12 months on from China lifting its ban on Irish beef, the market is still closed
The Department of Agriculture said this week that it is working closely with the Chinese authorities to finalise the remaining technical steps to allow trade of Irish beef to China to commence.
A Chinese inspection team visited Ireland for 10 days in January and we are currently awaiting their report which will determine the next steps.
In late February 2015, it was announced that China had lifted its ban on Irish beef.
In the early 1980s beef consumption registered 0.32kg per capita in China. This had increased to 5kg by 2009, and is expected to exceed 6kg per capita by 2025.
Referring to the beef opportunity in the Asian country recently, Acting Minister for Agriculture said that Chinese beef consumption is estimated at approximately 6m tonnes at present and is expected to grow by over 1m tonnes over the next five years.
Minister Coveney said China represents a ‘vast opportunity‘ because of its huge population and highlighted what has happened with pork and dairy products over the past five years.
“People say the Chinese economy is supposedly slowing down but exports of dairy products from Ireland into China increased by 40% last year, with the value increasing by 25%,” he said.
According to the Minister, Irish beef will be targeted at restaurants and hotels in China, which he says is a ‘premium market’.
“The industry is interested in that and we will make progress on getting in there this year,” the Minister said.
The volume and value of beef exports to China will be determined this year by when we get into the market.
“It could be in the first or second quarter or the second half of the year. We will have to wait and see. It is up to the Chinese but we are working well with them,” he said.
Demand from China
China’s beef demand is to grow by 2.2m tonnes by 2025 according to Rabobank, which says that Chinese investors will play an influential role in the global beef market over the next decade.
Rabobank says that driven by the weak domestic production, but with strong demand, the beef sector will likely become the first agricultural sector where China has high integration with the rest of the world.
In addition, the Chinese consumer preference is for cuts less in demand on European markets will provide a complementary export outlet that maximises overall returns to Irish producers and processors, according to Bord Bia.
It says Ireland has built a solid trading relationship with China which has seen the value of Irish food and drink exports increase tenfold over the past 10 years.
China our sixth largest export market overall, our second most important for dairy and pig meat and is a growing market for our seafood.