Renk: Could the Price of Your Steak Increase Further?
This week China has now allowed U.S. beef to be imported into their country for the first time in 14 years.
China banned U.S. beef imports following a case of mad cow disease in the United States in 2003.
This is a good and bad thing for the United States.
Good for our beef producers and bad for our beef consumers.
I am one of those beef consumers.
By opening up their markets that will mean more demand and in the real world of economics that means prices more than likely will increase. More demand which could result in less supply, especially in the short run, means prices will rise.
We are already paying very high prices for our beef, in fact that is why I now eat more chicken and pork than beef, again another real world economic decision by me.
Apparently beef consumption in China is rising due to the China’s fast-growing middle class. Although pork still accounts for more than 60 percent of the meat consumed.