Chinese beef imports are rising sharply
Total beef consumption in China in 2018 is estimated at 8.5 million metric tons, second only to the US, according to the USDA Foreign Agricultural Service. In China, per capita consumption of beef is estimated to stand at least 6 kilos, only 16% of projected 2018 US retail beef consumption, observes Derrell Peel, Oklahoma State University, in an article published by Drovers magazine.
Nevertheless, the dimension of the Chinese market is huge and a low but rising beef consumption trend registered in the last few years has outstripped domestic production and led to a sharp increase in imports.
"By 2016, China exceeded Japan as the number two beef importing country behind the US Chinese beef imports in 2018 are projected to be just 13% smaller than US beef imports. At the current pace, China could be the largest beef importing country in the world in another year or two. Over 95% of Chinese beef imports are sourced from Brazil, Uruguay, Australia, New Zealand and Argentina. US beef exports to China resumed in 2017 after a nearly 14-year absence and are developing very slowly. In the past 12 months, exports to China have amounted to 0.6% of total U.S. beef exports", commented Peel.
Hit by retaliatory measures consisting of 25% tariff on agricultural products, including beef, the future of US beef exports in this market looks grim for now.
"What is the future potential for US beef in China? Beyond the additional obstacles due to the current trade war, building markets for US beef in China will face several challenges. Price is one of those challenges. Beef is expensive in China relative to other meats, even more so than in the U.S. Although growing beef demand in China is the result of a rapidly growing urban middle-class population, beef remains expensive for many consumers. Imported beef from the US is especially expensive", added Darrell Peel.
Time, patience and persistence along with a good strategy promoted by the US Meat Export Federation can build a future market for US beef in China, believes the professor.
Nevertheless, the sector was hit by the trade war 9 months after regaining access to the Chinese market and tariffs imposed by Beijing were perceived as a real shock by the industry. "China is a promising market for US beef, and, since the June 2017 reopening, the US industry has made an exceptional effort to provide customers with high-quality beef at an affordable price. This is not an easy task, due to our 13-year absence from the market and China’s beef import requirements.
Interest in US beef has steadily gained momentum in China and our customer base has grown. But if an additional import tariff is imposed on US beef, these constructive business relationships, and opportunities for further growth, will be put at risk.
In the second half of 2017, following the market reopening, US beef exports to China totalled 3,020 metric tons valued at $31 million. In January 2018, exports reached the highest monthly volume to date at 819 metric tons, valued at $7.5 million", announced in April USMEF president Dan Halstrom.
(Photo source: Texas A&M University)
National - beef The national beef herd is destocking. Female slaughter is currently 52% of total...
One of the most relevant data in the current context is that, despite the recent decrease in the ...
Inspection activities are scheduled from December 2 to 18, 2024. During this period, BAI represe...
