China: Beef prices plummet to five-year low

Wholesale beef prices have fallen 18% from last year 's peak to around 62 yuan ($8.53) per kilogram. This has left much of the cattle industry unprofitable, which could create problems for government budgets. The Ministry of Agriculture called on local authorities to support farmers with subsidies and feed to avoid a crisis.

The situation with beef has also become relevant for the country’s food security. The Chinese government is committed to self-sufficiency in key markets, including beef. With deflationary pressures gripping the economy, Beijing is forced to intervene and support sectors ranging from livestock to grain crops. One of the challenges was the increase in beef imports into the country. In the first five months of this year, beef imports into CHINA increased by 23%. Beijing is actively opening its market to other countries such as Brazil , Spain and the most recent addition to the list - Australia . This can be called food diplomacy, which helps improve relations between countries. Beef in China is a relatively expensive MEAT, costing almost three times more than pork. The demand for beef grew along with the country's prosperity. However, currently, with the deteriorating economic situation, the demand for beef is decreasing, which creates additional challenges for producers and the Chinese government.