USMEF’s Seng Talks About Export Opportunities in North Asia

Although the economies of north Asia are feeling the effects of the global economic crisis, USMEF President and CEO Philip Seng sees notable opportunities for growth of U.S. beef and pork exports in this region. Seng said that while economic conditions in north Asia are certainly sluggish, they still offer a relatively stable and reliable destination for U.S. exports.  

Interviewed from Tokyo Thursday on Bloomberg TV’s Bloomberg Now, Seng noted that both Japan and South Korea hold the potential for beef sales increases as high as 25 percent in the coming year. Ensuring complete access in both markets remains one of the primary challenges.

“At the consumer level, there is definitely pent-up demand in these markets,” Seng said. “Current economic conditions are causing consumers to pull back on spending, but with greater access to these markets and further stimulation from some of the USMEF promotional programs we’ve developed, we’re bullish. We feel we’re going to see an uptick in our exports of both beef and pork to Korea and Japan this year.”

While the U.S. beef industry is looking to rebuild its presence in north Asia, U.S. pork has developed a very loyal following in the region. Japan is consistently the largest volume and value destination for U.S. pork, and the United States is Japan’s market share leader for pork exports. Korea ranked as the United States’ sixth-largest pork export market in 2008.

“We export about 25 percent of total U.S. pork production,” Seng added. “So the international marketplace is extremely important for the U.S. red meat industry, and some of the best opportunities for growth are right here in north Asia.”

Seng is confident that a creative approach to these markets, with a focus on specific niches that offer greater potential, will help support growth of U.S. exports. For example, he noted that the convenience store market in Japan, which has been increasingly receptive to U.S. pork, is continuing to grow at about a 6 percent rate.

Ensuring continued and expanded access for U.S. pork and beef exports remains a key objective. U.S. beef access in Korea is limited primarily by the economic climate and some consumer sentiment left over from protests conducted in the summer of 2008. For Japan, Seng expressed the hope that expanding access for U.S. beef in Japan would be an early priority for the Obama administration.

“We see tremendous potential if our governments can come to an agreement that allows us to ship a larger share of our production to Japan,” he said. “We’re leaving $1 billion per year on the table in Japan alone.”

But Seng emphasized that the U.S. beef industry isn’t waiting idly for expanded access in Japan. With a growing number of U.S. producers age-verifying their cattle, beef from 30 percent more slaughter cattle should be eligible for export to Japan this year. USMEF has also worked with the industry to develop a wider range of beef cuts for Japanese retail and foodservice outlets, which will grow the available supply of Japan-eligible beef. Specifically, USMEF-Japan is working with the trade to expand the volume of eligible beef by introducing select and ungraded beef cuts where the trade traditionally has preferred higher quality prime and select cuts.

Seng added that Taiwan – the sixth-largest market for U.S. beef last year – may also represent a significant growth opportunity through expanded market access. Taiwan currently accepts only boneless beef cuts from U.S. cattle less than 30 months of age, but is considering a measure that would allow bone-in beef cuts and variety meats to be imported from the United States.

Seng also noted that several Asian nations are enacting economic stimulus measures to bolster consumer spending. Japan, for example, has announced a program to make available 12,000 yen (about $123.00) per resident, which should provide a short-term boost for retail and foodservice activity. This comes at a time when falling grain prices and soft domestic demand are making U.S. beef and pork more competitively priced in overseas markets, which will also help drive sales.

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The U.S. Meat Export Federation (www.USMEF.org) is the trade association responsible for developing international markets for the U.S. red meat industry and is funded by USDA, exporting companies, and the beef, pork, corn and soybean checkoff programs.

Although the economies of north Asia are feeling the effects of the global economic crisis, USMEF President and CEO Philip Seng sees notable opportunities for growth of U.S. beef and pork exports in this region. Seng said that while economic conditions in north Asia are certainly sluggish, they still offer a relatively stable and reliable destination for U.S. exports.  

Interviewed from Tokyo Thursday on Bloomberg TV’s Bloomberg Now, Seng noted that both Japan and South Korea hold the potential for beef sales increases as high as 25 percent in the coming year. Ensuring complete access in both markets remains one of the primary challenges.

“At the consumer level, there is definitely pent-up demand in these markets,” Seng said. “Current economic conditions are causing consumers to pull back on spending, but with greater access to these markets and further stimulation from some of the USMEF promotional programs we’ve developed, we’re bullish. We feel we’re going to see an uptick in our exports of both beef and pork to Korea and Japan this year.”

While the U.S. beef industry is looking to rebuild its presence in north Asia, U.S. pork has developed a very loyal following in the region. Japan is consistently the largest volume and value destination for U.S. pork, and the United States is Japan’s market share leader for pork exports. Korea ranked as the United States’ sixth-largest pork export market in 2008.

“We export about 25 percent of total U.S. pork production,” Seng added. “So the international marketplace is extremely important for the U.S. red meat industry, and some of the best opportunities for growth are right here in north Asia.”

Seng is confident that a creative approach to these markets, with a focus on specific niches that offer greater potential, will help support growth of U.S. exports. For example, he noted that the convenience store market in Japan, which has been increasingly receptive to U.S. pork, is continuing to grow at about a 6 percent rate.

Ensuring continued and expanded access for U.S. pork and beef exports remains a key objective. U.S. beef access in Korea is limited primarily by the economic climate and some consumer sentiment left over from protests conducted in the summer of 2008. For Japan, Seng expressed the hope that expanding access for U.S. beef in Japan would be an early priority for the Obama administration.

“We see tremendous potential if our governments can come to an agreement that allows us to ship a larger share of our production to Japan,” he said. “We’re leaving $1 billion per year on the table in Japan alone.”

But Seng emphasized that the U.S. beef industry isn’t waiting idly for expanded access in Japan. With a growing number of U.S. producers age-verifying their cattle, beef from 30 percent more slaughter cattle should be eligible for export to Japan this year. USMEF has also worked with the industry to develop a wider range of beef cuts for Japanese retail and foodservice outlets, which will grow the available supply of Japan-eligible beef. Specifically, USMEF-Japan is working with the trade to expand the volume of eligible beef by introducing select and ungraded beef cuts where the trade traditionally has preferred higher quality prime and select cuts.

Seng added that Taiwan – the sixth-largest market for U.S. beef last year – may also represent a significant growth opportunity through expanded market access. Taiwan currently accepts only boneless beef cuts from U.S. cattle less than 30 months of age, but is considering a measure that would allow bone-in beef cuts and variety meats to be imported from the United States.

Seng also noted that several Asian nations are enacting economic stimulus measures to bolster consumer spending. Japan, for example, has announced a program to make available 12,000 yen (about $123.00) per resident, which should provide a short-term boost for retail and foodservice activity. This comes at a time when falling grain prices and soft domestic demand are making U.S. beef and pork more competitively priced in overseas markets, which will also help drive sales.

# # #

The U.S. Meat Export Federation (www.USMEF.org) is the trade association responsible for developing international markets for the U.S. red meat industry and is funded by USDA, exporting companies, and the beef, pork, corn and soybean checkoff programs.