Taiwan – growth market for chilled grassfed beef
30 July 2015
Taiwan is Australia’s eighth largest beef export destination, taking 14,191 tonnes swt during the first six months of 2015, down 27% year-on-year. Despite the fall in overall volume, there was an increase in chilled grassfed beef shipments, suggesting there is a growing demand for higher value beef in the market.
Export and cut matrix
The fall in volume was largely due to competition from US beef, as well as strong demand for Australian beef from other international markets drawing beef from Taiwan. On the other hand, export unit values to the market have increased by 18.6% this year.
The five most popular cuts by volume exported from Australia to Taiwan this year are manufacturing, shin/shank, blade, carcase and intercostals. While shipments of these cuts have declined this year, shoulder, shank, ribs and striploin have seen notable percentage increases in volume, albeit from a low base.
Growing chilled grassfed exports
Looking at longer-term market trends, the biggest shift observed has been the steady increase in exports of grass fed chilled product over the past 10 years, including year-to-date this year, indicating growing market demand for premium beef from Australia.
Beef imports into Taiwan
Australia is the second largest supplier of imported beef to Taiwan by volume and value, and faces strong competition from the US as well as New Zealand. The US has been active in the market for a long time, and local restaurants commonly prefer US products, according to meat trade sources.
Looking ahead, recent economic data suggests a slowdown in economic growth in Taiwan from the second half of 2015 which will likely be accompanied by a drop in consumer confidence and slower retail sales growth in 2016 (IMA). This may have a negative impact on overall demand for imported beef.
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