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USMEF outlines top 5 U.S. meat export opportunities
Story Date: 1/21/2013
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Source: Rita Jane Gabbett, MEATINGPLACE, 1/21/13
U.S. Meat Export Federation President and CEO Philip Seng predicted the U.S. meat export opportunities in 2013 will come in traditional markets, including Japan, China/Hong Kong, Mexico, South Korea and Taiwan.
Here are his top five:
No. 1 – Increased Beef Access to Japan
Japan’s Ministry of Health, Labor & Welfare (MHLW) is in the final stages of approving expanded access for U.S. beef – from the current 20-month cutoff to 30 months. An announcement could come as early as the end of this month. While the specific logistical details on resolving access issues must be addressed, this single change, expected to be finalized in the first half of 2013, will provide a major boost to U.S. beef exports.
No. 2 – China/Hong Kong
Even without access to mainland China, U.S. beef sales to this region (including Vietnam) have seen steady growth and are expected to rise in the future. While the global beef market stalled in 2012, exports to this region were up about 20 percent to nearly 500,000 metric tons and this does not include the growing volumes of water buffalo from India to Vietnam.
For pork, China is both the world’s largest producer and consumer of pork, and over the past few years it has increasingly turned to international suppliers to fill plates at home. ??In 2012, China/Hong Kong pork imports remained close to the 2011 record levels, even in the face of an increase in Chinese pork production.
USMEF projects solid export volumes to China again in 2013, although price trends – particularly after the Chinese New Year in February – will be a key indicator.
No. 3 – Mexico
Already the No. 1 volume market for U.S. pork, Mexico shows no sign of losing its appetite for U.S. hams, picnics, Boston butts, trimmings and variety meat. The growth of American pork exports to Mexico far exceeded last year’s industry trend and is expected to continue in 2013 as Mexican consumers look for more high-quality, affordable protein to feed a booming population and a growing middle class.
And since per capita pork consumption in Mexico is only about 25 pounds per year compared to 47 pounds in the U.S., there is great growth potential.
The outlook for beef exports to Mexico is more reserved due to high prices that are an issue in this cost-sensitive market. Mexico remains the No. 1 volume destination for U.S. beef exports, but growth will be hard to come by as market conditions keep prices high and product scarce, including Mexico’s domestic beef supply.
No. 4 – South Korea
The Korean market was sluggish for all red meat imports in 2012, as the combination of an economic downturn and a brisk rebound in Korean domestic livestock herds after the 2011 foot-and-mouth (FMD) disease outbreak created challenging conditions.
Korea’s domestic beef and pork production are expected to stabilize in 2013, and year two of the Korea-U.S. free trade agreement will bring additional tariff reductions that will enhance opportunities for exports.
No. 5 – Taiwan
This island nation has been a valued trading partner for both the U.S. beef and pork industries, but controversy surrounding the use of the growth promotant ractopamine interrupted exports for much of 2012. With Taiwan’s adoption of the Codex Alimentarius maximum residue limit (MRL) for ractopamine in imported as well as domestic beef, exports of U.S. beef are returning to the point where they were in 2011 when Taiwan was the No. 6 market for U.S. beef.
The controversy has not been resolved for pork, however. While Taiwan’s adoption of the MRL for beef was a very positive step, similar action for pork is still needed. Since Taiwan’s pork sector is, by far, the biggest and most influential sector of agriculture in that country and pork producers have more political clout, resolution of the issue will be more complex.
Seng noted many more opportunities for growth of U.S. red meat exports in the coming year, including: pork to Australia, both beef and pork to Central and South America, and beef to the Middle East.
For more stories, go to http://www.meatingplace.com/.
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