CHICAGO, March 27 (Reuters) - U.S. beef sales to China
have taken a dive, U.S. government data showed on Thursday,
after Beijing allowed the expiration of registrations that had
permitted exports from hundreds of American meat facilities.
A tit-for-tat tariff dispute has also raised duties on U.S.
meat and other goods shipped to China, making the products less
attractive to Chinese buyers. The spat adds new strains to
relations between the countries that had already reached
historic lows in recent years.
China has not renewed export registrations for U.S. beef
facilities that expired on March 16, though it updated
registrations for pork and poultry plants, according to traders
and the U.S. Meat Export Federation trade group.
As a result, U.S. exporters and Chinese buyers are reluctant
to strike deals for American beef produced after that date due
to uncertainty about whether it will be cleared for delivery,
federation spokesperson Joe Schuele said.
"Nobody wants to put product at risk," he said.
U.S. beef export sales to China in the week ended on March
20 were nearly nothing at 54 metric tons, according to U.S.
Department of Agriculture data. Sales were also low, at 192
metric tons, in the previous week, as traders said uncertainty
about the export registrations cooled business before they
lapsed.
Previously, weekly sales were near or above 2,000 metric
tons for four consecutive weeks from mid-February through early
March, USDA data show.
The decline in Chinese demand is a blow to U.S. meatpackers
such as Tyson Foods ( TSN ) that are already paying high prices
for cattle due to tight supplies.
"The packers are all concerned because obviously it's a big
market for U.S. beef," said Altin Kalo, agricultural economist
for Steiner Consulting Group. "It's been two weeks now where
we're basically at zero."
The USDA and the Meat Institute, an industry group
representing U.S. meat processors, had no immediate comment.
China's Commerce Ministry launched an investigation into
surging beef imports late last year, as the world's largest meat
consumer grappled with an oversupplied market that hammered
domestic beef prices. A hearing on the matter is slated for next
week.