News & Events | More Meat Imports Would Alleviate Rising Food Prices, USMEF’s Seng Tells Japanese Press...

Japan

More Meat Imports Would Alleviate Rising Food Prices, USMEF’s Seng Tells Japanese Press

Importing more meat would alleviate Japan’s rising food prices, USMEF President & CEO Philip Seng told a Japanese news conference. Food prices, said Seng, are climbing everywhere, and never before “have I seen such a period of turbulence and uncertainty in so many areas and all at the same time.”

This turbulence, according to Seng, is due to rising feed costs and declining livestock prices, the lowest-ever inventories, the lack of a finalized U.S. Farm Bill, stalled trade talks and a world economy threatened by recession — global problems that could best be met by governments engaging each other to resolve outstanding issues and normalize the meat trade.

Although Japan’s producers are enjoying high beef and pork prices, their feed costs soared 36 percent last year alone. Japan’s feed stabilization fund is almost depleted and Seng foresees an even greater escalation of input costs and higher prices, as illustrated by the Japanese agriculture ministry’s revision of the stabilization prices last month.

On the other hand the yen strengthened 18 percent last year against the dollar making U.S. pork and beef more attractive to the industry and consumers.

Seng told the gathered reporters that there was a lot of good news for U.S. beef and pork exports in 2007. The U.S. exported 358,582 metric tons valued at more than $1.1 billion to Japan, and 46,744 metric tons of beef valued at $244 million.

Japanese consumers, noted Seng, have warmly welcomed the return of U.S. beef and the United States is unable to supply all the pent-up demand. The Japanese government is rationalizing the process concerning BSE which may help future U.S. beef supplies. “I would encourage both governments to reconvene to further the rationalization process relative to U.S. beef imports,” Seng told reporters.

“We are pleased,” he added, “that U.S. pork has become widely accepted and is now a staple in the Japanese diet. U.S. pork is being sold in all sectors of the Japanese market, both retail and foodservice.

“USMEF is actively working to insure that Japan’s trade and consumers fully understand the value that is inherent in U.S. pork.”

As for the stalled trade talks, “It is time for action and less rhetoric.”

In response to several questions from journalists from Japan’s national newspapers, Seng said that World Trade Organization (OIE) and science-based standards are appropriate and fair. The United States is not asking Japan to relax its standards, but to rationalize them, and the Japanese government is now beginning to do that, in particular by moving away from 100-percent testing for BSE.

Worldwide

U.S. Pork Exports Break Monthly Record; Beef Exports Bullish

U.S. pork and pork variety meat exports set a new monthly record in January, breaking the one reached in November 2007. January exports totaled 147,692 metric tons valued at $333.59 million. January exports were 29 percent greater than January 2007, 15 percent greater than December 2007 and 4.5 percent greater than the previous record month in November 2007. January highlights include:

Exports to China/Hong Kong (33,851 metric tons; $59.888 million) made the region the No. 1 market in January, exceeding the record October export volume to China/Hong Kong by about 10,000 metric tons or 42 percent and 201 percent greater in volume and 272 percent higher in value compared to January 2007.
Japan was still the largest value market — $105.97 million, a 2 percent increase — although volume decreased 4 percent to 32,965 metric tons.
Exports to Mexico were nearly unchanged at 29,521 metric tons but the value increased 2 percent to $44.95 million.
Exports to Canada — 13,805 metric tons, $42.4 million — continued their strong pace from December and climbed 27 percent in volume and 29 percent in value compared to January 2007.
The strong December pace in exports to Russia continued in January for a total of 10,930 metric tons, a 141 percent increase over January 2007.

Beef Export Value Exceeds January 2003

Beef exports increased 37 percent in volume to 38,833 metric tons and 39 percent in value to $162.86 million. Beef variety meat exports increased 19 percent to 27,530 metric tons for a 47 percent increase in value to $60.7 million, and a combined total export volume of 66,363 metric tons and value of $223.6 million, an increase of 29 percent and 41 percent respectively. Although January 2007 export volume was 80 percent of the January 2003 export volume, the export value exceeded that of January 2003 by 20 percent. January highlights include:

Mexico was the top market with a 15 percent increase to 16,321 metric tons (not including variety meat) and $60.5 million.
Exports to Canada soared 79 percent in volume to 10,989 metric tons and 78 percent in value to $51.4 million. Exports to Canada have averaged about 12,000 metric tons per month since last May, driven by the falling U.S. dollar and increased Canadian live cattle exports to the United States.
Beef exports to Japan were up 7 percent in volume (2,948 metric tons) and 17 percent in value ($15.61) million. Exports should increase in the second and third quarter as more cattle under 21 months of age are marketed.
Vietnam jumped to No. 4 with U.S. beef exports totaling 2,491 metric tons, compared to 74 metric tons in January 2007.
Mexico was the No. 1 export market for beef variety meats in January. Exports climbed 40 percent in volume to 16,923 metric tons and 55 percent in value to $48.3 million.

Full January 2008 U.S. beef, pork and lamb statistics are online.