September 19, 2008

China's beef production is expected to increase 2 percent to 6.4 million tonnes cwt in 2009, according to the USDA.

Cattle slaughter will increase as small-scale and backyard operations are forced out of the business by a combination of rising input costs, natural disasters, animal disease outbreaks and lack of government support for beef cattle insurance. These factors have also made producers reluctant to expand their herd, the USDA said.

The USDA expects China's beef imports to grow 9 percent to 12,000 tonnes cwt in 2009 while beef exports fall 21 percent to 48,000 tonnes cwt.

China's beef consumption is projected to climb nearly 2 percent next year to 6.3 million tonnes cwt, as higher prices continue to restrict domestic beef consumption.

Meanwhile, the US will urge China to remove its ban on US beef when officials from both nations meet this week via the US-China Joint Commission on Commerce and Trade.

China banned US beef in December 2003 upon the detection of mad cow disease in the US. While China has conditionally agreed in April 2006 to reopen its market to US beef but the resumption of trade has not yet happened.