Audio: Access Expanded for U.S. Beef in El Salvador, Mexico
Published: Sep 03, 2012
The U.S. beef industry recently received Some positive market access news in two Latin American markets: El Salvador, a small but promising market in Central America, lifted all age and product restrictions on U.S. beef, eliminating the need for an export verification program. Mexico, the largest volume destination for U.S. beef, is still limited to U.S. beef from cattle less than 30 months of age. However, the Mexican government has now agreed to allow import of four U.S. beef products that had been banned completely since 2003: small intestines, ground beef, head meat and weasand meat (which surrounds the esophagus).
Chad Russell, USMEF regional director for Mexico, Central America and the Dominican Republic, explains that El Salvador is a potentially strong market, as it currently imports a significant amount of beef (about 28 million pounds last year) from Nicaragua. Having a wider range of products eligible for El Salvador will help USMEF capitalize on retail promotions in El Salvador’s rapidly growing number of modern supermarkets. Though small geographically, El Salvador is the most densely populated country in Central America with a population of about 6 million, and four of Central America’s 12 largest cities are located in El Salvador.
U.S. beef exports to El Salvador more than doubled in value between 2009 and 2011, reaching nearly $1.2 million last year. The pace of exports has slowed so far in 2012, but Russell says wider availability of products should help reverse that trend.
Mexico’s decision to expand the range of eligible U.S. beef products will also help grow exports, even with the under-30-month cattle age restriction remaining in place for the time being. Small intestines are likely to be a popular item for export to Mexico, but Russell says demand for ground beef is also strong.
While a weak peso and rising prices have slowed beef exports to Mexico this year, it still ranks first in volume and third in value among foreign destinations for U.S. beef. Through June, beef and beef variety exports to Mexico totaled nearly 229 million pounds valued at $446 million.
TRANSCRIPT:
Joe Schuele: This is Joe Schuele with the U.S. Meat Export Federation report. Last week brought positive market access news for the U.S. beef industry in two Latin American markets; El Salvador a small, but promising market in Central America lifted all age and product restrictions on U.S. beef. USMEF regional director, Chad Russell explains.
Chad Russell: Of the Central American countries, El Salvador imports more beef than the rest of those markets. Unfortunately, they don’t import a lot from the United States; their principal foreign supplier at the moment is Nicaragua. So, with the lifting of these export verification requirements certainly should help the U.S. industry better position their beef products in El Salvador. El Salvador is a strategic target of USMEF. We’re doing seminars for the importers and distributors; we have done promotions with selected supermarket companies in El Salvador. There's a number of companies that have an increasing presence in the market place with modern, retail outlets. And now with the lifting of these import restrictions, we believe that that would make more products available to the market. Between our work in the market and the activities we’re doing and will continue to do, and with this improvement on market access, we should see continued growth.
Joe Schuele: While U.S. beef exports to Mexico are still limited to beef from cattle under 30 months of age, Russell says Mexico has now agreed to accept four product that had been banned since 2003.
Chad Russell: To allow Mexico to join the Trans Pacific Partnership free trade negotiation, the U.S. government was able to convince the Mexicans to agree to allow the four prohibited beef products related to BSE. Those products include ground beef, small intestine, head meat, and weasand meat.
Joe Schuele: Small intestines were thought to be the most critical of these items, but Russell says the demand for ground beef is also strong in Mexico.
Chad Russell: In recent years, that’s what we always were told, but, most recently, there seems to be a lot of interest in ground beef. So, it’s possible, that actually ground beef may have a greater market value of the four products that I mentioned.
Joe Schuele: For more on this and other trade issues, please visit USMEF.org.
Chad Russell, USMEF regional director for Mexico, Central America and the Dominican Republic, explains that El Salvador is a potentially strong market, as it currently imports a significant amount of beef (about 28 million pounds last year) from Nicaragua. Having a wider range of products eligible for El Salvador will help USMEF capitalize on retail promotions in El Salvador’s rapidly growing number of modern supermarkets. Though small geographically, El Salvador is the most densely populated country in Central America with a population of about 6 million, and four of Central America’s 12 largest cities are located in El Salvador.
U.S. beef exports to El Salvador more than doubled in value between 2009 and 2011, reaching nearly $1.2 million last year. The pace of exports has slowed so far in 2012, but Russell says wider availability of products should help reverse that trend.
Mexico’s decision to expand the range of eligible U.S. beef products will also help grow exports, even with the under-30-month cattle age restriction remaining in place for the time being. Small intestines are likely to be a popular item for export to Mexico, but Russell says demand for ground beef is also strong.
While a weak peso and rising prices have slowed beef exports to Mexico this year, it still ranks first in volume and third in value among foreign destinations for U.S. beef. Through June, beef and beef variety exports to Mexico totaled nearly 229 million pounds valued at $446 million.
TRANSCRIPT:
Joe Schuele: This is Joe Schuele with the U.S. Meat Export Federation report. Last week brought positive market access news for the U.S. beef industry in two Latin American markets; El Salvador a small, but promising market in Central America lifted all age and product restrictions on U.S. beef. USMEF regional director, Chad Russell explains.
Chad Russell: Of the Central American countries, El Salvador imports more beef than the rest of those markets. Unfortunately, they don’t import a lot from the United States; their principal foreign supplier at the moment is Nicaragua. So, with the lifting of these export verification requirements certainly should help the U.S. industry better position their beef products in El Salvador. El Salvador is a strategic target of USMEF. We’re doing seminars for the importers and distributors; we have done promotions with selected supermarket companies in El Salvador. There's a number of companies that have an increasing presence in the market place with modern, retail outlets. And now with the lifting of these import restrictions, we believe that that would make more products available to the market. Between our work in the market and the activities we’re doing and will continue to do, and with this improvement on market access, we should see continued growth.
Joe Schuele: While U.S. beef exports to Mexico are still limited to beef from cattle under 30 months of age, Russell says Mexico has now agreed to accept four product that had been banned since 2003.
Chad Russell: To allow Mexico to join the Trans Pacific Partnership free trade negotiation, the U.S. government was able to convince the Mexicans to agree to allow the four prohibited beef products related to BSE. Those products include ground beef, small intestine, head meat, and weasand meat.
Joe Schuele: Small intestines were thought to be the most critical of these items, but Russell says the demand for ground beef is also strong in Mexico.
Chad Russell: In recent years, that’s what we always were told, but, most recently, there seems to be a lot of interest in ground beef. So, it’s possible, that actually ground beef may have a greater market value of the four products that I mentioned.
Joe Schuele: For more on this and other trade issues, please visit USMEF.org.