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Quota Opportunities For Australian Exporters

19 November 2012
Meat & Livestock Australia

EU - The European Union (EU) beef quota, the 'System A/B quota', has been changed.

Previously, import allocations for the quota were distributed on a yearly basis.

This meant that importers would have to apply for their entire quota allocation at the beginning of the quota year, leaving them open to changes in the market and potentially overexposed with too much quota if the market took a downturn.

As a consequence of not fulfilling applied-for quota, importers would lose the security lodged at the moment of application for the import rights, reports MLA Meat and Livestock Austalia.

The limited flexibility therefore curtailed applications for the quota, evidenced in the low uptake in the 2012-13 quota year. Total applications only reached 9,947 tonnes, or 16 per cent of the 63,703 tonnes potentially available.

The new method of administration, passed by the EU commission on November 12, will allow quota applications on a quarterly basis, increasing the flexibility of importers to adapt to the market.

The first imports under the new administration will be allowed in January 2013, opening the current quota up to further use above the 16 per cent previously applied for.

Historically Australia has not been able to supply large quantities of manufacturing product to the EU, as the relatively small number of EU accredited cattle has limited the supply of EU eligible manufacturing product.

With the increase in the HQB grainfed quota and the expansion in Australia’s EU eligible herd as a result, the opportunity to further utilise manufacturing quotas within the EU may exist.

TheMeatSite News Desk

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