Recently, there has been a significant drop in beef prices in mainland China. Merchants who have been in the business for decades say they have never seen such a phenomenon of beef price reduction like what is happening lately. A beef stall owner lamented, “This year, the price of steak is not even as expensive as pork chops.”
According to a report by “China News Services” on June 2, premium beef shank meat that used to cost around 100 yuan per pound now only requires a few dozen yuan to purchase.
In the Huiyin District of Jinan, Shandong Province, a beef shop operator named Mi Mingxin stated on May 27 that beef prices have been dropping for some time. Currently, the cheapest beef in his shop is priced at 29.9 yuan per pound, reduced from the previous price of 38 yuan.
Mi Mingxin, 41, has been involved in the industry since his teenage years, following his parents. He expressed astonishment at the unprecedented drop in beef prices recently, saying, “There have been price drops in the past, but not as prolonged and significant as this year.”
The owner of another beef and lamb shop in the market also confirmed the significant drop in beef prices, stating that beef which used to be priced at 36-37 yuan per pound now sells for only 28 yuan, regardless of the cut.
A resident of Huiyin District revealed that beef prices have declined at Tianqiao District’s Ethnic Food Street, and she intentionally went there to make a purchase. A shop owner mentioned that beef prices have been reduced for over a month.
According to the latest monitoring data from the National Key Agricultural Products Market Information Platform of the Chinese Ministry of Agriculture and Rural Affairs, as of June 1, the national average wholesale price of beef was 61.07 yuan per kilogram, a decrease of 1.2% compared to the previous day.
Data shows that in April, the average price of beef in the national wholesale market was 76.36 yuan per kilogram, a 5% decrease from January (80.41 yuan per kilogram). Moving into May, beef prices continued to drop, with the current average national price at 65.12 yuan per kilogram, a decrease of 6-7 yuan per kilogram compared to the Labour Day holiday.
Xiao, a woman who runs a beef and lamb shop in the Licheng District of Jinan, had raised over twenty cows at her home. Due to declining beef prices, she suffered losses of over a hundred thousand yuan after selling some cows last year to repay loans. She noted that beef prices began to slide after Chinese New Year, with brisket priced at 38 yuan per pound during the holiday and now selling for 33 yuan per pound.
Xiao, originally from Yangxin, Binzhou, mentioned that many farmers in her village sold their cows to work elsewhere due to the impact of declining beef prices.
The person in charge of a medium-sized beef cattle farm in Shandong mentioned that they are currently operating at a loss. The high cost of cattle feed is a major factor, with live cattle currently priced at around 11 yuan per pound, resulting in a loss of over 2,000 yuan per head, which is far from covering the rearing costs.
On May 24, Mr. Liang, a beef and lamb vendor in Hangzhou, Zhejiang Province, stated, “This year, the price of beef steak is no longer more expensive than pork.” He revealed that fresh beef prices started to decline after the Chinese New Year and have continued to decrease over the past six months. Prices have dropped by around 10 yuan per pound compared to the same period last year. For top-quality beef cuts like sirloin, which used to sell for 60-70 yuan per pound, they now cost just over 50 yuan; and Money tendon, previously priced at over 70 yuan per pound, is now only 60 yuan.
Next door, Mr. Zhang, who has been selling grass-fed beef for over a decade, noted that this year’s price reduction is unprecedented compared to previous years.
A market management officer, Ren Lingfei, at the China Agricultural Market in the port city, confirmed that the average wholesale price of beef “plummeted” sharply, starting from after the Chinese New Year, with a more noticeable decline in the past two months.
Ren Lingfei attributed the main reason to changes on the supply side. He mentioned the increase in domestic cattle farming and imports of beef. These factors have inevitably led to a price drop. Furthermore, due to the development of fresh e-commerce platforms, consumers have diversified their options for purchasing beef, no longer relying solely on traditional markets.
Xiao, the owner of the beef and lamb shop in the Licheng District, explained that the drop in beef prices is due to the impact of imported beef on the domestic market, resulting in a “price war.”
Analyst Gao Tingting from Zhuochuang Information on meat products stated that the significant drop in beef and lamb prices is due to high stocks of domestic and imported low-priced frozen products. After the Chinese New Year, demand for meat has entered a slow season, leading to reduced consumption.
Aside from beef, prices for lychees, crayfish, and durian in mainland China have also plummeted this year. Recently, except for the “Lychee King” variety, the “Feizi Xiao” lychees from Hainan have dropped below 20 yuan per pound, about 40% cheaper than a month ago. The topic of “Lychee Price Crash” has become a hot search. It is expected that in mid-June, lychee prices will further decline. The current price of crayfish has dropped to 18 yuan per pound, nearly half of the previous price of over 30 yuan per pound. In May, “Durians priced below 10 yuan per pound. Previously, premium durians could fetch over 50 yuan per pound. Durians from Guangxi are sold at 100 yuan for five,” these topics have surged in popularity.