Qatar cuts subsidies for Aussie lamb imports
Australian lamb may lose some competitiveness in the Qatari market starting in January 2021 after the government announced the cancellation of a subsidy program in place since 2015. It was due to finish in 2023, but the Qatari government made the sudden move to cancel the deal as of 31 December. An incident regarding the treatment of Australian women who were subjected to compulsory intimate medical examinations at Doha airport started a diplomatic dispute between the two countries and the lamb industry in Australia is about to feel the repercussions.
Lamb exports to Qatar have reached a total of $300 million, which makes the Middle East country the third-largest export market, behind China and the US. The monthly volume shipped to this destination is around 1,600 tonnes but, without the subsidy scheme, it could drop substantially. "It’s an important market for certain abattoirs that were geared towards that market. It’s not a massive volume, but it’s an important market. But, we don’t like to see any diminishing of our competitiveness in any market around the world," commented Stephen Crisp, chief executive officer at Sheep Producers Australia, quoted by The Guardian.
Minister for Trade Simon Birmingham told the Australian Financial Review that exports of lamb to Qatar hadn’t been banned and that there would still be demand for Australian lamb: "Qatar is apparently reviewing the operation of its state-supported import scheme, including possibly moving to a less state-controlled and more market-orientated model. We expect that Australia will experience competition for future contracts under a new model, but that there will be continued demand for premium quality lamb in Qatar.”
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