Audio: Expanded Access to Chile a Plus for U.S. Beef, but Labeling Issues Persist

In the attached audio report, USMEF Economist Erin Daley discusses Chile's
lifting of its 30-month cattle age restriction on U.S. beef imports. This move
is expected to have a positive impact on export activity, as Chile has recently
developed into our most promising beef market in South America. U.S. beef
exports to Chile more than tripled last year to $6.2 million, while Chile's total
beef imports from all sources topped $700 million.

With improved market access and with South American beef supplies being
very tight, Daley projects that U.S. exports to Chile could reach 4,000 metric
tons in 2011, with export value exceeding $22 million. She cautions,
however, that Chile's onerous labeling requirements have not changed, and
they will continue to temper export growth to this market. For example,
Chile requires individual labeling of primals and requires the equivalent Chilean
quality grade to be designated. These unique labeling regulations increase
costs for beef suppliers and can sometimes deter them from serving the
Chilean market.