Taiwan paves way for U.S. trade deal by easing pork, beef imports
- On Friday, Taiwan announced it would be easing restriction on the import of U.S. beef and pork.
- This news comes at a time when tensions are rising between Taiwan and China, and the island is looking to boost ties with Washington.
- In the past, Taiwan has kept barriers up against U.S. pork and beef due to health concerns; primarily concerns over mad cow disease and additives.
- According to President Tsai Ingwen, Taiwan plans to allow the import of U.S. pork containing ractopamine and allow in U.S. beef older than 30 months of age.
- She feels this decision will boost Taiwan-U.S. ties and also work to help the country’s strategic development.
- Last year, Taiwan-U.S. trade was worth $85.5 billion, with the U.S. running a $23.1 billion deficit.
China books record weekly U.S. beef purchases, also buys U.S. corn
- According to the USDA, China made it largest weekly U.S. beef purchase on record during the week of August 16th when they purchased 3,315 metric tons of U.S. beef.
- This is the largest weekly buy in records dating back to 1999.
- That same week China purchased their biggest U.S. corn deal in almost a month, 747,000 metric tons. China rounded out the week by purchasing 11,216 metric tons of U.S. pork, the most in a month.
- China has been aggressively importing beef, pork, and poultry this year as they continue to battle African swine fever. They are also making record U.S. agricultural purchases this year as part of the Phase 1 trade agreement signed back in January.
- The Phase 1 trade agreement promised that China would purchase $36.5 billion in annual U.S. commodities. In the first half of this year, the country only purchased $7.274 billion in commodities.
Boxed beef prices, Brazilian cattle herd expands, and U.S. beef and pork production looking to set records
- Choice boxed beef: $229.40 (-2.14)
- Select boxed beef: $214.86 (+0.60)
- Largest cattle inventory in Brazil on record has been recorded this year at 244.1 million hd. This number is up 5.00 million head from 2019.
- Every year since 2000, Brazil’s cattle numbers have grown. From 2000 to present day, their cattle herd has increased 98 million head.
- For comparison, the U.S. has approximately 103 million head of cattle. Brazil reached that number in 1979.
- The U.S. is projected to produce 27.1 billion lbs. of beef this year. If realized, this will be the fourth highest on record and only the fifth time over 27 billion lbs.
- Pork production is scheduled to be approximately 28.6 billion lbs. This will be the highest on record and the first time over 28 billion lbs.