Graziers get hot tips on the beef market
Decimated pig herd drives China to demand beef
PORK consumption in China is at an all time low, and with a 50 per cent decrease in supply the shift for a substitute protein presents an opportunity for western Queensland.
As China moves to become the biggest market for Australian beef exports, Rabobank hosted an event at Kenton and Amy Peart’s Dunvegan property at Charleville earlier in the week to discuss implications for Australia’s beef sector and local graziers.
About 60 graziers from across the region – Yuleba, Cunnamulla, Charleville, Morven, Augathella, Mitchell, Roma, Injune and Cooladdi – gathered as Rabobank’s senior animal proteins analyst Chenjun Pan, who was visiting from China, talked on the impact of African Swine Fever on the Chinese pork industry and how consumers were substituting pork for other proteins, including beef.
Ms Pan said there was a short-term opportunity upon which graziers in western and central Queensland could capitalise.
“African Swine Fever and trade wars have caused an estimated 50 per cent drop in the pork supply with prices soaring after August,” Ms Pan said.
“We expect that next year when there is further decline in the pork meat production, because a lot of the breeding herd have gone this year, it will take more than five years for the whole herd to be restored and recovered to its previous level.
“This period will offer opportunity for other proteins.”
Other presenters included Rabobank’s Australianbased animal proteins analyst Angus Gidley-Baird, Gavin Whiteley, RCS general manager David McLean and Alec Duffy from MaiaGrazing.
Mr Gidley-Baird said there was a positive trend for graziers all over
“From an Australian beef point of view, we’ve seen exports to China increase by 67 per cent year to date from August,” he said.
“They are providing very strong demand in the market at the moment.
“There is a good underlying demand to capitalise on.”
BEEF UP: Murray Douglas from Clissold Downs, Injune, Bruce Crighton from Ivanhoe Downs, Morven, and Bean Schmidt from Charleville.