China | Lower Prices Boosted U.S. Beef Exports To China In First Quarter | Lo...
China
Lower Prices Boosted U.S. Beef Exports
To China In First Quarter
Lower U.S. beef prices resulting from the post-BSE episode in Japan spurred beef imports into Hong Kong and China, and while buyers have taken the opportunity to build inventory, demand is increasing according to USMEF-Hong Kong. USDA statistics show a 40 percent increase in beef exports (including variety meats; 9,350 mt) to Hong Kong/China for January to March, 2002, while Hong Kong’s import statistics show an increase in U.S. beef muscle imports of 36 percent for the 1st three months (3,635 mt compared to 2,662 tons for the same period in 2001).
The largest increase in demand is believed to be occurring in south China, where increases in purchasing power and incomes are driving aggressive growth in western restaurant expansion. Demand is increasing in northeast China as well, however, as lower import duties slowly spur increased competition and reductions in wholesale prices.
China imported more beef variety meats (23,832) in the first quarter of 2002 than it did in the first quarters of 2000 and 2001. Brazil continues to be the market leader, followed by Argentina and the U.S., which accounted for 3,225 mt, according to Chinese statistics, a third larger than the total imported during the first quarter last year.