September 10, 2007

China setting itself up to become a major beef exporter
 

With 30 percent of the world's global beef cow population, astronomical growth rates in beef production, lavish government subsidies and a market closed off to the outside world, China could well be on its way to becoming a major beef exporter, a US cattle industry spokesman said.

Eric Nelson, chairman of R-CALF/USA's trade committee, representing the Ranchers-Cattlemen Action Legal Fund/United Stock Growers of America, testified on how Chinese government practices and policies could affect the US beef industry at the federal International Trade Commission last week. 

China is improving its cow genetics and beef infrastructure in east-central China while providing cattle producers technical assistance and subsidies, Nelson said.

By closing off access from other markets to China, it is setting itself up to be a major exporter, Nelson charged. China has steadfastly refused to grant access to its market to US beef, citing concerns of mad cow disease.

He also suggested that China is manipulating its currency to give its exports an edge and attributed the rapid growth in China's beef industry to government protection and lavish subsidies.

Despite its failure to comply with international health and safety rules, China's stature as a beef exporter is growing, he said.

R-CALF believes China should abide by international agreements to ensure that US cattle producers can compete on a level playing field, Nelson said.

China's beef production grew by more than 48 percent from 2000 to 2007. The country's annual beginning stocks of beef cows grew by 20 percent (from 60 million head to 71.8 million head) while its annual production of calves grew by 51 percent (from 41.8 million head per year to 63.3 million head per year), Nelson said.

The astronomical growth has helped China grow in importance as a global cattle and beef producer, he added.