How Expensive Is U.S. Beef in China Relative to Other Competing Suppliers?

Despite record-breaking volumes of U.S. beef shipped to China from July to November 2020, the United States has supplied less than 1 percent of China’s total beef imports. Beef-exporting competitors of the United States—Brazil, Argentina, Australia, Nicaragua, Uruguay, and New Zealand—account for the vast majority (94 percent) of China’s beef imports. In part, this may be because the U.S. value per pound of total (bone-in and boneless) beef shipped to China is higher than that of most of its competitors in the China beef market. 

As illustrated in the first chart, Canada and the United States have the highest value per pound of beef imported by China relative to other beef suppliers. A higher U.S. beef price reflects a better quality, grain-fed fresh/chilled product, which is different from what China typically imports from other countries. In order to make a more accurate comparison of beef imported by China and evaluate the competitiveness of U.S. beef to other suppliers, the unit values of China’s frozen boneless beef imports are presented in the second chart below.  

From January through November, the U.S. unit value per pound of beef averaged $3.23. Canada’s unit value for beef imported by China exceeded that of the United States at $4.01 per pound, while among U.S. competitors Argentina, Uruguay, Brazil, New Zealand, and Australia, unit values ranged from $1.90 to $2.79. China’s demand for animal proteins will continue to grow as its economy and population expand. Despite a higher unit price of U.S. beef and certain barriers that limit trade, China’s commitment to purchase an additional $200 billion of American-made goods and services over 2020 and 2021 under the U.S. China Phase 1 trade deal could lead to continued growth of U.S. beef exports.