BSE case was reported.
At that point, Ireland had supplied over 7,000t of beef to China and it was quickly becoming one of our main export markets and the largest outside Europe by a considerable distance.
However, in the first six months of 2023, China has imported just 663t of beef from Ireland, putting us between Panama and Serbia in their top 20 beef suppliers.
This is despite the fact that the Chinese market for imported beef continues to grow, though slower than before, and was in total 1.230m tonnes for the first half of the year - another new record.
Product mix and competition
There are a number of factors that put Irish beef on the back foot when it comes to doing business with China.
We only have approval for boneless beef, while China is a big importer of bone-in beef cuts and offal, neither of which Ireland can offer at present.
Work is ongoing to extend the Irish approval, but there is no indication on when - or indeed if - this will be successful.
A second problem is the value of the market and competition. So far this year ABIEC, the Brazilian meat processors' association value beef exports from Brazil to China at $4,750/t, which is $1,000/t lower than the overall 2022 value and less than the $4,990 average paid in 2021.
In addition, the growth of the Chinese market for beef imports over the past decade has made it a target for all the major exporters.
During the Trump presidency, the US and China were involved in a trade dispute, which virtually eliminated US beef exports to China.
In the first six months of 2021, the US supplied 54,000t of beef to China. This increased to over 80,000t in the first half of 2022 and has remained at that level this year, despite a big drop in overall US beef exports.
Main suppliers
Back in 2021, Australia was in the process of herd rebuilding following prolonged drought over the previous couple of years.
Therefore, volume of beef available for export was in decline, as was the case in 2022 when Australian beef exports overall were at their lowest in over a decade.
However, this year, that process is more or less complete and the Australians have ramped up production and exports to China.
In the first six months of 2021, 76,361t of Australian beef was imported by China, which increased to 83,497t in the first half of 2022 - this year, it has jumped over 23,000t to 106,920t.
This is a ready source of beef supply for China much closer than Ireland and at a much lower price point, given the fall in Australian cattle prices this year.
Brazil remains China’s top beef supplier at 457,559t in the first six months of this year, up from just under 400,000t in the same period last year.
Argentinian supplies have increased by over 45,000t this year compared with last and New Zealand also recorded a small increase of 7,000t to 114,473t.
Given the Irish investment that has been made in the market over recent years at Government and Bord Bia levels, farmers will be disappointed at the slow start for beef exports to China.
Many factories are currently doing just small volumes to keep in touch, but see no immediate prospects for a major surge.
The Chinese market is a more challenging place now for the limited product portfolio that factories have to offer than it was when the market was suspended in May 2021.
However, it hasn’t been given up on and it is a market that could still do well in the second half of the year, as Chinese buyers stock up in the autumn for the next new year celebrations.
It remains one of the very few markets in the world that still has growth potential and for that reason alone, the Irish beef sector should retain a presence and ideally be joined by sheepmeat exports sooner rather than later.
Read more
Concerns over agri-food exports for rest of the year
Australians ramp up beef and lamb output
There were great expectations in January when it was announced that Ireland could recommence beef exports to China following the suspension from May 2021 when a BSE case was reported.
At that point, Ireland had supplied over 7,000t of beef to China and it was quickly becoming one of our main export markets and the largest outside Europe by a considerable distance.
However, in the first six months of 2023, China has imported just 663t of beef from Ireland, putting us between Panama and Serbia in their top 20 beef suppliers.
This is despite the fact that the Chinese market for imported beef continues to grow, though slower than before, and was in total 1.230m tonnes for the first half of the year - another new record.
Product mix and competition
There are a number of factors that put Irish beef on the back foot when it comes to doing business with China.
We only have approval for boneless beef, while China is a big importer of bone-in beef cuts and offal, neither of which Ireland can offer at present.
Work is ongoing to extend the Irish approval, but there is no indication on when - or indeed if - this will be successful.
A second problem is the value of the market and competition. So far this year ABIEC, the Brazilian meat processors' association value beef exports from Brazil to China at $4,750/t, which is $1,000/t lower than the overall 2022 value and less than the $4,990 average paid in 2021.
In addition, the growth of the Chinese market for beef imports over the past decade has made it a target for all the major exporters.
During the Trump presidency, the US and China were involved in a trade dispute, which virtually eliminated US beef exports to China.
In the first six months of 2021, the US supplied 54,000t of beef to China. This increased to over 80,000t in the first half of 2022 and has remained at that level this year, despite a big drop in overall US beef exports.
Main suppliers
Back in 2021, Australia was in the process of herd rebuilding following prolonged drought over the previous couple of years.
Therefore, volume of beef available for export was in decline, as was the case in 2022 when Australian beef exports overall were at their lowest in over a decade.
However, this year, that process is more or less complete and the Australians have ramped up production and exports to China.
In the first six months of 2021, 76,361t of Australian beef was imported by China, which increased to 83,497t in the first half of 2022 - this year, it has jumped over 23,000t to 106,920t.
This is a ready source of beef supply for China much closer than Ireland and at a much lower price point, given the fall in Australian cattle prices this year.
Brazil remains China’s top beef supplier at 457,559t in the first six months of this year, up from just under 400,000t in the same period last year.
Argentinian supplies have increased by over 45,000t this year compared with last and New Zealand also recorded a small increase of 7,000t to 114,473t.
Given the Irish investment that has been made in the market over recent years at Government and Bord Bia levels, farmers will be disappointed at the slow start for beef exports to China.
Many factories are currently doing just small volumes to keep in touch, but see no immediate prospects for a major surge.
The Chinese market is a more challenging place now for the limited product portfolio that factories have to offer than it was when the market was suspended in May 2021.
However, it hasn’t been given up on and it is a market that could still do well in the second half of the year, as Chinese buyers stock up in the autumn for the next new year celebrations.
It remains one of the very few markets in the world that still has growth potential and for that reason alone, the Irish beef sector should retain a presence and ideally be joined by sheepmeat exports sooner rather than later.
Read more
Concerns over agri-food exports for rest of the year
Australians ramp up beef and lamb output
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