Promising Outlook For U.S. Pork And Beef In 2008
Russia
Promising Outlook For U.S. Pork And Beef In 2008
Rising demand from booming HRI and retail sectors, which domestic production cannot satisfy, coupled with growing quality expectations from consumers ensure that Russia will import more beef in 2008. The challenge for U.S. beef is to reestablish its presence after a four-year ban and a successful positioning of Australian and Argentinean beef products in the Russian market. For beef livers and round cuts, price will be the key element in capturing a significant market share. U.S. beef is reentering the Russian market at a time when prices in Brazil have reached record highs and the Brazilian real continues to strengthen against the U.S. dollar. With the continuing weakness of the dollar, these factors combine to make U.S. beef an attractive proposition for Russian importers.
The first shipments of high quality U.S. beef — tenderloins, striploins and ribeyes — since late 2003 delighted importers by selling well. Beef offal is expected to do well, too. In 2003, the United States exported 60,752 metric tons of beef variety meat to Russia.
2007 was a banner year for the U.S. pork industry in Russia. U.S. pork (including variety meat) exports to Russia soared 21 percent to 99,876 metric tons. Since Russia is the second largest pork importer in the world, the growing demand for branded products and quality cuts will benefit U.S. pork in 2008. As with beef, prices are competitive, and pork butt, boneless ham, bone-in and boneless loin are the most popular U.S. cuts. As for variety meat, pork cheek meat and trimmings (72 percent lean) are successful items in the Russian Far East and Siberia.
The return of U.S. beef and the bright prospects for U.S. pork made USMEF’s presence at Moscow’s prestigious Prodexpo Trade show (Feb. 11-15), the biggest annual food show in Russia, a great opportunity for U.S. meat suppliers to meet with customers from Kaliningrad to Vladivostok, as well as from Ukraine, Tajikistan and Armenia.
USMEF hosted a reception on February 13, attended by more than 200 guests including Allan Mustard, minister counsellor for agricultural affairs, and a USMEF delegation led by Thad Lively, senior vice president of policy planning and research. The delegation had an opportunity to meet with both U.S. suppliers and Russian meat traders and to be among the first people in Russia to taste top quality U.S. beef cuts since the lifting of the ban on U.S. beef (Oct. 2007). The success of the reception and the presence of leading Russian meat companies confirmed the high demand for both U.S. beef and pork in Russia. The Russian meat trade is becoming more regularized as companies specializing in meat imports replace more opportunistic traders. This evolution contributes to creating more transparent and predictable relationships for U.S. exporters.
Russia
Promising Outlook For U.S. Pork And Beef In 2008
Rising demand from booming HRI and retail sectors, which domestic production cannot satisfy, coupled with growing quality expectations from consumers ensure that Russia will import more beef in 2008. The challenge for U.S. beef is to reestablish its presence after a four-year ban and a successful positioning of Australian and Argentinean beef products in the Russian market. For beef livers and round cuts, price will be the key element in capturing a significant market share. U.S. beef is reentering the Russian market at a time when prices in Brazil have reached record highs and the Brazilian real continues to strengthen against the U.S. dollar. With the continuing weakness of the dollar, these factors combine to make U.S. beef an attractive proposition for Russian importers.
The first shipments of high quality U.S. beef — tenderloins, striploins and ribeyes — since late 2003 delighted importers by selling well. Beef offal is expected to do well, too. In 2003, the United States exported 60,752 metric tons of beef variety meat to Russia.
2007 was a banner year for the U.S. pork industry in Russia. U.S. pork (including variety meat) exports to Russia soared 21 percent to 99,876 metric tons. Since Russia is the second largest pork importer in the world, the growing demand for branded products and quality cuts will benefit U.S. pork in 2008. As with beef, prices are competitive, and pork butt, boneless ham, bone-in and boneless loin are the most popular U.S. cuts. As for variety meat, pork cheek meat and trimmings (72 percent lean) are successful items in the Russian Far East and Siberia.
The return of U.S. beef and the bright prospects for U.S. pork made USMEF’s presence at Moscow’s prestigious Prodexpo Trade show (Feb. 11-15), the biggest annual food show in Russia, a great opportunity for U.S. meat suppliers to meet with customers from Kaliningrad to Vladivostok, as well as from Ukraine, Tajikistan and Armenia.
USMEF hosted a reception on February 13, attended by more than 200 guests including Allan Mustard, minister counsellor for agricultural affairs, and a USMEF delegation led by Thad Lively, senior vice president of policy planning and research. The delegation had an opportunity to meet with both U.S. suppliers and Russian meat traders and to be among the first people in Russia to taste top quality U.S. beef cuts since the lifting of the ban on U.S. beef (Oct. 2007). The success of the reception and the presence of leading Russian meat companies confirmed the high demand for both U.S. beef and pork in Russia. The Russian meat trade is becoming more regularized as companies specializing in meat imports replace more opportunistic traders. This evolution contributes to creating more transparent and predictable relationships for U.S. exporters.