CALF_News_August_September_2019

19 CALF News • August | September 2019 • www.calfnews.net The ongoing trade war with China has prevented American beef from gaining any traction in China. Since the United States exports such a small amount of beef to China, it has no real effect on the United States’ beef export numbers. Those who call for an end to tough negotiations and retaliatory tariffs on China ignore the big picture. Ameri- can beef wants fair access to Chinese markets, not just access. Given fair access, U.S. beef will win market share with South Korea (we provide much of their defense) to win a lower duty on U.S. beef than its competitors. While U.S. beef pays an 18-percent duty, down from the previous 40 percent, under the trade agreement it falls 2.6 percent per year until it eventually reaches no duty. Australia, New Zealand and Canada pay higher duties. Australia, for example, pays a 24-percent tariff on a quota of 170,673 tons of beef and a 30-percent tariff when over that quota. Regardless of where imported beef originates, Chinese diet plays a key role in tamping down per capita beef con- sumption. While the Chinese rate as No. 2 in the world for total beef consump- tion due to their large population, their per capita consumption of beef totaled just 9.4 pounds (retail) per person in 2018. The United States’ per capita beef consumption for 2018 came in at 57.7 pounds (retail). Low Chinese per capita beef consumption leaves much room for market growth. The Chinese prefer pork, poultry and seafood over beef. Price plays a role in the meat selection choices, but cooking traditions and culture plays a key part as well. The Chinese don’t traditionally eat muscle meats like steak. They prefer pot- based or stir fry dishes that use small thin slices of meat. As China gets wealthier and its middle class grows so does its palate.When introduced to grilled beef, they loved it. Beef jerky grows more popular in China every day as well. These cultural transi- tions will continue to grow the per capita consumption of beef in China. The potential of the United States becoming a major beef exporter to China faces many obstacles as the trade war between the United States and China deepens. Chinese regulations create some of those hurdles. It has a zero tolerance policy on growth promo- tant residues in beef, requires traceabil- ity of beef back to the ranch of origin and requires individual harvest plant approvals. based on the its higher quality as it has done in South Korea, Japan, Taiwan and Southeast Asia. In the meantime, the Chinese beef market has an indirect benefit for U.S beef producers. Beef producers world- wide have increased production without prices collapsing. China’s growing beef imports plays a major role in absorbing most of the world’s increased supply of beef and supporting prices.  U.S. BEEF TRADEWITH CHINA Continued from page 17 WE ARE THE POWER OF PRIME 2016 NBQA - Other Breeds 9,106 Carcasses 3.98% Prime 72.76 Choice & Above 75.91% YG 1, 2 & 3 Avg. Carcass Wt.: 860 lbs. USDA Yield Grade USDA QUALITY Prime Choice Select Other 1 0.07 4.06 4.79 .55 2 0.94 23.61 10.90 1.05 3 1.78 29.94 6.20 1.49 4 0.97 9.31 1.40 0.40 5 0.22 1.86 0.33 0.12 USDA Yield Grade USDA Yield Grade Certified Akaushi Beef from HeartBrand ® Beef 44.6% Prime • 51% Choice 95.6% Choice & Above 85.2% YG 1, 2 & 3 Average Carcass Wt.: 849.19 lbs. (minus KPH) USDA QUALITY Prime Choice Select Other 1 .3 1.1 .3 .2 2 16.7 21.7 1.0 1.3 3 20.6 20.8 .3 .9 4 5.6 5.9 .1 .2 5 1.4 1.6 0 0 MORE PRIME.MORE PROFIT. COME SEE US! 8th Annual American Akaushi Association Convention OCTOBER 10-13, 2019 Hyatt Regency Lost Pines and Spa Cedar Creek, Texas Kaci Carrales | Executive Director (361) 238-7218 | www.akaushi.com The data displayed is a comparison of the 2016 National Beef Quality Audit (NBQA) results from 9,106 carcasses of other breeds and HeartBrand ® Beef Akaushi carcasses. The USDA data from 20,852 Akaushi carcasses included 3,708 fullbloods, 16,241 halfbloods, 849 three-quarter bloods and 54 seven-eighths bloods. All Akaushi carcasses achieved 44.6% Prime and 51% Choice. Thus, all 20,852 Akaushi carcasses graded 95.6% Choice and above. In comparison, the 2016 NBQA carcasses produced results of 72.76% Choice and above, with only 3.98% achieving Prime. Certified Akaushi Beef also excelled with 85.2% scoring Yield Grade 1, 2 or 3, while the NBQA results had only 75.91% with a Yield Grade 1, 2 or 3.