China’s new beef quotas, extra tariffs on Australian imports to cost producers $1b

Australia’s beef industry fears an almost $1 billion hit after China slapped new trade restrictions on meat producers across the globe in a move the Albanese Government has said is very disappointing.

China’s Ministry of Commerce announced a new quota and tariff overnight — effectively a tax levied on beef imports once they exceed a given threshold — after a year-long investigation by its officials.

Australia’s annual cap would be 205,000 tonnes of beef, with a 55 per cent tax on extra shipments beyond that level, government sources have confirmed.

If this year’s exports stay at the same level as in 2025, Australian producers could expect to be hit with the extra tariffs by around mid-September.

“We are disappointed by this decision,” Trade Minister Don Farrell said on Thursday.

“We have made it clear to China that Australian beef is not a risk to their beef sector, and that we expect our status as a valued free trade agreement partner to be respected.”

Prime Minister Anthony Albanese said Australia was continuing to press its case.

“This is something that wasn’t Australia being singled out, this is a general position that China has put,” he said.

“We are advocating as we always do for Australian industry . . . Australian beef is, in my view, proudly as the Australian Prime Minister, the best in the world.

“We compete in the world very well and our products are in great demand right around the world.”

China accounted for 17 per cent of Australia’s beef exports last year, with 243,061 tonnes of beef and veal sent there in the 11 months to the end of November, according to Federal Government data.

Sales were close to $3 billion annually, and the cap would be expected to hit about 20 per cent of that trade — close to $600m.

The Australian Meat Industry Council believes the trade whack will be even harder, claiming almost $1bn of sales will be affected.

But farmers and processors will be able to find alternative markets for production, softening the blow.

AMIC chief Tim Ryan said the regulations were “not fair (or) appropriate”.

“This decision appears to reward other countries who have surged the volume of beef exported to the Chinese market in recent years,” Mr Ryan said.

“This decision will have a severe impact on trade flows to China over the duration of the measures’ enforcement, disrupt the longstanding relationships fostered under the China–Australia Free Trade Agreement, and restrict the ability for Chinese consumers to access safe and reliable Australian beef.”

Nationals leader David Littleproud called on Mr Albanese and Senator Farrell to make urgent representations about easing the restrictions.

“China’s announcement is devastating to the beef industry this year, but unfortunately it is also the latest development of failures under the Albanese government,” he said.

Agriculture Minister Julie Collins said the government was working closely with industry to determine the full implications of China’s move.

The government is also hopeful the months that it will take for Australian producers to reach the quota imposed means there is still time for further negotiations.

Chinese media reported last week that the country’s government was under pressure to limit beef imports as industry figures were concerned about mounting losses

A spokesperson for China’s Ministry of Commerce told reporters on Wednesday that the measures were “moderately strong”.

“The purpose of implementing safeguard measures on imported beef is to help domestic industries overcome their current difficulties, not to restrict normal trade,” they said.

Most beef sold to China comes from South America.

Reuters reported the total quota for all countries through 2026 is 2.7 million tonnes, with Brazil assigned the highest portion of 41.1 per cent, followed by Argentina with 19 per cent and 12.1 per cent for Uruguay.

American sellers would be capped at 164,000 tonnes.

China’s measures take effect on January 1 for three years, with the total quota increasing every year, reaching 2.8 million ‌tonnes in 2028.

AMIC said it had engaged with the Ministry of Commerce through 2025 as the department investigated the industry, including with hearings in China.