China Abandons $ 3.81 billion Australia Beef imports for the US supply
If the trade war with Beijing continues, China may abandon the Australian annual $ 3.81 billion beef import in favor of US beef over labeling and certification concerns. This will highly affect beef farmers who supply 25 percent of Australia’s meat exports. In May, Beijing announced a ban on red meat imported from the four largest Australia’s abattoirs, according to the Chinese government-owned company, Xiamen Xiangyu, which buys 20,000 tonnes of beef from Australia each month. However, some sources have noted that Australia’s Prime Minister, Scott Morrison, is being punished for his push for a coronavirus inquiry. Australia has also been hit by an 80 percent tariff on its barley, affecting farmers to a more considerable extent. The 80 percent tariff has also resulted in China switching for France and Canadian barley. To Mr. Huang, beef tariffs are again falling because Australian beef was no longer competitive.
Because of the bans, Xian Xiangyu has warned that the company with contracts worth millions is sourcing beef from other Australian abattoirs to supply its end users. As a result, the cost has increased, and complicated trade between China and Australia. Mr. Eric Huang, the director of frozen food at Xiamen Xiangyu, told the Australian Finacial Review that “if these four plants are not relisted as early as possible, we will have to switch to US beef”. While in the coming months, more companies could be delisted in Australia. The four companies that have stopped trading arev abattoirs, Kilcoy Pastoral Company, JBS, and the Nothern Co-operative Meat company at Casino. The Australian government has also been informed of the suspension of trade for the four companies. Hence, China and Australia’s tension has continued to grow, the former referring to the latter as a “frustrating” and “unfriendly” trade partner.