Australia's beef industry is experiencing a strong increase in global demand due to escalating trade tensions between the US and China. This geopolitical conflict has disrupted established supply chains and created new opportunities for Australian farmers, who are now filling gaps in both the Chinese and US markets. While exports are reaching record levels, the industry remains concerned about long-term stability.
In 2025, Australia became a major winner following the imposition of tariffs by China on US agricultural products. The dispute, driven by American trade policies, led China to reduce its dependence on US imports and shift its focus to Australia. As a result, the value of Australian beef exports to China rose by 67% over the past year, reaching $952 million during the September quarter. The previous quarter recorded a peak of $1 billion, highlighting the pace of growth.
The shift in trade is partly due to China suspending permits for hundreds of US meat suppliers earlier this year, which resulted in a 94% drop in American beef imports. With fewer available sources and fewer trade barriers, Chinese importers have increasingly turned to Australia. This trend has pushed Australian beef exports in 2025 close to a record high, approaching the $2.7 billion mark set in 2019, and with three months still left in the year.
Demand for Australian beef has also grown in the United States. A 50% tariff on Brazilian beef, introduced by the US as part of its wider trade strategy, has weakened a major competing supplier and improved the position of Australian exporters. In the three months to September, exports to the US rose by 26% compared to the previous year, reaching $1.6 billion.
The export surge has been supported by record levels of domestic beef production, now close to 2.9 million tonnes, which marks a 10% increase on the previous year. The extra volume has enabled Australian producers to expand their presence in Asian and US markets.
Other indicators also reflect a positive outlook for Australian exports. Major ports including Melbourne, Brisbane and Botany have reported increased container traffic of between 5% and 7% this year. In addition, industries such as medical supplies and aircraft components are seeing higher demand, showing the wider impact of shifting global trade relationships and growing protectionism.
Despite the strong performance, industry players are approaching the situation with care. Exporters acknowledge that Chinese demand can change quickly due to political factors, and becoming too dependent on a single market may expose them to future risk. While Australian producers currently benefit from pricing and duty advantages over rivals like Brazil and New Zealand, continued market access is uncertain. With agricultural supply expected to tighten in the coming year, some analysts predict that the current export boom could start to taper off.
