China reopened its doors to United States beef a little over a year ago. U.S. Meat Export Federation senior vice president for the Asia Pacific Joel Haggard says ?re-establishing a foothold in the world?s fastest growing beef market has not been easy, but progress has been made.? Haggard talks about the challenges ahead for U.S. beef exports.
United States beef exports will soon fall victim to retaliatory tariffs. China plans to impose an additional 25% tariff on U.S. beef products, raising China?s total duty rate on U.S. beef to 37%. Haggard discusses the impact China?s actions have had on U.S. beef exports.
?The threat of duties has caused a noticeable slowdown in both U.S. beef importing activity and also a slowdown in interest by some of our loyal restaurant and retail partners who feature U.S. beef,? Haggard said. ?I think owners and operators are not only nervous about supply reliability after an additional 25% is imposed and of course, the pricing, but they?re also concerned about consumer response, especially if the oar of words on the trade front escalates further.?
Haggard expects U.S. beef volumes entering China to decline once higher duty rates are implemented on July 6th. The U.S. Meat Export Federation will continue to support its loyal Chinese customers during this difficult time, as the organization believes ?China offers incredible long-term potential.?
?U.S. exporters can?t be expected to lower prices by the extent of the duty because alternative markets exist for the U.S. beef product being shipped to China now such as the ribeye, short ribs and other short cuts. It means we face the prospect of a significantly lower flow of beef coming into the market and likely the loss of U.S. beef accounts, ranging from Korean BBQ restaurants to steak houses and supermarkets,? Haggard said. ?This is all very regrettable because the U.S. beef industry has put a lot of effort and capital into getting things kick-started over here over the last year.?
