China kept US abattoirs guessing on export renewals. (ABC Landline)
In short:
The licences for hundreds of US companies to export pork and poultry to China have been renewed.
Approvals for US beef exporters have reportedly lapsed.
What’s next?
Australia’s red meat sector is watching closely to see if President Trump introduces tariffs on Australian beef and lamb exports on April 2.
Hundreds of pork and poultry facilities in the United States appear to have had their export licences to China extended in a late-night and very last-minute update by China customs.
However, approvals for beef exporters have reportedly lapsed.
Export registrations for hundreds of US meat plants granted by China under the 2020 Phase 1 trade deal were due to expire on March 16, putting billions of dollars of trade at risk.
The first sign of good news happened late Friday, when China updated registrations for 71 US poultry operations that previously had their export agreements expire on February 19.
Then late on Sunday (Monday in Australia), the registration status for pork and poultry plants across the US, including major producers such as Smithfield Packaged Meats, were updated to show eligibility through to the year 2030.
In a statement from the National Pork Producers Council, it said more than 300 US pork facilities “have been renewed to export to China for [another] five years”.
“US pork producers now have maintained access and increased certainty to export their products to the 1.4-billion-person Chinese market,” CEO Bryan Humphreys said.
Speaking to Reuters, US Meat Export Federation’s Joe Schuele confirmed beef facilities were still waiting for licences to renew.
“We’re pleased to see progress on the pork facilities and hoping for similar news on beef as soon as possible,”
he said.
The US imports a lot of Australia lean beef to make hamburgers. But it also exports a lot of beef to countries such as China. (Landline)
China ‘in control’
Global Agritrends analyst Simon Quilty said the rollout of approvals for beef exports could be staggered.
“China is in control of its own destiny and it could well be a staggered approach to [renewing] plants over the next three or four months,” he said.
“I don’t think anything is a given … and China will choose at their own time and what suits them best to have certain plants come back in.”
The United States exported 170,000 tonnes of beef to China last year and if the trade were to face a “de facto ban” it would likely create extra demand for Australian grain-fed beef into China.
It does appear that a small handful of US companies have been suspended from exporting to China, but on the CIFER website no reason is given.
The US Department of Agriculture (USDA) had previously issued a statement, raising concerns about export licences lapsing and a “lack of response” from China customs.
The USDA is yet to comment on the latest round of extensions.
Australia’s red meat sector is watching closely to see if President Trump introduces tariffs on Australian beef and lamb exports on April 2.
