Audio: Seng Addresses February Export Results, Importance of Resolving COOL Dispute
Published: Apr 09, 2013
Through the first two months of 2013, U.S. beef exports are 7 percent ahead of last year’s record value pace, despite volume being down 2 percent. U.S. pork exports, which set records for both volume and value in 2012, are running behind last year’s pace by 8 percent and 7 percent, respectively. (NOTE: these figures include both muscle cuts and variety meat.) Complete export results are available at the USMEF statistics web page.
USMEF President and CEO Philip Seng explains that trade barriers played a major role in shaping these results, including Russia’s crackdown on beta agonists and new documentation requirements imposed on pork exports to China. He also notes that while expanded access for U.S. beef exports to Japan officially took effect Feb. 1, the impact of this change will be more prominent in the March results.
One of the best-performing markets during the first two months of the year was Canada, where U.S. beef exports already topped the $200 million mark and pork exports totaled $130.6 million. While U.S. meat exports to Canada are not often in the spotlight, Canada finished 2012 as the No. 1 value destination for U.S. beef ($1.18 billion) and ranked No. 4 for U.S. pork ($855.7 million). Seng says this underscores the importance of finding a solution to the ongoing country-of-origin labeling (COOL) dispute with both Canada and Mexico, where combined red meat export value was more than $4 billion* last year.
(*NOTE: Mexico ranked No. 3 in U.S. beef export value in 2012 at $822.4 million and was No. 2 in pork export value at $1.13 billion. It was also the leading volume destination for both products. Combined lamb exports to Mexico and Canada totaled more than $18 million.)
Comments on USDA’s proposed COOL revisions are due April 11 and the United States faces a May 23 deadline for bringing these regulations into compliance with World Trade Organization (WTO) obligations.
TRANSCRIPT
JOE SCHUELE: In this U.S. Meat Export Federation report, we speak with USMEF President and CEO Philip Seng about the newly-released export results through February of this year. He says Russia’s crackdown on beta agonists and new documentation requirements imposed on pork exports to China have been a significant setback.
PHILIP SENG: We have been really challenged from the standpoint of both of those markets. Those markets are critical to us, especially on the pork side. Also from a beef standpoint, we still don’t access to the Chinese market and the Russians, through their actions, have affected both beef and pork. So this has been a major hit to the complex, but we’re still quite bullish as far as what this year will bring and we’re working as earnestly as possible to get back into those markets.
JOE SCHUELE: Seng also notes that beef exports to Japan did not get the boost that some expected in February, but he expects this to change when the March results become available.
PHILIP SENG: I think a lot of the packers elected to exhaust what they had in the pipeline from 20-month cattle before they commenced with the 30-month. So that did give us a transition period as far as the Japanese market, but now we’re fully into the 30-month campaign, I think everything is working very well and we’re starting to see a strong ramp-up as far as our beef exports to Japan at this point.
JOE SCHUELE: One of the best-performing export markets during the first two months of the year was Canada, which underscores the importance of finding a solution to the ongoing country-of-origin labeling dispute between the United States, Canada and Mexico.
PHILIP SENG: I think it’s very important to keep in mind that two of the most reliable markets we’ve had over the past decade have been Canada and Mexico. Combined we sell about $4 billion worth of meat, north and south. So whatever we do, we can’t take those markets for granted. They’ve been fantastic markets as we’ve dealt in the last decade with all the issues we’ve had. They’ve been very reliable buyers, so I would hope that everyone would take full consideration of those markets as we deal with the COOL issue and other issues related to those two NAFTA countries.
JOE SCHUELE: For more on these and other trade issues, please visit usmef.org. For the U.S. Meat Export Federation, I’m Joe Schuele.
USMEF President and CEO Philip Seng explains that trade barriers played a major role in shaping these results, including Russia’s crackdown on beta agonists and new documentation requirements imposed on pork exports to China. He also notes that while expanded access for U.S. beef exports to Japan officially took effect Feb. 1, the impact of this change will be more prominent in the March results.
One of the best-performing markets during the first two months of the year was Canada, where U.S. beef exports already topped the $200 million mark and pork exports totaled $130.6 million. While U.S. meat exports to Canada are not often in the spotlight, Canada finished 2012 as the No. 1 value destination for U.S. beef ($1.18 billion) and ranked No. 4 for U.S. pork ($855.7 million). Seng says this underscores the importance of finding a solution to the ongoing country-of-origin labeling (COOL) dispute with both Canada and Mexico, where combined red meat export value was more than $4 billion* last year.
(*NOTE: Mexico ranked No. 3 in U.S. beef export value in 2012 at $822.4 million and was No. 2 in pork export value at $1.13 billion. It was also the leading volume destination for both products. Combined lamb exports to Mexico and Canada totaled more than $18 million.)
Comments on USDA’s proposed COOL revisions are due April 11 and the United States faces a May 23 deadline for bringing these regulations into compliance with World Trade Organization (WTO) obligations.
TRANSCRIPT
JOE SCHUELE: In this U.S. Meat Export Federation report, we speak with USMEF President and CEO Philip Seng about the newly-released export results through February of this year. He says Russia’s crackdown on beta agonists and new documentation requirements imposed on pork exports to China have been a significant setback.
PHILIP SENG: We have been really challenged from the standpoint of both of those markets. Those markets are critical to us, especially on the pork side. Also from a beef standpoint, we still don’t access to the Chinese market and the Russians, through their actions, have affected both beef and pork. So this has been a major hit to the complex, but we’re still quite bullish as far as what this year will bring and we’re working as earnestly as possible to get back into those markets.
JOE SCHUELE: Seng also notes that beef exports to Japan did not get the boost that some expected in February, but he expects this to change when the March results become available.
PHILIP SENG: I think a lot of the packers elected to exhaust what they had in the pipeline from 20-month cattle before they commenced with the 30-month. So that did give us a transition period as far as the Japanese market, but now we’re fully into the 30-month campaign, I think everything is working very well and we’re starting to see a strong ramp-up as far as our beef exports to Japan at this point.
JOE SCHUELE: One of the best-performing export markets during the first two months of the year was Canada, which underscores the importance of finding a solution to the ongoing country-of-origin labeling dispute between the United States, Canada and Mexico.
PHILIP SENG: I think it’s very important to keep in mind that two of the most reliable markets we’ve had over the past decade have been Canada and Mexico. Combined we sell about $4 billion worth of meat, north and south. So whatever we do, we can’t take those markets for granted. They’ve been fantastic markets as we’ve dealt in the last decade with all the issues we’ve had. They’ve been very reliable buyers, so I would hope that everyone would take full consideration of those markets as we deal with the COOL issue and other issues related to those two NAFTA countries.
JOE SCHUELE: For more on these and other trade issues, please visit usmef.org. For the U.S. Meat Export Federation, I’m Joe Schuele.