The finalizing of an agreement between the U.S. and China make U.S. and Texas cattle exports to China a reality.

Trade talks between the U.S. and China concerning U.S. beef exported to the Asian nation concluded in June with an agreement to allow U.S. exporters to resume beef shipments to China. And it has industry experts talking about Texas cattle making its way to Chinese dinner tables. As the largest U.S. producer of beef, Texas cattle producers stand to benefit a great deal from the renewal of U.S. beef exports to China. See details of the trade developments below.

Getting U.S. and Texas Cattle Back Into China

U.S. beef took a major hit back in 2003 with the detection of bovine spongiform encephalopathy (BSE), also known as mad cow disease, in the U.S. beef herd. Fearful that the disease could make people ill if they consumed the meat of an infected animal, many countries banned beef imported from the U.S.

As the USDA has taken significant steps to prove the safety and quality of the U.S. beef supply, many countries are easing their restrictions on imports. China finally relaxed it’s ban on U.S. beef in June of 2017, and is the largest country to do so, offering a possible demand that is unparalleled.

According to a Dallas News article about what the change might mean for Texas cattle operators, China’s middle class—those most likely to buy U.S. beef—is made up of over 400 million people; that’s more than the entire population of the U.S. China is a populous nation consisting of over 1.4 billion individuals, meaning a lot of export options for Texas cattle producers.

One thing that is holding back the bounty to be found in China—approximately $291 million worth—is the U.S.’s withdrawal from the Trans-Pacific Partnership (TPP), according to an article on MySanAntonio.com. Other Asian nations, like Japan, have upped their tariffs on U.S. beef because the U.S. is not a part of the TPP. Countries that are a part of the TPP, like Australia, are able to benefit from much lower tariffs for their beef, meaning their beef’s price point is more agreeable to consumers.

AgAmerica Lending supports U.S. and Texas cattle ranchers with our  cattle ranch loan packages. Contact us today if you’d like to speak with a knowledgeable team member about a custom package for your beef operation.