April 21, 2006

US beef group looks to expand market for variety meat in South America

US Meat Export Federation (USMEF) representatives are visiting packers this week to identify beef and pork "alternative cuts or items" and determine if these cuts can have added value.

One of the key export products to the region has been pork and beef variety meat, said Ricardo Vernazza-Paganini, USMEF director of Central and South America .

While variety meat is low in demand and price in the US market, these products are well-received by Central and South American consumers, thus presenting an opportunity to increase the margins of these low-value commodities, he said.

US companies have little interest in tailoring products for the market as the region only accounts for less than 2 percent of meat exports from the US, according to Vernazza-Paganini.

The USMEF aims to raise the level of awareness of this market by visiting packers and investigating the potential for targeting this market with leftover cuts from other markets, said Kevin Smith, USMEF assistant director of export services.

Information on the alternative items will be gathered on the trip and then presented to importers in Latin America to show potential buyers the variety of US products available.

According to Vernazza-Paganini, many US supermarket chains demand pork tenderloin of a consistent shape, size, and weight. While producing products to meet these specifications, US packers must find new markets for leftover tenderloin tips.

An additional trip is scheduled this fall for USMEF to visit importers in Latin American countries and share information on the visits.