China lifts Ban on US Beef… but more work to be done before exporting can begin

 

Recently the Chinese government lifted its ban on US beef importation which was seen as the first step to China beginning a new relationship with US beef producers. In fact some individuals were lead to believe that US beef would be on ships headed towards China the next day but as Dr. Brenda Boetel from the University of Wisconsin River Falls explains “we have a lot of work to do before the deal is done”.

Dr. Boetel is an Agricultural Economist and says that while the Chinese lifting the ban is a great first step, it’s just part of the equation. Next America and China need to sit down and negotiate export protocols and what beef will actually be exported. Today most Americans enjoy a higher average income than Chinese which allows Americans to purchase higher valued cuts of beef, many Chinese will simply not be able to afford our higher priced US Beef, additionally the Chinese currently do not purchase any beef that is older than 30 months and as of today they demand traceability of every cut of beef, which currently the US does not have integrated into slaughter and production on a large scale.

The third and maybe most important leg of the negations is the group that is set up to audit the exports or to insure the agreements continue to be lived up to and contracts withheld.

Dr. Boetel says that the reason that many Wisconsin Beef producers are seeing higher prices for their slaughter animals today is because on average our beef is still cheaper than last year at this time and America’s economy has strengthened some allowing most Americans to purchase more and better cuts of beef, so grocery stores are purchasing more to fill their shelves to supply their customers.

Listen to Bryant and Dr. Brenda Boetel’s interview by clicking the link below…