Booming beef imports in China
It is hardly surprising that pork consumption is high in China. Poultry meat consumption is also at a high level. But that beef, which is three times more expensive, would play an increasing role among Chinese consumers is initially surprising. And yet it is in the logic of market development to get to the bottom of the causes.
The increasing consumption of beef was made conspicuous by the almost explosive increase in beef imports in the first half of 2013 compared to the same period in the previous year, at over 1,150%. Although this is "only" a quantity of 125,000 tons - around half of EU exports - the sudden increase within just one year makes things exciting. Especially when you consider the enormous market potential involved.
The primary origins from Australia (almost 50%) and Uruquay (25%) are also interesting. New Zealand and other smaller exporting countries are also involved. It is noticeable that Brazil and the USA have not been included at all, although both are among the major players in the beef industry. The background to this is the import bans due to FMD in Brazil and BSE in the USA. However, these measures were introduced years ago. Obviously, neither country gave themselves much of a chance and shied away from the political effort required to get imports allowed again.
Where does the sudden interest in this expensive type of meat in China come from? It's actually relatively easy to explain. A growing middle and upper class with increasing disposable incomes can afford to deviate from the traditional Chinese diet and afford something special. These classes are cautiously classified as 200 to 400 million consumers out of a total of 1.4 billion consumers. This compares with 508 million people in the EU-28.
It is no coincidence that the majority of beef sales are in high-end restaurants.
Brazilians and Americans in particular are rubbing their eyes in amazement and believe they have missed a favorable sales opportunity. But probably not for long. The first contacts have already been made.
