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Chinese Beef Consumption Trends: Implications For Future Trading Partners
Chinese Beef Consumption Trends: Implications For Future Trading Partners
MF-3000
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Kansas State University Agricultural Experiment Station and Cooperative Extension Service
Meeting Future
Demand
Alimentarius Commission. Figure 7. Total imports of beef and veal for China, Hong Kong, and Vietnam 1990 - 2010.
China has reacted hastily
to many of the disease
outbreaks experienced
around the world in the
last 10 years and has often
closed borders regardless
of scientific confirmations.
In other cases, Chinas
regulations and import
certifications have been
so strict that the cost to
import has outweighed
the benefit. At the urging
of the WTO and trade
partners, China has taken
steps to rectify the inconsistencies in import bans
December 1979 Decision on reform of the
and regulations with several recent sweeping reforms
Economic Structure. With the suggestions from
such as the Food Safety Law in 2009 and tariff standardPresident Nixon, Chairman Deng Xiaoping sets the
izations in the early 2000s (GAIN, 2009).
course to establish a vigorous socialist structure of a
Exporters need to be aware of the risk and underspecifically Chinese character.
stand that nontariff trade barriers are prevalent and
January 1980 The United States grants China
provide a major obstacle to establishing reliable trade
Most Favored Nation status. This agreement was
relations. A few of the major impediments to trade are:
significant in influencing Chinas admission to the
Currency exchange rate The value of Chinas
WTO.
currency, the RMB (Renminbi), is generally
1986 China begins negotiations to join the World
held at a fixed rate set by the state, which makes
Trade Organization.
exporting to China more expensive.
1987 Yum! Brands, which owns KFC and Pizza
Difficulty maneuvering Chinese laws and regulaHut, opens first western-style fast-food restaurant in
tions and possible data inefficiencies The lack
mainland China.
of transparency makes exporting products into
China challenging.
1990 Straw for ruminants program. Chinese
officials hoped that by using straw-based feed they
Agriculture policy and protectionism This
could encourage domestic beef production.
protectionism tends to translate into trade barriers
that can restrict U.S. exports to China. For the
Nov 10, 2001 Chinas admission to the WTO
U.S. beef industry, this is important as it will be a
becomes formally approved.
factor in the hopeful lifting of the U.S. ban.
Dec 23, 2003 BSE confirmed in the USA, China
bans all U.S. beef product.
Conclusions
References
GAIN. (2009). China, Peoples Republic of FAIRS Export Certificate Report, Annual. USDA FAS GAIN.
Hovhannisyan, V., B.W. Gould. 2010. Quantifying
the Structure of Food Demand in China Using a
Generalized Quadratic AIDS Specification. Paper
presented at the Southern Agricultural Economics
Association Annual Meeting, Orlando, FL,
February 6-9.
Liu, H., K. A. Parton, Z. Zhou, and R. Cox. 2009. AtHome Meat Consumption in China: An Empirical
Study. The Australian Journal of Agricultural and
Resource Economics 53:485-501.
Longworth, J. W., C.G. Brown, and S.A. Waldron.
2001. Beef in China: Agribusiness Opportunities
and Challenges. St. Lucia, Queensland, Australia:
University of Queensland Press.
Peng, X., M. A. Marchant, X.D. Qin, and J. Zhuang.
2005. Chinese Consumers Preferences for Livestock
Products. International Food and Agribusiness
Management Review 8:62-76.
U.S. Department of State. October 2009. Background
Note: China, Accessed April 2010, http://www.state.
gov/r/pa/ei/bgn/18902.htm
USDA-ERS. 2009 Real GDP Data by Country
(in 2005 dollars) Historical, Accessed April 2010.
International Macroeconomic Data Set. http://www.
ers.usda.gov/Data/Macroeconomics/
USDA - FAO. (2010). Production Supply and
Distribution Data - Comparison of Beef Consumption
by Nation. United States Department of Agriculture Food and Agriculture Organization.
United Nations. 2008 Revision. Detailed Data:
Population 1950-2050, Low Variant, China, Hong
Kong and Macau, World Population Prospects: The
2008 Revision Population Database. Accessed April
2010. http://esa.un.org/UNPP/index.asp?panel=2
van Gelder, R. A., A.A. van Gelder, and H. Dinghuan.
1998. Urban Consumer Attitudes to Beef in
China. Agricultural and Natural Resources Economics
Discussion Paper 10/98. School of Natural and Rural
Systems Management, University of Queensland, St.
Lucia, Australia.
Wal-Mart, Inc. (2010). Walmart China Factsheet. Retrieved April 2010, from Walmart: http://www.walmartchina.com/english/walmart/index.htm#c
Endnotes
Shonda Anderson
Graduate Student
Department of Agricultural Economics
Casey Bieroth
Graduate Student
Department of Agricultural Economics
Grace Tucker
Graduate Student
Department of Agricultural Economics
Ted Schroeder
Professor
Department of Agricultural Economics
This fact sheet summarizes findings from a larger project completed in collaboration
with ValueAg, LLC. The authors acknowledge the comments from Joe Parcell.
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each case, credit Shonda Anderson, Casey Bieroth, Grace Tucker, and Ted Schroeder, Chinese Beef Consumption Trends: Implications for
Future Trading Partners, Kansas State University, April 2011.
Kansas State University Agricultural Experiment Station and Cooperative Extension Service
MF-3000
April 2011
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