April 21, 2006
US beef may find the going tougher in Hong Kong, easier in Taiwan
According to the USDA, the consumption of US beef in Hong Kong is expected to increase gradually, after its re-entry late last year.
In the report, Hong Kong's total beef products, including chilled, frozen and processed products, are expected to inch up 2 percent in 2006 to 68,000 tonnes.
US beef cuts to Hong Kong are estimated to reach 5,113 tonnes, a third of the levels before the 2003 ban.
The USDA projected a 20 percent increase in the US beef offer price to Hong Kong, compared with the 2003 price.
However, Hong Kong has enacted bans against US Swift Beef Co. and Cargill beef processing plants for having prohibited materials in their shipments recently, thus cutting down on the number of processing plants allowed to import beef into the territory.
The report indicates that as US prices for chilled beef are higher than the rest of the market, it may pose as an obstacle to increased imports. Lastly, it would not be easy to compete against Australian beef, which had gained a major market share after US exited in 2003.
US beef, however, may have better luck in Taiwan.
USDA noted that a robust economy has sparked off a rebound in domestic consumption in Taiwan since the last quarter of 2003, driving food demand in hotels and restaurants.
Further growth is expected in the next few years with good prospects for red meat imports.
The report states that the restaurant sector dominates the local foodservice market in Taiwan, accounting for 88 percent of the market. Imported US beef is typically used in family style restaurants, such as high-end steak houses.
Red meat and offal was identified as one of the best prospective products in the Taiwanese market for the US.
As in Hong Kong, Australia is the dominant supplier of red meat to the Taiwanese market in 2005, exporting 33,222 tonnes of beef, accounting for almost half the market.