Australian grain-fed beef on rise, opportunity to triple China exports

SYDNEY - Grain-fed production is set to play a larger role in Australia's beef sector, with the opportunity to triple the nation's exports of grain-fed beef to China by 2030, according to new industry research by agribusiness banking specialist Rabobank.

Rabobank says that, while the backbone of the Australian beef industry will remain a grass-based production system, grain feeding is forecast to play an increased role in overall beef production over the coming 10 years.

Continued growth in beef consumption in Asian countries, particularly China - along with Australia's strong market access and competitive supply chain - will provide the opportunity so increase total grain-fed beef exports by65% to more than 500,000 tonnes by 2030, according to the research. 

Exports of Australian grain-fed beef to China alone could more than triple in the same period - from 50,000 tonnes to close to 200,000 tonnes.

"Rabobank believes there will be strong growth in the global demand for grain-fed beef, fuelled principally by China," the report said.

Report author, Rabobank senior animal proteins analyst Angus Gidley-Baird said: "Given projections in Chinese income growth, per capita consumption of beef and food service trends - it is reasonable to expect Chinese grain-fed beef imports to grow to represent 20% of China's total beef imports by 2030 (from an estimated 6% today)."

However, the report says, while increasing Australia's focus on grain-fed beef production is an opportunity worth pursuing, it comes with risks and challenges.

Other major grain-fed beef exporters - primarily the US, Canada and also likely South American countries in the future - are also expected to increase their export volumes. www.rabobank.com (ATI).