US Cattle Producers Stand to Profit Substantially From Access to China's Beef Market Soon to OpenTue, 30 May 2017 11:56:37 CDT
Since 2004, when a case of BSE was discovered in Washington state, no US beef has officially entered China’s market. However, the Trump administration has made it priority to broker a deal to reestablish the beef industry’s relationship with China. This year, they have been successful in doing that and July 16 of this year marks the deadline to get the formalities ironed out. According the North American Meat Institute, access to China’s market, which represents 12 percent of the world’s global export business for beef, could potentially put up to $2.6 billion in the pockets of US cattlemen. Kent Bacus, director of international trade and market access for the National Cattlemen’s Beef Association says China offers boundless opportunity.
“China has seen exponential growth in imports in about the last five years,” Bacus said. “We think there’s a lot of unmet demand in the Chinese market.”
Bacus says that like many Asian markets, rounds, chuck rolls, tongues and offal cuts are very popular in China and the opportunity to market these products, generally underutilized here in the US, offers the chance to add significant value to beef carcasses.
“We see more competition for those cuts that have been selling very well in Asia,” Bacus said. “We could see just the buying power of China is going to hopefully improve the profit margins on those cuts themselves.”
Listen to Bacus describe the magnitude of added value that access to China’s market will bring to the US with Radio Oklahoma Ag Network Farm Director Ron Hays, on today’s Beef Buzz.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
WebReadyTM Powered by WireReady® NSI
Top Agricultural News