China’s Beef Prices Stay Low as Beijing Unveils Plan to Boost Demand

China’s Efforts to Enhance Beef Production and Dietary Balance

China is taking significant steps to improve its cattle industry and address the imbalance in its citizens’ diets. The country has introduced a series of policies aimed at strengthening key agricultural sectors, with a particular focus on beef production. These initiatives come amid falling prices and stiff competition from imported beef.

The government plans to increase beef production and implement a quality-grading system for locally produced beef. This move is part of a broader strategy to promote the consumption of high-quality meat and enhance the appeal of domestic products against growing competition from imports.

According to Jiang Wensheng, vice-minister of agriculture and rural affairs, the nutritional structure of Chinese residents’ diets is still not well balanced, with an insufficient intake of high-quality proteins. This situation presents significant room for growth in consumption. While China’s annual beef consumption has been rising steadily, much of this demand has been met through imports, which have put pressure on domestic prices.

The average wholesale price of beef in China stood at around 63.8 yuan (US$8.90) per kilogram between July 21 and July 27, according to the Ministry of Agriculture and Rural Affairs. This represents a slight rebound from March prices of around 57.2 yuan per kilogram, the lowest in eight years, but remains 17 percent lower than its average of around 77 yuan per kilogram before prices started slipping in 2023.

Domestic producers have blamed the influx of imports for the price decline, prompting the commerce ministry to launch an investigation into imported beef late last year. Imports accounted for around 27 percent of China’s total beef supply in 2024. Customs data showed that while China’s imports of beef rose 5 percent in volume last year to 2.87 million tonnes, their total value was down nearly 3.7 percent compared with the year before.

Imported beef from major suppliers is often cheaper than domestically produced beef, even after levies are applied. Sinolink Securities researcher Zhang Ziyang noted that China primarily imports beef from South America, where it is relatively low-priced. Brazil, Argentina, and Uruguay accounted for about 73 percent of China’s beef imports last year.

China scaled back its imports of beef by 9.5 percent in volume in the first half of the year, after suspending imports from seven companies in South America and Mongolia, and amid rising trade tensions with the US. Zhang expects the import volume to continue to decline, allowing local prices to rebound over time.

Implementing a quality-grading system for locally produced beef is part of a broader push to encourage the differentiation and consumption of higher-quality beef. In April, the agricultural ministry announced plans to increase the number of high-quality cattle through initiatives such as subsidies for livestock breeding in pastoral areas.

Other measures in the latest plan to boost agricultural consumption include initiatives such as strengthening online sales through collaboration with e-commerce platforms and supporting rural live-streamers. This growing phenomenon involves farmers leveraging their online presence to directly market and sell local farm produce.

A report by Douyin, the Chinese version of TikTok, showed that the platform recorded 7.1 billion orders for agricultural products in 2023-2024, with over 33,000 merchants exceeding 1 million yuan (US$139,400) in annual sales.

These efforts reflect China’s commitment to improving its agricultural sector and enhancing the nutritional well-being of its population. By focusing on quality, innovation, and digital transformation, the country aims to create a more sustainable and competitive beef industry.

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