24th Annual USMEF-ALIC Meeting Discusses Prices, Economic Downturn
24th Annual USMEF-ALIC Meeting Discusses Prices, Economic Downturn
President and CEO Phil Seng and Joel Haggard, senior vice president Asia-Pacific region, led a delegation to the 24th annual meeting between USMEF and Japan’s Agriculture & Livestock Industries Corporation (ALIC), an administrative agency wholly funded by the Japanese government.
The ALIC team, headed by President Hiroyuki Kinoshita, provided information on how the consumer price index (CPI) for food in Japan is rising but the amount of money spent on food is remaining stable. Although overall beef sales are down while pork and chicken sales are up slightly, the ALIC research shows that demand for economical items, including hamburgers and the traditional Japanese beef bowl , is increasing.
Due to the economic downturn, the wholesale price of beef in Japan has dropped and overall sales have declined slightly. That has not carried over to U.S. beef imports, however. In January 2009, total U.S. beef exports to Japan rose 31 percent to 4,069 metric tons (nearly 9 million pounds) valued at $21.8 million – an increase of 27 percent.
Similarly, U.S. pork exports to Japan continued an upward trend, increasing 28 percent in volume to 42,271 metric tons (93.2 million pounds) valued at $147.3 million – a 39 percent increase in value over January 2008.
Presenting for USMEF, Haggard noted that increasing feed costs are contributing to a decline in the global beef and pork supply . He added that the overall economic downturn has created a situation where the production decline has led to a fall in prices, putting additional pressure on supply.
Elaborating on the decline in global beef supply, Haggard outlined the shrinking of the U.S. cattle herd, noting that the beef cow inventory is at its lowest levels since 1963, and the total herd is down 1.6 percent from a year ago. He added that the annual cash cost per cow has increased from $294 per head in 2000 to $436 per head last year.
The USMEF team also provided the ALIC contingent with information on the dual programs it is conducting in Japan: the “Erabarete #1” campaign that thanks Japanese consumers for making U.S. pork the No. 1 imported pork in Japan; as well as the “We Care” campaign for U.S. beef.
USMEF Shares U.S. Pork and Beef Message with Trade at FoodEx
USMEF had a 16 booth-strong presence at this month’s FoodEx Japan 2009 at the Makuhari Messe convention center. Foodex is one of the biggest and arguably the most important food industry show in Japan, and seven USMEF members — Agri-West, Hastings Foods, Macsei Industries, National Beef Packing, SIG International, Smithfield and Sugardale — lined up together under the USMEF umbrella.
The USMEF theme was “adaptability,” a reflection of the Japan office’s promotion of underutilized U.S. beef cuts and high-end U.S. pork cuts, but the “We Care” message for beef and the “Erabarete No. 1” slogan for pork were emphasized as well. This year’s FoodEx attracted 78,538 visitors and was an important tactic in USMEF-Japans strategic objectives for both U.S. beef and U.S. pork because it attracts buyers and key decision makers.
“In Japan, our focus for beef is reestablishing trust and restoring buyer confidence in U.S. beef by communicating its positive attributes, expanding the range of cuts and grades to increase its presence in the market, and alleviating buyers’ concerns about safety, quality, or supply,” said USMEF Japan Director Greg Hanes.
USMEF’s American Pork Cooking School taught by the Principal of the Akahori Cooking school, the oldest cooking school in Japan, was a popular draw at FoodEx Japan 2009.
“We work with the entire distribution chain and a great deal of our work is directed at the trade,” said Hanes. “In addition to concerns about availability and quality, it’s essential to educate key decision makers and influencers on the science of BSE and the risk mitigation measures in place in the United States to ensure safety and quality. FoodEx, as Japan’s premier trade show, is a prime opportunity to spread the message among decision makers who really count.”
U.S. pork has been the No. 1 imported pork in Japan for four years, capturing a 40 percent share in 2008, and the current USMEF campaign lets consumers know this. USMEF’s FoodEx presence allowed USMEF members to tell the Japanese trade that it should be proud to sell U.S. pork, a quality product that consumers are buying and enjoying without always knowing where it comes from. The trade learned at FoodEx that USMEF is working hard to tell consumers that U.S. pork is No. 1 in the current campaign.
FoodEx was also the perfect venue to demonstrate to the Japanese trade that USMEF is aggressively promoting high value U.S. pork cuts, such as back ribs, spare ribs and tenderloin, in Japan. The Japanese import duty system penalizes lower-cost cuts, so it’s important to encourage the trade to fill up containers with good combinations that include the higher value items. Delicious samples of cooked back ribs were a particularly effective sampling tool since only the U.S. can supply them.
“Our focus for pork,” said Hanes, “is to change the perception of U.S. pork from a commodity item to ‘the pork of choice’ while expanding the range of cuts used in Japan. We were very successful with the ‘Everyday Delicious— Mainichi Oishi,’ theme and are moving to the next stage with the ‘Erabarete No. 1 — Selected No. 1 (by you)’ message. In addition to expanding chilled pork sales at retail and food service, we are introducing more high-end cuts such as back ribs and tenderloins, which have not traditionally been high demand items. The promotion of processed items and other value-add products, such as pre-sliced or marinated items, are also a key part of our strategy.”
USMEF introduced U.S. beef and pork products, conducted tasting demonstrations and surveyed visitors’ reactions at FoodEx. Through visual aids and presentations USMEF displayed its recent campaigns in Japan and plans for the current year.
# # #
The U.S. Meat Export Federation (www.USMEF.org) is the trade association responsible for developing international markets for the U.S. red meat industry and is funded by USDA, exporting companies, and the beef, pork, corn and soybean checkoff programs.
24th Annual USMEF-ALIC Meeting Discusses Prices, Economic Downturn
President and CEO Phil Seng and Joel Haggard, senior vice president Asia-Pacific region, led a delegation to the 24th annual meeting between USMEF and Japan’s Agriculture & Livestock Industries Corporation (ALIC), an administrative agency wholly funded by the Japanese government.
The ALIC team, headed by President Hiroyuki Kinoshita, provided information on how the consumer price index (CPI) for food in Japan is rising but the amount of money spent on food is remaining stable. Although overall beef sales are down while pork and chicken sales are up slightly, the ALIC research shows that demand for economical items, including hamburgers and the traditional Japanese beef bowl , is increasing.
Due to the economic downturn, the wholesale price of beef in Japan has dropped and overall sales have declined slightly. That has not carried over to U.S. beef imports, however. In January 2009, total U.S. beef exports to Japan rose 31 percent to 4,069 metric tons (nearly 9 million pounds) valued at $21.8 million – an increase of 27 percent.
Similarly, U.S. pork exports to Japan continued an upward trend, increasing 28 percent in volume to 42,271 metric tons (93.2 million pounds) valued at $147.3 million – a 39 percent increase in value over January 2008.
Presenting for USMEF, Haggard noted that increasing feed costs are contributing to a decline in the global beef and pork supply . He added that the overall economic downturn has created a situation where the production decline has led to a fall in prices, putting additional pressure on supply.
Elaborating on the decline in global beef supply, Haggard outlined the shrinking of the U.S. cattle herd, noting that the beef cow inventory is at its lowest levels since 1963, and the total herd is down 1.6 percent from a year ago. He added that the annual cash cost per cow has increased from $294 per head in 2000 to $436 per head last year.
The USMEF team also provided the ALIC contingent with information on the dual programs it is conducting in Japan: the “Erabarete #1” campaign that thanks Japanese consumers for making U.S. pork the No. 1 imported pork in Japan; as well as the “We Care” campaign for U.S. beef.
USMEF Shares U.S. Pork and Beef Message with Trade at FoodEx
USMEF had a 16 booth-strong presence at this month’s FoodEx Japan 2009 at the Makuhari Messe convention center. Foodex is one of the biggest and arguably the most important food industry show in Japan, and seven USMEF members — Agri-West, Hastings Foods, Macsei Industries, National Beef Packing, SIG International, Smithfield and Sugardale — lined up together under the USMEF umbrella.
The USMEF theme was “adaptability,” a reflection of the Japan office’s promotion of underutilized U.S. beef cuts and high-end U.S. pork cuts, but the “We Care” message for beef and the “Erabarete No. 1” slogan for pork were emphasized as well. This year’s FoodEx attracted 78,538 visitors and was an important tactic in USMEF-Japans strategic objectives for both U.S. beef and U.S. pork because it attracts buyers and key decision makers.
“In Japan, our focus for beef is reestablishing trust and restoring buyer confidence in U.S. beef by communicating its positive attributes, expanding the range of cuts and grades to increase its presence in the market, and alleviating buyers’ concerns about safety, quality, or supply,” said USMEF Japan Director Greg Hanes.
USMEF’s American Pork Cooking School taught by the Principal of the Akahori Cooking school, the oldest cooking school in Japan, was a popular draw at FoodEx Japan 2009.
“We work with the entire distribution chain and a great deal of our work is directed at the trade,” said Hanes. “In addition to concerns about availability and quality, it’s essential to educate key decision makers and influencers on the science of BSE and the risk mitigation measures in place in the United States to ensure safety and quality. FoodEx, as Japan’s premier trade show, is a prime opportunity to spread the message among decision makers who really count.”
U.S. pork has been the No. 1 imported pork in Japan for four years, capturing a 40 percent share in 2008, and the current USMEF campaign lets consumers know this. USMEF’s FoodEx presence allowed USMEF members to tell the Japanese trade that it should be proud to sell U.S. pork, a quality product that consumers are buying and enjoying without always knowing where it comes from. The trade learned at FoodEx that USMEF is working hard to tell consumers that U.S. pork is No. 1 in the current campaign.
FoodEx was also the perfect venue to demonstrate to the Japanese trade that USMEF is aggressively promoting high value U.S. pork cuts, such as back ribs, spare ribs and tenderloin, in Japan. The Japanese import duty system penalizes lower-cost cuts, so it’s important to encourage the trade to fill up containers with good combinations that include the higher value items. Delicious samples of cooked back ribs were a particularly effective sampling tool since only the U.S. can supply them.
“Our focus for pork,” said Hanes, “is to change the perception of U.S. pork from a commodity item to ‘the pork of choice’ while expanding the range of cuts used in Japan. We were very successful with the ‘Everyday Delicious— Mainichi Oishi,’ theme and are moving to the next stage with the ‘Erabarete No. 1 — Selected No. 1 (by you)’ message. In addition to expanding chilled pork sales at retail and food service, we are introducing more high-end cuts such as back ribs and tenderloins, which have not traditionally been high demand items. The promotion of processed items and other value-add products, such as pre-sliced or marinated items, are also a key part of our strategy.”
USMEF introduced U.S. beef and pork products, conducted tasting demonstrations and surveyed visitors’ reactions at FoodEx. Through visual aids and presentations USMEF displayed its recent campaigns in Japan and plans for the current year.
# # #
The U.S. Meat Export Federation (www.USMEF.org) is the trade association responsible for developing international markets for the U.S. red meat industry and is funded by USDA, exporting companies, and the beef, pork, corn and soybean checkoff programs.