US looking for new customers for its beef

Red meat industry experts say US producers’ hunt for new export markets may have little impact on Australia’s own key export markets.

Red meat industry experts say US producers’ hunt for new export markets may have little impact on Australia’s own key export markets.

The US is looking for new customers for its grain-fed beef normally sent to China, raising questions it could target key Australian export markets, including Japan and South Korea.

China was the third biggest market for US beef in 2024, totalling about 15 per cent of its beef exports, but tariff tensions between the countries will force the US to look for other markets. Mercardo analyst Angus Brown said US beef exports to China had grown rapidly from “virtually nothing” in 2016 to being a significant customer in 2024.

“(But) China has not been renewing US beef export licenses (which must be held to export to China) and now has a large tariff on US beef,” Mr Brown said.

He said some of the beef normally sent to China could be absorbed locally in the US and it was hard to say where the remainder would be redirected.

“What the US exports to China is different to what it exports to Japan and South Korea, so you would think that displaced beef (from China) wouldn’t affect our exports too much,” Mr Brown said.

“Export data for April to date suggests shipments to Japan and South Korea remain strong. “High cattle and beef prices in the US might limit their opportunity to displace Australian product, although there is some potential.”

Last year, Australia exported 193,228 tonnes of beef to China, more than half (51 per cent) of which was chilled and frozen grain-fed beef.

Australian Meat Industry Council trade and technical affairs general manager Sam Munsie said the global trading environment was currently experiencing a particularly dynamic and volatile period, which was having direct and indirect impacts on Australian global meat trade.

“Australia is well-positioned through internationally recognised robust systems and market access arrangements to ensure we can adapt to challenges and take advantage of opportunities,” Mr Munsie said.

“Australia’s beef exports are highly diversified, reaching over 100 markets globally.

“This diversity positions us well to respond to shifts in trade policy settings and to continue building on our strong international relationships.”

Mr Munsie said Australia had been a long-term reliable supplier to both China and the US.

He said Australian meat processors and exporters had demonstrated Australia’s ability to maintain global trade ensuring food security in the most turbulent of environments, most recently during the Covid-19 pandemic.