What's for dinner? US beef
- By Tom McGregor
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E-mail China.org.cn, October 19, 2016
The Chinese are developing a growing appetite for protein. Customarily, Chinese families favor meals that are mixed with an assortment of vegetables along with either rice or noodles.
Most Chinese are not vegetarians, but, until recently, they were not huge meat eaters either. Yet as the Chinese economy has enjoyed rapid expansion, their dietary habits have changed, with more meat on the dining table.
Accordingly, China recently lifted a ban on U.S. beef, which had been enforced since 2003, due to an outbreak of BSE (bovine spongiform encephalopathy) in Washington State.
The Ministry of Agriculture (MOA) will permit U.S. beef to enter the market, but has limited it to cattle no more than 30months old; quotas for boned and boneless will be announced later.
When China announced the ban on U.S. beef, it had just imported 57,199 metric tons (mt), valued at US$64.4 million in 2003. For a number of years afterwards, beef imports from other main suppliers slumped, but surged back to 500,000mt last year with a value of US$2.4 billion.
In the first eight months of 2016, beef imports rose 45 percent in volume (415,000mt) and 33 percent in value (US$1.8billion), compared to last year.
In the absence of the Americans, Brazil emerged as the largest supplier, followed by Uruguay, Australia, New Zealand, Argentina and Canada. Nonetheless, U.S. beef imports will be welcomed by many Chinese consumers.
"China beef import growth has been remarkable and buyers consistently express demand for high-quality, grain-fed U.S. beef, the type of product that can be difficult for them to obtain from other suppliers," Joel Haggard, senior vice president for Asia-Pacific U.S. Meat Export Federation (USMEF), told the Beef News website.
Despite expectations of large demand for U.S. beef in the world's second-largest meat consuming nation, soaring beef prices appear unlikely.
The Chinese prefer eating meat with bone, as well as different parts of the cow that most Americans don't like.
"China is a major importer of protein, including high-quality beef and with its growing middle class, we want to capture part of that strong demand," Matt Teagarden, CEO of Kansas Livestock Association told the High Plains Journal.
He added, "The re-opening of the Chinese market to US beef will add value to cuts like tongue and short ribs, which traditionally do not sell at a premium in this country (the United States), but are valuable in Asian markets."
Additionally, when you go to butcher shops in China, it's rare to find cuts of meat that allow you to cook a prime rib steak.
Meanwhile, the agricultural economy in Iowa remains robust. Farmers engage in mass production of soybeans, corn and cattle, along with dairy products. Hence, the Chinese can find attractive deals here.
Last Friday, over a dozen Chinese and American companies met in Des Moines, Iowa, to sign contracts worth nearly US$2.1billion.
Chinese companies expect to import over 5.1million tons of U.S. farm products, including Iowa homegrown beef.
"We want to continue to increase the trade opportunities between Iowa and China," Iowa Governor Terry Branstad told ECNS (English-language Channel News Service).
Iowa is located in the heart of Midwest in the United States, which is known as America's Farm Belt. Iowa farmers also have access to some of the most-advanced agriculture equipment and hold extensive knowledge of growing crops and raising livestock, which they can share with China.
U.S. beef imports can enjoy wide popularity in China, so long as ranchers follow strict Customs regulations. China's Ministry of Agriculture has not yet issued any specific guidelines on beef imports.
Nevertheless, U.S. ranchers are waiting anxiously to deliver high-quality beef to the market.
"USMEF looks forward to learning more details about the remaining steps necessary for the market to officially open and for US suppliers to begin shipping product," US Meat Export Federation CEO Philip Seng is quoted as saying.
The author is an Asia-Pacific columnist based in Beijing.
Opinion articles reflect the views of their authors, not necessarily those of China.org.cn.
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