Hong Kong to Allow Most Canadian Beef Products

Canada has announced that it has reached agreement with the government of Hong Kong to allow in most Canadian beef products from all ages of cattle in a phased opening that should begin imminently. This will significantly expand Canada’s overseas beef access. Although USMEF has not reviewed the details of the new protocol, Canadian press releases suggest that the final terms of the agreement with Hong Kong (once all three phases are complete) are in line with OIE guidelines on trade in beef products from controlled risk countries, including the allowance of bone-in product and offal from all ages of cattle. Full implementation of the three phases of access could be completed by the end of the year. There has been no announcement to date on the accord by the Hong Kong government.

Prior to the first North American BSE cases, Canada was a minor player in the Hong Kong beef market, accounting for just 140 metric tons (308,644 pounds) of the total 65,900 metric tons (145.3 million pounds) imported in 2003. Canada reached agreement with the Hong Kong government to reestablish the boneless beef trade from cattle under 30 months of age in November 2004, almost 13 months ahead of the U.S. Although full-year data is not yet available, Canada is likely to account for approximately 50 percent of Hong Kong’s North American grain-fed beef imports in 2008, a market of about 20,000 metric tons (44.1 million pounds). The U.S. held a 99 percent share of this market in 2003.

Canadian exports have gained a price advantage in recent months. Since the summer of 2008, the Canadian dollar has lost about 20 percent of its value versus the U.S. dollar. Hong Kong’s monthly beef imports from Canada increased in both October and November, while U.S. exports were strong in October but fell off in November.

The agreement is already creating buying interest among Hong Kong importers for bone-in short ribs, a popular item in local and ethnic Asian cuisine. In 2003, Hong Kong imported approximately 4,200 metric tons of bone-in U.S. beef, most of it short ribs. USMEF expects that the availability of bone-in grain-fed short ribs will result in additional sales of Canadian beef, and possibly some displacement of more expensive boneless short ribs from both the U.S. and Canada.

"There will be interest by retailers and other end users in highlighting the availability of bone-in ribs," said John Lam, USMEF Hong Kong's regional programs manager. Interest in featuring other bone-in Canadian products such as prime ribs and T-bones will also increase, although import of those items is not expected to begin before 2010. 

Canada has announced that it has reached agreement with the government of Hong Kong to allow in most Canadian beef products from all ages of cattle in a phased opening that should begin imminently. This will significantly expand Canada’s overseas beef access. Although USMEF has not reviewed the details of the new protocol, Canadian press releases suggest that the final terms of the agreement with Hong Kong (once all three phases are complete) are in line with OIE guidelines on trade in beef products from controlled risk countries, including the allowance of bone-in product and offal from all ages of cattle. Full implementation of the three phases of access could be completed by the end of the year. There has been no announcement to date on the accord by the Hong Kong government.

Prior to the first North American BSE cases, Canada was a minor player in the Hong Kong beef market, accounting for just 140 metric tons (308,644 pounds) of the total 65,900 metric tons (145.3 million pounds) imported in 2003. Canada reached agreement with the Hong Kong government to reestablish the boneless beef trade from cattle under 30 months of age in November 2004, almost 13 months ahead of the U.S. Although full-year data is not yet available, Canada is likely to account for approximately 50 percent of Hong Kong’s North American grain-fed beef imports in 2008, a market of about 20,000 metric tons (44.1 million pounds). The U.S. held a 99 percent share of this market in 2003.

Canadian exports have gained a price advantage in recent months. Since the summer of 2008, the Canadian dollar has lost about 20 percent of its value versus the U.S. dollar. Hong Kong’s monthly beef imports from Canada increased in both October and November, while U.S. exports were strong in October but fell off in November.

The agreement is already creating buying interest among Hong Kong importers for bone-in short ribs, a popular item in local and ethnic Asian cuisine. In 2003, Hong Kong imported approximately 4,200 metric tons of bone-in U.S. beef, most of it short ribs. USMEF expects that the availability of bone-in grain-fed short ribs will result in additional sales of Canadian beef, and possibly some displacement of more expensive boneless short ribs from both the U.S. and Canada.

"There will be interest by retailers and other end users in highlighting the availability of bone-in ribs," said John Lam, USMEF Hong Kong's regional programs manager. Interest in featuring other bone-in Canadian products such as prime ribs and T-bones will also increase, although import of those items is not expected to begin before 2010.