China’s official beef imports quadrupled in 2013 as the country’s growing middle class is demanding higher protein foods, and industry sources estimate that the country has an enormous unofficial grey market equaling a possible one million tons of beef, or twice the official amount of imports, from Brazil and India being smuggled into the country through Hong Kong and Vietnam. Beijing is expected to soon lift a ban on Brazilian beef imports and complete a deal allowing Indian buffalo imports as Australia, China’s largest supplier faces a production slump because of drought and the U.S. herd is at its smallest in six decades. Brazilian beef imports could resume before a June summit of the BRIC nations. U.S. beef imports are also banned however the U.S. is not seen as being in a position to increase exports. Brazil has approximately 200 million head of cattle and India has 327 million head of buffalo compares to Australia’s herd size of 27-28 million head which is shrinking because of drought. China’s official beef imports for 2014 could reach 550,000 tons up from 400,000 tons in 2013, driven up even further by the country’s avian flu outbreaks. Indian buffalo meat is mainly used in sausages, hot pot, and stir fry dishes while Brazilian beef is used as steaks. Indian beef is cheaper than Australian or Brazilian beef however if the nationalist Bharatiya Janata Party which views cows as sacred and opposes beef consumption takes power in the country’s elections on April 7th, Indian beef exports could struggle.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free bi-weekly enhanced eNews service