Beef demand in Middle East surprisingly strong amid global economic crisis

While the global recession has slowed down world beef trade, Middle East has ironically has seen exceptional growth in beef export muscle cuts.

Total beef export volume to the region through September has increased by about 4 percent. But exports of beef-muscle cuts was the strongest; more than doubling its volume over last year, jumping from about 16.4 million pounds to almost 35.7 million pounds.

John Brook, US Meat Export Federation regional director for Europe, Russia and the Middle East, said the Arab region has been surprisingly resilient compared to many other areas, and this has helped boost beef demand. He also notes that retail and foodservice outlets in the Middle East are becoming more modern and efficient, which makes high-quality beef much more marketable.

Brook said food consumption in the Middle East has remained very steady and is growing due to a big shift from the traditional way of sales and traditional markets as it now coming towards a much more Westernized style of retail outlets. The executive also noted that there has been enormous growth in family dining, franchises of well known US restaurants which calls for strong demand for beef.

Brook said that while Middle East is a very competitive market, he sees room for a very wide variety of products. Australia is the US' main competitor in that area and are doing very well, he said. Australian beef is a grass-fed product while US is more grass-fed, not much difference between the two varieties but both strong in demand, said Brook.