Paraguay presents a challenge
In the face of ongoing challenges from covid-19, from trade tensions with China and from growing competition from North and South America in other important Asian markets, Australian red meat promotional body Meat and Livestock Australia (MLA) has taken some consolation from Taiwan.
Reflecting on the way beef exports have progressed in the difficult year of 2020, MLA referred to Taiwan as “a quiet achiever when it comes to Australian beef exports”. Australian farmers and packers consistently export around 30,000 tonnes of beef to Taiwan each year.
However, Paraguay has emerged as a competitor in the Taiwanese market. A number of beef-exporting countries do not maintain diplomatic ties with Taiwan, but Paraguay does. Two years ago, it agreed a deal that allows its packer firms to ship beef to Taiwan tariff-free. Australian beef does carry a tariff in Taiwan, albeit at a favourable rate.
MLA’s analysis has found that Taiwanese imports of beef from Paraguay almost doubled in the first nine months of 2020, reaching 17,000 tonnes. “This is not far behind Australia’s share of the market,” MLA said.
