Asian markets – Challenges and opportunities
By John Maday
| Tuesday, June 29, 2010
In a news conference today, representatives of the U.S. Meat Export Federation explained that while our beef exports to Asian markets are improving, we’re a long way from reaching those markets’ full potential.
U.S. beef exports to Asia and elsewhere have been recovering since 2004, with the value of those exports climbing to within 3 percent of those of 2003 before the BSE-related crash. Exports today add about $118 per head to the value of each finished animal slaughtered, compared with about $136 in 2003.
Through April of this year, U.S. beef exports to Japan are up 24 percent from the same period last year, and exports to Korea and other Asian countries also continue to increase. Exports within North America – to Canada and Mexico – have declined somewhat as consumers in those countries have turned more to pork and poultry due to price sensitivity.
USMEF’s Joel Haggard says market access for U.S. beef in Asian countries is “all over the map,” with some countries such as South Korea granting nearly full access and some others maintaining significant trade barriers. But while Korea has removed trade barriers, consumer confidence remains a challenge. USMEF is executing on an integrated approach to build a supply chain for specific beef products from the exporter, through the importer and into Korean sales channels while also working to assure consumers on the safety and quality of U.S. beef. They’re going directly to Korean housewives and other consumers with TV and Internet promotions showing farm-to-fork U.S. beef production and reaching out to Korean culinary bloggers who carry a great deal of influence.
USMEF also has a broad campaign strategy for U.S. beef in Japan. Consumer confidence in that country has improved, but trade barriers remain.
China, which remains virtually closed to U.S. beef, offers huge potential if negotiators can reach a trade deal. Food-service growth across China encompasses all types of restaurants, from traditional through high-end ethnic restaurants catering to wealthy customers. That variety creates potential for all types of beef cuts, from inexpensive cuts such as short ribs and chuck-eye rolls typically exported to Asia to the highest-priced middle meats.
Access for U.S. beef would immediately make China our number-five export customer with vast potential to grow from there, Haggard says. He also notes that China recently announced an agreement to begin allowing access to Canadian beef. While U.S. officials have expressed frustration and dismay that Canada would gain access before us, Haggard finds a silver lining to the announcement. It shows that the Chinese are willing to negotiate, and since Canada and the United States have the same rating of “Controlled BSE risk” from the World Organization for Animal Health, there is some hope for U.S. negotiators reaching a similar deal.
