China’s beef prices have been continuously declining for 12 months, with wholesale beef prices dropping by 24% in the past six months, hitting a new five-year low. Faced with the ongoing downward trend in beef prices, livestock breeders are facing severe losses.
According to monitoring data from the Ministry of Agriculture and Rural Affairs of the Chinese Communist Party, the average weekly wholesale price of beef in the 50th week of 2024 was 60.03 yuan per kilogram, representing a 1.3% decrease compared to the previous week and a 16.2% drop year-on-year.
Reports from “Xiaoxiang Morning News” on December 28 show that China’s beef prices have been continuously declining for 12 months, with wholesale beef prices plummeting by 24% in just six months, reaching a record low in five years.
On December 27, a representative from the China Animal Agriculture Association stated that due to the significant price difference between domestic and imported beef, the increase in imported beef volume continues to rise. In 2013, beef imports were less than 300,000 tons, but by 2023, it had reached 2.74 million tons, an increase of over 800%, accounting for 36.4% of China’s production, making beef the largest imported meat product that year. Since 2024, beef imports have surged, reaching 2.6 million tons from January to November, a 4.3% year-on-year increase. The continuous increase in imported beef has severely impacted China’s cattle industry, with most breeders operating at a loss.
The representative mentioned that this surge has directly led to widespread losses among cattle breeders and has affected farmers’ income. With the influx of imported beef, both beef and live cattle prices in China have rapidly declined, with beef prices hitting nearly a five-year low and live cattle prices dropping to a nearly decade-low level.
According to news from “Shangguan News” on December 28, data shows that in November of this year, the average loss per head of cattle sold was more than 1,600 yuan, with breeders experiencing over 1,000 yuan in losses for eight consecutive months. Over 65% of breeding households are operating at a loss. Many breeders who rely on loans to raise cattle find themselves unable to repay their loans due to low cattle prices. Even if they manage to repay, they are left with heavy debts, forcing them to exit the industry.
Discussing the reasons for the significant increase in beef imports, the Chinese author “Livestock Production Team 2024” highlighted two primary factors. Firstly, there is a need to balance trade surpluses. In the import-export market, it is not just about selling aggressively. When you sell to others, you also need to expand imports of their products. With China exporting industrial goods to Brazil and Argentina in large quantities, it must expand imports of agricultural products from these countries, including beef.
Secondly, imported beef is indeed cheaper as the cost of China-produced beef is higher than beef imported from South America, such as Brazil and Argentina. Chinese beef costs around 50-60 yuan per half a kilogram, while beef from Brazil and Argentina costs only about 20 yuan per half a kilogram.
Additionally, the operational methods of Chinese breeders also hinder their ability to lower prices and compete with imported beef. Many breeders in China rely on loans for cattle farming, leading to financial pressure and higher borrowing costs. Furthermore, China’s lack of large-scale breeding compared to South America, where land is plentiful and fertile, results in lower production costs. Added to this, Chinese domestic beef is subject to various taxes, including value-added taxes, imposing additional burdens on breeders.
Facing the impact of imported beef on the Chinese beef market, the China Animal Agriculture Association and nine major producing regions have submitted requests for an investigation into safeguard measures to relevant Chinese authorities, citing the significant adverse effects of the sharp increase in beef imports on the Chinese industry.
In contrast to the industry’s concerns and official actions, Chinese netizens seem to find enjoyment in the declining beef prices. A netizen under the tag “Tencent User 89e0g1x” questioned, “Isn’t it good that ordinary people can afford beef?”
Another netizen under the handle “Huawei Textile” commented, “If there are cheaper options available, why not import them? It benefits the general public and can also drive breeders and farming companies to change their ways, marking the beginning of progress in the industry.”
Netizen “Superman” believes, “We need a global market economy, no more protectionism. By doing so, we facilitate the development of bad habits in our children. We must abide by ecological principles to move forward. Let our businesses adapt to the global market economy, rather than forcing the market economy to adjust to businesses.”
And “Missing Home” added, “Let’s consider this—in foreign countries, our products sell well because of their low prices. Why then do we criticize low-priced imported goods coming in?”