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Australian beef and veal exports to China


Beef exports 2012-13 - volumes

■ Australian beef and veal exports for the 2012-13 fiscal year reached a record volume of 92,279 tonnes swt - 1,093% above 2011-12 (Department of Agriculture, Fisheries
and Forestry - DAFF). This placed China as the fourth largest single export destination for Australian beef in 2012-13, after Japan, the US and Korea.
■ Contributing to the record volume was the surge starting in September 2012, when monthly shipments surpassed 4,000 tonnes swt, followed by shipments exceeding 7,000 tonnes swt for three consecutive months from October.
■ Frozen grassfed product accounted for 80% (or 73,483 tonnes swt) of total exports - up 1,313% on 2011-12.

Beef exports 2013 (January to June) - volumes
■ Total volumes to China during the first six months of 2013 have already exceeded the total annual shipments registered in 2012 (32,906 tonnes swt), at 62,421 tonnes swt.
■ Exports to China exceeded 10,000 tonnes swt for the fifth consecutive month (February - June), placing China ahead of Korea in total exports during the first six months of 2013.
■ Australian chilled beef exports to China have increased over the last 10 years, with the volumes during the first six months of 2013 reaching the highest volume, at 8,890 tonnes swt. The increasing demand is reportedly assisted by higher demand from retailers, high-end restaurants and hotels.

Beef exports by cut - volumes
■ A wider range of cuts have been shipped to China in recent months. The majority (67%, or 1,482 tonnes swt) exported to China during 2007-08 was manufacturing
beef. While manufacturing beef remained a popular cut during 2012-13, it represented only 11% of the total annual volumes (still at significant, at 10,165 tonnes swt) (Figure 7).
■ The proportion of manufacturing beef out of overall shipments has fallen further during the first six months of 2013, accounting for only 6%, at a total of 3,560 tonnes swt.
■ It is anecdotally reported that the decrease in the proportion of manufacturing beef exports is related to Chinese government’s strict control over food safety, particularly in relation to the production and processing of meat.
■ Other than manufacturing beef, the top three cuts sent to China during 2012-13 were shin/shank (16,826 tonnes swt), brisket (16,042 tonnes swt) and silverside/outside (11,044 tonnes swt) (Figure 8).
■ Shin/shank is now reportedly a popular item sold at retailers, which is used for Chinese cuisines, such as a Chinese cold dish, beef noodle, hot pots and stews.
■ Silverside/outside is reportedly highly sought after by Chinese wholesalers, to meet increasing demand from the food service sector.
■ The top three popular cuts during the first six months of 2013 were still in the same trend as 2012-13 - brisket (11,264 tonnes swt), shin/shank (10,652 tonnes swt) and silverside/outside (7,540 tonnes swt).
■ With the declining national local cattle herd in China, carcase exports climbed during 2012-13, totalling 5,607
tonnes swt, from a total of 47 tonnes swt in 2011-12. The increase was reportedly driven by an attempt reduce costs and get local processors to process the carcase.
Beef exports 2012-13 (July 2012 to May 2013) - values
■ Australian beef export values into China surged 565% on 2011-12, to A$357 million, of which chilled beef values accounted for A$58 million (up 226% year-on-year) (Global Trade Atlas - GTA).
■ Frozen beef export values jumped 734% year-on-year, to A$297 million.
Beef exports 2013 (January to May) - values
■ Australian beef and veal export values during the first five months of 2013 reached A$232 million, from A$19 million for the correspondent period in 2012.
■ Frozen beef export values surged to A$188 million during the first five months of 2013 (from A$11 million during the first five months of 2012), with chilled beef values also rising 493%, to A$43 million.
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