March 10, 2008

 

China's beef imports to rise four-fold in 2008

 

 

China will increase its beef imports to nearly four-fold to 30,000 tonnes in 2008 due to slow output and strong demand, the Foreign Agricultureal Service (FAS) of Beijing said.

 

Demand for beef is also expected to peak around the Olympic Games event. 

 

China has to import high-quality beef for high-end hotels and restaurants since domestic high quality beef production is very small.      

 

Imports are expected to shift sharply in favor of inexpensive beef from South America, which can be half the price of US beef.

 

Last year, China's average beef and veal import cost US$4,663 per tonne from different parts of the world.

 

In November 2007, China and Brazil reached an agreement for China to import boneless beef from four Brazilian states including Rio Grande de Sul, Santa Catarina, Acre, and Rondonia.

 

Industry sources said the first shipment has already been sent.

 

Strong demand, short domestic supply and China's ban on US beef imports have encouraged grey channel trade via South China. 

 

In 2007, Hong Kong re-exported 435 million tonnes of US beef valued at HKD5.6 million (US$716,468) and 942 million tonnes of US beef offal valued at HKD3.4 (US$436,557) to mainland China. 

 

Industry observers said the same trend will continue in the remainder of 2008 for the same reasons.