Montana beef to China takes another step forward - KULR8.com | News, Weather & Sports in Billings, Montana

Montana beef to China takes another step forward

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U.S. SENATE — U.S. Senator Steve Daines secured an agreement between JD.com, one of China’s largest retailers and the Montana Stockgrowers Association with the intent to purchase a minimum of $200 million in Montana-sourced beef over the next several years. JD.com will also seek to invest up to another $100 million to build a processing plant in Montana to support Montana beef production, with construction beginning as early as 2018.

While President Donald Trump is in China to grow and strengthen the American economy, Errol Rice, Executive Vice President of the Montana Stockgrowers Association and JD.com signed the agreement. U.S. Secretary of Commerce Wilbur Ross Jr. and Chinese Vice Premier Wang Yang were in attendance to witness the signing of this agreement.

“This landmark agreement has the potential to substantially increase Montana opportunity and agricultural exports to the fastest growing overseas market for beef,” Daines stated. “This is a win for Montana’s hardworking ranchers.”

This agreement follows Daines’ agricultural roundtable in Belgrade, Montana where Chinese Ambassador Cui Tiankai, Chinese business representatives, and Montana agricultural leaders discussed potential opportunities for expanding the relationship between Montana producers and Chinese consumers.

Errol Rice, Executive Vice President, Montana Stockgrowers Association: “The Montana Stockgrowers Association thanks Sen. Daines for his work on expanding opportunities and access to overseas markets for Montana ranchers, particularly in lifting the ban on U.S. beef in China earlier this year. While there’s a lot of work that needs to be done, this MOA represents a great step in the right direction for selling more U.S. beef in China and developing productive relationships between Montana ranchers and Chinese consumers.”

Fred Wacker, Owner/Operator, Cross Four Ranch: “China’s market has the potential to be a game-changer for Cross Four Ranch and Montana ranchers more broadly. The MOA shows how much interest there is in China for high-qualit cattle and beef from Montana and the U.S. and I appreciate Senator Steve Daines’ efforts to help connect me with potential Chinese buyers.”

JD.com intends to import Montana-sourced beef from MSGA members to China for direct sale to the 258 million Chinese consumers on its e-commerce platform. The procurement agreement is proposed for an initial three years, with a minimum commitment of $200 million in beef to be imported by JD.com from MSGA members at fair market value during the term. If fulfilled, it is estimated that JD.com’s purchase of beef will increase Montana beef export sales by as much as 40 percent in 2018.


Congressman Greg Gianforte welcomes a commitment from China’s largest retailer to purchase at least $200 million of Montana beef.

“This is great news for Montana’s stock growers. Continuing to open markets to Montana’s outstanding beef benefits our hard-working ranchers,” Congressman Greg Gianforte said.

JD.com agreed to import over $1.2 billion of beef from the Montana Stock Growers Association and pork from Smithfield Foods, Inc. over the next three years. As part of the agreement, JD.com promises to import a minimum of $200 million in beef from Cross Four Ranch in Miles City and Montana Stock Growers Association members. The company’s purchase is estimated to increase Montana beef export sales by as much as 40 percent by 2018. The agreement will bring Montana beef to as many as 300 cities in China.

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