Summary of the Key Points
Recently, a box of beef rolls labeled as “fully cut” from Horqin in Sichuan was found to contain trace amounts of guar gum. Although the amount seems too small to have any impact on human health, it has exposed a deep-seated issue in the cattle and羊肉 industry: demand for these products has surged, driving prices to new highs. However, the entire supply chain, from breeding to retail, is riddled with flaws. The spread of fraud and mislabeling has outpaced demand growth. This is not just a moral issue of a single company; it’s a structural problem stemming from a combination of supply and demand, the industry chain, and lack of proper regulations.
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Detailed Explanation
1. Why has the demand for cattle and羊肉 suddenly increased, and why are prices rising?
In the past, people only bought cattle and羊肉 during holidays or for hot pot. Now, it has become a daily necessity. People looking to lose weight consume it for its high protein content and low fat content, and families with elderly or children value its higher iron and zinc content compared to pork. Additionally, the taste and texture of cattle and羊肉 are irreplaceable in dishes like hot pot, barbecue, and grilled steaks. Despite the increase in demand, supply has been declining. China’s beef imports have been rising for 20 years, but in 2025, imports decreased for the first time. This year, beef production in the first half of the year fell by 1%, and羊肉 production dropped by nearly 4%. The number of cattle in the country has also decreased by 4.3%. Farmers are expecting price increases and are holding back their cattle, further reducing the market supply. The National Development and Reform Commission has predicted that beef prices will remain high until 2027, creating a seller’s market situation where demand exceeds supply, leading some to take advantage of the situation for quick profits.
2. Why do supermarkets prioritize cattle and羊肉?
Supermarkets now place these products in prominent locations, with both freshly cut and cut-by-section options available. This is not because they have become more considerate of consumers; it’s because cattle and羊肉 are highly profitable. The gross profit margin for regular pork is only 8%-12%, while for cattle and羊肉, it’s much higher, with prices being 2-3 times that of pork. Selling one pound of cattle or羊肉 can generate as much profit as selling three pounds of pork. Supermarkets used to rely on low-priced eggs and pork to attract customers, but now, cattle and羊肉 are a better moneymaker. However, they have little control over the supply chain, as most of the products are sourced from third-party suppliers. There are many small-scale cattle and sheep farmers, and not all areas have formal slaughterhouses. The process from farmer to supermarket involves multiple intermediaries, making it easy to adulterate the products.
3. How common is fraud in the cattle and羊肉 industry, and how can consumers protect themselves?
The guar gum incident is a typical example of exploiting the high price of “fully cut” products. According to regulations, no additives are allowed in fully cut fresh meat. The addition of thickeners like guar gum or carrageenan makes the meat considered “processed,” and it cannot be labeled as “fully cut,” resulting in a significant price difference. More sophisticated fraud methods, such as using duck meat to mimic beef, are also common. Duck meat can be sold for much less, and by mixing it with sheep fat, beef flavoring, and colorants, it can be made to look, taste, and feel like real beef. Some merchants even use edible adhesives to create larger pieces of meat. The most dangerous practice is illegal slaughtering, where water-injected or diseased meat may make its way to the market, posing serious health risks.
4. Why is fraud so difficult to stop?
There are several reasons: first, costs have increased, but supermarkets are reluctant to raise prices for fear of scaring customers. Second, cattle and羊肉 are products of trust; it’s hard to determine their quality without direct inspection. Third, the supply chain is too long, with multiple intermediaries, making it difficult to trace the origin of the meat. Fourth, the cost of cheating was previously low, with fines being minimal compared to the potential profits. These factors combined make it challenging to enforce regulations effectively.
5. How can consumers avoid being deceived?
The new food additive standards, implemented in 2024, clearly prohibit the use of additives in fresh meat. The new standards for processed meat also specify what can be added. Consumers should check the ingredient list on the back of the packaging. If the list includes water, salt, soy sauce, carrageenan, or glutamine transaminase, the meat is considered processed and should not be purchased as fully cut. Major supermarkets are working to improve their supply chains by partnering with reputable farmers and implementing traceability systems. Technologies for identifying the origin of meat are also becoming more widespread. Overall, the quality of meat, eggs, and dairy products is stable, but the industry’s historical issues cannot be resolved overnight. Those who establish a reputation for providing genuine, traceable products will benefit the most from the current consumer demand surge.