Australian Beef Exports to China Pause After Quota and Tariff Take Effect

Australian beef exports to China have stopped after a 55 percent tariff took effect one month ago, Abc reported. The halt follows Australia reaching its beef quota to China in mid-June. China maintains historically high stockpiles of frozen beef, including approximately 500,000 tonnes of Brazilian product in storage.

Australia has sold 200,000 tonnes of beef to China so far this year, Abc reported. Murray Davis, Meat and Livestock Australia's regional manager for Greater China, said unknown quantities are entering China's strategic reserves. Beef prices in China have risen only slightly because of access to these inventories.

Australian exporters are seeking new markets for about 100,000 tonnes of beef this month. Davis said the United States, Japan, Korea and the Philippines are expected to absorb most of that volume. Australia's 196,000 tonne beef export quota to South Korea is due to be reached within the coming weeks, which would trigger a 24 percent tariff.

Brazil is expected to reach its 1. Simon Quilty from Global Agritrends said China's inventory of imported frozen beef is at levels similar to those during the COVID pandemic. He said China is already buying beef for next year.

Shipments of beef from Brazil and Australia to China are expected to resume in September, Abc reported. Other Chinese traders are purchasing large quantities and storing the product in Australia.

China introduced beef quotas on several nations including Australia and Brazil to protect its domestic cattle industry. Davis, based in Shanghai, said more domestic beef is visible on supermarket shelves, displacing imported Australian and US product. HGP-free feeder steers are receiving a 50 cent per kilogram premium.