[Infographic] China’s beef meat industry: Why China needs US production

RESEARCH BY DAXUE CONSULTING

CHINA CLOSED ITS BEEF MARKET TO AMERICAN PRODUCERS SINCE 2003, SINCE A CASE OF “MAD COW DISEASE”, OR BOVINE SPONGIFORM ENCEPHALOPATHY, WAS DETECTED.

WE EXPECT SOON TO SEE THE CHINESE MINISTRY OF AGRICULTURE ACCEPTING AMERICAN BEEF.

0.0

0.5

1.0

1.5

2.0

2.5

3.0

$0.015 BILLION

$2.3 BILLION

$2.8 BILLION

UNIT: BILLION USD

2003 2015 2016

UNIT: 1 KG OF BEEF

CHINA’S ANNUAL PER-CAPITA CONSUMPTION OF BEEF IN CHINA CURRENTLY IS AROUND 3.9KG COMPARED TO MUCH HIGHER RATES IN MANY NATIONS.

CHINA 3.9KG

USA25KG

BRAZIL27.4KG

AUSTRALIA23KG

CANADA19KG

56% OF BRAZIL PRODUCTION

CHINESE CONSUMPTION WILL REACH 5.34 BILLION KG IN 2016. THIS IS EQUAL TO :

IF CHINA REACHES 10 KG PER PERSON (STILL AT LEAST 2 TIMES LESS THAN MOSTDEVELOPED COUNTRIES) THEN CHINESE CONSUMPTION WILL SURPASS THE COMBINEDTOTAL PRODUCTION FOR THESE 3 COUNTRIES

BRAZIL IS THE WORLD’S LARGEST EXPORTER OF BEEF

243% OF AUSTRALIAN PRODUCTION 445% OF CANADIAN PRODUCTION

AS CHINA’S MIDDLE CLASS CONTINUES TO EXPAND, BEEF CONSUMPTION POTENTIALLY COULD GROW DRAMATICALLY AND THE US PRODUCTION IS NEEDED TO MATCH THE DEMAND AT AN ACCEPTABLE PRICE

7 MILLION TONS PRODUCED IN CHINA IN 2015, REPRESENTING AN INCREASE OF ONLY 1% YEAR-ON-YEAR.