The price of beef in the United States is about US$ 2 per catty, which is less than RMB 15 yuan. At present, the price of domestic beef is higher than that of 30 yuan per catty, but imported beef needs to pay certain tariffs. According to Xu, president of Cattle Branch of China Animal Husbandry Association, American beef price+transportation cost+import tariff should still be cheaper than domestic beef.
How to make more money, the eternal answer is to reduce costs, improve quality and expand scale. The same is true of farmers' grain output. What if they don't make money? The solution is to reduce the cost, increase the output and replant other crops, but as a farmer, the cost reduction of growing grain is beyond his control. How to reduce the cost by increasing the price of agricultural materials? Now cattle farmers are facing the same solution to reduce costs and improve quality. But it is unrealistic for farmers to realize it in a period of time. Experts believe that domestic beef has its own advantages and transportation advantages and can be sold as cold meat. Foreign beef is frozen meat for transportation reasons, and domestic beef can do enough articles on cold meat to give full play to its advantages.
Although the United States is one of the largest beef producers in the world, the impact of liberalizing American beef imports on the China market is not as great as expected. In recent years, the beef market in China has ushered in the import climax of several world-class beef countries. Neither Australian beef nor Brazilian beef has brought subversive influence to China's beef industry, so the arrival of American beef is not so terrible. However, as China opens its doors to more and more cattle-raising countries, the biggest impact is not the cattle-raising industry in China, but the smuggling of frozen beef. In recent years, the amount of beef smuggled into China is staggering, which is actually one of the biggest factors affecting local beef in China. At present, beef smuggled from abroad to China is basically in the form of frozen meat, and their domestic price is around 40 yuan/Jin. The reason why smuggling was rampant before was largely because of this price advantage. However, if American beef comes in, the price of its regular channel import may be the same or even lower, then the living space of smuggled beef will be greatly squeezed. From this perspective, the impact of smuggled beef on American beef in the future may be even greater than that of native beef in China, and may even be beneficial to China beef.