The United States Produces Beef and Also Imports Loading... Beef From Other Countries. Quizlet
Remember that concluding month, trade rules regarding U.Southward beef exports to Red china were finalized. The U.S. had not exported beef to Red china since 2003, and on June 30th, an update from USDA indicated that, "U.Southward. Secretary of Agriculture Sonny Perdue today joined with U.S. Administrator to China Terry Branstad to slice a Nebraska prime number rib in a Beijing ceremony, formally marking the return of U.S. beef to the Chinese market after a thirteen-yr hiatus." Today's update highlights a recent news written report describing how this important trade policy change is commencement to impact market participants.
Background
In its 10-twelvemonth projections released earlier this year, USDA explained that, "U.S. beef exports are expected to grow slowly over the next ten years. The United states maintains its identify as the fourth largest exporter of beef in the world, behind Australia, Republic of india, and Brazil. The U.S. share of global exports among the tiptop xi major exporting regions of the earth holds relatively steady, averaging simply over 12 percentage."
In its projections, USDA added that, "The combined beefiness imports by China and Hong Kong are projected to increment well-nigh 42 per centum in the coming decade to almost 1.9 one thousand thousand tons past 2026 due to rise demand for beef which outpaces production growth. This increase accounts for the largest growth in imports amidst major beef-importing countries."
"Imports of grain-fed beefiness, mainly past higher-income countries, are projected to slowly ascent. U.Southward. beefiness exports increases by almost 103,000 tons from ane.two one thousand thousand tons in 2017 to 1.3 million tons by 2026. The United States is the largest exporter of grain fed beefiness in the earth," the USDA projections said.
Meanwhile, in its latest Livestock, Dairy, and Poultry Outlook, the USDA'due south Economic Research Service (ERS) explained that, "Beef exports during Jan through May were 16 percent higher than the same menstruum a year ago, totaling ane.one billion pounds."
The ERS report added that, "Further, a recently ended U.Southward.-China trade deal included reopening the Chinese market to U.Southward. beef for the beginning fourth dimension in almost 14 years. Marketplace access is provided for chilled, frozen, bone-in, and deboned beef, as well as a wide telescopic of offal products derived from cattle less than 30 months of age.
Although shipments commenced in June, firsthand and curt-term gains may exist constrained given China's market requirements such as traceability and its zero tolerance at ports of entry for prohibited substances.
"In the longer term, support for U.S. beef exports is likely to come from increased Chinese need as incomes increase and consumers expand their preferences for a wider diverseness of meat protein."
Current Developments: Recent News Article Highlights Policy Bear on
Barbara Soderlin reported in yesterday's Omaha World-Herald that, "The cattle waiting to eat in Terry Beller'due south feed thou here one sunny afternoon last calendar week didn't know it, but they're a hot commodity.
"Since China reopened its doors to U.S. beefiness, Beller's phone has been ringing. Packing plants and exporters are on the hunt for specialty cattle like some of those Beller feeds. Green tags in their ears indicate they've been raised without artificial hormones and could qualify for the Chinese market.
"Pitiful, Beller tells the callers, but these cattle are already destined for the Eu."
The article noted that, "He'd be willing to source and feed more cattle for China, though, if the price is right. He smiled and rubbed his fingers together: 'Give me the money,' he said.
It costs more than to raise beefiness to China's specifications, and Beller expects a premium price. Feeders like him are looking for an additional $150 to $250 per animal to cover the extra feed, fourth dimension and paperwork. (That'due south well-nigh a x to 15 percent premium from the typical price a fattened heifer or steer can fetch at auction.)
Ms. Soderlin explained that, "Negotiations similar these are part of the scramble that'due south on among exporters to ramp up shipments, gain a foothold and build market share in Red china, at present that China has opened the door to U.Southward. beef with a June 12 trade agreement.
"Beefiness industry officials caution that the market will exist boring to grow, and Beller agreed."
Yesterday's article stated that, "Greater Omaha Packing, which said information technology was the first U.Southward. company to ship beef to People's republic of china under the new trade deal, has hired two bilingual sales people to handle what its president, Henry Davis, said is an overwhelming number of calls and electronic mail inquiries, totaling in the thousands."
The Globe-Herald commodity noted that, "[Davis] said his company has made two to three shipments a week to Red china since loading its outset freight container in mid-June and hasn't had a problem sourcing plenty cattle for those shipments.
"Given the level of need he'southward seeing, Davis said, 'It'll ramp up as fast equally nosotros want it to.' People who say the marketplace will grow slowly aren't thinking large enough, he said."
"The list of U.S. beef plants approved to consign to Communist china has been growing. Half of the 18 locations are in Nebraska, underscoring how much Nebraska stands to gain from the deal as the nation'due south top beef exporter and leader in cattle feeding and slaughter," the Globe-Herald article said.
With respect to the requirements to export to Cathay, Ms. Soderlin pointed out that, "The rules crave cattle to exist traceable to the place they were born. The beefiness exported must come from cattle under 30 months old. And China will test beefiness for growth promoters, including feed additives and bogus hormones. Beef that is detected to have these elements will be rejected."
"Cargill estimated that just a small per centum of the electric current total U.S. beef supply meets China's standards," the article said.
Meanwhile, yesterday's article indicated that, "While ranchers build the supply, the Nebraska Beef Council looks to prime the demand. The grouping committed $300,000 to the U.South. Meat Export Federation specifically for beefiness promotions in China. That's in a higher place and beyond the usual amount the Nebraska group spends on foreign marketing, which is more $600,000 a year, said Ann Marie Bosshamer, executive director of the Nebraska Beef Quango. The size of the opportunity chosen for bigger spending, she said."
"The U.S. has a growing cattle herd, but Americans aren't expected to start eating significantly more beef. Chinese people are. [Buck Wehrbein, a Mead cattle feeder who serves on the Beefiness Council's lath of directors] said expanding the export market will help cattlemen stay in business."
On Friday, USDA'southward National Agricultural Statistics Service released its mid-year Cattle report, which stated in part that, "All cattle and calves in the United states, as of July 1, 2017, totaled 103 one thousand thousand caput. This is iv percent above the 98.two million caput on July i, 2015."
The report also noted that compared to 2015, there are 7 percent more than beefiness cows in the U.Southward.
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Source: https://farmpolicynews.illinois.edu/2017/07/policy-change-u-s-beef-exports-china-early-impacts-explored/
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