USMEF Meets with U.S. Department of Transportation Secretary Mary Peters

USMEF Meets with U.S. Department of Transportation Secretary Mary Peters

USMEF Director of Export Services Kevin Smith was among a group of Colorado officials who met yesterday with U.S. Department of Transportation Secretary Mary Peters in Denver to discuss pressing transportation issues.

Secretary Peters used the meeting to reiterate her support of the Cross Border Trucking Pilot Program, which is vital in keeping trade flowing between the United States and Mexico.

Smith noted that Mexico is currently the largest foreign market for U.S. beef and beef variety meats, importing 33,244 metric tons (more than 73 million pounds) worth $109 million in January 2008, the most recent available statistics. Mexico is the second largest foreign market for U.S. pork and pork variety meats, with imports of 29,521 metric tons (more than 65 million pounds) valued at $45 million in January 2008.

Smith raised the issue of the shortage of refrigerated shipping containers and shipping vessels to transport U.S. beef and pork exports to overseas markets – a shortage that is especially harmful at a time when a weak U.S. dollar makes U.S. exports particularly attractive. He also noted that specific programs at the key West Coast ports of Long Beach and Los Angeles, the Clean Trucking program, the Truck Concession program, and the Infrastructure and Environment program, are adding costs for exporters. Fees for utilizing these ports have increased from $100 to more than $200 per container, and some of these programs, like the Truck Concession program, add additional costs to exports that do not originate near the ports, creating a disadvantage for U.S. meat producers in the Midwest.

“USMEF is working closely with the Agriculture Transportation Coalition (AgTC) to monitor transportation issues that are critically important for our members, and to bring these concerns to key officials, like Secretary Peters, to find solutions,” said Philip M. Seng, president and CEO of USMEF.

The letter that USMEF presented to Secretary Peters can be read online.

European Union

EU Beef Import Situation Hurts Value Of Licenses

A shortage of beef available for import and high prices for imported beef due to the Brazilian situation is making life difficult for European Union (EU) importers. With three-quarters of the GATT year over, only 56 percent of the licenses have been used; 23,000 metric tons out of the 53,000 metric ton quota remain unused. Importers cannot make a profit reselling South American beef. The market value of beef import licenses could drop below €1,000 per metric ton as importers seek buyers for their licenses instead of utilizing them to import extremely expensive beef. Although they could soon be valueless, every holder needs to use their licenses in order to maintain references for getting them again the following year.

With full duty at 12.8 percent ad valorem plus a specific duty of €3,080 per metric ton, the advantage of GATT import licenses (20 percent ad valorem only) has traditionally traded at above €2,000 per metric ton (with an average historical imported meat purchase price of €4,000 per metric ton C +F, the theoretical maximum value of a GATT license was €2,800 per metric ton).

USMEF Meets with U.S. Department of Transportation Secretary Mary Peters

USMEF Director of Export Services Kevin Smith was among a group of Colorado officials who met yesterday with U.S. Department of Transportation Secretary Mary Peters in Denver to discuss pressing transportation issues.

Secretary Peters used the meeting to reiterate her support of the Cross Border Trucking Pilot Program, which is vital in keeping trade flowing between the United States and Mexico.

Smith noted that Mexico is currently the largest foreign market for U.S. beef and beef variety meats, importing 33,244 metric tons (more than 73 million pounds) worth $109 million in January 2008, the most recent available statistics. Mexico is the second largest foreign market for U.S. pork and pork variety meats, with imports of 29,521 metric tons (more than 65 million pounds) valued at $45 million in January 2008.

Smith raised the issue of the shortage of refrigerated shipping containers and shipping vessels to transport U.S. beef and pork exports to overseas markets – a shortage that is especially harmful at a time when a weak U.S. dollar makes U.S. exports particularly attractive. He also noted that specific programs at the key West Coast ports of Long Beach and Los Angeles, the Clean Trucking program, the Truck Concession program, and the Infrastructure and Environment program, are adding costs for exporters. Fees for utilizing these ports have increased from $100 to more than $200 per container, and some of these programs, like the Truck Concession program, add additional costs to exports that do not originate near the ports, creating a disadvantage for U.S. meat producers in the Midwest.

“USMEF is working closely with the Agriculture Transportation Coalition (AgTC) to monitor transportation issues that are critically important for our members, and to bring these concerns to key officials, like Secretary Peters, to find solutions,” said Philip M. Seng, president and CEO of USMEF.

The letter that USMEF presented to Secretary Peters can be read online.

European Union

EU Beef Import Situation Hurts Value Of Licenses

A shortage of beef available for import and high prices for imported beef due to the Brazilian situation is making life difficult for European Union (EU) importers. With three-quarters of the GATT year over, only 56 percent of the licenses have been used; 23,000 metric tons out of the 53,000 metric ton quota remain unused. Importers cannot make a profit reselling South American beef. The market value of beef import licenses could drop below €1,000 per metric ton as importers seek buyers for their licenses instead of utilizing them to import extremely expensive beef. Although they could soon be valueless, every holder needs to use their licenses in order to maintain references for getting them again the following year.

With full duty at 12.8 percent ad valorem plus a specific duty of €3,080 per metric ton, the advantage of GATT import licenses (20 percent ad valorem only) has traditionally traded at above €2,000 per metric ton (with an average historical imported meat purchase price of €4,000 per metric ton C +F, the theoretical maximum value of a GATT license was €2,800 per metric ton).