Montana Stockgrowers Association secures $300 million agreement for Montana beef

(Nov 8) – The Montana Stockgrowers Association (MSGA), Cross Four Ranch, and Chinese eCommerce retailer JD.com, today, signed a memorandum of agreement (MOA) to facilitate collaboration on Montana sourced beef to China as well as the potential investment in Montana.

This agreement transpired following Daines’ agricultural roundtable where Chinese Ambassador Cui Tiankai, Chinese business representatives, and Montana agricultural leaders discussed potential opportunities for expanding Montana beef exports.

“While there are details to be finalized, this MOA represents a great step in the right direction for Montana ranchers and the state of Montana,” said Errol Rice, Executive Vice President of MSGA. “The Montana Stockgrowers Association thanks, Sen. Daines for his work on expanding opportunities and access to overseas markets for Montana ranchers, particularly in lifting the ban on U.S. beef in China earlier this year. ”

The agreement is proposed for an initial three years, with a minimum commitment of $200 million in Montana beef to be imported by JD.com from MSGA members. Beef is the fastest growing sector in China and the world’s fastest growing overseas market for beef.

In addition to the $200 million proposed procurement, JD intends to invest up to another $100 million to build a brand-new processing facility in Montana to support Montana beef production.

Click HERE to read the official signing agreement. For additional information, please contact the MSGA office at 406-442-3420.

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The Montana Stock Growers Association (MSGA) is a non-profit membership organization that has worked on behalf of Montana’s cattle ranching families since 1884. The mission is to protect and enhance Montana ranch families’ ability to grow and deliver safe, healthy, environmentally wholesome beef to the world.

The association works to achieve its mission by representing the members and the policy they set at the Montana Legislature and U.S. Congress, with governmental agencies, in the media, and by promoting the work of Montana’s family ranchers to the public.

Secretary Perdue to Travel to China to Mark Return of U.S. Beef

Events in Beijing and Shanghai on Friday and Saturday

 

 U.S. Secretary of Agriculture Sonny Perdue will travel to China this week, joining with U.S. Ambassador to China Terry Branstad, to formally mark the return of U.S. beef to the Chinese market after a 13-year hiatus.  In events in Beijing and Shanghai on Friday, June 30, 2017 and Saturday, July 1, 2017, Perdue will meet with Chinese government officials to celebrate the return of American beef products to the enormous market after shipments were halted at the end of 2003.  On Friday in Beijing, Perdue and Branstad will ceremonially cut prime rib that originated in Nebraska and was shipped by the Greater Omaha Packing Company. 

“I will be proud to be on hand for the official reintroduction of U.S. beef to China,” Perdue said.  “This is tremendous news for the American beef industry, the agriculture community, and the American economy in general.  We will once again have access to the enormous Chinese market, with a strong and growing middle class, which had been closed to our ranchers for a long, long time.  There’s no doubt in my mind that when the Chinese people taste our high-quality U.S. beef, they’ll want more of it.” 

President Trump, Commerce Secretary Wilbur Ross, Treasury Secretary Steven T. Mnuchin, officials with the U.S. Trade Representative, and Secretary Perdue announced the deal brokered to allow the return of U.S. beef to China on May 11, 2017 as part of the U.S.-China 100-Day Action Plan.  The first shipment of U.S. beef arrived in China on June 19, 2017.  China has emerged as a major beef buyer in recent years, with imports increasing from $275 million in 2012 to $2.5 billion in 2016.  The United States is the world’s largest beef producer and in 2016 was the world’s fourth-largest exporter, with global sales of more than $5.4 billion.  

Earlier this month, the U.S. Department of Agriculture (USDA) announced the final details of a protocol to allow American companies to begin shipping beef exports to China.  To date, producers and processors in Nebraska and Kansas are eligible to ship beef products to China, having followed requirements set forth in the USDA Export Verification Program and according to USDA’s Food Safety and Inspection Service export requirements.  USDA maintains a public list of companies that are eligible and will continue to update it as more companies complete the export documentation requirements.

China has emerged as a major beef buyer in recent years, with imports increasing from $275 million in 2012 to $2.5 billion in 2016. The United States is the world’s largest beef producer and in 2016 was the world’s fourth-largest exporter, with global sales of more than $5.4 billion.  

Perdue will make the following public appearances in Beijing and Shanghai (times local to China):

 

Friday, June 30, 2017

10:45 a.m.                   Meeting with Han Changfu, Minister of Agriculture

                                    Secretary Perdue will meet with his Chinese counterpart to discuss

                                    additional market access goals.

            Ministry of Agriculture

                                    Beijing, China

 

12:00 p.m.                  Ceremony Reintroducing U.S. beef to China

                                    Secretary Perdue, Ambassador Terry Branstad, and other officials

                                    will ceremonially cut a Nebraska prime rib.

                                    Intercontinental Beijing Sanlitun Hotel

            Beijing, China

 

3:00 p.m.                    Meeting with Chinese Vice Premier Wang Yang

                                    Secretary Perdue will discuss expanding U.S. trade with China.

                                    Zhongnanhai Leadership Compound

                                    Beijing, China

 

Saturday, July 1, 2017

 

10:15 a.m.                   Media event and tour of Chinese supermarket

                                    Secretary Perdue will participate in a cooking demonstration, tour

                                    the store, and highlight other American products in a major Chinese

                                    supermarket.

                                    City Super IAPM

                                    Shanghai, China

MSGA applauds news of U.S. Beef heading to China

The Montana Stockgrowers Association issued the following statement regarding the announcement that an agreement has been reached to begin shipping U.S. beef to China:

“Montana ranchers have been waiting for this day for thirteen years,” said Montana Stockgrowers Association Executive Vice President, Errol Rice. “Restored access to China’s 1.3 billion consumers will create an immense market potential for Montana ranchers.”

The Montana Stockgrowers Association is still evaluating the technical aspects of the agreement. Included below are USDA’s specific requirements for exports to China:

  • Beef and beef products must be derived from cattle that were born, raised, and slaughtered in the U.S., cattle that were imported from Canada or Mexico and subsequently raised and slaughtered in the U.S., or cattle that were imported from Canada or Mexico for direct slaughter;
  • Cattle must be traceable to the U.S. birth farm using a unique identifier, or if imported to the first place of residence or port of entry;
  • Beef and beef products must be derived from cattle less than 30 months of age;
  • Chilled or frozen bone-in and deboned beef products are eligible for shipment.  For a complete listing, refer to the FSIS Export Library; and
  • Carcasses, beef, and beef products must be uniquely identified and controlled up until the time of shipment.

 

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The Montana Stockgrowers Association, a non-profit organization representing nearly 2,500 members, strives to serve, protect and advance the economic, political, environmental and cultural interests of cattle producers, the largest sector of Montana’s number one industry – agriculture.

Stockgrowers comment on announcement of U.S. beef access to China

Helena, Mont. (May 12, 2017) – The Montana Stockgrowers Association issued the following statement regarding the announcement that an agreement has been reached between the White House and China to restore U.S. beef access:

“As the second largest importer of beef, we are extremely excited that an agreement has been made to restore U.S. beef to China. Montana’s ranchers have been waiting since 2003, to ship the nation’s highest quality beef to China’s 1.3 billion consumers.” Errol Rice, Executive Vice President, Montana Stockgrowers Association.

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The Montana Stockgrowers Association, a non-profit organization representing nearly 2,500 members, strives to serve, protect and advance the economic, political, environmental and cultural interests of cattle producers, the largest sector of Montana’s number one industry – agriculture.

China Lifts Ban on U.S. Beef

After 13 years of closed access, the Montana Stockgrowers Association (MSGA) welcomed the news of the Chinese government lifting the ban on the import of U.S. beef. As one of the largest importers of beef, exports to China will open up new opportunities for Montana ranchers.

China’s imports have risen dramatically, reaching a record $2.3 billion in 2015. USDA forecasts that China will surpass Japan as the second-largest beef importer with imports estimated at 825,000 tons in 2016. Rapidly rising demand for beef has made China the fastest-growing beef market in the world.

Montana Stockgrowers President, Gene Curry of Valier notes, “This news comes at a time when the markets are at the top of mind for every cattle producer. China is home to one-fifth of the global population and a major importer of protein, we look forward to providing China with high quality beef. On behalf of our membership, I would like to personally thank Senator Daines and Ambassador Baucus for their work in opening this exciting new market.”

This past May, MSGA sent a letter to Vice-Premier Zhang that was hand delivered by U.S. Senator Steve Daines. The letter promoted Montana beef’s quality and encouraged lifting the ban on U.S. beef.

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The Montana Stockgrowers Association, a non-profit organization representing nearly 2,500 members, strives to serve, protect and advance the economic, political, environmental and cultural interests of cattle producers, the largest sector of Montana’s number one industry – agriculture.