AN INCREASE in the European Union's imported grainfed beef quota will improve competition for Australian beef, say industry leaders.
Australia has been granted access to the new duty-free quota, which allows for an additional global supply of 20,000 tonnes of high-quality beef into the EU each year.
Only beef from cattle free of hormone growth promotants and fed for 100 days will be eligible to fill the quota.
Australia's current EU quota stands at 7150 tonnes, which attracts a 20 per cent duty.
Beef exported under the new quota will not attract this duty.
Although the US has also been granted access to the new quota, Meat and Livestock Australia board member and EU-accredited cattle producer, John Wyld, said it was feasible Australia could fill it all.
"It should have a positive impact in the short term - 20,000 tonnes is still a relatively small amount, but more competition is extremely valuable at this time," Mr Wyld said.
"The global financial crisis caused a big drop off in demand, especially from Japan, which has created a trickle-down effect."
Mr Wyld described the gradual lift from a 5000-tonne quota in 1973 to 7150 tonnes by 2008 as a "long, long struggle" and said this latest development was a "welcome breakthrough".
Although the quota was lifted in August last year, the EU only granted Australia access last week following months of negotiations to ensure all conditions set out by the EU will be met.
In 2008 Australian beef exports to the EU were worth $136 million. Australian exports under the new quota will begin in three months' time.
National Farmers Federation president David Crombie applauded the result and said the NFF would continue to chip away at trade barriers.
"With nations increasingly desperate to find more food to feed ever-growing populations, trade will play an increasingly important role," Mr Crombie said.
"Under these circumstances, the flawed economic justification for protectionism is stripped away due to the raw reality that food is in short supply and getting shorter."
