by Ken Root & Whitney Flach
Listen Here: Agribusiness Matters 9-23-16
Following a 13-year ban on U.S. beef exports to China, the Chinese Government indicates the nation will begin accepting U.S. beef from animals less than 30 months of age. However, there are some conditions attached. Beef older than 30 months will still be barred, and U.S. exports will have to comply with China’s traceability and quarantine rules. China’s agriculture ministry did not say when imports would resume.Cattle producers see the upside but not sure how long it will take to create demand and secure the market.
The National Cattlemen?s Beef Association calls the indication a tremendous opportunity for U.S. cattle producers. The U.S. Meat Export Federation called the announcement a ?welcome first step? in restarting beef exports to China.
Kevin Kester is a 5th generation California rancher who has served on the Meat Export Federation board and is now NCBA Vice President.
“My first reaction was wow, that’s exciting news! That will help ad value to what we get paid for cattle.” Kester hopes China takes some cuts with low domestic value as well as high quality beef.
For several years following the 2003 BSE case in the U.S., China officially shut out American Beef but they bought it through the back door from Hong Kong and Vietnam. Politics have trumped science in keeping our beef out of their market until the recent announcement.
“Trying to have a growing middle class population, trying to represent 1/5 of the worlds population. The economy is growing. The opportunity for us to sell value added products to that population is very good. It is really going to help us in the future, and I’m really looking forward to it,” Kester said.
The U.S. Department of Agriculture now must work with China?s Administration of Quality Supervision, Inspection and Quarantine to approve the certificates and protocols for exports. NCBA spokesperson Kent Bacus says the announcement is welcome news and ?further highlights the benefits of trade in the Pacific.? He says the opened beef trade to China will expand further with passage of the Trans-Pacific Partnership trade deal, which was signed by the President and awaits Congressional approval.
NCBA also favors passage of the TPP to gain lower tariff access to other Asian nations.
