Australian Wagyu Imports Lose Favour as Tariff Takes Effect

Summary

China's 205, 000-tonne quota for Australian beef was exhausted on 18 June,

triggering a 55 percent tariff on over-quota imports from 20 June. Prices for mid-to-high-end Australian Wagyu have risen, while abundant South American beef has kept standard-grade prices stable. Importers are shifting to Brazilian and Argentine supplies,

and are advised to verify certification and secure inventory.

Commentary

The exhaustion of China's 205,000-tonne quota on 18 June, followed by a 55 percent tariff on over-quota imports from 20 June, marks the scheduled activation of a three-year safeguard measure rather than an abrupt ban. Brazil's 1,106,000-tonne quota and Argentina's 511,000-tonne quota remain ample, and low-cost South American beef has swiftly filled the gap, keeping ordinary beef prices steady. However, high-end Australian Wagyu has experienced structural price increases.

New Zealand small and medium-sized enterprises should watch two opposing dynamics: increased South American substitution could squeeze New Zealand grass-fed beef's share in China's mid-tier market, while rising prices for mid-to-high-end Australian beef may push some food-service buyers toward New Zealand grain-fed Angus or differentiated grass-fed products, particularly ahead of the Mid-Autumn Festival, National Day, and the hotpot season in the second half of the year. On procurement, businesses should strengthen traceability compliance, including farm numbers and electronic ear tags, to reduce risks from informal channels. The price pass-through after quota exhaustion is expected to become more evident during the peak season in the fourth quarter.

Keywords: Australian Wagyu beef, imported beef, quota exhaustion, tariff increase, market impact, procurement advice, Brazilian alternative

Source: Sina News