The latest figures revealed by the European Commission show that the EU imported 158,000t of beef from outside in the first half of 2019. This is actually down 3.6% on 2018 and reflects the fact that the EU beef market has been sluggish this year.

The Mercosur countries have increased their share of EU beef imports, with Brazil leading on supplying 64,328t or 40.7% of all beef imported by the EU in the first half of the year. They were followed by Argentina on 35,554t or 22.5% and then Uruguay 24,159t, which is 15.3% of EU beef imports.

Between these three South American countries, the EU sourced 78.5% of all beef imports in the first half of the year. Australia and the USA supplied 105 between them with the remaining 10% spread between other exporters to the EU.

EU beef exports in the first half of the year amounted to more than twice the import figure at 363,550t, which were spread across African and Asian markets primarily and for lower value beef products. Production in the EU in the first half of the year was stable showing a marginal increase of 0.1%.

China

Chinese inspectors are in Ireland this week and the ambition is that a further 16 beef and sheepmeat processing factories are approved to join the seven beef factories currently approved and exporting frozen beef from cattle under 30 months to China.

ASF

China has been rocked over the past year with a widespread outbreak of African swine fever in its pig herd. The exact number of pigs that have been lost is unknown but estimates suggest that it could be anything up to 40%.

China has increased pigmeat imports this year but with an estimated requirement for anything between 4m tonnes and up to 15m tonnes required, there simply isn’t enough supply in the world with just between 7m and 8m tonnes traded annually between all countries.

So far, China has been meeting demand from reserves but as time progresses these are bound to dwindle.

Pig prices there have jumped 35% in the last month, having already doubled since March, are now over 25rmb per kilo liveweight (€3.16/kg) and still rising daily.

Chinese demand has jumped for all proteins in response and South American countries in particular have grown their sales in the market this year.

Ireland and China

Irish pigmeat exports to China are well established, as are dairy products. With the current round of factory inspections by the Chinese, Irish beef exports will increase further from the promising start of 3,000t in the first half of this year and sheep meat exports will commence.

China’s beef imports continue to grow rapidly. In 2014, China imported under 300,000t of beef which had jumped to just over 1m tonnes in 2018.

This year, beef imports have surged again and by the end of June were running 66% ahead of the same period in 2018 at 683,000t.

South America

As with the EU, the big suppliers of Chinese beef imports are the South American countries with Argentina supplying 22.2% of imports in the first half of the year, Brazil supplying 21.9% and Uruguay 20.8%. Between them that is almost two thirds of Chinese beef imports accounted for and Australia on 17% and New Zealand on 14.2% are the other main suppliers.