Dive Brief:
- China announced last week that it would lift its ban on U.S. beef imports, which has been in effect since 2003, according to multiple sources.
- China instituted the ban due to concerns surrounding bovine spongiform encephalopathy, commonly known as mad cow disease.
- The amount of beef China imported in 2003 totaled $15 million, including $10 million from the U.S. China's beef import total skyrocketed over time to hit $2.3 billion in 2015, according to the USDA.
Dive Insight:
Considering its massive population and the growth of the country's middle class, China is a key market for any food and beverage manufacturer. Several companies have recently made moves to expand to China, including Nestle, Mondelez and Mars, often through partnerships with Alibaba. Such an approach works for this market, as many Chinese consumers tend to be more willing to shop for groceries online.
But China is particularly attractive for the beef industry, which has become increasingly reliant on exports as domestic demand waned. With $2.3 billion in beef imports last year — not including any contribution from the U.S. — China could be a key player in U.S. beef processors' international growth strategies.
China also lifted a ban on U.S. pork imports last year after U.S. facilities stopped using ractopamine, a prohibited feed additive. But China has yet to lift its ban on U.S. poultry and egg imports, which the country instituted in early 2015 after the bird flu outbreak began.