US, China accelerate beef talks

Talks on restarting US beef exports to China are moving fast and final details should be in place by early June, the US Department of Agriculture (USDA) said on Friday, allowing American farmers to vie for the business that has been lost by rival Brazil.
As part of a trade deal, US ranchers are set to halt the use of growth-promoting drugs to raise cattle destined for export to China and to log the animals’ movements, according to the USDA.
The two sides are negotiating to meet a deadline, set under a broader trade deal last week, for shipments to begin by mid-July.
Finalizing technical details in early June should mean beef companies, such as Tyson Foods Inc. and Cargill Inc., can sign contracts with Chinese buyers to meet the deadline, the USDA said.
China banned US beef in 2003 after a US scare over mad cow disease. Previous attempts by Washington to reopen the world’s fastest-growing beef market have fizzled out. But now, the quick progress of the latest talks is raising hopes of US farmers.
“Both sides feel the urgency to get it done by the deadline,” said Joe Schuele, spokesman for the US Meat Export Federation (MEF), which represents Tyson, Cargill and other meat companies.
The timing of the new deal allows US producers to benefit as Brazil, the world’s top beef exporter, is struggling with scandals and rival shipper Australia is suffering from a drought that is hurting production, analysts said.
China accounted for nearly one-third of the Brazilian meatpacking industry’s $13.9 billion in exports last year.
But in March, Beijing briefly banned Brazilian imports after Brazilian police accused inspectors of taking bribes to allow sales of rotten and salmonella-tainted meat.
Chinese appetite for beef has climbed due to its expanding middle class. In 2003, its imports totaled just $15 million, or 12,000 tons, including $10 million from the US, according to the USDA.

Source: Arab News