Series of articles "Livestock market in China": Cattle market

Information portal Meatinfo.ru begins publishing articles on the state and forecasts of the development of the livestock market in China (based on FAS materials). 

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High beef prices will stimulate the marginal growth of small and large cattle producers in China. By 2022, high beef prices will encourage a modest increase in herds from small farms and investments in larger enterprises, with a 1 percent increase in overall cattle production. Already by mid-2021, according to industry sources, many livestock farms began to increase their herds due to high prices for beef.

China's large-scale beef cattle farms (including beef and dairy producers) account for a small portion of total production. By 2022, small producers with fewer than 30 head of cattle will produce the majority of China's cattle

In 2022, rising feed costs will not be a major problem for small-scale cattle producers, as farmers keep cattle either on pastures or in home gardens, but large-scale livestock enterprises that use specialized feed to fatten their livestock will feel pressure from -for price changes.

By 2022, the increase in the number of cattle is expected to be most significant in well-established pastoral areas such as the northern and northeastern provinces (Hebei, Inner Mongolia, Jilin, Heilongjiang and Shandong) and the southern provinces (Yunnan, Sichuan, Gansu ). In April 2021, the Chinese Ministry of Agriculture (MARA) organized support programs for pastoralists to purchase grain, forage and high-quality cattle breeding material under the Five-Year Plan to Promote the Development of Beef and Mutton Production. This plan includes the creation of industrial parks or beef cattle clusters. However, industry sources indicate that some established industrial parks are having difficulty filling feedlots,

Livestock of cattle in China, thousand heads

Number of cattle

2020

2021 (forecast)

Growth per year,%

2022 (forecast)

Growth per year,%

Total number of cattle

91 380

95 620

4.6%

99 500

4.1%

Number of dairy cows

13 600

13 900

2.2%

14 000

0.7%

Livestock of beef cows

53 000

53 400

0.8%

53 450

0.1%

Production (number of calves)

51 900

53 200

2.5%

52 500

-1.3%

Import of cattle

365

275

-24.7%

350

27.3%

Export of cattle

sixteen

15

-6.3%

sixteen

6.7%

Slaughter of cows

0

0

0

Calf slaughter

0

0

0

Total slaughter of cattle

46 650

47 400

1.6%

49 134

3.7%

Loss/Rejection

1 301

1 254

-3.6%

1 200

-4.3%

Total Livestock Stocks

95 620

99 500

4.1%

102 000

2.5%

Beef cattle production in China is hampered by poor genetics, as small producers have limited resources (such as land, capital, and technical expertise) for such investment. In order to improve and develop China's beef cattle sector, long-term changes are needed, including investment in breeding technology, the use of artificial insemination using high-quality genetic material. Local genetic breeding work by research universities and institutes has been going on for many years, but there has not been a wide mass production of improved local breeds of cattle.

Beef cattle in China are often hybrids of local breeds (such as the Huangnu) and imported breeds, including Simmental, Angus, Charolais and Limousin. Hybrid breeds make up approximately 80 percent of the national herd. Local heritage breeds, yaks and buffaloes remain a very small part of the livestock sector, and by 2022 traditional breeds such as yak and buffalo will account for a small proportion of the total cattle population. Yaks

grown mainly on pastures by small and medium-sized farmers. in general, local breeds are conserved by small breeders and institutions to ensure that the breed does not die out.

In 2022, live cattle imports to China will remain stable at 350,000 heads. In 2022, China is projected to be the first to import Uruguayan beef cattle. However, imports from New Zealand, primarily dairy cattle, will decline. This decline will be due to lower demand for dairy cattle and a ban on the export of live cattle from New Zealand, which will be fully enforced by 2023.

Imports of genetic material, mainly from the United States , are expected to reach US$75 million. China has not allowed the importation of live cattle from the US, but overseas purchases of genetic material allow Chinese cattle producers to introduce American genetics into their herds.