The explosive growth of red meat shipments from Australia to China in 2013 has been a boost for the industry and has gained the country market share in one of the world’s fastest growing markets. However, this growth has occurred during a year when both U.S. and Brazilian beef shipments to China have been banned because of concerns over the use of BSE and beta agonists. Industry insiders believe that either one or both of these major suppliers are likely to re-negotiate reopening the Chinese market in 2014. Chinese inspectors are visiting Brazil this month as a preliminary step to granting access to the market once again. U.S. beef is entering the Chinese market through “grey channels” however this beef cannot be used in China’s food service or retail sectors leaving an opening for Australian beef to gain a foothold. Currently wet markets account for approximately 75% of Chinese food retail – by 2025 they are expected to account for only 30% as consumers shift to supermarkets, and internet direct sales are expected to grow as consumers demand to know a product has a reliable supply chain.
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