Australian beef ‘rip-off’ should lead to blacklist: China report

BEIJING  -- China's Global Times newspaper, which often reflects official views, is quoting what it terms "experts" as saying Australian beef exporters whose price volatility may disturb the Chinese market should be put on a blacklist.

"Given the background of pork price rises in China, foreign meat producers are expected to charge reasonable prices to Chinese buyers instead of driving deals at exorbitant prices," the "experts" are quoted as saying. 

The Global Times report says the price of Australian beef exported to China has gone through a "roller coaster" ride, in December alone falling by around 20-25%. 
A Shanghai-based beef importer who asked to remain anonymous told the Global Times on Tuesday that "there has been great price fluctuation for beef imports during recent months and the retail prices of the products in my store have been adjusted accordingly", the report said.
"Some Australian exporters signed agreements for beef exports with Chinese buyers during the price peak period in China, when the outbreak of African swine fever sent domestic pork prices soaring.
"As certain beef prices fell by more than 30%, some Chinese importers chose to cancel their contracts and forfeit the 30% cash deposits they prepaid.

Li Guoxiang, a research fellow at the Rural Development Institute of the Chinese Academy of Social Sciences, is quoted as saying that if foreign meat producers continue to raise deal prices given rising pork prices in China, they will lose Chinese consumers and even the market.
Li told the Global Times on Tuesday that such "rip-offs" would lead to boycotts by domestic consumers and distributors, and that the Chinese Government was expected to strengthen regulations on domestic and foreign transactions in the Chinese market.
"Foreign exporters' beef price hikes that disturb the Chinese market should be put on a blacklist in the future," he said.
Ma Wenfeng, a senior analyst at the Beijing Orient Agribusiness Consultancy, is quoted as saying the Chinese government should increase domestic production to meet market demand instead of being restricted by foreign exporters.
China began to import meat from 16 more countries in 2019 to increase pork imports and diversify import sources.
China is the largest pork consumer in the world and the domestic pork supply gap provides a broad market for major meat exporters.
The Global Times report said the Chinese Government had stepped up efforts to secure domestic meat supply and to stabilise meat prices since mid-December, and had released more frozen pork from reserves ahead of the Chinese New Year holidays.  (ATI).