Saskatchewan producers welcome China’s decision to lift ban on Canadian beef

China only removed its years-long ban on Canadian beef days ago, but some producers could be selling their product there by next week.

Saskatchewan Agriculture Minister David Marit said the first shipment being sent so soon after an agreement between the two countries was reached shows “that China really wants our product.”

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It’s a market that Canadian beef producers have been shut out of since 2021.

Chad Ross, chair of the Saskatchewan Cattle Association, said Canada sent “$200 million worth of beef” to China in the last year before the country implemented the ban. Half of the beef produced in Canada is exported, so Ross said regaining access to a market the size of China “is going to be huge for us as producers in Saskatchewan and Canada.”

Neither Ross nor Marit could share the full details of the agreement, including the amount of Canadian beef allowed into China, but both said it will have a significant impact. One change will come in the form of value.

According to Ross, while China does have an appetite for “high-marbling” cuts, they also make use of lower-end cuts that people typically “don’t like to eat here.” Marit added that because the demand for different cuts is higher in China, it adds extra value to cattle produced in Saskatchewan.

The last year Canada shipped beef to China, those exports were valued at $200 million. But Saskatchewan Agriculture Minister David Marit said he’s optimistic that number can grow. (Marija Robinson/650 CKOM)

Changing price of beef

The removal of the ban could also have an effect on prices, both for producers and for consumers.

“Even as a grain farmer, I always said ‘I always wish there was more than one buyer for my product,’ because then it obviously reflects in the price,” Marit said.

Using the example of yellow peas, Marit explained that the price per bushel doubled quickly after a deal was reached with China.

“As soon as that tariff came off, there was a call to buy peas. So that’s how immediate (it) can happen. Now you’ll probably see the same thing reflecting in the beef prices,” he said.

There’s a chance those benefits could trickle down to consumers in Canada as well.

Ross said that over the last 20 years, the industry has lost a lot of producers. The consequence was that supply went down, but with people still wanting beef, prices went up.

But as producers start to make more significant margins, he said herds are likely to expand.

“As we go into the cycle of increasing our supply of our factory, our cows, that supply will get better, and it should help with that pricing,” Ross said.