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Trade War adds to sticker shock for U.S. beef in China

An official with the U.S. Meat Export Federation (USMEF) says tariffs have added to the sticker shock of U.S. beef in China.

Greg Hanes tells Brownfield he believes the trade war has limited growth since China reopened its market to American products a year ago.

“We were getting product in, but because of the requirements for production practices (like) no hormones or beta agonists, you have to have traceability (and) things like that.  The cost of our product going in there is typically higher than it would be going into other markets.”

He says China typically imports more grass-fed beef, and the U.S. has been shipping higher value grain-fed beef.

“That was starting to grow, getting it in and developing some of these sales distribution channels.  And now you add a duty on top of that, which is pretty significant, so it’s made what’s sort of the most expensive product in the market more expensive.”

Despite the higher price, sales are pacing ahead of last year and Hanes says the Chinese market shows huge potential.