How US beef imports benefit Chinese cattle industry

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Europe

By CGTN's Gao Songya

China's cattle sector is strengthening its stake in American cows, thanks to the lift of the ban on US beef imports in China that's expected to especially benefit the state of Texas.

China's Inner Mongolia-based Kerchin Cattle Industry, one of the biggest cattle ranchers in the country that provides mainly high-end beef products, sees the US beef imports as a necessary supplement to meet the growing demand in the Chinese market.

Companies like Kerchin now focus on long-term development and want to be more competitive by buying or investing in top class production lines.

Inside a Kerchin slaughterhouse in China. Kerchin has been looking to upgrade its production line to meet international standard. This slaughterhouse is designed and co-managed by German engineers. /kerchin.com

The company officials of Kerchin recently visited some ranches in Iowa and Texas and said they are ready to expand their business there. The company also wants to create their own production lines in the US.

Chinese SMEs and individual investors also want a share in US beef imports. As the Chinese cattle industry increases its investments in the US, local governments are welcoming the new money.

The first batch of beef sold on China’s leading e-commerce platform, Tmall.com. /VCG Photo

“We want to encourage investment from the Chinese here. We are very open to the idea of having Chinese business people invest in Texas,” said Texas Secretary of State, Rolando B. Pablos.

China's beef imports hit 2.5 billion US dollars last year, with total shipments of nearly 580 thousand tons. US Ambassador to China Terry Branstad said the US wants to export more high quality food products to China, and the lifting of the ban on beef is a new beginning for the two countries.

(Cyrus Ip and Gao Songya also contributed to the story.)