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Investing.com -- U.S. beef exports to China have seen a sharp drop, according to recent U.S. government data. This decline comes after Beijing let registrations lapse that previously allowed hundreds of American meat facilities to export their products. The ongoing tariff conflict between the two nations has also increased duties on U.S. meat and other goods, making them less appealing to Chinese buyers and exacerbating already strained relations.
China has not renewed the expired export registrations for U.S. beef facilities since March 16. However, it has updated registrations for pork and poultry plants, traders and the U.S. Meat Export Federation trade group reported. In light of this uncertainty, U.S. exporters and Chinese buyers are hesitant to agree on deals for American beef produced after the registration expiration date, according to federation spokesperson Joe Schuele.
U.S. beef export sales to China for the week ending March 20 were virtually non-existent, amounting to only 54 metric tons, as per the U.S. Department of Agriculture data. Sales were also low in the prior week, with only 192 metric tons, as the uncertainty surrounding the export registrations discouraged business activity before they expired.
In contrast, weekly sales were close to or above 2,000 metric tons for four consecutive weeks from mid-February through early March. This downturn in Chinese demand is a setback for U.S. meatpackers such as Tyson Foods (NYSE:TSN), already grappling with high cattle prices due to limited supplies.
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