Audio: U.S. Pork Exports to Colombia Surging; Beef Also Gaining Traction
Published: Sep 10, 2013
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While the United States has been one of Colombia’s leading meat suppliers for many years, the volume of trade with Colombia was significantly held back by high duties and other trade barriers. The U.S.-Colombia Trade Agreement, which entered into force in May 2012, has made this market much more accessible and allowed the U.S. industry to capitalize on Colombia’s growing economy and rapidly increasing demand for higher-quality proteins.
Dan Halstrom, U.S. Meat Export Federation (USMEF) senior vice president for marketing and communications, explains that the business climate is particularly attractive for U.S. pork exporters serving Colombia’s meat processing sector. He adds, however, that retail chains such as Grupo Éxito are also featuring a wider range of fresh U.S. pork cuts in the meat case. As a result, Colombia has emerged as this year’s leading destination for U.S. pork in the Central/South America region. Through July, pork exports to Colombia more than doubled in volume (16,982 metric tons, +105 percent) and increased 87 percent in value (to $43 million) over last year’s pace.
While Colombia is still a relatively small beef market, U.S. beef exports are growing rapidly as well – especially in the retail sector through leading supermarket chains such as Carrefour and Grupo Éxito. Through July, U.S. beef exports to Columbia were up 424 percent in volume (1,435 metric tons) from a year ago and climbed 391 percent in value ($4.4 million).
Halstrom adds that while market access has already improved significantly, Colombia holds great potential for further growth as nearly all duties on U.S. pork are to be phased out completely by 2016 and beef duties will be eliminated by 2021.
(EDITOR’S NOTE: Export results cited include both muscle cuts and variety meat.)
TRANSCRIPT:
JOE SCHUELE: In this U.S. Meat Export Federation report we look at the surge in U.S. pork exports to Colombia; where a rapidly growing economy and improved market access through a free trade agreement have created a very favorable business climate. Dan Halstrom, USMEF’s Senior Vice President for Marketing and Communications, says the processing sector has been the biggest target in Colombia, but U.S. Pork is also having great success at the retail level.
DAN HALSTROM: You are seeing dramatic economic growth throughout the region but specifically in Colombia, increased demand for higher quality types of products, so we are seeing success in really all sectors of pork, specifically for the further process sector, imported fresh pork as a raw material for processing, things like boneless ham, bone-in hams, picnic meat these common items that go into further processing are really seeing a huge growth trend lines there but it is not only that further processing sector. We are also seeing quite a bit of success into the modern retail chains, such as Éxito, which is now featuring pork on a fresh basis at retail as well. It is really quite the success story in both of those segments.
JOE SCHUELE: Colombia is still a relatively small beef market, but U.S. beef exports are growing rapidly as well. Halstrom explains the keys to this success and feels the best is yet to come.
DAN HALSTROM: We are starting to see some growth in beef, mainly tied to that retail sector Éxito, Carrefour, some of these places are starting to feature more U.S. Beef. We are working closely with these retail chains because two years ago the presence of fresh U.S. beef and pork was virtually nothing and now we are starting to see a regular presence in retail in both species. We are quite happy with it but I think all that being said potential for future growth is even bigger. It is kind of a cascading affect with the partial duties coming off each year as a result of the FTA (Foreign Trade Agreement) so without a doubt when it is fully implemented we are going to be more competitive than ever.
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.
Dan Halstrom, U.S. Meat Export Federation (USMEF) senior vice president for marketing and communications, explains that the business climate is particularly attractive for U.S. pork exporters serving Colombia’s meat processing sector. He adds, however, that retail chains such as Grupo Éxito are also featuring a wider range of fresh U.S. pork cuts in the meat case. As a result, Colombia has emerged as this year’s leading destination for U.S. pork in the Central/South America region. Through July, pork exports to Colombia more than doubled in volume (16,982 metric tons, +105 percent) and increased 87 percent in value (to $43 million) over last year’s pace.
While Colombia is still a relatively small beef market, U.S. beef exports are growing rapidly as well – especially in the retail sector through leading supermarket chains such as Carrefour and Grupo Éxito. Through July, U.S. beef exports to Columbia were up 424 percent in volume (1,435 metric tons) from a year ago and climbed 391 percent in value ($4.4 million).
Halstrom adds that while market access has already improved significantly, Colombia holds great potential for further growth as nearly all duties on U.S. pork are to be phased out completely by 2016 and beef duties will be eliminated by 2021.
(EDITOR’S NOTE: Export results cited include both muscle cuts and variety meat.)
TRANSCRIPT:
JOE SCHUELE: In this U.S. Meat Export Federation report we look at the surge in U.S. pork exports to Colombia; where a rapidly growing economy and improved market access through a free trade agreement have created a very favorable business climate. Dan Halstrom, USMEF’s Senior Vice President for Marketing and Communications, says the processing sector has been the biggest target in Colombia, but U.S. Pork is also having great success at the retail level.
DAN HALSTROM: You are seeing dramatic economic growth throughout the region but specifically in Colombia, increased demand for higher quality types of products, so we are seeing success in really all sectors of pork, specifically for the further process sector, imported fresh pork as a raw material for processing, things like boneless ham, bone-in hams, picnic meat these common items that go into further processing are really seeing a huge growth trend lines there but it is not only that further processing sector. We are also seeing quite a bit of success into the modern retail chains, such as Éxito, which is now featuring pork on a fresh basis at retail as well. It is really quite the success story in both of those segments.
JOE SCHUELE: Colombia is still a relatively small beef market, but U.S. beef exports are growing rapidly as well. Halstrom explains the keys to this success and feels the best is yet to come.
DAN HALSTROM: We are starting to see some growth in beef, mainly tied to that retail sector Éxito, Carrefour, some of these places are starting to feature more U.S. Beef. We are working closely with these retail chains because two years ago the presence of fresh U.S. beef and pork was virtually nothing and now we are starting to see a regular presence in retail in both species. We are quite happy with it but I think all that being said potential for future growth is even bigger. It is kind of a cascading affect with the partial duties coming off each year as a result of the FTA (Foreign Trade Agreement) so without a doubt when it is fully implemented we are going to be more competitive than ever.
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.