NZ in talks with China on allowing chilled meat exports

Friday 29th January 2016

New Zealand officials are working with Chinese authorities in an attempt to gain access for chilled meat exports to Asia's largest economy, which would open up an "enormous" potential market for the country's $6.83 billion meat export industry.

Ministry for Primary Industries staff have visited the General Administration of Quality Supervision, Inspection and Quarantine in China to progress agreement on revised beef, sheep and goat meat protocols, including specific provisions for chilled meat. It expects to finalise agreement and implementation of revised protocols this year, setting the ground work for future exports.

New Zealand exported $1.21 billion of meat to China in 2015, however current restrictions allow only frozen products to be shipped, limiting the potential for sales of higher value chilled meat to a growing middle class seeking more westernised food at restaurants, hotels and supermarkets. China is in the process of forming regulations for chilled meat, and Australia has gained approval to ship chilled beef from 10 selected meat processors to China on a trial basis.

"In a market like China, it's evolving quite rapidly and there are many many different segments there," said Meat Industry Association of New Zealand chief executive Tim Ritchie. "There are potentially some really good opportunities there for high-value chilled product. It's another important part of the market that our guys need to have access to. Potentially it could be enormous."

New Zealand meat exports to China have soared from $96 million in 2008, when the two countries inked a free-trade deal. Farmers have benefited from securing higher values for what had traditionally been lower-value meat cuts such as flaps, which are used in Chinese hotpot dishes.

Chilled meat tends to be a premium product, costing more to get to market due to the extra care required, however New Zealand has developed technology to extend its shelf life and enable it to be shipped long distances.

The size of the potential market will depend on how much China is prepared to pay for the product compared to other existing markets for chilled meat, such as Europe, Ritchie said, adding it's likely to be a gradual evolution as distribution channels are secured and demand builds.

"It will just give us another arrow to the bow," he said. "It will allow our guys to develop business with that premium product in particular segments of the market that can handle it."

China is the biggest sheepmeat producer in the world and services most of its own requirements, with imports making up only about 5 percent of its needs, although it is less self-reliant in beef, Ritchie said.

Even after protocols for the importation of chilled meat are developed, it's expected that the first shipments will still be some way down the track as Chinese officials take time to formalise agreements to ensure food safety standards. Over time, unofficial grey market meat imports into China are expected to be tightened as more formal agreements are reached.

BusinessDesk.co.nz

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