March 9, 2007

China's beef production to rise 5 percent in 2007

China's beef production is forecast to increase by 5 percent in 2007 to 7.9 million tonnes, according to the USDA.

The increase would be driven by a 3-percent increase in the number of cattle slaughtered, to 58.7 million head in 2007.

Similarly strong levels are seen in 2008, when China would host the Olympics.

While poultry and pork prices have fluctuated in China due to disease outbreaks, beef prices have remained relatively stable due to strong domestic demand.

At the same time, beef consumption is predicted to increase by 5 percent in 2007.

Increased availability of beef in the world market would slow the growth of Chinese beef exports and lead to lower domestic prices. This in turn would boost consumption, the USDA said.

Although China exported only one percent of its beef production in 2006, it is expected to export 3 percent more this year.

China is expected to import only 2,000 tonnes of US beef this year and live cattle are expected to fall 33 percent to 100,000 head, due to China's ban on US and Canadian breeding cattle and lower imports from Australia and New Zealand.