November 6, 2007

 

Consistent quality to open markets for US red meats in Colombia

 

 

Opportunities abound for American beef and pork products in Colombia, once Congress ratifies the FTA the Bush Administration signed with the country last year, the USMEF said in a news release.

 

Colombia, with a population of 46.5 million, is the third most populous country in Latin America.

 

According to Ricardo Vernazza-Paganini, USMEF Director of Central & South America and Global Strategic Coordination, US pork would be preferred by the country's large processors due to its consistency and US beef would find a market there due to its superior quality over the domestic variety.

 

Paganini recently traveled to the country to explore opportunities for US meats.

 

Continued political strife and corruption has made it hard to maintain efficient livestock and meat production amid, which creates a market for US meat products, he noted.

 

The relative lack of competition in the country also lays the road wide open for US red meats.  

 

However, there is very little awareness of US beef among importers and others in the industry, including consumers. Furthermore, the country also has an abundance of Zebu cattle.

 

Still, the inconsistent quality of the latter meant that the USMEF would have a chance to introduce high quality US beef to create a niche market, he said. Also, some in the foodservice sector are not satisfied with the inconsistent product supply, meaning an opening for US meats. Paganini also found that retailers would be open to buying US beef if duties were lower.

 

This would happen when the FTA is ratified as US Prime- and Choice-grade beef would have zero duty and US Select grade beef would face a duty-free 2,000-tonne quota. US beef variety meat also would have a duty-free 4,200-tonne quota.

 

Currently, a 70-percent duty is applied to US beef exported to Colombia, with the exception of a 300-tonne quota.

 

US pork exports are also expected to improve with the ratification of the FTA.

 

Previously, US pork exports are subject to a price band duty of between 5 and 80 percent, averaging around 30 percent. The uncertainty of this duty previously deterred the trade.

 

The FTA would eliminate the variable duty and replace it with a 20-percent fixed duty that would be phased out in five years.

 

Although the elimination of the duties would help US pork exporters, the first job remains to convince Colombians to eat more pork, Paganini said.

 

Pork consumption is low in Colombia due to the perception that pigs are dirty animals, and hence its meat would be unsafe.

 

This, however, may not be an insurmountable barrier: USMEF has worked to change perception in other countries, such as Guatemala, where US pork and pork variety meat exports in August have increased 29 percent in volume.

 

By educating consumers about the benefits and safety of pork, they are more apt to eat pork, said Paganini.

 

USMEF estimates half of Colombian pork production comes from family-owned farms where the main distribution channel is through wet markets and butcheries.

 

This creates an opportunity for US pork as pork processors are likely to prefer its consistent quality and stable supply, he said.