May 8, 2013
US beef producers expects surge in demand from Japan
The US Meat Export Federation (USMEF) believes that US exports to Japan in 2013 will increase about 45% to 496 million pounds, topping the US$1 billion mark for the first time since 2003.
Ron Frederick, executive director of the South Dakota Beef Industry Council (SDBIC), said that what's pushing the export market currently is the anticipated increase to Japan, which at one time was the US beef producers' no. one market. Japan is currently the no. two export market for US in terms of value, behind only Canada.
SDBIC again has given about US$117,000 to the USMEF, whose trade representatives promote US beef overseas. The positive outlook comes despite a decision by Russia to ban US imports of beef and pork containing a commonly used feed additive called ractopamine, a product that helps animals add muscle rather than fat.
Frederick said the product, used for about a decade and deemed safe by the federal Food and Drug Administration, adds about 30-35 pounds onto a typical beef carcass.
"We went through this with Taiwan, and last year they decided to accept the beef," he said.
He thinks the problem eventually will be resolved with Russia, which is working diligently to expand its livestock herds and actually has increased substantially its imports of live US cattle for breeding programmes. Russia accounted for about 6.7% of 2012 US beef exports. Frederick said the Japan decision and increased exports to Hong Kong are helping to more than make up the difference.
James McKean, an Iowa State University professor and associate director of the Iowa Pork Industry Centre, said ractopamine went through a long and rigorous testing period and was approved by the FDA before livestock producers began using it. McKean said it's a safe product.
Frederick said the expanded access to Japan's market should provide an additional US$20 per head in value to US producers. Overall last year, the export value per head of fed beef harvested in the US was estimated at US$216.73, a US$10.36 increase over 2011.
The export boost, which made the US a net exporter for the first time in many years last year, also was helped in 2012 by one-year records in sales to Hong Kong, US$339.5 million; Central/South America, US$134.1 million; Canada, US$1.17 billion; and Russia, US$307.5 million. In all, exports last year were about US$4.6 billion, amounting to about 13% of total US beef production.
Tupper said in a recent news release that South Dakota producers are making a smart investment in USMEF.
