10 Australian Abattoirs Gain Access To Chinese Market As Demand Rises

Australia is set to increase its sheep meat exports to China as the latter seeks new markets amid the ongoing trade conflict with the United States.

Over the weekend, 10 Australian sheep and goat abattoirs received approval to enter the Chinese market for the first time, following a rigorous and lengthy approval process by Beijing, ABC AU reported.

AMIC praises major expansion

The Australian Meat Industry Council (AMIC) described this development as the largest expansion of Australian sheep meat access to China in many years. Sam Munsie, general manager of trade at AMIC, noted that the expansion had been anticipated for a long time and was very positive news.

Munsie highlighted that the Chinese market was important and offered valuable opportunities, providing a balanced alternative for Australian meat exports globally.

Out of the 10 abattoirs newly approved, seven are located in Victoria, with one each in Tasmania, New South Wales, and South Australia. Furthermore, contracts for seven other processors were renewed over the weekend.

Tariffs drive China to diversify

Meat industry analyst Simon Quilty from Global AgriTrends attributed the new agreements to the tariffs introduced by U.S. President Donald Trump.

He explained that the tariffs have created uncertainty, while China is looking to diversify its supply sources, leading to the issuance of the new licences. Quilty also noted that the new deals provided Australian farmers with some relief from the 10% tariffs on exports to the U.S.

Quilty emphasized that increased competition in the market could help Australian lamb maintain its growth despite the tariffs.

"In lamb in particular, it takes all cuts and it takes all weight ranges so it's kind of like the go-to in the marketplace when looking to move carcasses of all different sizes," Quilty said.

"I think these 10 operations, particularly for Victorian farmers and processors, it's a welcome situation that's arisen and I think will play a critical role in increasing overall demand for Australian lamb and mutton over the next 10 years."

Minister praises expansion

The minister for Agriculture, Fisheries and Forestry, Julie Collins, welcomed the announcement, recognizing it as a significant achievement for the red meat industry, acknowledging the hard work of officials from the Department of Agriculture, Fisheries and Forestry in securing the outcome.

The expansion was seen as a victory for Australian farmers and processors, building on several successes achieved by the Albanese Labor Government over the past year.