China’s beef market – Imported cattle production and meat consumption

China’s beef market - Imported cattle production and meat consumptionNov. 19 – Today China’s beef consumption demand will be tomorrow the major factor for global cattle production industry boost. Chinese meat consumption is rising along changing satiation of Chinese people living standard. Ongoing beef deficiencies in China’s beef market will continue to upkeep rising imports of frozen beef.

 

Who is the biggest beef supplier/importer for China’s beef market? – There are many beef importers/producers globally to China beef market, Canada, Australia, Argentina, New Zealand, Brazil, Mexico and EU countries, and especially New Zealand – Export prospects are positive with strong demand from China. However, the relatively high New Zealand currency continues to put downward pressure on returns, eroding international competitiveness. According to China imports-exports statistics, in 2013 Australia remains the biggest beef products supplier which is accounting for 53% of total import volume in China. At this moment, Irish beef producers hoping for sales boost in China.

China’s beef market – surging demand for protein – Beef products richer in protein which plays a vital role in the body, building and maintaining muscles, organs and other tissue. Chinese population is getting aging, healthcare is on urgent agenda. China domestic cattle and dairy industry can’t meet the demand of beef products consumption, despite Chinese government measures to minimize its dependence on foreign beef, China faces a growing gap in beef supply. Therefore, China will have to increase its beef imports by as much as 20 per cent a year for the next five years to meet its surging demand for protein. This is good news for foreign beef suppliers, especially for Australian beef producers which are major frozen beef importer in China. According china market analyst reporting, China’s beef imports almost quadrupled from 2012 levels to 297,000 tonnes last year, while beef prices in China have risen fivefold since 2000.

Supporting programs for China’s beef market and industry – The current situation of China’s beef market raises government concerns, which led launching its first national program for supporting its beef industry in September 2013. The goal is to increase domestic production to 7.17 million tonnes in 2015 and 7.86 million tonnes in 2020 from the present 6.3 million tonnes. As the matter of the fact, ‘China’s beef industry faces many challenges even with the government support. In today’s beef market, China leads globally. Why is that? Because global beef demand growth will continue to come mainly from China. Although 2014 imports in China are not expected to reach the growth levels experienced in 2013, they will grow as Chinese farmers take little interest in government-supported production expansion and strong profits, and the market opening for foreign fresh beef products. Chinese beef market opening to imports. Nowadays, many Chinese people, both young and old, have an insatiable appetite for foreign beef which contain rich protein. Domestic suppliers couldn’t meet the accelerating market demand even with the strong favorite policy support from the Chinese government, which will force an increase in beef imports.

China’s beef market forecast to double by 2018 – Demand for meat in China is soaring with exports to the country growing beef market. There is no doubt that at the foreseeable near future, China still dependent upon imports of beef to meet the domestic demand. At the same time, China needs to increase domestic production. Altogether, China’s beef market imports estimate to double by 2018. Prospects for the global beef industry remains positive, with further possible upside due to continuing pressured beef supply and scarce supply of competing proteins which will continue to impact competitive positions. At this moment, forecasts of China beef imports related researches show that China is looking to further increase its fast-growing corn imports to feed domestic cattle and limit dependence on imports. But rising incomes and urbanization in the world’s second-biggest economy are driving dietary changes that China’s domestic beef industry cannot keep pace with. Some China beef market insiders believe that the local beef production system has lagged behind other beef-producing countries in many aspects and the gap in productivity is getting wider. It is predicted that China will need to allow more imports, which are expected to increase by 15 per cent to 20 per cent each year for the coming five years. For the List of Chinese importers/distributes for foreign beef products and the report on China’s beef market report 2014-2017 are available upon request, contact with DCCC, or mail to: info@dccchina.org