Audio: Seng Comments on Export Opportunities in Taiwan, China
Published: Oct 16, 2012
U.S. Meat Export Federation President and CEO Philip Seng has just returned from the Greater China region, where he examined current market conditions for beef and pork. His first stop was Taiwan, which had been one of the fastest-growing markets in recent years for U.S. beef exports, setting new value records every year from 2006 to 2010. Beginning in early 2011, beef trade suffered a major setback due to Taiwan’s zero-tolerance policy on ractopamine use. Recently, however, Taiwan adopted a maximum residue level (MRL) for ractopamine residues in both imported and domestic beef, similar to the policy used in many other foreign markets. Seng says this policy change has rejuvenated buyer interest in U.S. beef across several commercial sectors in Taiwan, and created a much more favorable business climate.
With regard to mainland China, Seng notes that economic growth has slowed somewhat from the torrid pace China had seen in recent years. But this shouldn’t cool the U.S. meat industry’s interest in the market, because China still offers tremendous opportunities. He says regaining market access for U.S. beef in China is an urgent trade priority and adds that although China is already a key destination for U.S. pork, better availability of accurate market information would help the U.S. pork industry better serve this market.
TRANSCRIPT:
Joe Schuele: This is Joe Schuele with the U.S. Meat Export Federation Report. USMEF president and CEO Philip Seng, has just returned from the greater China region, where he examined market conditions for U.S. beef and pork. Beef exports to Taiwan had been slumping this year but Seng says buyer interest has been rejuvenated by a policy change regarding ractopamine use.
Phil Seng: I was in Taiwan just after the MRL was announced for ractopamine. The enthusiasm by the trade there to procure our product was amazing, as far as the beef side is concerned. I’m really impressed with how rapid it’s been as far as the major retailers, the major food service establishments, high-end hotels, chilled campaigns; all this is coming back in a very, very fast fashion. So, I think that says a lot about the framework and the base that’s been set in Taiwan as far as the safety of our product and, even though we’ve had some storms, we’ve done very, very well.
Joe Schuele: Despite a slowdown in economic growth in Mainland China, Seng sees tremendous opportunity there for U.S. pork and for U.S. beef if market access can be regained.
Phil Seng: They’re opening up a new Kentucky Fried Chicken every 13 hours in China, McDonalds is opening up every 36 hours in China. So, as you know, we don’t have access with beef to China and obviously this is something of paramount importance because that’s still a market, even though the numbers are sounding slow at 8% growth, it’s still a very dynamic market and we need to be part of that growth henceforth. One of the things on this trip that we tried to underscore when we met with officials there was we actually need more transparency in that market so we can see and understand better when China’s going to need more pork. When China goes into the market to buy pork, it effects the world’s price, its huge; they consume half the world’s pork. But, I did notice on this trip that a lot of the pork we’re exporting is not going into the strategic reserve, it’s actually going out into commerce as it comes into the market and that’s very, very encouraging. So, there’s change that’s going on there, again, it’s not as fast as we would like it, but the opportunity is China is pretty comprehensive when you take a look at it.
Joe Schuele: For more on this and other trade issues, please visit usme.org.
With regard to mainland China, Seng notes that economic growth has slowed somewhat from the torrid pace China had seen in recent years. But this shouldn’t cool the U.S. meat industry’s interest in the market, because China still offers tremendous opportunities. He says regaining market access for U.S. beef in China is an urgent trade priority and adds that although China is already a key destination for U.S. pork, better availability of accurate market information would help the U.S. pork industry better serve this market.
TRANSCRIPT:
Joe Schuele: This is Joe Schuele with the U.S. Meat Export Federation Report. USMEF president and CEO Philip Seng, has just returned from the greater China region, where he examined market conditions for U.S. beef and pork. Beef exports to Taiwan had been slumping this year but Seng says buyer interest has been rejuvenated by a policy change regarding ractopamine use.
Phil Seng: I was in Taiwan just after the MRL was announced for ractopamine. The enthusiasm by the trade there to procure our product was amazing, as far as the beef side is concerned. I’m really impressed with how rapid it’s been as far as the major retailers, the major food service establishments, high-end hotels, chilled campaigns; all this is coming back in a very, very fast fashion. So, I think that says a lot about the framework and the base that’s been set in Taiwan as far as the safety of our product and, even though we’ve had some storms, we’ve done very, very well.
Joe Schuele: Despite a slowdown in economic growth in Mainland China, Seng sees tremendous opportunity there for U.S. pork and for U.S. beef if market access can be regained.
Phil Seng: They’re opening up a new Kentucky Fried Chicken every 13 hours in China, McDonalds is opening up every 36 hours in China. So, as you know, we don’t have access with beef to China and obviously this is something of paramount importance because that’s still a market, even though the numbers are sounding slow at 8% growth, it’s still a very dynamic market and we need to be part of that growth henceforth. One of the things on this trip that we tried to underscore when we met with officials there was we actually need more transparency in that market so we can see and understand better when China’s going to need more pork. When China goes into the market to buy pork, it effects the world’s price, its huge; they consume half the world’s pork. But, I did notice on this trip that a lot of the pork we’re exporting is not going into the strategic reserve, it’s actually going out into commerce as it comes into the market and that’s very, very encouraging. So, there’s change that’s going on there, again, it’s not as fast as we would like it, but the opportunity is China is pretty comprehensive when you take a look at it.
Joe Schuele: For more on this and other trade issues, please visit usme.org.