China’s beef cattle inventory has kept shrinking in recent years, plunging the cow slaughter industry into recession. As beef cattle inventory is not likely to pick up in a short time, some small slaughterhouses may quit cow slaughter or close down in the next few years. Only a few large meatpacking companies are setting up cattle farms to lick the cattle shortage.
Most of the Chinese cow slaughterhouses have an annual capacity of about 10,000 heads a year each. Only a few large companies are capable of 50,000 ~ 100,000 heads a year each. It is learned that JBS SA, the world’s largest beef producer, is considering setting up cow slaughterhouses in Asia in the next few years to cut marketing cost. If JBS invest in China’s cow slaughter industry or acquire some Chinese slaughterhouses, it may control China’s cow slaughter industry.