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13

2022

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09

Mainland China's Beef Imports from Russia and Ukraine Show Different Trends This Year

Source:

BTC

The escalating Russia-Ukraine conflict since Feb this year has not only affected their foreign trades but also led to a complicated international market pattern. The Chinese government previously stated that the customs will serve the normal economic and trade cooperation between related players. However, it can be found in data that beef imports from these two countries showed different trends in mainland China this year.

 

The escalating Russia-Ukraine conflict since Feb this year has not only affected their foreign trades but also led to a complicated international market pattern. The Chinese government previously stated that the customs will serve the normal economic and trade cooperation between related players. However, it can be found in data that beef imports from these two countries showed different trends in mainland China this year.

 

According to the official data from GACC, mainland China's monthly beef imports from Russia have remained above 1,000 tons since July last year. In July this year, mainland China imported 2,123 tons of beef from Russia, which, although was down 18% from the previous month and 16% year-on-year, still maintained a high level. Also, the average price of imported beef from Russia increased by $242 per ton month-on-month, reaching $7,357 per ton in July this year.

 

From January to July, the total amount of beef imported from Russia was 13,000 tons, which continued to surge by 28% on the basis of the new high in the same period last year; the import value increased by 35% to $91.37 million; and the unit price of beef imports increased by 337 USD/ton year-on-year, reaching 6,943 USD/ton, yet the increase was relatively smaller than that of South American countries.

 

Meanwhile, in the first seven months of this year, a total of 9,472 tons of boneless beef were imported and 3,687 tons of bone-in beef from Russia, among which 13,081 tons were frozen beef, and only 79 tons were fresh or chilled.

 

On the other hand, China's beef imports from Ukraine have continued to decline as a whole since this year. According to the data released, the annual beef imports from Ukraine to mainland China have increased significantly. In 2019, the beef products import volume from Ukraine was only 239 tons, which soared to 5,105 tons in 2020, and doubled to about 10,000 tons in 2021.

 

However, the data has experienced a cliff-like decline to 612 tons since April this year, affected by Russia-Ukraine war this year; in May, it continued to slump by 83% to 102 tons, reaching a historical low. No import data even from Ukraine in June. In July, mainland China imported 208 tons of beef from Ukraine, still at a low overall level.

 

Ukraine authority banned the export of agricultural products such as rye, barley, buckwheat, millet, sugar, salt and meat, and lifted the zero quota limit since March to stabilize market supply and ensure public demand. After nearly one month, the cabinet announced on 9th Apr that the export ban on domestic live cattle, frozen beef and its by-products, and dried, smoked and salted beef products was lifted.

 

However, Ukrainian domestic beef exports still face restrictions due to the escalation of the Russian-Ukrainian conflict and the blockade of the important port of Odesa.

 

From January to July this year, mainland China imported a total of 4,867 tons of beef from Ukraine, an increase of 8% year-on-year, a record high for the same period; the import value increased by 36% year-on-year to nearly US$ 28,3 million, and the average import price broke US$5,000/ton for the first time, up to 5,813 USD / ton.