U.S. beef sales to China have dropped sharply, according to U.S. government data released Thursday, following the expiration of export registrations for American meat facilities. The registrations, which had allowed beef exports from hundreds of U.S. plants, were not renewed by China, leading to a significant slowdown in trade.
This decline comes amid ongoing trade tensions between the two countries, fueled by a tariff dispute that has made American beef less appealing to Chinese buyers. As a result, U.S. exports of beef to China have been significantly affected, exacerbating the already strained relations between the nations.
The expiration of export registrations on March 16 has left U.S. beef exporters and Chinese buyers uncertain about the future of their trade. While registrations for pork and poultry facilities were renewed, no such updates were made for U.S. beef facilities, causing hesitation in striking deals for beef produced after the deadline.
“Nobody wants to put product at risk,” said Joe Schuele, spokesperson for the U.S. Meat Export Federation.
Sales figures from the U.S. Department of Agriculture (USDA) revealed the extent of the downturn. During the week ending March 20, beef exports to China amounted to just 54 metric tons, a drastic reduction from the previous week’s total of 192 metric tons. In contrast, for four consecutive weeks between mid-February and early March, U.S. beef exports to China had consistently exceeded 2,000 metric tons per week.
The plummeting demand for U.S. beef is a significant blow to American meatpackers like Tyson Foods, who are already facing high cattle prices due to limited supply.
“Packers are all concerned because it’s a big market for U.S. beef,” said Altin Kalo, an agricultural economist with Steiner Consulting Group. “It’s been two weeks now, and we’re basically at zero.”
Neither the U.S. Department of Agriculture nor the Meat Institute, an industry group representing U.S. meat processors, has provided immediate comment on the situation.
The downturn in U.S. beef exports follows an investigation by China’s Ministry of Commerce into the surge in beef imports late last year. The investigation came as China, the world’s largest consumer of meat, struggled with an oversupplied market that caused a slump in domestic beef prices. A hearing on this matter is scheduled for next week.
This ongoing trade uncertainty continues to challenge U.S. beef exporters, as they navigate the shifting dynamics of the U.S.-China trade relationship.
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