U.S. beef sales to China plummeted to nearly nothing in the week ending March 20, following Beijing's decision to let export registrations for hundreds of American meat facilities expire on March 16. This regulatory action has effectively halted direct beef shipments from the U.S. to China.
The lapse in registrations means U.S. exporters and Chinese buyers are reluctant to finalize deals for American beef produced after the deadline, due to uncertainty about customs clearance. This situation is a significant blow to U.S. meatpackers, including Tyson Foods, which rely on the Chinese market.
For Tyson Foods, this development exacerbates the already challenging conditions in its Beef segment, which is grappling with high cattle prices due to tight domestic supplies. The loss of access to a major export market like China will further pressure sales volumes and profitability in this key business unit.
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