Assuming tit-for-tat tariffs between the US and China don’t last forever, the USDA’s Agricultural Trade Office in Shanghai, China, said the city of Hefei’s economic transformation over the past decade combined with the city’s strategic location, educated workforce, efficient logistics, and innovation-friendly policies offer opportunities for US agricultural exporters and brands.
In a report Tuesday, the USDA’s ATO also said rising consumer sophistication—evident in the demand for quality, convenience and experience—makes Hefei an increasingly attractive market for high-end retail, food service and lifestyle brands. With strong population inflow and a maturing consumption base, Hefei is catching up with China’s major cities and showing promise as a destination for US agricultural products.
A GROWING CONSUMER BASE
East China accounts for nearly a third of all US agricultural imports into China including more than half of all consumer-oriented products, the USDA said. As one of the region’s leading cities, Hefei’s economy has grown at double China’s national rate over the past two decades.
Its nearly 10 million population now has 15% more disposable income than the national urban average, the ATO said. Nevertheless, Hefei has remained a relatively untapped market for foreign food products — including those from the US.
Hefei is the capital of Anhui province, located in the East China Yangtze River Delta, the ATO said. In 2024, East China accounted for nearly a third of all US agricultural imports into China including more than half of all consumer-oriented products.
Hefei is one of the region’s leading cities, where the economy has grown at double China’s national rate over the past two decades, the USDA said. Its economy is driven by the electric vehicle, semiconductor and quantum industries.
ITS AGRICULTURAL SECTOR
Hefei’s agricultural sector — including farming, forestry, animal husbandry and fisheries — achieved a total output value of $8 billion, marking a 3.2% increase from the previous year, the ATO said. Grain production reached 3 million tonnes, up 1.2%.
Vegetable output rose to 2.6 million tonnes, up 2.3%, total livestock related output hit 712,000 tonnes, up 2.6%, the ATO said. Dairy production increased to 123,000 tonnes, a 19.6% year-on-year increase.
In 2024, Anhui Province ranked fifth in overall grain yield nationwide, the report said. More than 85% of its agricultural production is supported by mechanization.
Anhui also ranks second in China for its concentration of seed industry enterprises, making it a key player in agricultural innovation and development.
Hefei’s industrial output is growing, particularly in high-tech manufacturing, the ATO said. The value-added output from the computer, communication and electronic equipment manufacturing sector grew 26.9%.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $232.18 per cwt to $239.52, compared with last week’s range of $223.72 to $234.90 per cwt. FOB dressed steers, and heifers went for $354.59 per cwt to $369.26, compared with $349.46 to $370.67.
The USDA choice cutout Tuesday was up $4.51 per cwt at $371.76 while select was up $0.91 at $359.84. The choice/select spread widened to $11.92 from $8.32 with 83 loads of fabricated product and 23 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef was $385.15 per cwt, and 50% beef was $140.61.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.15 to $1.25 a bushel over the Jul corn contract, which settled at $4.38 3/4, up $0.05 1/4.
No live cattle delivery notices were posted.
The CME Feeder Cattle Index for the seven days ended Monday was $314.04 per cwt, up $3.58. This compares with Tuesday’s Aug contract settlement of $313.15, up $1.50.