Biosecurity trumps beef tariffs

The Australian beef industry has joined Prime Minister Anthony Albanese and the Coalition in defending strict biosecurity protocols that prevent the import of fresh US beef into Australia.

US President Donald Trump singled out Australia’s beef import restrictions as one of the reasons for imposing tariffs on “friends and foe”, sparking a rare bout of bipartisanship during a federal election campaign protecting the red meat industry.

Australia has completed science-based biosecurity and food safety assessments that has allowed the trade of US beef from cattle born and raised in the US since 2019.

However, the US has also asked for access to Australia for beef from cattle raised in Mexico or Canada and processed and exported from the US. This revised request raised the hackles of the Australian red meat industry due the risk of importing exotic diseases like Foot and Mouth.

Speaking at today’s Tamworth Regional Livestock Exchange sale, Member for New England Barnaby Joyce said science must prevail in response to Mr Trumps tariffs.

“One of the greatest things we have here is the warranty that our products are clean and green, and we have got to maintain that,” Mr Joyce said.

“It’s really important our scientists and the Department of Agriculture take the lead on this due to the potential threats like mad cow disease. It’s not a political decision, it’s one that should be in the hands of our independent scientists.”

Cattle Australia Chief Executive, Dr Chris Parker, said the logic for the new tariff was flawed and failed to recognise that the US has access to Australia, provided it could demonstrate its beef came from cattle born, raised and slaughtered in the US.

“These are the same conditions that the US imposes on Australian exporters – reciprocal arrangements are already in place,” Dr Parker said.

“The US industry has not been able to meet these standards and now wish to include beef from cattle born in Mexico and Canada.”

Guyra cattle farmer and NSW Farmers Executive Councillor, James Jackson, said there must be no swaying on strict biosecurity protocols that protect Australian beef, sheep and goat herds from exotic diseases.

“We are picky when it comes to red meat imports. We cannot afford to get mad cow or foot and mouth disease in this country. Our industry is very exposed as we export the majority of our red meat,” Mr Jackson said.

“Donald Trump has a different view, but the biosecurity restrictions are warranted. In the case of mad cow disease, we would be shut out of our key export markets overnight, and the economic harm would be widespread.”

“We have very strict rules about feeding animal proteins to livestock because that is a big no no when it comes to spreading of mad cow disease.”

“I understand that the US does have similar rules for their domestic beef production, but they cannot guarantee beef that is exported to us is from an American farm.”

“The original ban on US beef imports was in 2003 due to a mad cow disease outbreak in the US. It was lifted in 2019 on the proviso that there was a chain of guarantees and statutory declarations that the beef had not come from other countries. They have not been willing or been able to do that.”

Hamburger demand could swallow tariffs

American consumers strong appetite for hamburgers could soften the blow of a 10 per cent tariff on Australian beef.

Australia exported 400,000 tonnes of beef to the US last year, much of which was lean grinding beef for the massive US hamburger production chain.

Australia’s Red Meat Advisory Council calculated that the 10 per cent tariff on Australian beef, which goes into 6 billion US hamburgers each year, would cost US consumers an additional $600 million a year.

“Our grass-fed beef is mixed with the fat trim from their feedlot steers to make the hamburger patty. They really need it for that, and it adds value to their feedlot market,” James Jackson said.

“They will still have to get that beef from somewhere and our main competitors like Brazil and Argentina have the same or worse tariffs, and the US cattle herd is down due to drought.”

“There will be a negative short-term impact on farmers. There are other markets for the grinding beef, but the American market is the biggest and is a very good one for us.”

Mr Jackson said sheep meat producers are also in the line of Trumps tariffs, with Australia being the biggest exporter of high quality lamb cuts to the US.

Australia’s peak red meat marketing body, Meat & Livestock Australia (MLA), says Australian farmers continue to respond to strong demand for high-quality red meat globally, exporting record amounts in 2024 to over 100 countries.

“The demand outlook for Australian red meat remains very strong and we maintain favourable market access conditions with over 85 percent of exports covered by free trade agreements,” MLA Managing Director, Michael Crowley.

The US was Australia’s largest red meat export market in 2024, worth A$6.07B, and accounted for almost one third of Australia’s total global exports.

“Despite the imposition today of 10 per cent tariff, the US will continue to buy Australian red meat to supplement their requirement for high quality protein,” said Mr Crowley.

Mr Crowley said Australia’s other major markets include Greater China, Japan and Korea, worth A$3.9B, A$2.6B and A$2.5B respectively. The Middle East / North Africa Market is worth A$2B and offers demand growth opportunities.

NSW Farmers President Xavier Martin believed this latest trade challenge would be worked through and urged farmers to remain calm.

“Considering the deep history we have with the US and our mutual beneficial partnership, these tariffs are really disappointing to Australian farmers,” Mr Martin said.

“There’s no doubt our industry will feel the effects, some commodities more than others, but we have worked through trading issues before and we’ll do it again.”