An Australian beef processing and exporting plant has been granted approval to supply China for the first time in what is being heralded a massive step forward in agriculture trade relations between the two countries.
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Hot on the heels of the lifting of suspensions on five other Australian plants, this will be the first new facility to gain accreditation in years.
Victorian processor Australian Meat Group in Dandenong has just received advice it has been accredited, after two years of negotiations.
China is one of Australian beef's largest and most lucrative markets but access has been severely hampered by tense geopolitical affairs since the pandemic. That resulted in 10 Australian meat suppliers being suspended on technical reasons. At the time, estimations suggested that involved around one billion dollars worth of beef trade.
Only two remain suspended after some were reinstated in December and then five more in May.
In 2017, China and Australia signed a joint statement agreeing to the accreditation of at least 15 new beef facilities to supply the Chinese market. This will be the first to materialise.
Meat processing industry leaders have long referred to that situation as 'money left on the table' for the beef industry.
Minister for Agriculture, Fisheries and Forestry Murray Watt said the development was another important step in stabilising the relationship between Australia and China.
"This expanded market access for AMG will mean more jobs for Australians in the meat industry. They already process around 1500 head of cattle every day at Dandenong and employ more than 1000 people across their Dandenong and Cootamundra establishments," he said.
"While AMG export 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."
In 2022-23, Australia exported $2.3 billion of beef and veal to China, which accounted for 21 per cent of Australia's total beef and veal export value.
"The China market has long been an important destination for Australian beef and veal," Mr Watt said.
"The only Chinese suspensions on Australian agricultural commodities are two meat processing establishments and live rock lobster exports.
"This approval is a further step in the right direction. 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."
The development is expected to be welcomed with open arms by the Australian beef industry as a huge opportunity.
Analyst Simon Quilty, Global AgriTrends, says it is likely as much a story of food security as it is about trade relations between China and Australia.
The uncertainty surrounding the United States election, and the possibility of heavy Trump tariffs and other protectionist strategies involving beef, would be incentivising China to take action with other suppliers to spread risk, he said.
The grainfed beef space in China is dominated by the US and Australia.
AMG has numerous high-quality beef brands, including grainfed, grassfed, Angus and organic offerings.