China to stay key market for Australian red meat in 2021
As trade tensions escalate, experts have assessed whether China is likely to remain a major export destination for Australian beef, and sheep and lamb meat. Here is their verdict.
CHINA and Australia will remain entwined in 2021 despite ongoing trade tensions, with China set to remain a key market for Australian red meat exports in the new year.
A recently published Rural Bank report showed China’s recovery from the African Swine Fever outbreak could affect Australian red meat exports, as China slowly rebuilds its domestic pig herd.
But China was forecast to remain a “key market” for Australian beef in 2021.
When it comes to sheep meat, the Rural Bank report forecast China would remain a significant market for Australian sheep and lamb meat in 2021.
But a recovery in the Chinese domestic pork herd could soften that demand, as the nation rebuilds its own protein supply.
According to the report, high cattle production out of the US and Brazil could drive global beef production and exports in 2021, forcing Australian beef to “compete with cheaper Brazilian exports to China and US exports to Japan and South Korea”.
Rural Bank regional manager agribusiness Josie Zilm said the report spoke to possible challenges the livestock industry could face in the new year.
“There are still some threats for finished (Australian) cattle,” Ms Zilm said.
“We can look overseas and be a little concerned by production out of Brazil and the US. There are the trade tensions with China and the ongoing African Swine Fever outbreak … I think the herd numbers we’re at now show the fundamentals for price are supported by the spare we’re in.”
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