The Chinese Government has placed quotas on beef imports as it seeks to protect domestic farmers and producers.

Under the new rules, New Zealand will have an annual duty-free quota of 206,000 tonnes rising to 214,000 tonnes, worth up to $1.75 billion if fully utilised.

This represents around 8% of China’s combined quotas.

Trade Minister Todd McClay said China's new beef quotas were larger than the last two years’ beef exports. Photo / RNZ, Reece Baker

Trade and Investment Minister Todd McClay said that while the quota was unwelcome, it was larger than the beef exports to China over the last two years, which were around 150,000 tonnes per year.

“New Zealand exports are unlikely to face restraint under the arrangements.”

McClay said the outcome reflected strong engagement between New Zealand and China throughout the investigation process.

“It sees a better outcome than some countries who now face a reduction in access,” he said.

“I’ve been able to make the case to my Chinese counterparts on three occasions last year that New Zealand exporters are not harming the Chinese beef market and therefore should not be adversely affected by safeguard measures.

“Our quota allocation means beef exports under the China NZ free trade agreement are in practice unaffected.”

McClay said the Government worked hard to ensure the measures applied reflected the strength of the trade partnership between the two countries.

“While any new restriction is disappointing, this quota is larger than our recent export volumes and means that exporters can continue trading without additional tariffs.”

China is New Zealand’s second-largest beef market after the United States.

“New Zealand beef exporters can have confidence in the Chinese market, where demand for high-quality, safe food products continues to grow,” McClay said.

In the 12 months to November 2025, 19% of New Zealand’s beef exports by value, $961 million, went to China, representing approximately 4% of China’s total beef imports.

China brought in a total of 2.6 million tonnes of beef to November last year, according to customs data.

Brazil is likely to be one of the hardest-hit countries, as China accounts for nearly half of its total beef exports.

The South American nation could lose up to US$3b ($5.21b) in revenue in 2026 as a result of the new policy, the country’s Association of Refrigerated Meat Packers said.