Feed Lot

SEP-OCT 2017

Feedlots and cow/calf operations in the beef industry who feed 500 or more has annually on grains and concentrates; maintain 500 or more beef cows; backgrounder, stocker/grower, preconditioner; veterinarian, nutritionist, consultant

Issue link: http://feedlotmagazine.epubxp.com/i/868988

Contents of this Issue

Navigation

Page 7 of 31

the U.S. will vie for position with other beef-producing countries like Brazil, which gained Chinese market ac- cess in 2015, it is a key market, and U.S. producers are up for the competition. The Rabobank Quarterly Q2 report says early sales will likely feature variety meats while promotion and consumer education develop a taste for grain-fed beef. China has a developed distribution network, including a growing e-commerce market, and millennials are tuned to a global perspective. In Beijing to formally greet the beef on arrival, NCBA President Craig Uden said, "I just can't expound enough to producers how vast a market it is and how many things in China are changing. I mean, changing before our eyes. We see a lot of young people that are really controlling a lot of dollars and they want change, and we need to be in this market having access to this type of population base." According to Rabobank, China's total beef imports represented 15 percent of consumption in 2016 and are estimated to hit 20 percent, 2 million metric tons, by 2020. The acceptance of U.S. beef in China is part of a larger trade deal between the two nations and there are restrictions, like strict traceability requirements, no ar- tificial implants, and all beef must be tested for Rac- topamine upon arrival. In addition, all USDA-inspected plants must meet China's inspection requirements. Even without the Chinese deal, U.S. beef exports are on the rise. Rabobank's Q2 report puts export volume at 10.7 percent for the first four months of the year, the first time ever to exceed 10 percent. With exports gen- erally greater the second half of the year, the report es- timates exports for 2017 to reach 11.4 percent. That number could increase even more, given the position of other worldwide top beef producers. Weather has caused supply shortages in Australia. According to Rabobank, April slaughter numbers were down 25 percent year over year, due in part to hurri- cane Debbie, and May slaughter was down 5 percent following decreased production during April. But Aus- tralia is far from being down and out. Slaughter weights have increased to a 40-year high of 299kg, 8 FEED•LOT  September/October 2017 MARKETING By TERRI QUECK-MATZIE u Exports Stay Strong, Despite Hiccups Exports are key to the profitability of U.S. beef, with $6.3 billion of beef sold to foreign consumers in 2016. But the first two quarters of 2017 have brought disrup- tions to the global beef complex, and the U.S. role in the worldwide marketplace. Some changes are good. Some not so much. First the good news. After a 13-year absence, Chi- nese markets are once again open to American beef. A small shipment from Nebraska on June 14 opened the gate, with industry experts optimistic about future volume. China is a major importer of beef, and while

Articles in this issue

Links on this page

Archives of this issue

view archives of Feed Lot - SEP-OCT 2017