With the improvement of scientific and technological level, good grain harvest, large scale, large quantity, and government subsidies, domestic breeding costs remain high. These reasons can cause the price of imported beef to fall, but in fact there is a misunderstanding here, that is, what everyone sees is that the low-end market price is falling, while the high-end beef market price continues to rise.

Let’s take a look at the reasons for the decline in beef prices: the level of science and technology has improved, the survival rate of cattle has increased and the growth cycle has shortened, the number of cattle has increased, and supply exceeds demand, so prices have decreased. In recent years, global grain production has been relatively good, and there is sufficient breeding feed. Breeding costs have been reduced, and prices will also be lowered. In addition, the large area and scale of foreign breeding farms, as well as high competitive pressure, etc., will lead to a decline in beef prices. The most direct one is government economic subsidies. The government uses money to encourage the breeding industry. The profits of enterprises receiving subsidies will not be reduced. They can also improve their competitiveness by lowering prices, so the price of beef in the low-end market has fallen.

Then let’s look at the domestic reasons: There are relatively few large-scale breeding farms in China, and they are basically self-employed or private enterprises. They have low risk resistance, small scale, and prices are too low to make profits. In addition, there are no large-scale pastures in China like those in foreign countries. Breeding will consume a lot of grain and feed, and the cost of breeding is naturally high. And because of the small scale, the quantity of beef is small, and if the supply is less than the demand, the price will only rise rather than fall. Moreover, domestic pork prices are very high, so the demand for beef as a substitute for pork will increase. If the demand increases and the original beef quantity remains unchanged, domestic beef prices will still rise.

Domestic beef prices have been rising, so foreign beef can take advantage of their low cost to seize the market. In addition, foreign eating habits are different from those in China. Foreign countries basically eat steak, and there are not many ways to eat it like in China. Therefore, they enjoy the good parts of the cattle themselves and export other parts at low prices. As a result, the price of foreign beef has dropped. The above reasons are all the reasons for the decline in the price of imported beef in the mid- to low-end market. In fact, the price of high-end beef in the imported market has not fallen, but has continued to rise.