September 13, 2006

China's beef production to increase 6 percent next year

China's beef production is expected to increase by 6 percent in 2007, to 7.9 million tonnes, according to a USDA forecast.

Beef production is also expected to grow steadily by 5 percent each year in the next three years as demand rises.

In 2005, beef consumption in China stood at 6kg/head. This figure is expected to rise as consumers shift away from poultry due to bird flu concerns and rising affluence.

The increased demand is expected to boost China's beef imports as much as 33 percent to 4,000 tonnes.

That number could be even higher once US beef is allowed to enter China's market.

Even though China lifted its ban on US beef last year, disagreements over quarantine arrangements have so far barred any shipments of US beef to the country.

A stronger exchange rate and local shortage would also create higher imports, the USDA note.

As a shortage looms, China's beef exports are forecast to fall by 5 percent to 85,000 tonnes.