A wave of excitement from consumers seeking U.S. beef has swept through Taiwa...

A wave of excitement from consumers seeking U.S. beef has swept through Taiwan since the country reopened to U.S. beef on April 16, ending a 16-month drought.

The U.S. Meat Export Federation (USMEF) is helping create this wave of enthusiasm with welcome-back festivities this week and a smart, hands-on plan for future expansion of U.S. beef in the market.

“The industry reaction in Taiwan to the return of U.S. beef has been phenomenal,” USMEF President and CEO Philip M. Seng said in a live teleconference from Taiwan. “There is a surge of interest when it comes to securing initial shipments of U.S. product.”

USMEF is celebrating the excitement with a festive Welcome Back U.S. Beef reception Friday, May 6 in Taiwan for 350 people. Seng, Douglas H. Paal, director of the American Institute in Taiwan (AIT), and a Taiwanese government official will speak, a cutting seminar showing popular cuts will be held and more than 10 packers will have U.S. meat on display.

The Regent Hotel was the first major company in Taiwan to import U.S. beef after the reopening. The hotel served a sumptuous dinner in their grill room. Guests eating U.S. beef were taped and interviewed and their testimonials have appeared more than 400 times on Taiwanese TV.

“Companies are strongly endorsing U.S. beef and putting in the forefront the message that they are happy to have U.S. beef back,” said Seng. “We are seeing a tremendous interest in the boneless short rib, rib-eye roll, short loin and top blade.”

Costco, which has four major stores in Taiwan, indicates it will be purchasing U.S. product at pre-ban levels as soon as supply allows. Costco has rationed U.S. product since the opening of the market so strong is the demand.

In 2003, the United States exported $76.5 million worth of beef and beef variety meat to Taiwan. Boneless beef, now eligible for export, accounted for $56.8 million or 74 percent of total U.S. beef exports to Taiwan. U.S. beef and beef variety meat exports to Taiwan totaled 19,184 metric tons (mt) (chilled and frozen) in 2003 with boneless beef accounting for 66 percent of the total.

U.S. beef exports to Taiwan are projected to reach 8,000 mt by year-end, according to Seng. USMEF’s work in Taiwan is not done, as plans for market expansion are already in the works. It all begins with the return of bone-in short ribs, a popular item in Taiwan, accounting for up to 35 percent of U.S. exports in 2003.

“We are not as bullish with our forecasts because the bone-in product is not eligible for export to Taiwan at this time,” Seng said. “We also recognize among Asian markets, Taiwan is not at the top of per-capita consumption, but it does allow for room to grow.”

USMEF is introducing new cuts into the marketplace to create interest and demand. Along with new cuts come new cooking concepts, such as Western-style cooking methods to appeal to consumer curiosity in novel dishes and dining experiences.

Brands are not forgotten, either as USMEF recognizes the trust inspired by established brand names. Taiwan imports 95 percent of its beef, so Seng said consumers are comfortable with purchasing imported, branded beef.

“It is going to be a slugfest for the United States to get back into the market,” Seng said. “I am struck by the tremendous promotional efforts by New Zealand and Australia, our top competitors. Most members of the trade indicate the competitors are just a substitute for the real beef, U.S. beef, however.”

Taiwan closed its borders to U.S. beef in December 2003 when a case of bovine spongiform encephalopathy (BSE) was discovered in a Canadian-born dairy cow in Washington State.

An agreement between the United States and Taiwan was reached April 7 to reopen on April 16 to U.S. boneless beef from cattle 30 months of age or under with total specific-risk material (SRM) removal. Beef must originate from U.S. Department of Agriculture (USDA) inspected and approved slaughter and processing facilities, which have been specified by the Department of Health in Taiwan.

“The Republic of China deserves compliments in relying on science, which is why the market is open today, while also delicately dealing with non-government organizations (NGOs) and partisan politics,” Seng said.

Seng also thanked the USDA, the U.S. government, and the AIT for their dedication in facilitating the market reopening. USMEF Vice President, Asia Pacific Joel Haggard and Taiwan Director Davis Wu provided critical information and insight to negotiators and to the Republic of China.

According to Seng, the Taiwan reopening will be helpful in negotiations with South Korea. “The pattern that Taiwan has set is going to have more impact in negotiations with Korea than Japan,” Seng said. “In Japan there is an established framework both governments are working with to reopen that market.”

The U.S. Meat Export Federation 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, sorghum and soybean checkoff programs.

– USMEF –

Please Note: Photos of the Welcome Back U.S. Beef reception taking place Friday, May 6 will be available to media early next week by e-mail or telephone request. Thank you.