USMEF President and CEO Philip Seng addresses the Checkoff Export Growth Committee

“There are some really great things happening in markets like Japan, Korea and Taiwan, and this is a result of the commitment you folks have made through your checkoff investment,” Seng said. “Because of that commitment, it’s phenomenal how the U.S. beef industry is able to touch people all across the world. And I can tell you that the international buyers and consumers that you’ve touched worldwide have a deep appreciation for your product.”

Dan Halstrom, USMEF senior vice president for marketing, and Greg Hanes, assistant vice president for international marketing and programs, briefed the committee on marketing activities and strategies in key destinations for U.S. beef, as well as efforts to identify and capitalize on emerging markets. Halstrom noted that in addition to the strong recent performance in Asia, demand for U.S. beef is regaining traction in Mexico.

“If there’s one pleasant surprise in 2016, given the economic environment, it’s been Mexico,” Halstrom said. “Despite the weakness of the peso versus the dollar and the pricing challenges we face there, Mexico is still a $1 billion market for U.S. beef that’s become very reliable and dependable. I don’t want to say that it’s price-inelastic, but demand there is definitely resilient.”

Halstrom cited Central and South America as a region that has recently developed into a strong destination for U.S. beef and noted that USMEF is always watchful for similar opportunities in other parts of the world. He cited West Africa as an area in which demand for protein is rapidly growing, and in which U.S. exporters have great interest. USMEF is also planning an August 18 buyers’ showcase in South Africa, which recently reopened to U.S. red meat.

Thad Lively, USMEF senior vice president for trade access, gave the committee an update on efforts to regain access for U.S. beef in China. He noted that China and Hong Kong (which is open to U.S. beef) may combine to import more than 1 million mt of beef in 2016, making it all the more important that the United States remain committed to reopening the Chinese market. Lively said that while technical negotiations with China can be very frustrating, this is the reality the U.S. industry faces as is seeks access to the world’s fastest-growing beef market.

Lively also briefed the committee on Saudi Arabia, which recently lifted a BSE-related ban imposed on U.S. beef in 2012. The Saudi government recently announced a lifting of this ban, but some technical criteria still must be worked out before shipments can resume. In 2011, the last full year before trade was suspended, exports to Saudi Arabia reached $31.5 million.

Travis Arp, USMEF director of market access and export services, and Cheyenne McEndaffer, technical services manager, updated the committee on several key issues impacting U.S. exports that are being addressed by the USMEF Technical Services Department. Arp explained efforts to gain approval in Japan for certain pathogen reduction treatments in order ensure smooth flow of product into the leading destination for U.S. beef. He also discussed how the U.S. industry worked with regulators in Egypt – a critical market for U.S. beef livers – to ease concerns about hormone use in beef production. McEndaffer explained tools the U.S. industry is using to educate international buyers about beef quality grading, as well as efforts to overcome cold chain challenges for U.S. beef shipments entering Colombia.

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