Tyson Foods, the largest producer of beef in the United States, is negotiating multibillion-dollar investments in Kazakhstan, which will allow an American company to enter the Chinese market, bypassing China's increased duties on American agricultural products.
The United States holds the position of world leader in beef production, however, sales to China were at a disadvantage because Beijing introduced a 25% response duty last year July, resulting in a total import duty of 37% for American beef to China. The value of American beef exports to China in the Q1 fell by 17% year on year.
It became known that Tyson Foods is negotiating the establishment of a beef processing plant as part of the efforts of the Government of Kazakhstan to attract investment. Chinese duties on meat from Kazakhstan are 12%.
Tyson Foods was discussing initial investment in a plant of about $ 200 million, one source said. This step will be part of a potential total investment that could reach several billion dollars, with ambitions to increase production to 5 million tons of beef per year. The United States is expected to produce 12.4 million tons of beef this year, against 480,000 tons in Kazakhstan, according to data from the US government.
China’s demand for foreign pork, beef, chicken and fish is projected to increase as African swine fever delivers a crushing blow to pig production in China. "We are seeing an increase in meat supplies to China, not only from the US, but also from other parts of the world, to fill this gap," Tyson Foods CEO, Noel White, said.
Kazakhstan spends a decent amount on improving the genetics of its cattle population. This year, thousands of Angus and Hereford breeds were transported on Boeing aircraft from the USA, Canada and Australia.
Source: meatinfo.ru.
