Bloomberg’s Clarice Couto and Gerson Freitas Jr. reported earlier this week that “China’s beef imports are dwindling amid slowing consumption and ample domestic supply, dealing a blow to its biggest supplier Brazil.”
“Official data show the value of China beef imports fell last year for the first time since at least 2016, with prices plunging to the lowest level in almost three years,” Couto and Freitas Jr. reported. “Import volumes are seen dropping 4% this year, ending 12 straight years of meteoric rise, according to the US Department of Agriculture.”
The USDA’s Foreign Agricultural Service wrote in its April “Livestock and Poultry: World Markets and Trade” report that in addition to lower imports, “China domestic beef supplies remain high following a buildup in stocks during 2023 following weaker than expected post-COVID recovery. Although China’s share of world beef exports increased rapidly from 2017 to 2022, China’s share in 2024 is forecast 5 percent below 2023.”
“As China beef imports decline, U.S. imports will rise as domestic beef production is expected to be the lowest since 2018, given continued contraction in the U.S. cattle herd, and steady domestic demand,” the report said. “U.S. beef imports are expected to account for 15 percent of global beef trade, up from 14 percent in 2023 and more than offsetting reduced China beef imports.”
Couto and Freitas Jr. reported that China “is seen producing 7.7 million metric tons this year, up 1 million tons from 2020, according to the USDA. What’s more, an economic slowdown has prompted consumers to seek cheaper proteins.”
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Categories: Illinois, Livestock, Beef Cattle