While US beef exports to Asian markets are improving, the country is a long way from reaching those markets' full potential, US Meat Export Federation (USMEF) says.

 

US beef exports to Asia and elsewhere have been recovering since 2004, with the value of those exports climbing to within 3% of those of 2003 before the BSE-related crash. Exports today add about US$118 per head to the value of each finished animal slaughtered, compared with about US$136 in 2003.

 

Through April of this year, US beef exports to Japan are up 24% from the same period last year, and exports to Korea and other Asian countries also continue to increase. Exports within North America – to Canada and Mexico – have declined somewhat as consumers in those countries have turned more to pork and poultry due to price sensitivity.

 

USMEF's Joel Haggard says market access for US beef in Asian countries is "all over the map," with some countries such as South Korea granting nearly full access and some others maintaining significant trade barriers. But while Korea has removed trade barriers, consumer confidence remains a challenge. USMEF is executing on an integrated approach to build a supply chain for specific beef products from the exporter, through the importer and into Korean sales channels while also working to assure consumers on the safety and quality of US beef.

 

The federation also has a broad campaign strategy for US beef in Japan. Consumer confidence in that country has improved, but trade barriers remain.

 

China, which remains virtually closed to US beef, offers huge potential if negotiators can reach a trade deal. Food-service growth across China encompasses all types of restaurants, from traditional through high-end ethnic restaurants catering to wealthy customers. That variety creates potential for all types of beef cuts, from inexpensive cuts such as short ribs and chuck-eye rolls typically exported to Asia to the highest-priced middle meats.

 

Haggard finds a silver lining to China's recent announcement to begin allowing access to Canadian beef, showing that the Chinese are willing to negotiate. Since Canada and the US have the same rating of "controlled BSE risk" from the World Organisation for Animal Health, there is some hope for US negotiators reaching a similar deal, he says.