Photo credit: finance.yahoo.com
BEIJING (Reuters) – Home Plate BBQ, a popular American-style restaurant in Beijing, is undergoing changes to its menu due to the ongoing U.S.-China trade tensions. The iconic ingredient, American beef, is set to become increasingly scarce, prompting staff to reprint their menus accordingly.
The restaurant, which previously relied solely on U.S. beef for its dishes, will soon shift to sourcing their brisket predominantly from Australia. Currently, Home Plate uses around 7 to 8 tonnes of brisket each month, and as their stock of American beef depletes in the coming weeks, they will exclusively offer Australian beef.
This transition is part of a larger trend, as American beef has become one of the many products affected by the trade conflict between the United States and China. Even before the trade war escalated, American beef prices were soaring, but Beijing’s hefty retaliatory tariffs—totaling 125% in addition to an existing 22% tariff—have made it prohibitively expensive.
“These tariffs have made it exceedingly difficult for us to continue using U.S. beef,” stated Charles de Pellette, the operations director at Home Plate.
Despite the $125 million monthly export volume of U.S. beef to China being a relatively small fraction of the overall trade, the absence of American beef from menus serves as a stark indication of the broader implications of the trade dispute for numerous products crossing the Pacific.
“Once our current stock runs out, we’ll completely transition to Australian M5 beef… We still believe that it offers similar taste and quality to our previous offerings, but we’ve had to adapt due to market conditions and tariffs,” de Pellette explained.
Additionally, the pork ribs served at the restaurant will also undergo changes, as they will now be sourced from Canada, according to de Pellette.
This experience is not unique to Home Plate. Restaurants throughout Beijing are facing similar challenges. A local beef supplier, who chose to remain anonymous due to the sensitive nature of the discussions surrounding tariffs, remarked, “Many establishments are now having to switch to Australian beef — this includes even those specializing in American steaks.”
Although de Pellette refrained from sharing specific pricing details regarding Australian beef, it is clear that the market dynamics have shifted significantly. Prior to the trade conflict, U.S. beef prices were already on the rise, impacted by prolonged drought conditions that led to significant herd reductions—the smallest herd size since the 1950s. These increases made American beef less accessible in China, especially amid economic challenges that have made consumers more conscious of price.
The price of U.S. brisket surged nearly 50% within less than a year and escalated further due to tariffs, leaving supply gaps and costs that have almost doubled compared to the previous year.
In response to these changes, Australia is positioning itself to meet the demand for beef, including offering brisket at 40% lower prices. Home Plate has embraced this shift, and by May, patrons will be able to enjoy Australian beef ribs, brisket, and sausages, all prepared with the authentic Texas and Southern American BBQ style.
Source
finance.yahoo.com