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USMEF Senior Management Team Analyzes Export Challenges

Published: Jan 16, 2009

USMEF’s global management team met this week to strategize, exchange ideas and determine where resources can be shared across the organization’s network to maximize export opportunities for U.S. pork, beef and lamb, both in the near term and the future.

“While all of our program activities are geared toward enhancing the penetration of U.S. pork, beef and lamb, in light of the global economic situation and USDA’s projection of declining agricultural exports, we are reviewing all program elements for the coming year to determine where we can create the greatest short-term impact on exports,” said Philip Seng, USMEF president and CEO.

USMEF’s senior managers representing Japan, Mexico, South Korea, the European Union, Taiwan, Russia, the Middle East, Hong Kong/China, Central and South America, and the ASEAN region met with the organization’s Denver-based executive team to reassess each country’s programming and projections for the coming year or two.

“USMEF’s approach to the export challenge traditionally involves a mix of programs designed to develop new markets for U.S. pork, beef and lamb as well as to build and sustain loyalty created in existing markets,” said Seng. “We remain committed to the long-range approach to developing international markets for our exports, but the current market conditions make it imperative that we explore every avenue where we might shift some resources to see where we can move the needle.”

Coming out of the meeting, USMEF’s international directors have developed a revised agenda for the coming year that includes increased focus on geographic areas that have not adopted U.S. pork and beef products, areas where resources can be shared across the association’s network, incentive programs in the distribution channel, enhanced consumer and trade education programs, targeted business development teams, examining opportunities in value-added products, and focusing increased resources on niches dominated by competitors’ products.

“We will continue to devote considerable resources to supporting critical technical services and market access programs, as well as issue management,” said Seng, “but we believe that this review process will help us realize additional results in support of U.S. agricultural exports.”

Mexico’s Combo Ban Now Limited to Frozen Products

The government of Mexico has modified its proposed ban on meat shipped in combo bins so that it will prohibit frozen products only. In documents released Jan. 15, SAGARPA announced that it will allow fresh chilled products to be shipped in combo bins, but with the stipulation that these shipments will be 100 percent inspected at three levels of each combo bin. These changes are set to take effect Jan. 30.

While this announcement represents significant progress, the 100-percent inspection requirement could still prove to be a costly barrier for U.S. meat exporters.

“This inspection requirement clearly exceeds the labor resources currently available at ports of entry,” said Paul Clayton, USMEF senior vice present of export services. “We hope that with all NAFTA partners working together toward a solution, this inspection rate can be corrected to a workable level. The meat industry wants to adequately address Mexico’s concerns, but we must also be able to complete border inspections in a timely manner.”

Members who have questions regarding the proposed combo policy should contact USMEF Export Services at 303-623-6328.

USMEF’s global management team met this week to strategize, exchange ideas and determine where resources can be shared across the organization’s network to maximize export opportunities for U.S. pork, beef and lamb, both in the near term and the future.

“While all of our program activities are geared toward enhancing the penetration of U.S. pork, beef and lamb, in light of the global economic situation and USDA’s projection of declining agricultural exports, we are reviewing all program elements for the coming year to determine where we can create the greatest short-term impact on exports,” said Philip Seng, USMEF president and CEO.

USMEF’s senior managers representing Japan, Mexico, South Korea, the European Union, Taiwan, Russia, the Middle East, Hong Kong/China, Central and South America, and the ASEAN region met with the organization’s Denver-based executive team to reassess each country’s programming and projections for the coming year or two.

“USMEF’s approach to the export challenge traditionally involves a mix of programs designed to develop new markets for U.S. pork, beef and lamb as well as to build and sustain loyalty created in existing markets,” said Seng. “We remain committed to the long-range approach to developing international markets for our exports, but the current market conditions make it imperative that we explore every avenue where we might shift some resources to see where we can move the needle.”

Coming out of the meeting, USMEF’s international directors have developed a revised agenda for the coming year that includes increased focus on geographic areas that have not adopted U.S. pork and beef products, areas where resources can be shared across the association’s network, incentive programs in the distribution channel, enhanced consumer and trade education programs, targeted business development teams, examining opportunities in value-added products, and focusing increased resources on niches dominated by competitors’ products.

“We will continue to devote considerable resources to supporting critical technical services and market access programs, as well as issue management,” said Seng, “but we believe that this review process will help us realize additional results in support of U.S. agricultural exports.”

Mexico’s Combo Ban Now Limited to Frozen Products

The government of Mexico has modified its proposed ban on meat shipped in combo bins so that it will prohibit frozen products only. In documents released Jan. 15, SAGARPA announced that it will allow fresh chilled products to be shipped in combo bins, but with the stipulation that these shipments will be 100 percent inspected at three levels of each combo bin. These changes are set to take effect Jan. 30.

While this announcement represents significant progress, the 100-percent inspection requirement could still prove to be a costly barrier for U.S. meat exporters.

“This inspection requirement clearly exceeds the labor resources currently available at ports of entry,” said Paul Clayton, USMEF senior vice present of export services. “We hope that with all NAFTA partners working together toward a solution, this inspection rate can be corrected to a workable level. The meat industry wants to adequately address Mexico’s concerns, but we must also be able to complete border inspections in a timely manner.”

Members who have questions regarding the proposed combo policy should contact USMEF Export Services at 303-623-6328.