Australian Beef Business Hails New Export Deal With China

Packs of beef imported from Australia are displayed for sale at supermarkets in Beijing, China, on June 17, 2015. Lintao Zhang/Getty Images

A new Australian beef establishment has been given the green light to export to China for the first time since 2017.

On July 5, the government announced that the Australian Meat Group (AMG), a meat processing and export business in Melbourne, had been approved for beef exports to China.

AMG currently has a processing capacity of 1,500 head of cattle per day and employs over 1,000 people.

The government attributed the approval to “ongoing technical discussions” between the two countries.

Agriculture Minister Murray Watt welcomed the news and touted the importance of the approval to Australia’s meat industry.

“The China market has long been an important destination for Australian beef and veal,” he said.

“While AMG exports to a number of other countries, China is a valued market for our exporters. More importantly, it’s the first new establishment listed for red meat exports since 2017.”

According to government data, Australia exported $2.3 billion (US$1.55 billion) of beef and veal to China in the 2022-23 financial year.

The figure comprises 21 percent of Australia’s total beef and veal export value.

At the same time, Mr. Watt believed the approval showed that the Labor was moving in the “right direction” in stabilising its relationship with the communist regime.

“The efforts of the Albanese Government to stabilise the relationship with China are paying real dividends for Australian farmers and processors, and we will continue to advocate for all agricultural trade to be restored,” he said.

The CCP imposed a series of trade sanctions on $20 billion worth of export products in 2020 after the former Morrison government called for an international inquiry into the origins of COVID-19.

The sanctions resulted in significant economic impacts for a wide range of Australian industries.

Following Foreign Affairs Minister Penny Wong’s visit to China in December 2022, the Chinese Communist Party (CCP) started to loosen trade restrictions on Australian commodities, including restrictions on Australian beef in December 2023.

However, Beijing still implements trade suspensions on Australian live lobsters.

CCP Premier’s Visit to Australia

The beef export approval comes just two weeks after CCP Premier Li Qiang visited Australia and signed several memorandums of understanding with the Labor government.

Mr. Li also had a closed-door meeting with Prime Minister Anthony Albanese.

While specific details of the meetings between the CCP premier and the Labor government were not disclosed, both sides celebrated the booming trade ties and economic cooperation.

The Opposition also welcomed Mr. Li’s visit, with leader Peter Dutton addressing him and his delegation as “dear friends and guests” while expressing his “hope [that] the tensions of recent years can ameliorate.”

While Australia is pursuing a stronger trade relationship with Beijing, some prominent figures in China’s politics have warned the country about maintaining principles and values in dealing with the CCP.

In his most recent visit to Australia, Sebastien Lai, the son of jailed Hong Kong media mogul Jimmy Lai, stated that while it was necessary to trade with China, Australia should stand up for democratic values and not give in to the CCP’s pressure in exchange for trade.

Rex Widerstrom contributed to this article.