China, Aussie diplomatic row could cost the Beef Industry millions in lost income

As a major exporter of beef to China, Australian meat suppliers are now worried over the recent diplomatic spate between both governments over the source of the COVID-19 pandemic.
Australia’s Prime Minister Scott Morrison recent statement on pushing for a global inquiry on China over the coronavirus, has strained relationship, with China threatening to boycott Australian products.
China has since blacklisted 4 Australian abattoirs and threatened to slap an 80% tariff on barley imports. Roughly 18% of Australian beef production went to China, with lucrative exports worth close to A$3 billion (US$1.96 billion) annually. In addition, more than 30% of Australia’s beef exports, or 300,000 tonnes, went to China.
The 4 meat companies affected are JBS Dinmore, JBS Beef City, Kilcoy and Northern Cooperative Meat Company which accounted for roughly 30% of Australian beef exports.
China however denied that the ban is a ‘tit-for-tat’ reaction to the diplomatic row. Instead, it claimed that China’s customs officers detected repeated violations of inspection and quarantine requirements.
Australia Trade Minister Simon Birmingham however is disappointed that no prior notification was given before the suspension. Another government spokesperson claimed that the ban was due to labelling stickers being the wrong way around and noted that Kilcoy abattoir was actually Chinese-owned. National Farmers’ Federation President Fiona Simson asserted that disruptions to exports were concerning and she hoped that both parties will work together to resolve the issues amicably.
Fu Denghu, General Manager of Chinese meat importer Haiyunda Trading, said that normally there are 2 reasons for the customs to suspend meat imports – food safety issues or diplomatic tensions. He added, if Australia continues to take a hostile approach against China, there might be more import suspensions on the way. China now has alternative import sources of beef as more countries joined the Belt and Road Initiative. In addition, major beef exporters like Minerva SA from Brazil are actively courting China as the latter seeks for more suppliers to boost its meat imports amidst the fallout from African Swine Fever.