ArrowStream Foodservice Blog

China Impacting Beef Prices

Posted by Kate Hubbard on Dec 12, 2019 10:35:59 AM

ArrowStream economists noted this week that U.S. October beef imports were up slightly from the prior year.

What's the Cause?

"This is due mostly to better trade with Canada, which doesn’t typically provide the frozen lean beef trim that the U.S. restaurant industry commonly utilizes in hamburger patties," said David Maloni, ArrowStream's chief economist. "U.S. frozen boneless beef imports were down 6 percent during the month from prior year and 15 percent from 2017. And as the chart shows, the prices of frozen boneless beef imports have been on the rise due in part to stronger demand in China."

Expectations for 2020

"For those keeping score, and we most certainly are, imported boneless beef prices in the U.S. are trading at a record premium to domestic product", said Maloni. "And this is raising our lean beef trim price inflation concerns for 2020."

China Impacting Beef Prices

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Topics: Market Intelligence