In this file:
· Chinese beef buyers race to get hands on American steak
… "We have ordered 56 to 58 tonnes of whole carcasses, which are expected to arrive by the end of July," said Chen Fugang, owner of Aoyang International, a Shanghai-based trading company… the product would be cheaper than Australian beef, he added…
· China a Big Win for US Beef Industry - But Derrell Peel Says It'll Take Time Before We See a Payoff
Chinese beef buyers race to get hands on American steak
By Dominique Patton | Reuters
Mon Jun 19, 2017 | 6:46am EDT
BEIJING | Chinese meat importers are racing to get their hands on the first shipments of beef from the United States in 14 years, as strong demand for premium steaks continues to grow in the $2.6 billion beef import market.
China and the United States last week settled the conditions for American beef exports after the two sides agreed in May to resume the trade. Pent-up demand for U.S. meat could erode sales of Australian beef, China's current top supplier of premium steaks.
"We have ordered 56 to 58 tonnes of whole carcasses, which are expected to arrive by the end of July," said Chen Fugang, owner of Aoyang International, a Shanghai-based trading company.
Chen said he expects the product to be a hit in the Chinese market, where total beef sales grew around 4 percent last year to reach 5.9 million tonnes, according to Euromonitor.
"We're especially interested in several barbecue products, like rib eye and fillet steak, which we believe Chinese customers would like," added Chen.
American beef is known for its quality in China, but was banned in 2003 after a mad cow disease scare. Since then, other beef imports have surged, as domestic production has struggled to keep up with demand from the expanding middle class.
Total beef arrivals rose 22 percent to 579,836 tonnes last year and foreign suppliers will meet about 20 percent of demand by 2020, forecasts Rabobank. <COM/CN>
"The number of enquiries to our exporters number in the hundreds, if not low thousands, since the announcement of the agreement," said Joel Haggard, senior vice president for the U.S. Meat Export Federation in Asia-Pacific.
Increased competition for the lucrative premium market will stir concerns in Australia, where a drought has cut the herd size.
Similar quality cuts of U.S. beef are expected to be cheaper than Australian meat because of low U.S. grain prices, a large component of the cost of raising cattle.
Chen, who sells Australian and New Zealand beef to five-star hotels and high-end restaurants, declined to reveal the price for his U.S. cargoes, adding that customs and handling fees still needed to be factored in.
But the product would be cheaper than Australian beef, he added.
"Price is a key (selling) point, as U.S. beef is cheaper than Australian beef of the same quality," he said.
Despite the high interest, strict Chinese import conditions will limit shipments of American beef initially...
China a Big Win for US Beef Industry - But Derrell Peel Says It'll Take Time Before We See a Payoff
Oklahoma Farm Report
16 Jun 2017
China may be in the spotlight right now, with its government and ours in the US having come to terms on the protocols that will allow our beef products access to their markets. But, currently, the US already has several major export markets already in place. Extension Livestock Market Economist Dr. Derrell Peel spoke recently with Radio Oklahoma Ag Network Farm Director Ron Hays, about how important international trade is for our beef industry.
“The fact is, in the US, we don’t utilize well, all of the products that come from the beef industry,” Peel said. “Some of them have lower demand and yet most beef products are perishable. So, when you have low valued products priced in a way to get them consumed, you’re detracting away from demand that would rather focus on higher valued products.”
On the other side of the world, however, products not suited for our domestic market, may actually be in higher demand and have a higher value in foreign markets. The ability to export these cuts, allows US beef producers to salvage the carcass value elsewhere, that might have been lost if it were sold domestically. This has been the case for the major markets we’re already exporting to, like China and South Korea. But it didn’t happen overnight says Peel...