China Drives Demand for Affordable Australian Goat Meat, Exports Surge

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China’s appetite for cheap Australian goat meat has surged, significantly dropping prices to below $3 per kilogram. 

Goat meat exports to China have risen by 27% year-on-year, making it the second-largest export market after the US. South Korea and Taiwan also exhibit a growing demand for Australian goat meat. 

“Markets that are growing their demand and taste for Australian products are China, South Korea, and Taiwan,” mentioned MLA senior market information analyst Ripley Atkinson.

However, this booming demand has led to oversupply, causing delays in meat processing facilities and prompting some producers to consider leaving the industry.

While China has become a major importer of Australian goat meat, it remains the world’s leading global producer, accounting for 41% of domestically consumed worldwide. Conversely, the US remains the largest export market for Australian goat meat, receiving between 55-60% of total annual exports.

The downward pressure on domestic goat meat prices in Australia can be attributed to good seasonal conditions and increased processing, resulting in a higher number of goats being sold for processing. 

Despite the current price drop, goat meat prices may rise as supply tightens. However, this is expected to happen after a period of time, as no major livestock-producing areas are declared in drought in Australia.

Mr Atkinson confirmed, “There are no major livestock-producing areas in Australia declared in drought, so supply should remain high,” 

“The other factor is global dynamics. If there were to be a protein deficit in a certain market, that would lift demand for our goat meat product and support price here domestically.”

In conclusion, China’s increasing demand for affordable Australian goat meat has had significant impacts on the industry, with exports to China rising and prices dropping domestically. 

While some producers may face challenges due to oversupply, the industry remains optimistic that prices will recover as supply conditions change.

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