China has had a major impact on global meat markets

The devastating impact of African Swine Fever in 2018 onwards bolstered pig production throughout Europe and much of the UK, as large tonnages were exported to the feed a nation bereft of its preferred protein. Beef and sheep exports also increased to feed the Chinese population.

Two, almost three years of covid are also continuing to have a major effect on the world’s meat and indeed dairy markets, according to the Livestock and Meat Commission.

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Chief executive, Ian Stevenson pointed out the uncertainty within China is being felt on an international basis.

“China is slowly responding to the decision to move away from a zero tolerance Covid-19 policy.

“The country’s economy is currently in a state of stasis. This is reflected in the fact that almost 30% of its 2023 university graduates cannot find employment.

“In addition, consumers across China are now putting a very strong focus on the paying back of debt.”

As a result, Mr Stevenson said that beef and lamb retail prices have softened and that cheaper pork is also impacting negatively on the country’s red meat market.

“But currency is also coming into play within China’s beef and import scenario. Recent months have been marked by a weakening of the Chinese Yuan,” he added.

Hence, this would make China less attractive as an export destination.

The most recent figures confirm that beef and lamb imports into the China actually increased during the first months of 2023 by as much as 8%. However, the actual value of these imports fell by 11%.

Most of beef in China is imported from Australia and Brazil.

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Meanwhile, the ending of covid restrictions in China has boosted consumption of lamb which is very much a social occasion meat. Imports have risen by 33% over the first half of 2023, leading to a 20% fall in prices during the same period.

“We are also seeing signs of a grey market for beef resurfacing in China. This entails the likes of frozen buffalo meat from India coming into the country through Hong Kong,” said Mr Stevenson.

He also warned that the measures to bolster indigenous food production in China are paying dividends with the result being demand is falling for imported beef and lamb.

Widespread inflation is squeezing margins across international beef and lamb sectors too, which in turn has led to difficulties passing on costs to consumers during the current cost of living crisis, he said.

Furthermore, Mr Stevenson warned that with consumer spending under increasing pressure the world over, retail meat prices are likely to have peaked, albeit at a time when feed prices remain high and labour is difficult to source.