In this file:

 

·         Beef exporters find their niche in China

… Chinese are quite partial to US beef due to its remarkable marble cut. "The rest of the world produces grass (fed) beef, we have the luxury of feeding cattle with corn for 150-180 days to produce marbled beef. US beef is juicier, more tender and more delicious"… marble fat is healthier than fat from other part of the cattle, akin to olive oil…

 

·         China’s Food Crisis Is An Opportunity For U.S. Beef

… Public and private deals have been a vehicle for the modernization of China’s food industry…

 

 

Beef exporters find their niche in China

 

By May Zhou in Houston | China Daily

2017-11-14

 

The country may be starting to beef up. By the end of September, US beef exports to China reached about a thousand metric tons for a total of $12.5 million since the export ban was lifted in May, according to the US Meat Export Federation.

 

The country potentially represents a $2.6 billion market for US beef products, so US exports have a lot of room for growth.

 

Industry experts, however, attribute the slow growth to two major factors: short supply and hefty prices.

 

Beef exported to China must meet stringent requirements, including no growth hormones. Currently, supplies meeting those requirements are rather small, and raising cattle that meet those standards takes about two years starting with a calf, said Pete Bonds, a rancher in Saginaw, Texas, and a past-president of the Texas and Southwestern Cattle Raisers Association.

 

Bonds said that while it takes time to develop China-specific beef products, meeting the Chinese requirement also increases costs.

 

"We hoped to be able to export a lot of beef to China's middle class, but by not using growth hormones the price will be prohibitive. Currently most US beef is sold only in major cities like Shanghai and Beijing," Bonds said.

 

USDA Prime rib eye sells for nearly $60 a pound in Shanghai, according to media reports.

 

"It's more a luxury item in China, instead of being a daily protein source for the Chinese," said Bonds.

 

However, Chinese are quite partial to US beef due to its remarkable marble cut.

 

"The rest of the world produces grass (fed) beef, we have the luxury of feeding cattle with corn for 150-180 days to produce marbled beef. US beef is juicier, more tender and more delicious," said Bonds.

 

He said recent studies show that marble fat is healthier than fat from other part of the cattle, akin to olive oil.

 

S&S AgriSource, a Houston based company exporting beef to China, is testing the market. It has been exporting beef from South America to China and is utilizing its available distribution network to gain a market share for US beef...

 

more

http://www.chinadaily.com.cn/business/2017-11/14/content_34506718.htm

 

 

China’s Food Crisis Is An Opportunity For U.S. Beef

 

By FactSet

via ValueWalk - November 13, 2017 

 

The world’s population is exploding at a precipitous rate, on track to grow by two billion people over the next 40 years. Population growth is expected to require a 70% increase in global food output by 2050. By focusing primarily on the supply prong of the food security crisis, China—the world’s most populous country and the second largest economy—would technically be incapable of feeding its swelling population alone.

 

In 2014, China began to move away from self-sufficiency, with China’s State Council reportedly projecting lower grain production than average consumption levels that year. Further complicating its ability to support its citizens, only 7% of China’s land mass remains tillable due to heavy use of agricultural pesticides and pollution. The average American consumer relies on an acre of arable land per citizen; China only has 0.2 acres per citizen by comparison. This acute lack of arable land portends a fast-approaching food shortage with little resolution within China’s borders.

 

So how is this nation investing to shore up food resources for both human and livestock consumption? China has begun to look outward for resource reservoirs and cultivable land to dodge a true global food crisis. Pursuing acquisitions in food production from Finland to Brazil, purchasing vast tracts of land in Mozambique, and importing tons of soy and corn from the United States, China is already engaging the globalized food chain to secure resources beyond its own capacity.

 

President Jinping Looks Outward

 

China is no stranger to mass agricultural reform. Mao Zedong and the Communist Party of China implemented the Great Leap Forward in the 1950s to jolt China’s agrarian economy into its modern, industrialized prototype. The economic campaign failed bitterly and many attribute around 30 million deaths by starvation to the heavy grain taxation and rationing imposed on smallholder farmers.

 

Given the historical context, China’s President Xi Jinping has tread a careful path, drafting land and agricultural reforms to mitigate the current food crisis. His approach is four-pronged: using market controls, improving farm efficiency, curbing land loss, and increasing foreign imports. Such reforms suggest a new era for China and take a decisive step away from its days of low-profile, Sleeping Giant diplomacy. With Jinping poised to assume another five-year term as President, we can expect that his global agenda will continue in the form of foreign trade and acquisitions.

 

Building a Global Food Bank through Acquisition

 

Public and private deals have been a vehicle for the modernization of China’s food industry. Last year, China notched an unprecedented investment spree totaling $250 billion. Landmark transactions include the acquisition of Smithfield Foods Inc. by Hong-Kong based investment firm, WH Group and ChemChina’s 2017 acquisition of pesticide giant, Syngenta. Smithfield Foods represents a boon to China’s capacity for meat production, making WH Group the largest pork provider in the world. The $43 billion Syngenta purchase represents China’s largest foreign takeover to date by a state-owned enterprise.

 

Using M&A Screening on FactSet to run a volume total of state-led Chinese transactions in the Process Industries sector, Agricultural Chemicals tops the list in both number of transactions and aggregate transaction value...

 

China’s New Appetite for Meat ...

 

Policy Changes Create Opportunity ...

 

more, including table, charts, "Food Print" global map

http://www.valuewalk.com/2017/11/chinas-food-crisis-is-an-opportunity-for-u-s-beef/