Don't Be Fooled by China's Slow Start - Derrell Peel Says Its Beef Market Holds Tremendous PotentialThu, 18 Jan 2018 10:57:16 CST
Until President Donald Trump, none of the previous administrations were able to reopen China’s marketplace to US beef since the infamous BSE scare, or “Cow That Stole Christmas” in Washington state. Trump managed to get the job done, though, in mid-2017. Still, even though the US has access, China has yet to buy much beef at all. While that may seem anticlimactic for a highly anticipated end to a trade ban that lasted more than a decade, Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel says given time, China’s market could become one of our nation’s most important trading partners.
“It’s a tremendous opportunity obviously with the size that China is in terms of the population base,” he told Radio Oklahoma Ag Network Farm Director Ron Hays in a recent interview. “They’re big buyers of beef globally, just not buying much from the US at this point. My guess is it will still be a lengthy process. But we’re looking for slow and steady growth as we go forward.”
Peel reports that China appeared in 2017 as one of the US top 20 export destinations for beef. But take that with a grain of salt he says. Once you get passed the first five destinations on that list, the amount of exports being sold drop dramatically to very small amounts. This past year, Peel notes that China’s US beef imports had an 11-month total of less than one percent of total US exports. And, he predicts that will probably not change much in 2018. But over the long-term, perhaps in three to five years, he says the market potential is great.
“We’re in the process of trying to earn market share. We do see growth watching these month to month trade figures,” Peel said. “I don’t think China will be a major factor in US markets in 2018, in terms of that total impact. But we will certainly be watching for continued growth in that market in the coming months.”
Listen to Peel and Hays discuss China’s short and long-term beef market potential, 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.
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