1 Oct 2013

Meat industry advised to ride China beef boom

1:58 pm on 1 October 2013

The New Zealand meat industry has been advised to make the most of a huge lift in demand for beef in China, while some of the biggest competitors remain locked out.

New Zealand beef exports to China this year alone have risen to about 30,000 tonnes, a seven-fold increase on last year, making it New Zealand's second biggest export beef market after the United States.

The increase in beef shipments from Australia has been even greater, although chilled Australia beef exports there have reportedly been blocked.

Rabobank analyst Matt Costello says that while beef still represents only a small percentage of meat consumption in China, it's expected to lift by 25% in the next 10 years, due to the growing urbanised population and rising incomes.

Domestic beef production cannot meet demand so there's an increasing reliance on imports.

Mr Costello says New Zealand's free trade agreement with China is a big advantage that it needs to make the most of.

The United States and Brazil, the world's biggest beef producers, are currently shut out of China. But Mr Costello says they could become major competitors there.