China has become the third largest export market for Australian beef behind Japan and the U.S., and the single largest export market for Australian lamb and sheepmeat products. Despite an estimated 1 million tons of meat being smuggled into China annually, Australian red meat exports totaled 256,993 tons, accounting for 17% of Australia’s total exports. In 2013 Chinese sheepmeat and beef sales saw significant increases with beef sales tripling and mutton sales rising 254% to reach 57,888 tons. Australian mutton sales continued to increase in 2014 with volumes up 25% for January and February. For beef, Australia does not have many competitors for the Chinese market since both Brazil and the U.S. have been banned from selling beef to the country. However, smuggled meat, New Zealand’s free trade agreement with China, the fluctuating Australian dollar, and China’s ban on the importation of chilled beef have all posed problems. Even faced with these hurdles, demand for meat from China continues to rise in large part because of falling domestic production.
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