China’s restrictions hold US beef industry back
The US beef industry faces a “volatile business climate”, according to the president of the US Meat Export Federation (USMEF), partly driven by restrictions in China.
“Lack of access to China, which never reopened after the 2003 BSE case, is definitely holding back our export growth,” said Philip Seng.
“China is a burgeoning market that impacts prices and product flow throughout a large region and its influence on global beef trade is growing rapidly. Exporting to China would significantly expand the presence of US beef in Asia, but we remain on the sidelines as our competitors gain a stronger foothold.”
Four years ago, China’s beef imports totalled only $112 million for a calendar year. From January to May this year, imports exceeded $700 million – up 17% from the record pace of 2014. Its main suppliers are Australia, Uruguay, New Zealand and Argentina.
Exports of US beef declined in May, falling in volume and against May 2014 following months of record numbers.
Exports fell 14% in volume to 88,466 metric tons (mt) while value dipped 6% to $556.7 million.
Higher prices have been in favour of the industry: for January until the end of May, exports declined 10% in volume but the total value was still up 2%.
January to May beef exports equated to 13% of total beef production. Export value per head of fed slaughter averaged $291.70, up 9% from a year ago.
Although exports to the ASEAN region were down 23% in volume (9,155 mt), export value was still up 14% to $63.5 million.
