A major breakthrough for the U.S. beef industry came out of last week’s Trump-Xi summit in Beijing after China agreed to restore access for hundreds of U.S. beef processing plants. U.S. Meat Export Federation President and CEO Dan Halstrom says the agreement ends nearly a year of uncertainty for exporters and customers waiting for renewed access to the Chinese market. “Basically 425 plants were granted five-year extensions, which is what we’ve been waiting for.” Halstrom says the reopening of China could strengthen beef prices across Asia because many countries compete for similar U.S. beef products. He says demand from China has the potential to lift values in Japan, South Korea, Taiwan, and other regional markets. “You’re going to see a halo effect on pricing for all of these markets,” Halstrom said. “Items like short plate, for example, have the potential to have $1 to $2 per pound increases in price just from having China back on the world stage.” Halstrom credited both USDA and the Office of the U.S. Trade Representative for continuing negotiations that ultimately led to the agreement.
