The reason why imported beef is cheap

In recent years, the consumption of imported beef in China has been increasing year by year, and the wholesale price of beef in our country has also been running at a relatively high level. Imported beef enters our country one after another which has had a huge impact on domestic beef manufacturers and farmers. Why is the price of imported beef so cheap? we summarized some understanding of imported beef prices into the following points:

1. Domestic and foreign breeding cost issues

Most of the foreign cattle farms are natural farms, and the beef cattle are mostly raised on a large scale, and the beef cattle breeds are good, the technology level is high, and the feed price is cheap. During 2015, the global food harvest is in good condition, it reduces the cost of imported beef farmers directly. Then the wholesale price of imported beef is low as well in China.

2. Foreign eating habits issue

It may be an aspect that many beef wholesalers tend to overlook. In the United States, most of the Americans eat fried and grilled beef. Unlike China, we also likes to eat braised beef, SS ( SS is the muscle of the thigh, which is wrapped in fleshy membranes, has internal tendons and is of moderate hardness. Pattern rules, suitable for braised) is useless in the United States, and Americans basically do not use beef for braised. Therefore, they have to export the SS to other countries, and the price is relatively cheap. Of course,there are many other countries like this as well.

3. High degree of industrialization and large scale

Now let’s talk about the pastures. Australia is a country with a large area of natural grasslands in the world, reaching 458 million hm2. Natural pastures account for 55% of the country’s land area. How many cows can be raised! People have so much more free forage than us. Therefore, the cost of forage has dropped significantly.

4. Good varieties and high technological level

Everyone knows that imported wagyu beef is tender and expensive. It is said that they grew up with listening music and drinking. This quality of wagyu is indeed well-deserved. Because of this, wagyu is more expensive. Japan is the origin of Wagyu. Australian wagyu are all imported products. Another is Angus cattle, which is also a very good beef breed.

5. Financial subsidies

For financial subsidies, it occupied 1/3 to 1/2 of farmers’ income in developed countries. Contrary to China's quota and high tariffs on imported agricultural products, some countries impose special taxes on exported agricultural products. The high cost of domestic beef farmers, lack of liquidity of funds, low government subsidies, backward genetic technology, failure of breeding, and declining land available for animal husbandry are all reasons why domestic beef prices are higher than imported beef prices.