The Ministry of Agriculture and Rural Affairs of China is expediting the establishment of a comprehensive beef classification and grading system to better align with China’s production and consumption patterns. The initiative aims to integrate these standards into beef industry cluster projects and promote a hot fresh beef business model, supporting the development of a “Chinese Warm Chain” for beef. Currently, the market operates with multiple grading standards, causing confusion among consumers and hindering the achievement of premium pricing for high-quality beef. The new standards will address this by developing localized guidelines and demonstration points for production and sales regions. Additionally, the Ministry plans to support the differentiated development of beef consumption by guiding regions to develop specialty beef farming and promoting hot fresh beef models, aiming to enhance the market recognition and consumer preference for domestic beef.

The Ministry of Agriculture and Rural Affairs of China has announced plans to expedite the establishment of a comprehensive beef classification and grading system tailored to the country’s production and consumption realities. This initiative responds to a recommendation from the 14th National People’s Congress, aiming to integrate these standards into beef industry cluster projects and promote a hot fresh beef business model, supporting the development of a “Chinese Warm Chain” for beef.

Insights gathered from several industry insiders by AgriPost reveal that, the Chinese market currently operates with multiple beef grading standards, leading to consumer confusion and hindering the achievement of premium pricing for high-quality beef products. The diverse breeds and inconsistent beef quality further complicate establishing a unified grading system. Experts, including Zhu Zengyong from the Chinese Academy of Agricultural Sciences, emphasize the need for a grading system that meets both production and consumer demands, forming the foundation for a “Chinese Warm Chain” of beef.

Enhancing the Classification and Grading System

Beef ranks as the second most consumed meat in China, following pork. The demand has shifted from mere nutritional fulfillment to a focus on safety, quality, and health. Despite this shift, the market lacks widely accepted grading norms, and consumer awareness of beef grading remains rudimentary. AgriPost finds that large retail stores typically categorize beef by carcass part rather than quality grade.

During the recent National People’s Congress, Zhang Li, a representative and head of the Anhui Provincial Animal Husbandry Technology Promotion Station, proposed accelerating the creation and promotion of beef classification and grading standards suited to Chinese consumption habits. This involves developing localized standards and establishing demonstration points for production and sales regions.

According to AgriPost, China’s previous plans, such as the “14th Five-Year Plan for National Agricultural Product Quality Safety Improvement” and the “Notice on Implementing Four Major Actions for Agricultural Products”, have emphasized the need to accelerate the establishment of a quality grading standard system for agricultural products and strengthen the implementation and promotion of these standards. The “Three Qualities and One Standard” initiative focuses on the development of green, organic, geographical indication, and compliant agricultural products.

Developing a “Chinese Warm Chain” for Beef

The Chinese beef market predominantly features three types of products: warm meat, chilled meat, and frozen meat. According to data from the China Animal Agriculture Association and the General Administration of Customs, China’s total beef imports have increased for eleven consecutive years, rising from 70,500 tons in 2012 to 2.74 million tons in 2023, currently accounting for nearly 30% of domestic supply.

Zhang Li advocates for a diversified beef consumption market, emphasizing the promotion of locally raised and consumed beef distinct from imported frozen products.

Studies indicate that hot fresh and cold fresh beef offer superior eating qualities compared to frozen beef.

A research team led by Zhang Yingying from the Shanghai Academy of Agricultural Sciences compared the nutritional quality, physical properties, and microstructure of hot fresh, cold fresh, and frozen beef from Angus and Chinese Holstein cattle. Their findings confirmed that hot fresh and cold fresh beef maintain better nutritional integrity and eating quality.

Yuxuan Food Group’s representative echoed these sentiments, stressing the flavor and freshness advantages of domestic beef over imported frozen varieties.

The Ministry of Agriculture and Rural Affairs plans to support the differentiated development of beef consumption by guiding regions to develop specialty beef farming and promoting hot fresh beef business models. This strategy includes policy support and the establishment of beef industry clusters to enhance market recognition and consumer preference for domestic beef.

Challenges and Opportunities in the Chinese Beef Market

Despite the increasing importation of frozen beef, the domestic market faces price competition, with imported beef often being more cost-effective. From January to April 2024, the average price of imported frozen beef was CNY 34.06 per kilogram (about USD 4.73 per kilogram), which has dropped to the levels seen three years ago.

Industry experts emphasize that price remains a critical factor for consumers, influencing the sustained growth of imported beef in the domestic market. Efforts to balance domestic and international beef supply through measures like quotas or tariffs are suggested to allow time for the domestic industry to adjust.

Zhu Zengyong highlighted the need for clear labeling and distinct circulation channels for domestic and imported beef to mitigate market overlap. Building a strong brand for domestic hot fresh beef and establishing a new industry chain model can enhance the market position and value of Chinese beef.

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