January 14, 2014

Chinese agricultural ministry's data shows that wholesale markets in Beijing are selling beef at about RMB62/kg (US$10.26/kg), significantly higher than the levels of RMB33/kg (US$5.46/kg) in 2008.

Meat processors in Shandong, one of the key beef-producing regions, are facing difficult in meeting the booming demand, as they are struggling to source sufficient cattle. In the nearby cattle farming area of Gaoqing county, although farmers showed fresh interest in cattle breeding, shortage of land and capital restricted the size of their herd. Gaoqing farmers keep an inventory of the domestic yellow cattle breed, together with a local variety of Black Angus.

China's 2011 national beef figures surged 94% compared to 2006, with 11.4 million head slaughtered on farms which have an inventory of 50 head or above. However, the proportion of the backyard production contributed as high as 57%.

The National Reform and Development Council (NDRC) forecasts that per capita beef consumption in China will rise by 0.32kg to 5.19kg per year between 2011 and 2015, due to increasing incomes of the population. In order to reach 7.7 million tonnes of beef production in 2015, NDRC has set a goal to increase beef output volume by 2.5% a year, and plans to increase the percentage of farms with 50-plus head from 24% to 33%.