Audio: Expanded Access, Strong Business Climate Boost U.S. Beef Exports to Hong Kong

October 7, 2013

When Hong Kong expanded access for U.S. beef in February of this year, the move was somewhat overshadowed by Japan’s long-awaited change allowing beef from U.S. cattle up to 30 months of age. While Hong Kong was already taking beef from under-30-month cattle, access for U.S. beef was limited to boneless cuts only. The regulatory change made in February expanded access to include most bone-in cuts from cattle under 30 months of age, as well as boneless cuts from all U.S. cattle.

This policy opened new doors for U.S. beef in Hong Kong and the impact on exports has been dramatic. Export volume (through July) has doubled from a year ago to more than 60,000 metric tons. Export value is up 128 percent to $368.4 million, and has already set a full calendar year record.

Joel Haggard, who is based in Hong Kong as U.S. Meat Export Federation (USMEF) senior vice president for the Asia Pacific, explains how USMEF has capitalized on expanded access by marketing a wide range of beef cuts to several food industry sectors. While U.S. beef continues to perform very well in Hong Kong’s high-end steakhouses, it is now available to a much broader range of consumers. Haggard also notes that Hong Kong’s zero-duty access for imported beef helps U.S. exports remain strong, but also makes Hong Kong one of the most competitive markets in the world.

TRANSCRIPT:

Joe Schuele: In this U.S. Meat Export Federation report, we speak with USMEF senior vice president for the Asia Pacific, Joel Haggard, about the surge in U.S beef exports to Hong Kong. Haggard says that a regulatory change made earlier this year helped pave the way for expanded U.S. exports.

Joel Haggard: Earlier this spring, Hong Kong was open to bone-in beef under 30 months and all boneless beef. This resulted in significant bone-in sales, much of that is bone-in short ribs, but we are also shipping items such as prime rib and some other bone-in steak cuts. The Hong Kong economy is very strong, foodservice is strong, but at the same time, Hong Kong has developed a market for a wide variety of cuts. A wide variety of end-users ranging from fast food to lower-end frozen meat shops, and conventional western retail, Japanese restaurants, Korean restaurants, and Chinese restaurants. So U.S. beef is really doing well there in all sectors and export numbers show it.

Joe Schuele: Haggard notes that Hong Kong’s zero duty access for imported beef helps U.S. exports remain strong but also makes Hong Kong one of the most competitive markets in the world.

Joel Haggard: Zero duty is a benefit for us because it keeps prices lower, but at the same time it’s very competitive. Historically, we start in the high-end steak segment, but a real success story is the fuller utilization of carcass in that we've been able to trade down to some of these Asian cuts. We still have that high-end steak business, but we are also selling items such as hanging tenders, chuck flap tails, chuck rolls, finger meat and other Asian items.

Joe Schuele: For more on this and other trade issues please visit USMEF.org. For the U.S. Meat Export Federation, I’m Joe Schuele.

# # #

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. It is funded by USDA; the beef, pork, lamb, corn and soybean checkoff programs, as well as its members representing nine industry sectors: beef/veal producing & feeding, pork producing & feeding, lamb producing & feeding, packing & processing, purveying & trading, oilseeds producing, feedgrains producing, farm organizations and supply & service organizations.

USMEF complies with all equal opportunity, non-discrimination and affirmative action measures applicable to it by contract, government rule or regulation or as otherwise provided by law. The statement above was funded with non-checkoff funds.