March 2, 2007

 

Mixed outlook for US beef, pork exports
 

 

The outlook for US meat exports will be mixed in 2007, with pork sales forecast to hit a record 1.34 million tonnes but with beef exports still expected to be hampered by trade restrictions in Asia.

 

US Meat Export Federation President Philip Seng told reporters in a conference call that he expected pork exports to grow 6.2 percent to 1.34 million tonnes in 2007. Beef exports in 2007 are expected to hit 765,000 tonnes.

 

In 2006, combined beef and pork sales were almost US$5 billion, he said. Pork sales to Mexico, Russia and South Korea were strong last year, Seng said, with exports to South Korea increasing about 50 percent in both volume and value.

 

USMEF expects pork sale growth to continue in other countries, too, and is even looking at yet-to-be ratified trade deals with Colombia and Peru to boost Latin American sales.

 

US beef exports, recovering from the difficult years following the discovery of the first US case of mad cow disease in 2003, are likewise improving.

 

US beef exports to South Korea have been hampered since late last year, when officials rejected three US beef shipments that were found to contain bone chips. The block has enraged the US beef industry, and prompted warnings from US politicians and negotiators that Seoul should not expect a proposed free trade deal until the problem has been resolved.

 

But Seng said support within the South Korean government was growing for a quick end to the block, and hopes for a resolution in a month or two.

 

Seng said discussions from both parties would take place in March and will result to "something material".

 

Washington is also pushing to fully reopen the Japanese market, where access has been limited since the first US case of mad cow disease was discovered in 2003. Current testing procedures in Japan, he said, are onerous, but Seng said he hoped Japan would relax import rules if it completes another audit of US beef facilities.

 

Beef exports to Japan are expected to hit 60,000 tonnes in 2007¡ªa far cry from the heyday years but better than sales of less than 14,000 tonnes in 2006.

 

Seng also hopes a new risk classification, expected from world animal health organization OIE in May, would give trading partners assurance about the safety of US meat.