In five years China will double import of beef — Rabobank

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According to predictions of Rabobank International analysts, China, current global leader in meat consumption, may double its import of beef by 2018.

According to predictions of Rabobank International analysts, China, current global leader in meat consumption, may double its import of beef by 2018.

Since domestic production cannot meet rapidly growing demand, according to Bloomberg agency, in 2018 import of beef to China from abroad may exceed 500 thousand tons. Last week, the authorities of China announced of resumption of negotiations with USA about beef purchasing, banned in 2003, by July 2014. Also, renewal of import of Brazilian beef is also being considered.

In 10 months of 2013 PRC imported 253.3 thousand tons of beef against 38.3 thousand tons over 2012. Analyst Pan Chentszyun, from Beijing branch of Rabobank noted, that this year’s spike was rather an exception and unlikely to happen again; import, thus, will gradually and evenly continue to grow in the years to come.

In addition, she also expects annual increase in pork consumption in China to be 10%, pork supply, however, is higher than any other kind of meat, therefore import hike should not be expected. PRC produces almost the entire consumption volume of pork, and such situation is likely to be preserved in the years to come.

According to Pan Chentszyun, China may increase import of corn and soybeans for animal feed. In 2017, corn purchases from overseas may exceed 10 million tons, against record high 5.2 million tons in 2012.
According to Rabobank analysts, spending of Chinese consumers for meat and meat products will grow by 10% annually, while sales volumes will increase by only 2% per year, indicating a transition to more expensive kinds of goods.