China’s largest online retailer to buy Montana beef
BILLINGS, Mont. — China’s largest online retailer has agreed to buy $200 million worth of Montana beef over the next three years — representing as many as 90,000 head of cattle — and potentially invest $100 million more in a new slaughterhouse in the state under the terms of a trade deal disclosed Wednesday.
The scope of the agreement is relatively small compared to Montana’s overall cattle market, equaling less than four per cent of the state’s cattle sales on an annualized basis.
But Montana livestock industry representatives said it marks a significant break into the sizeable and growing Chinese beef market. They said the inclusion of a new slaughterhouse would make it easier to ensure Montana beef can be tracked back to its origins, a requirement under new Chinese import rules for U.S. beef.
The agreement between retailer JD.com, the Bank of China and the Montana Stockgrowers Association was revealed as President Donald Trump visited Beijing for talks with Chinese President Xi Jinping. JD.com agreed to purchase a minimum $50 million of Montana beef in 2018, $70 million in 2019 and $80 million in 2020, according to a copy of the agreement released Wednesday by Montana U.S. Sen. Steve Daines.