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📦 Chuck cuts

Chuck cuts

HS Code:

📦

Overview

Chuck cuts, typically classified under HS Code 0201 (fresh or chilled beef) or 0202 (frozen beef), refer to cuts of beef from the shoulder area of the cow, including parts like the chuck roast, chuck steak, and shoulder clod. These cuts are known for their rich flavor and are often used in stews, roasts, and ground beef production due to their higher connective tissue content. They are a significant category in the global meat trade, with demand driven by both retail and food processing industries.

Total Trade Volume

Approximately 2.5 million metric tons

Data from 2022

Source

United Nations Comtrade Database and USDA Foreign Agricultural Service

Tariff Analysis

Average Rate

12.5% ad valorem

Highest Rate

35% (imposed by certain Asian markets like South Korea on non-FTA partners)

Lowest Rate

0% (under free trade agreements such as USMCA and EU-Mercosur)

Common Restrictions

  • Quotas on import volumes (e.g., EU beef import quotas)
  • Sanitary and phytosanitary (SPS) requirements including hormone-free certification
  • Country-of-origin labeling requirements
  • Temporary bans due to disease outbreaks (e.g., BSE or foot-and-mouth disease)

Market Trends

Rising demand in Asia-Pacific

Increased exports from major producers like Brazil and Australia to meet growing middle-class demand for beef in countries like China and Vietnam.

2021-2022

Shift towards sustainable and grass-fed beef

Consumers in North America and Europe are driving demand for sustainably sourced chuck cuts, influencing production practices and certification requirements.

2020-2022

Price volatility due to supply chain disruptions

Global supply chain issues, including labor shortages and shipping delays, have led to fluctuating prices for chuck cuts, affecting trade profitability.

2021-2022

Recent Developments

China Lifts Ban on Brazilian Beef

After a temporary suspension due to atypical BSE cases, China reinstated imports of Brazilian beef, including chuck cuts, boosting trade volumes.

March 2023

Significant increase in Brazilian export volumes, stabilizing prices in the Asian market.

USMCA Tariff Reductions

Under the USMCA agreement, tariffs on beef cuts, including chuck, between the US, Canada, and Mexico have been further reduced or eliminated.

January 2023

Enhanced trade flows within North America, with increased exports from the US to Mexico.

EU Imposes Stricter SPS Standards

The European Union introduced stricter sanitary standards for imported beef, requiring additional certifications for hormone-free production.

July 2022

Increased compliance costs for exporters like Argentina and Brazil, potentially reducing their market share in the EU.