China’s cattle farmers, in beef with importers, lobby for trade probe as prices drop

China’s beef industry, imperiled amid a 11-year low in prices, has blamed imports for the slump and called for government action

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China’s beef industry, struggling with a steep drop in prices, has called for an investigation into a surge of inexpensive imports. Photo: AFP

Mia Nulimaimaitiin LondonandHe Huifengin Guangdong

Published: 4:00pm, 30 Dec 2024Updated: 4:04pm, 30 Dec 2024

China’s beef farmers, struggling with steep losses as domestic prices plunge to an 11-year low, have successfully petitioned for the country to look into what they term a market-distorting surge of inexpensive imports.

An official investigation into shipments of the meat began on Friday after numerous industry associations called for action to guarantee the security of domestic agriculture.

The average wholesale price of beef in China dropped to 59.8 yuan (US$8.19) per kilogram last week, down 16.4 per cent for December year on year. This was the lowest recorded price since September 2013, according to data released by the country’s Ministry of Agriculture and Rural Affairs.

Meanwhile, the retail price of boneless beef fell to 65.5 yuan (US$8.98) per kilogram in November, down 18.6 per cent year on year and reaching its lowest level since October 2018, according to the National Bureau of Statistics.

The China Animal Agriculture Association (CAAA) attributed the slump to a surfeit of imported beef, noting inbound shipments have grown eightfold over the 10 years leading up to 2023.

These imports have surmounted one-third of domestic production in terms of scale, with their proportion of the country’s supply continuing to rise this year.