Source: MEATINGPLACE, 5/26/15

U.S. beef is sought after by top restaurants in Europe because of its quality, but an import quota threatens to restrain further expansion in the market, a U.S. Meat Export Federation (USMEF) official said.

The duty-free import quota on high-quality beef entering the European Union may reach full capacity by year end on June 30 for the first time in the agreement’s history because Australia and Uruguay have significantly increased their shipments under the program, said John Brook, USMEF regional director for Europe, Russia and the Middle East.

“We have a problem that needs to be fixed,” Brook told reporters last week at the group’s board meeting in San Antonio, Texas. The briefing was webcast.

Paying for quality                  
The quality of U.S. beef is widely recognized among professionals in the high-end restaurant sector, Brook said.

“It’s a quality that you don’t find on a regular basis in the European Union,” he said. “It’s established. People want it. People will pay for it.”

The market has remained robust despite U.S. beef’s high cost and a 20 percent devaluation of the euro against the U.S. dollar.
“I’m extremely impressed to see the resurgence of steak house style restaurants all across Europe. There is a niche population which is very interested in quality,” he said.

The EU’s duty-free quota was never fully met during its first five years, so there was room for expansion. The United States’ share is now just under half of the 48,200-metric-ton quota, Brook said.

The United States is in negotiations with the European Commission to find a solution to the quota dilemma, but pushback from the European agricultural sector and nationalist political parties is growing, he cautioned.

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