Briefing note and FAQs on Beef Market Access to China

Background

  • DAFM has made significant progress towards securing market access for Irish beef in recent years including the lifting of the BSE ban by Chinese authorities in 2015 and a successfulAQSIQ inspection visit, focused on competent authority systems, in 2016. Minister Creed signeda protocol on the export of beef from Ireland to ChinawiththeAQSIQ Minister Zhi Shuping in Dublin in April 2017.

CNCA Inspection and Report

  • A Certification and Accreditation Administration of the People’s Republic of China (CNCA) inspection took place in August/September 2017 to assess individual processing plants.
  • The CNCA inspection was focused on a sample of individual plants which had applied for access to the Chinese market; nine plants out of the twenty five applicants were inspected.
  • The final report of the CNCA Inspection issued in March 2018 and following negotiations on a number of issues, all requested supporting documentation (e.g. training reports and plant specific SOPs) was submitted by DAFM to CNCA on 6 April 2018.
  • CNCA on Friday 13th April asked for confirmation of the plant identifications and the first three plants were listed on CNCA website on Monday 16th April.These plants are ABP Clones,Donegal Meat Processors (Foyle Meats) and Slaney Foods International.

AQSIQ – Health Certificate and Signatures

  • The text of the Health Certificate has been agreed and a sample of the final draft on security paper with the agreed text has been sent to AQSIQ.
  • Following listing of individual plants by CNCA as approved to export, AQSIQ will list the vets (including signature and stamp) approved to certify from each approved plant.

Remaining steps before trade can commence

  • DAFM has, in conjunction with industry, been working for sometime towards ensuring that trade with China can commence and run smoothly. This includes amendments to IT systems and an SI to allow access to information. These are due to be finalised in a matter of weeks.

FAQs

What is the market opportunity?

  • Within the last 30 years Chinese demand for meat has quadrupled, and the country now consumes one quarter of the world’s meat supply.
  • On average Chinese beef consumption is now 4kg per person per year.That may be considered low when compared to average Irish consumption of 19kg of beef per capita per year and compared to average consumption in other Asian markets – Japan (almost 7kg) and South Korea (almost 10 kg).
  • However, that just underlines the potential for further growth in consumer demand for beef, driven by increasing urbanisation, higher disposable incomes and health awareness.
  • Total beef imports to China were around 600,000 tonnes in 2016. That is more than Ireland’s total beef exports to all markets last year (550,000 tonnes).

How much beef will Ireland export?

  • It is not possible to put a figure on how much Ireland will export to China.
  • The role of DAFM and the Government is to open the door to allow trade to commence.It is now up to our beef companies to avail of this opportunity.
  • China is a very significant beef market and the expectation is that Irish beef companies will follow the success Ireland has already had in finding Chinese markets for our dairy, pigmeat and seafood products.
  • Opening and developing new markets is one of the themes of DAFM’s Food Wise strategy, and a key part of the response to the uncertainties arising from Brexit.

How have we got beef access?

  • DAFM has a deep understanding of Chinese requirements based on a series of inward and outward trade missions, inspection visits and bilateral contacts between the relevant officials.
  • Food safety is a prerequisite for trade with China, and meeting those exacting standards is a tribute to our food safety systems.
  • Getting to this stage has involved a huge joined-up effort across Government, DAFM and State agencies, with strong engagement with the Chinese authorities on meeting their detailed requirements.

Which plants have been approved?

  • A first tranche of plants (3) have been approved. These plants are ABP Clones,Donegal Meat Processors (Foyle Meats) and Slaney Foods International.
  • A further tranche of plants (5) are in the final stages of approval.These are ABP Nenagh; Kepak Clonee; Liffey Meats; Dawn Meats Charlevilleand Kildare Chilling

Which products have been approved under this process? Can this range be expanded?

  • The current approval is for frozen boneless beef from cattle under 30 months. Offals are not included in this.
  • It may be possible to expand the range of products over timeas our trading relationship deepens.

When would you expect the first consignment of Irish beef to depart for China?

  • There are a number of technicalities to be finalised now that approval has been granted however these should be completed in a matter of weeks.
  • In addition the approved plants will have to deal with their own technicalities including testing requirements.
  • However, DAFM expects that trade will commence this summer. Of course it is a matter for trade to decide how and when to pursue the opportunities offered. The role of DAFM is to open the door to allow trade to commence.

What is the next priority market for Irish beef access?

  • DAFM officials continue to work towards gaining access to as many markets as possible.
  • Last April Minister Creed announced a 7-point plan towards increasing market access and good progress is being made.
  • By way of example one other market where DAFM is pursuing beef access is South Korea and negotiations are ongoing with slow but steady progress in relation to this market. Officials are in ongoing contact with Korean officials and our Embassy on this issue
  • It is important to note that in the area of market access, officials not only work towards opening markets but also on an on-going basis to ensure that markets stay open and that access is broadened in terms of both products and establishments in so far as is possible.

Do you expect this access to impact on prices at factory level for the primary producers?

  • The prices agreed at factory level are a matter for the primary producers and the factories to agree. DAFM does not have a role in relation to this.
  • However DAFM is committed to ensuring that we open as many markets as possible for both beef and live animals, in order to maximise returns for all.

What is the situation for the remaining plants that have submitted applications but were not selected for audit by CNCA last year?

  • At present the Chinese authorities have indicated that they wish to deal with the plants that were audited by CNCA last year first.
  • DAFM officials will continue to work towards access for all interested applicants.

Market Access Unit

Meat and Dairy Policy Division

DAFM

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