China Beef Market Worth Billions to U.S. Producers

The U.S. says China has agreed to reopen its market to U.S. beef by mid-July—a huge win for the U.S. beef industry and the broader feed industry.

The size and importance of the development cannot be overstated–China’s population is massive, with a growing middle class, inaccessible since the U.S. BSE outbreak in 2003.

Now, American Farm Bureau Federation trade adviser Dave Salmonsen says the Commerce Department has announced an agreed target date for China to reopen to U.S. beef…tape

5-16 Salmonsen 1              :15             …”of this year.”

“They just announced that even though there’ll be some more technical consultations, that basically, that China…there’ll be an agreement where China will be able to allow imports of US beef no later than July 16th of this year.”

The opening stems from a 100-day plan on trade, President Trump and China’s President initiated during a recent U.S. visit.

Meanwhile, U.S. Commerce announced a concession to China…

5-16 Salmonsent 2              :10            …”July 16th.”

“It says that the US and China are going to resolve the outstanding issues,  for the import of Chinese-origin cooked poultry to the US…again this is a Chinese product that will be imported in the US, and that the US should publish a proposed rule by July 16th.”

But the big announcement is beef.  National Cattlemen’s Beef Association’s Kent Bacus, says…

5-16 Salmonsen 3              :19                     …”pork and beef.”

“Chinese market, it’s massive.  When you consider that the population is a fifth of the world’s population, and that they’re middle class is larger than than the entire US population, and that middle class is hungry for protein.  They’re importing record amounts of pork and beef.”

Bacus says China boasts exponential growth that hit $2.5 billion in beef imports last year, including organ and other cuts that add value to U.S. beef…

5-16 Salmonsen 4              :12             …”last few years.”

“It’s everything from corn and some of the other major grains, we see a lot of opportunities for our feeding sectors, and that’s a sector that’s suffered tremendously over the last few years.”

Bacus says the entire production chain will benefit, as will the U.S. trade deficit, as the U.S. will now be able to compete in China’s beef market with major players like Australia and New Zealand.


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