China’s barbecue, hotpot and steakhouse restaurants are suffering from decreased business, as customers are still wary about dining out, even though some restrictions have been lifted.
Consequently, the global beef industry has been hit hard, right after exporters ramped up production to meet Chinese beef demand.
Imports had been flooding in right before the coronavirus emerged in central China, but now many of the products are sitting in cold storage due to the shuttering of restaurants and other implemented restrictions.
Demand has dropped nearly 80 percent for Australian beef and 15 percent for Argentine beef, reported news outlet Reuters.
Business is expected to pick up again once people feel safer, but the slowdown in the Chinese economy may curb consumers from purchasing more expensive beef. Rabobank reported China’s overall beef consumption may drop in the first year-on-year decline since 2011.