February 10, 2006

China's beef and pork production to rise

The Feb 1 USDA report on Chinese livestock and products stated China's beef production for 2006 is forecast to rise by 6.9 percent to 7.7 million tonnes. This is due to strong demand and consumers making the switch from poultry to red meat because of bird flu concerns. Rising Chinese consumer incomes ensure that consumption of beef remains strong although beef prices are high.

USDA predicts China's beef imports to remain flat at 3,000 tonnes, due to import bans on countries which have reported cases of the mad cow disease. 

According to USDA, China's live cattle imports are expected to drop 8 percent to 48,000 head because of import policy changes and increased international prices. Due to less demand from Hong Kong, live cattle exports are predicted to decline 3.8 percent to 51,000 head.

The report stated China's pork production is expected to increase 4.7 percent to 52 million tonnes in 2006. However, the pace of growth is expected to be smaller than that of 2005. The pork industry is forecast to enter a stable period during 2006, possibly pointing to decreased imports for the year.

As there are sufficient supplies and reduced pork prices, pork imports are expected to decrease 4 percent to 48,000 tonnes in 2006. Conversely, pork exports are forecast to gain 17.6 percent to 300,000 tonnes. Pork exports are likely to expand further due to international concerns about bird flu and poultry meat.

For the full USDA report, click here.