Beef Import to Shanghai Up YOY in Jan-July 2017

According to Shanghai Customs statistics, during January-July 2017, Shanghai imported beef 144,000 tons, up 6.7% year-on-year (YOY); worth RMB 5.06 billion yuan, up 19.1% YOY; average import price at 35.1 yuan per kilogram, up 11.6% YOY.

This July alone, Shanghai imported beef 26,000 tons, up 29.7% from June, a single-month record high; average import price at 34.7 yuan per kilogram, up 2.5% from June and up 11.7% YOY.

Import Sources: Beef from Brazil, the largest source, reached 38,000 tons, down 19.9% YOY, accounting for 26.5% of the total import; beef from Australia reached 36,000 tons, up 24.8% YOY, accounting for 24.6%; beef from Uruguay 27,000 tons, up 12%; beef from New Zealand 22,000 tons, up 5.9%.

Import Enterprises: In the first seven months, Shanghai-based private enterprises imported 78,000 tons of beef, up 8.7% YOY, accounting for 54.2% of the total import; state-owned enterprises imported 33,000 tons, down 16.4%; foreign-invested enterprises imported 33,000 tons, up 39.5%.

Trade Modes: By ordinary trade, Shanghai imported 134,000 tons, up 9.8% YOY, accounting for 93% of the total; under Customs special control, Shanghai imported 10,000 tons, a decrease of 21.8%.

Import Causes:

(1) Domestic short supply of beef;
(2) Sino-Australian FTA tariff reduction, causing more imports from Australia.

Notably, this June, China lifted the ban on USA beef; in July, Shanghai imported 16.8 tons from the United States, a substantial increase of 63.3% from June. USA beef import will affect the import from Australia and pose certain pressure on relevant domestic industries.