Beef Buzz News
China's African Swine Fever Problem Largely Seen as a Positive for US Ag- But What's the Downside
Fri, 31 May 2019 10:20:15 CDT
A lot of attention is being paid outside of China to the ongoing African Swine Fever situation. It has been a major topic of discussion among ag industry stakeholders, not just in the pork segments but beef and poultry as well. All those concerned have speculated on the impact this disease outbreak and the resulting destruction of the Chinese hog herd will have as its effects ripple out across the global ag trade. As the world's largest pork producer, historically responsible for 50 percent of the world's total pork production, Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel says the impact will certainly be felt and potentially offer some profitable opportunities for US livestock producers.
"They're going to be in the market for protein. They'll be looking for pork. If not from us, from other places," Peel said. "They'll probably still buy some pork from us, in fact they are buying some despite the tariffs. But, whether it's here or there, it's still going to create that demand effect and it won't just be pork protein that the Chinese will be looking for. They will also be looking at beef and poultry as well. How much of that might be directly from the US in terms of beef is hard to say at this point but certainly in total - the entire protein complex stands to see some increased demand as a result of this vacuum that's happening because of the loss in pork production in China."
Erin Borror of the US Meat Export Federation concurs with Peel's assessment, asserting that there will be fundamental changes that occur in the consumption patterns of China's consumers.
"We at USMEF have thought that Chinese consumption would continue to diversify as incomes grew. I think this whole ASF situation could really exacerbate that," she said. "Chinese consumption of pork will rebound after this, but this is a long-term game and the ability to rebound after ASF could likely take a while. And so, you're looking at the possibility of a transformation of Chinese consumption."
However, CoBank's Lead Animal Protein Economist Will Sawyer says that this situation will also facilitate a negative impact on the US ag economy. In a recent report, Sawyer explained how China's reduced animal production would lower the demand for US feed grain. Although a number of things will factor into the actual impact this has on the US grain industry, Sawyer says the US is still well positioned as a low cost protein exporter, particularly now as China and other Asian countries like Vietnam ramp up their imports. But, he says that if the Chinese trade dispute continues to go unresolved, the upside trade potential for the US meat sectors may not be fully realized.
Listen to Radio Oklahoma Ag Network Farm Director Ron Hays visit with Peel, Borror and Sawyer as they discuss the potential impact that China's ASF outbreak may have on the US ag industry, on today's Beef Buzz.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
Hear Hays, Peel, Boyer and Sawyer discuss the potential impact that China's ASF outbreak on US ag.
right-click to download mp3
WebReadyTM Powered by WireReady® NSI
Beef News
January Cattle on Feed Report Three Percent Under Year Ago- Derrell Peel Says Tighter Supplies Will Be Around for Awhile Mon, 23 Jan 2023 05:15:04 CST
Derrell Peel Talks Latest Cattle on Feed Report- Showing Fewer Cattle on Feed, Lighter Placements and Stronger Marketings. Mon, 26 Dec 2022 08:19:00 CST
Kara Lee with Certified Angus Beef Tells Cattlemen 'Cut the Bull' Fri, 23 Dec 2022 14:30:39 CST
Beef Checkoff Utilizes Digital Marketing Techniques to Interact with Consumers Thu, 22 Dec 2022 16:02:51 CST
Beef Checkoff Research, Education, and Promotion Efforts Point Consumers to Beef Wed, 21 Dec 2022 16:15:46 CST
OSU Economist Derrell Peel Expects US Beef Export Strength to Continue Into the New Year Tue, 20 Dec 2022 08:00:35 CST
NPPC's Michael Formica Feeling Positive About Supreme Courts Upcoming Proposition 12 Decision Mon, 05 Dec 2022 10:08:27 CST
NCBA Fights to Improve Marketing Options for Cattle Producers Fri, 02 Dec 2022 09:58:28 CST
Chinese Consumers Continue to Grow Appetite for U.S. Beef Thu, 01 Dec 2022 09:23:49 CST
Merck Creates Value for Producers and Consumers with Technology and Biopharmaceuticals Wed, 30 Nov 2022 09:55:28 CST
NCBA’s Todd Wilkinson Ready to Fight Back Against Regulatory Overreach in the Cattle Industry Tue, 29 Nov 2022 10:13:33 CST
NCBA and PLC Call ESA Listing Plan of Lesser Prairie Chicken Punitive for Cattle Producers in Southern Plains Wed, 23 Nov 2022 14:51:02 CST
November Cattle on Feed Report Confirms October Pattern of Lower Placements and Tighter Cattle Numbers in Feedlots Tue, 22 Nov 2022 05:07:02 CST
Turning the Corner- OSU's Derrell Peel Sees Tighter Cattle Inventories into 2023 in Latest Cattle on Feed Report Mon, 21 Nov 2022 04:36:33 CST
Turning the Corner- OSU's Derrell Peel Sees Tighter Cattle Inventories into 2023 in Latest Cattle on Feed Report Mon, 21 Nov 2022 04:27:40 CST
Midterm Elections to Set Stage for What Can Be Expected in 2023 Farm Bill Mon, 07 Nov 2022 12:13:57 CST
USMEF's Dan Halstrom Remains Cautiously Optimistic about Strong Beef Demand Going Forward Thu, 03 Nov 2022 09:35:46 CDT
Economic Factors Create Hesitancy in Beef Plant Expansion Plans Wed, 02 Nov 2022 11:03:34 CDT
NCBA's Mike Simone Says Consumer Interest in Fake Meat is on the Decline Tue, 01 Nov 2022 11:41:02 CDT
Beef Remains Valued Product for Consumers as it Allows Them to Stretch their Dollar Mon, 31 Oct 2022 09:15:56 CDT
Hugh Aljoe Provides Methods to Begin and Maintain Good Land Stewardship Fri, 28 Oct 2022 09:30:13 CDT
Implement Soil Health Practices Now to Increase Forage Production when Rains Come Thu, 27 Oct 2022 15:14:07 CDT
Third Beef. It's What's For Dinner. 300 Promotes the Beef Industry on a National Level Wed, 26 Oct 2022 15:32:23 CDT
Latest Cattle on Feed Report from USDA Implies Fewer Pounds of Beef Available in 2023 Tue, 25 Oct 2022 10:17:53 CDT
OSU's Derrell Peel- Lower Placements and Smaller On Feed Number Highlight October Cattle on Feed Report Sun, 23 Oct 2022 12:45:37 CDT
Beef Checkoff Research Continues to Share Beef Sustainability Story with Consumers Fri, 21 Oct 2022 09:23:36 CDT
Beef Checkoff Research Works to Ensure Consumers Beef is a Product They Can Trust Thu, 20 Oct 2022 13:44:44 CDT
Odds for Significant Wheat Pasture Going Lower Daily in the Southern Plains Wed, 19 Oct 2022 14:35:46 CDT
NCBA Weighs in on California's Proposition 12 Tue, 18 Oct 2022 11:32:24 CDT
2022 Stockyards Steak Out Takes Oklahoma Beef to the Next Level Mon, 17 Oct 2022 11:09:07 CDT
Holding Onto Your Cow Herd a Little Longer is Projected to Pay Off, says Randy Blach Fri, 14 Oct 2022 08:14:05 CDT
Randy Blach Confident in Better Cattle Market Conditions Down the Road Thu, 13 Oct 2022 09:43:02 CDT
No Imports or Exports Would Result in a Smaller U.S. Beef Cattle Industry Wed, 12 Oct 2022 16:11:15 CDT
Derrell Peel Explains Why International Trade of Beef is Valuable Tue, 11 Oct 2022 08:19:29 CDT
Animal Agriculture Hopeful for a Win as U.S. Supreme Court Looks at California's Proposition 12 Mon, 10 Oct 2022 09:26:17 CDT