Senate Rural and Regional Affairs and Transport Legislation Committee, , 1:53:07 to 2:11:48
Comparison of the US beef market demand against China, focusing on historically low herd levels in the US and competitive tariff treatments for Australian product.
Topics: Beef exports, Exports
Speakers: Speaker 5, Speaker 22, Speaker 14, Speaker 1, Speaker 4, Interjection
I I I I I I'll have to take on notice the exact tariff for the for the US market, but I would note, Senator, that is our largest red meat market >> um by by a long way. Um uh I think there was something like uh I've got numbers of uh 400 500 5.2 billion worth of um beef value. It's also a really significant sheet meat market. So, um I'll take on notice the the actual tariff rate. Um but in terms of
>> Did we see any there was obviously the tariffs did come on a 10% tariff?
>> That's right. No, we've seen continued
growth into that. >> Well, that's was going to be my question. Despite the 10% tariff imposed uh um just a bit under a year ago, I believe uh we saw still saw growth.
>> So, demand into the US market is incredibly high. The US herd is at historical lows. uh and they and they're seeking to take product from not only
Australia but other markets as well >> and and crucially from memory the US tariffs when they did come into effect uh we faced a lower tariff than some of our competing countries. Is that correct? Canada and Mexico I believe in particular had higher tariffs. Is that
right? >> Yeah, that's correct. We had generally favorable treatment particularly Brazil and South America. There are some nuances around the Canada Mexico and the agreement that they have. Um but then they're in a similar position as Mr. B.
>> But this is my point. Have we lost that advantage now with Cuz I thought the Trump administration made a decision to reduce tariffs on beef notionally to respond to cost of living concerns in their own country. But does that mean we're back on a level playing field with Canada, Mexico, Brazil, and the like?
>> I think we're we're not as well off as we were. There are still some nuances across that that mix. Obviously Argentinian Argentina has been given some extra access as well in terms of quota arrangement. Um but the fundamental of that market that the US herd is still down, production is down. >> Um and that demand is really high. Um we'll you know it's a moderating as opposed to a I guess a step backwards.
>> Okay. All right. Um well look that ends me on that set. Uh I think we might have
some other small questions maybe before the break. Go. Senator O. Sullivan. >> Uh,
>> just before the break,
>> we breaking five.
>> Yeah. Do >> you want Do you want to break now? >> 20 minutes. >> Probably going to take me more than
five. That's all. So, we can break now. >> Sure. Okay. Let's break now and return at 10 11. Welcome back everyone. Just before we do go to Senator Sullivan, the committee has agreed to release Riddic for later this evening. They don't have to come. Thank you. >> Agriut, >> sorry, Agra futures both. >> Yeah, Agri futures the other. All right. Great stuff. Senator O Sullivan.