October 22, 2007

USMEF positive on improved US beef sales in EU 

US beef exports to the European Union are seen to surpass 6,000 tonnes this year and may likely 12,000 tonnes in 2008 (excluding variety meats), according to US Meat Export Federation (USMEF) president Philip Seng.

Seng said he expects beef exports this year will slightly exceed the current annual EU quota of 11,500 tonnes, despite paying stiff duties on shipments surpassing the quota. Seng said he is confident that the United States and the EU will be able to negotiate an increase to the current quota.

Beef shipped to the EU must come from cattle that have not been implanted with growth hormones.

Technical issues such as processing cattle and rinsing carcasses need to be addressed before quota increases can be considered, Seng said.

He said increasing meat-import demand in Europe, as well as the weak US dollar against the Euro and a desire to diversify beyond big suppliers such as Brazil, will all create opportunities for US beef. He cited European Commission projections that EU beef imports from all sources could reach 350,000 tonnes in 2007 and could climb as high as 750,000 tonnes by 2012.

US beef exports to the EU from January through August totalled 4,554 tonnes, up from 2,066 tonnes over the same period last year.

Seng concluded that it's a mistake not to look at Europe as they've got the market and the buying power.