September 1, 2009

There would be a big opportunity for US beef, with expected growing exports to EU markets on a duty-free, high-quality beef quota, the US Meat Export Federation (USMEF) said.

The quota might not necessarily mean massive volumes but it did open the door to the highest value end of the market, said Thad Lively, senior vice president of policy, planning and research for USMEF.

Within the next three to five years, on the basis of a lack of grain-fed beef in the EU markets, the US would export as much as 70,000 tonnes of beef annually to the EU at prices that were probably twice the average level of prices in the rest of the export markets, Lively said.

The EU market would not generate high volumes of US beef shipments, but would create a high-value proposition for producers who can meet the EU's requirements, Lively said.

Importing US beef would present fewer threats to EU producers compared with cheap Brazilian beef imports, as US beef will occupy the niche market of high-value beef which will avoid direct competition with domestic meat, according to Lively.

By occupying this niche market, US beef would also serve to boost prices instead of pulling prices down, Lively concluded.