March 16, 2020 | FBN Insights | Kevin McNew

China Revising US Beef Import Standards

US beef accounts for less than 1% of China's imports

China Revising US Beef Import Standards             

China has created food safety standards on residue limits of growth hormones in beef, a move seen as a further step towards opening up its market to American imports of the meat.  

China has a zero tolerance for any residues of growth hormones and has restricted the volume of beef it imports from the US.  

Part of the Phase 1 trade deal with the US, China promised to adopt residue limits for three hormones used in beef.  

The proposed standards cover beef primals but not offal. 

US beef, which only regained access to the Chinese market in 2017 after a 14-year hiatus, accounts for less than 1% of China's imports.  

FBN’s Take On What It Means:  We view any administrative process that the Chinese undertake to increase imports of US agricultural commodities as a potential positive for the US farmer.  Since US beef is considered a luxury good in China and is primarily consumed in high-end urban restaurants we’re interested in the details of China’s plan.                                                                                                                         


African Swine Fever Still Not Contained In China    

According to Reuters, China's agriculture ministry said on Saturday it had detected two new African swine fever (ASF) cases last week.  

The cases were found in pigs being illegally transported in the major hog-breeding provinces of Sichuan and Henan.  

ASF was first detected in China in August 2018 and has slashed the country's hog herd by almost 50%.

There is no vaccine for ASF.  

China has the world’s largest hog herd.     

FBN’s Take On What It Means: With new cases of ASF being discovered in China it seems obvious that the threat of ASF still remains a risk.  As long as ASF remains a risk to the Chinese hog herd and the domestic food supply, there will be opportunities for US pork exports which can be a positive for the US farmer.                                                                                                                                                                            

The risk of trading futures, hedging, and speculating can be substantial. FBN BR LLC (NFA ID: 0508695)

More Articles