China being our biggest export market for our beef, I've been learning a lot about that trade and the politics involving it. For one thing, I was wrong about Trump. I thought he was to blame for all the troubles we've been having selling to China, but that is not the case. Until his first administration in 2017, China completely banned the import of American beef. Trump got that ban lifted. I was still in the Navy then and never paid any attention to such things. I should have.
As of today, China allows the import of 164,000 metric tons of American beef annually. That's until 2028, when the deal will have to be re-negotiated. The Chicoms will probably dither on that until they see who the next president will be. The tariff on U.S. beef is 22 percent. That's compared to the 12 percent tariff the Chinese impose on Brazilian beef imports. And the quota for Brazilian beef is 1,106,000 metric tons this year, scheduled to go up to 1.13 million metric tons next year and 1.15 million metric tons in 2028. Is it any wonder I am looking to invest in or buy a Brazilian fazenda, as a cattle ranch is called down there?
The Argentine quota is 511,000 metric tons for beef, that's why we invested there. As a data point, Australia's is 211,000 metric tons. The US of A's quota is the smallest and we even only have that thanks to Trump. Bless you, sir. With reservations. The on again-off again tariff battle of the last few years has played havoc with our business and any planning for the future we try to do. As to what Tump announced today. Lord, Lord.
And that's not even considering all the other obstacles to beef production we face. Not long ago we lost a BLM lease after the Bureau decided to classify buffalo (bison) as livestock (long, complicated story), so we opened up some of our marginal grazing land we had left fallow for years and drilled water wells (anticipating one cow-calf pair per 10 acres) but have since had to abandon that plan and, in fact, have reduced our herd, while expanding our operation in Argentina.
Oh, and I bought a sheep ranch in Argentina because there is no export quota on Argentine mutton to China while American mutton is totally banned from China.
One advantage we have is that American beef is regarded in the Chinese market as a high-end, premium product and is desired by wealthier consumers and specialty markets, so we can charge a pretty penny for it. The Chicoms love heavily marbled grain-fed beef, and that we can supply. American beef really is excellent.
But American beef is subject to strict Chinese regulation, including a Ractopamine ban, no beta-agonist drugs allowed at all and it must be certified by the USDA as having never been administered growth-promoting additives or synthetic hormones. Our cattle meet those requirements. A lot of American (and Canadian) ranchs' cattle cannot. (Enjoy your MacDoogle's "all beef patty," suckers! Haha.)
Also, all our exports must comply with China's nationwide electronic traceability framework, which requires verifiable digital tracking records from our ranch to the Chinese port of entry. And believe you me this requires a lot -- a lot lot lot -- of paperwork that must be absolutely accurate to the last jot and tittle. For egg-zample, all 9060-5 series documents (don't you worry what those are -- but I have to!) for China must be physically signed by a USDA Food and Safety Inspection Service Public Health Veterinarian, who includes his or her DVM degree credentials and District or Circuit codes with the signature. A standard inspector’s signature won't cut it. And so on down the line. Just thinking about all this gives me a headache.
We also export to South Korea, which has its own set of strict requirements and unique demands. For example, the beef must be certified to come from cattle no older than 30 months. We export to Japan and Taiwan, as well, each with their unique requirements, compliance with which can drive you batty. As they say on Ork, shazbat!
I have had to learn all this stuff this year, and so much more -- had to, to keep the ranch from going belly up. Nobody else but me and the ranch foreman, God bless him and his crew. A ranch is not just a bunch of cowboys roping and riding, singing git along little doggie and hollering yippie-kay-aye. It is a complicated business.
I sure never thought I would be doing this for a living. And to think when I first came here after leaving the Navy I couldn't figure out what to do with myself, even trying to help out at the cookhouse to make myself useful, and now look at me, knee deep in paperwork, not enough hours in the day to deal with it all. Well, I'll get a handle on it all eventually and it will become routine. That's always the way it is. Frazzled almost out of my mind at first with some new challenge, then, finally, it becomes routine and I just do it without thinking much about it. At least, I hope it's going to become that way. That's what I tell myself anyway. Fingers crossed.
