Source: Rita Jane Gabbett, MEATINGPLACE, 11/4/14


Regional directors for the U.S. Meat Export Federation have been pleasantly surprised; even as U.S. beef prices hit record highs, import demand continues to climb.

USMEF President and CEO Philip Seng told journalists on a teleconference U.S. beef exports, up 3 percent in volume this year through August, have been “better than expected.” U.S. pork exports through August are up 6 percent in volume.

Asia

Joel Haggard, USMEF senior vice president for the Asia-Pacific region, said while not matching the double digit grown of 2012 and 2013, U.S. beef exports to Asia are up 5 percent to 10 percent on high year ago numbers.

Indonesia has increased beef and live cattle imports, as has Vietnam, Haggard said, adding if Australia gains access to China for live cattle exports, it could be “a game changer.”

Seng noted a growing niche for U.S. beef in Japan is the $90 billion convenience store market.

While beef importers have appeared immune to higher prices so far, Haggard said there has been some anecdotal pushback in Hong Kong on short rib prices. USMEF has been working to introduce some new cuts to Asian markets, including the tail end of the loin and lean intercostal muscles currently considered trim.

U.S. pork export volume to Asia has been steady, which Haggard said is impressive against low European pork prices that have boosted their exports by 25 percent, particularly to Japan and South Korea. A strengthening economy in the Philippines is boosting pork imports there from both the United States and Europe.

Europe

John Brook, USMEF regional director for Europe, Russia and the Middle East, said even as Russian restaurants are desperate for quality meat, the politics of the region show no signs of U.S., European or Australian products regaining access to that market any time soon.

Consequently, USMEF efforts in the region have shifted to Central Asia countries near Russia such as Ukraine, Moldova, Georgia and Uzbekistan.  

In the Middle East, Brook said even as oil prices have dropped, there has been little impact on those economies or consumer demand. He said U.S. beef exports are seeing steady growth for both retail and family dining restaurants.

Egypt’s economy, however, has struggled and that has impacted the beef muscle business there, while the market for such protein sources as liver continues to grow.

As for the European Union countries, Brook said demand for U.S. beef is strong, but as import levels bump up against duty free quotas, USMEF efforts are focusing on trying increase the value of the carcass by helping importers expand their use of a broader array of cuts.

LatAm

Chad Russell, USMEF regional director for Mexico and the Dominican Republic, said U.S. beef exports to Mexico through August are up 19 percent while pork exports are up 17 percent and on track to hit a record for the third year.    

Russell said even in the face of an underperforming Mexican economy, retail business has picked up, while the foodservice sector continues to struggle with reduced meat portion sizes and increased poultry use.

In Central America, higher prices for pork have decreased imports slightly, while beef imports continue to rise.

Emerging markets

Brook pointed to African countries including Angola, Ghana, Gabon and Ivory Coast as growth markets.

Haggard said Sri Lanka, Myanmar and Cambodia are emerging markets in Asia.

Russell said sectors with Mexico such as regional supermarkets are a focus.

Seng noted that efforts to hold onto and expand share in existing markets where cold chain and infrastructure already exists could sometimes be even more productive than emerging markets.

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