December 9, 2013

 

 

In 2012, US meat exports hit a record and in 2013 the value of products sold is predicted to surpass that achievement.

 

"In 2012, we exported US$5.5 billion of beef and US$6.2 billion of pork, and year to date, we're running ahead of that," said Dan Halstrom, senior vice president of global marketing and communication at the US Meat Export Federation (USMEF). "We will have a new record this year in value exported and it will be worth US$12 million."

 

For the amount of beef that is exported, the US continues to work to return to levels that were exported prior to 2003 when a case of bovine spongiform encephalitis (BSE) was discovered in the US

 

The real success for beef exports this year has been Japan. "In February, we moved from 20 months to 30 months of age for the requirement to Japan, and that meant we went from 20% to 25% of our cattle qualifying for export up to 95% qualifying," Halstrom said.

 

When the requirement was for cattle below 20 months of age, a lot of the retailers in Japan couldn't get supply from the US year around. "Now we're taking market share back from Australia," Halstrom noted. "Our market share has climbed from 27% to 37%."

 

US beef now is being marketed through Japanese food service, family-style dining, regional supermarket chains and convenience stores.

 

In July, the USMEF hosted a symposium in Japan to reintroduce US beef and it was a successful event, according to USMEF spokesperson.

 

The value of exports to US cattlemen is US$216/head, Halstrom reported. "The percentage of beef production exported is 13% to 14%. However, there's a huge percentage of production that goes into ground beef," he said. "Very little ground beef is exported so if you take that number out it is closer to 22% of beef exported."

 

And for some specific cuts, very high percentages are exported, including beef tongue, 90%; tripe, 75% to 80%; and short ribs, 90%, the USMEF senior vice president noted.

 

Currently, China is not importing any US beef. "Australia is making huge inroads in China especially for beef," Halstrom reported. "Our government is getting closer to an agreement and maybe by the second quarter of 2014 we will be back into China."

 

Mexico continues to be a solid market for US beef. This market was the least effected by BSE in 2003 and the quickest to reopen markets, Halstrom noted.

 

He also said that the Middle East market, which includes 18 countries and 400 million people, is open to all cattle, all ages and it is the largest market for ungraded beef.

 

Meanwhile, Central and South America are growing markets for US beef, with free trade agreements kicking in that have lower duty rates.

 

On the other hand, US pork xports have been a steady success story, Halstrom noted. "From 26% to 28% of the US production is exported and that has really taken off over the last five years," he added.

 

In 2012, the value of exports to US producers was US$56/head and in 2013 the value totals US$54/head of which is attributed to Japan's down export, Halmstrom said. Twenty-five countries now are exporting pork to Japan, he added.

 

The Chinese market is open to US pork imports. There are almost 170 cities in this country that include more than 1 million people.

 

The ASEAN region, which includes the Philippines, likes to purchase products from breed specific programmes such as Duroc Pork or Berkshire Pork, Halstrom noted.

 

Last year, the US exported red meat to 127 countries, Halstrom said, and USMEF expects exports to continue to grow, due to several reasons including population growth and gross domestic product growth.