China's beef market: shift to affordable cuts and growing Australian supplies

Diversification of Purchasing

Murray Davis, Regional ManagerMEAT & Livestock Australia (MLA), covering Greater CHINA, noted that restaurants, particularly hotpot restaurants, are actively seeking alternative cuts such as oyster blade, neck, shank, and chuck. These cuts are becoming popular with consumers due to their affordability and variety of cooking methods. Amid economic uncertainty, restaurants are trying to offer more affordable options to retain customers and remain competitive.

The impact of economic factors:

The slowing Chinese economy is forcing businesses to adapt to new market conditions. Decreased purchasing power makes more expensive cuts less attractive to most consumers. This creates demand for affordable meat products, which in turn leads to increased beef imports from countries such as Pakistan, which achieved record exports of heat-treated beef to China this year .

Growth of Australian supplies:

Despite increased competition, Australia continues to strengthen its position in the Chinese market. Australian beef shipments to China are projected to reach 260,000 tonnes in 2025. This is due to Australian products actively replacing American products in the premium segment, which has been affected by the US -China trade war. The Australia-China Free Trade Agreement allows for duty-free imports of up to 190,985.8 tonnes of beef by 2025, while above-quota shipments are subject to a 12% duty.

Current Market Trends

According to the General Administration of Customs of China , total beef consumption in the country is approximately 10 million tonnes per year, of which approximately 3 million tonnes are imported. Despite a slight reduction in shipments from Australia in September, volumes remain sufficient to meet current demand. This underscores the stability and resilience of Australian supplies, which continue to play a vital role in meeting the needs of the Chinese market.

Thus, the Chinese beef market is undergoing a transformation, with emphasis shifting from high-priced cuts to more affordable options. Australia, thanks to its competitive advantages and strategic agreements, continues to strengthen its position, creating new opportunities for growth and development for both suppliers and consumers. With a changing economy and consumer habits, adapting to new realities is becoming a key factor for success in this dynamic market.