China Launches Investigation into Beef Imports Amid Surplus Concerns
China’s Ministry of Commerce has announced an investigation into beef imports, stating that the domestic market is oversaturated, leading to a decline in prices paid to local cattle farmers. This decision impacts major beef exporters to China, including Brazil, Argentina, and Australia.
In 2023, China imported around $14.2 billion worth of beef, nearly double the $8.2 billion imported in 2019. Brazil accounted for 42% of these imports, followed by Argentina at 15% and Australia at 12%. The investigation, requested by the China Animal Husbandry Association and other cattle industry groups, will examine beef imports from 2019 to 2024.
The investigationClaims that a sharp increase in imports has severely damaged China’s domestic beef industry. Beef imports in 2023 were 65% higher than in 2019, with the first half of 2024 seeing more than double the imports of the same period in 2019. Imported beef now accounts for 30.9% of China’s total beef consumption.
The price of beef, along with other meats like pork and poultry, has decreased due to slower economic growth and reduced consumer purchases. China’s Animal Husbandry Association reports that most cattle farms are operating at a loss, with beef prices at their lowest in five years and live cattle prices at their lowest in a decade.
Affected Companies and Countries
22 companies from 10 countries are affected by this investigation:
- Argentina: Compañía Central Pampeana, Frigolar, Frigorífico Regional General Las Heras, S.A., Offal Exp., S.A.
- Brazil: Minerva, S.A., Naturafrig Alimentos LT, Prima Foods, S.A., Barra Mansa Comercio de Carnes & Derivados, Ltda.
- United States: Tyson Fresh Meats Inc., Cargill Meat Solutions Corporation, AB Foods, LLC, Sukarne SA de CV.
- Uruguay: Frigorífico Casa Blanca, S.A., Frigorífico Tcuarembó, Frigorífico Las Piedras.
- Chile: Frigorífico Osorno.
- Costa Rica: Cooperativa Matadero Nacional de Monteci.
- Australia: Fayman Food Group, LLC, The Casino Food Co-op.
- New Zealand: Progressive Meats Limited.
- Ireland: ABP Food Group.
- France: Abattoirs Des Crets.
Wholesale beef prices dropped by 22% to €7.86/kg by the end of December from €10.14/kg two years ago. In June, China urged farmers to limit and optimize their cattle herds to stabilize prices, but imports, particularly from Argentina, continue to increase. From January to November 2024, China imported 2.6 million tons of beef, up from 1.66 million tons in 2019.
The investigation is expected to conclude in eight months, although extensions may occur under special circumstances. It targets no specific countries or regions, does not differentiate product origins, and will not disrupt normal trade during the process.
China is also considering trade restrictions on dairy and pork imports from the European Union, although these moves appear to be retaliatory measures against the EU’s planned tariffs on Chinese electric vehicles.
