I agree with others that canned beef is not a true value added product. To make ready-to-cook beef packages with mayonnaise is a one. Well, they don’t really have muscles to go there so maybe canned beef is a unmanned niche, but not a big source of profits, I’m afraid.

Solomon spending too much money on capex wouldn’t be anything new. Though he has shown some restraint during the past 1-2 years, right?

But I am worried about if Solomon decides to make bigger capex in SJAP than he can afford in conjunction with the government plan. I hope he won’t overextend himself as usual, but it is a risk.

Concerning American beef, I’ve bought American and Mexican beef sold as “steak” (it was made from bringa/högrev, not really the part I’d like to cook as a steak) at the supermarket in Asian countries. Comparing to Swedish beef it’s not a high quality product. (Of course also not when compared to Japanese beef.) It’s more like German beef. Also high in antibiotics. Not what I associate with high quality meat. If SJAP focus on Wagyu (skip the Angus imo) and device a system for reducing the use of antibiotics (I haven’t heard that they would do this though) it could be a success. Non of us are interested in more capex for SJAP though. I could be on-board with more capex IF we get a really nice deal with the Chinese government. Merge with that government owned company that there’s been some talk about, and become the official supplier of meat for schools or something like that. That would be nice.

One thing that I also don’t understand… How come US beef can compete with Chinese beef? Is it being sold at a premium compared to domestic products? Is the production cost higher in China due to less developed agriculture? Shipping it to China and paying customs should also make it less profitable. I’m not sure I have the correct number, but the duty seem to be 12% on beef. For carcasses/half carcasses it’s higher, 20% for chilled and 25% for frozen. I looked here if anyone wants to check the numbers:
https://www.usmef.org/export-resources/import-duties-by-country/

It would be really interesting to know the price of American Angus vs. Chinese Angus and Chinese Wagyu vs. Japanese Wagyu. Does anyone have these numbers handy?

I think Siaf has changed to a higher quality beef, will they really be able to sell this beef in a can at a premium price?

I think it would be best if they sold SJAP.

Thanks for our updates, much appreciated!

You are probably right that it is no volume product escpecially since you know from experience. But China is very big and SIAF beef business is relatively small so perhaps there is room for one brand of canned beef. But of course I do not know how such a thing would play out.

I am not so excited about SJAP and as far as I am concerned they can just sell it if they get the opportunity. I don’t want more significant capex there at least.

I’ve been in the retail food business for 12 years. Canned beef is not a volume product, people want to buy fresh meat imo.

In Sweden there is no market for this kind of product. The idea is not good and it will probably not work. The situation in SJAP is troublesome.

Jag skrev just klart det sista och har schemalagt Capital Award till kl. 18 ikväll och Tri-way till kl. 15 imorgon söndag

Capital Award blir en ganska kort bloggpost (kort men kärnfull). Tri-way blir en ganska lång artikel.