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China imposes a 25% tariff on imported alfalfa in the United States

Releaseder:Holstein Magazine Released Time:2018-06-19 Font Size:Large|Medium |Small

  Sino-US trade war again wear the shoulder and rub the palms, June 15 China is counter to US $ 50 billion of goods imported from China to impose tariff measures issued by the US government, but also to respond. The taxation list includes dairy products such as whey, fresh milk, milk powder, condensed milk, cream, cheese, and alfalfa originating in the United States. At present, China's tariffs on dairy products and alfalfa grass imported from the United States are respectively It is about 10% and 7% (Tax number: 12149000).

 

 

China imposes alfalfa tariffs on the United States. Imported alfalfa prices increase by 500-600 yuan per ton. Procurement costs increase by nearly 1 billion. U.S. alfalfa exports to China have a greater impact, but has little effect on the U.S. alfalfa industry

 

In 2017, China imported US alfalfa for US $ 420 million, with an import volume of nearly 1.398 million tons, accounting for 98% of the country's total alfalfa imports. Standing on China's position to levy tariffs on alfalfa will assume $ 50 billion to about 0.84% ​​of the share of the Chinese counter list. While standing on the position of the United States, according to USDA data show that in 2017 the United States exported 2.66 million tons of alfalfa hay, which are exported to China 1.17 million tons, accounting for 44% of total US exports; exports about 330 million US dollars, accounting for the total US alfalfa hay 43% of the $ 770 billion in exports.

 

United States and Canada to levy tariffs on US alfalfa alfalfa exports will be subject to greater impact

 

China imposes alfalfa tariffs on the United States, which means that the on-site price per ton of alfalfa will increase by 550-600 yuan. Based on the high-yielding lactating cows fed 3-4 kilograms per day, the daily feeding cost will increase by 2-2.5 yuan, and the cost of milk per kilogram 0.1 yuan, according to our current annual forage quality imported 1.4 million tons, the annual increase in the cost of raising 840 million.

 

The US imports of alfalfa hay is mainly used for domestic large-scale ranch, especially in the eastern coastal area ranch. 2013, China's consumption of alfalfa Cow amount of domestic and imported on each half. After the alfalfa levies tariffs, the US alfalfa imports will definitely decline under the pressure of rising costs. This part of the gap needs to be filled from domestic or other international channels. According to Chinese customs statistics, currently imported from other countries, Spain, Canada, except the United States of alfalfa hay is 9 to 15 million tons / year, other countries can replace the potential for growth in imports of about 30 to 60 tons.

 

 

 The imposition of alfalfa tariffs on the United States has little impact on the U.S. alfalfa industry

 

 

According to data obtained from the US USDA by Holstein Forage Magazine, the output value of American alfalfa hay in 2017 was about 7.9 billion US dollars, and the output was 55.07 million tons. The United States exported 2.66 million tons of alfalfa hay, accounting for less than 5% of the total output; of which 1.17 million tons were exported to China, with an export value of about 330 million U.S., the amount of U.S. exports to China accounted for only 4% of the total output value of U.S. alfalfa hay The imposition of tariffs on American alfalfa has basically no effect on the American alfalfa industry.

 

Canada and the United States imposed alfalfa tariffs China's alfalfa industry development ushered in new opportunities

 

In the medium and long term, China's alfalfa industry has already begun to take shape, and the supply is also continuing to grow, and the quality of some alfalfa has fully reached international standards. In the future, if tariffs are imposed on American alfalfa, it is undoubtedly good news for the domestic forage industry. Since China implemented the "Action for Revitalizing Alfalfa in Dairy Industry" in 2012, the development of China's alfalfa industry has improved significantly. At present, China has formed 4.5 million mu of high-quality alfalfa cultivation, with an annual output of 2.5 million tons of high-quality commercial alfalfa hay. In addition, the demand for feed in the domestic dairy farming market can further stimulate the development of other forage products, such as the production of grasses other than alfalfa.

 

Domestic alfalfa production urgently needs to continue to improve production technology and quality stability. The key problem is that there is a certain gap between the quality of domestic alfalfa and American alfalfa.

 

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