December 29, 2009

Analysts upbeat about growth in Asia's beef trade volume

 

Beef consumption in the US is at its lowest level in 12 years, but demand in Asia is increasing with population and wealth, from India to China.

Until 1998, the average Chinese person earned less than US$1,000 a year. Today, the annual income is US$3,900 and rising.

According to Alex Avery, director of research at the Hudson Institute, with rising affluence, people would want more diversity in their diets.

While Certified Angus Beef LLC (CAB) international director Geof Bednar is optimistic about the beef trade in Asia, he is aware of the present difficulties. Global trade is probably the biggest opportunity for the beef industry but the really difficult part of that equation is gaining the access into those markets, he said.

By expanding efforts in Taiwan, Vietnam and Hong Kong, CAB has reached countries that are open and hungry for high-quality beef.

Meat demand in Hong Kong has risen more quickly than in other Chinese districts, said Avery.

Compared to their mainland contemporaries, the average Hong Kong person eats twice as much pork, four times as much poultry and four times as much beef, he pointed out.

Nonetheless, trade analysts believe that US beef producers should focus on opening the doors, followed by intense consumer marketing campaigns to fully realise the economic potential of international trade.