Discussing business one-on-one is an effective way to build trust and forge p...

Discussing business one-on-one is an effective way to build trust and forge partnerships, but isn’t always easy for companies selling their wares outside the United States. The U.S. Meat Export Federation (USMEF) gave that opportunity to six U.S. companies on a five-day trip to Chile in mid-October.

USMEF selected the packers, processors and retail and restaurant representatives the group met in Chile as likely buyers of U.S. pork processed products and other branded U.S. pork and beef products.

“In the past, the pork processing industry in Chile purchased Canadian pork because there was very little contact from U.S. companies,” said Ricardo Vernazza-Paganini, USMEF director of Central and South America, who organized and led the trip.

Vernazza-Paganini’s study of the import market has taught him that the United States must first overcome Chile’s lack of knowledge of the quality and scope of U.S. pork and beef. Allowing team members to communicate the high quality, safety and versatility of their specific products to Chilean meat industry visitors at the Expo Alimentaria trade show in Santiago was a useful step towards this goal. By sharing a booth with the U.S. Department of Agriculture (USDA), USMEF was also able to concentrate on its messages of safety and rigorous inspection.

“Our presence at the trade show increased our exposure and netted additional meetings with potential customers,” Vernazza-Paganini said. “USMEF members were able to meet with Chilean companies from a variety of sectors to develop partnerships for market expansion.”

The team arrived in Santiago with 10 scheduled visits to key players in the Chilean meat industry, arranged by Vernazza-Paganini, who traveled to Chile last February to assess the market and to establish initial relationships as a first step into this potentially profitable market.

By the end of the five-day trip, the team had met with 14 companies, including the five largest Chilean pork packers, two of the largest retail chains, two meat importers and a restaurant chain, Ruby Tuesday, which has 11 outlets in Chile.

USMEF sees opportunities in Chile for U.S. pork processed items such as trimming, backfat and picnic in addition to branded U.S. pork and beef products.

The retail sector is rapidly expanding and has become a driving force for food imports. Grocery stores sell approximately 60 percent of all meat products consumed in Chile. Vernazza-Paganini found significant interest in U.S. pork and beef muscle cuts in addition to case-ready products.

Another fast-growing sector is foodservice, specifically U.S. casual dining chains such as Applebee’s, TGI Friday’s and Ruby Tuesday, which expressed great interest in featuring U.S. pork ribs on its menu.

U.S. pork gained free access to Chile in January 2004 due to the U.S.-Chile Free Trade Agreement (FTA). Through the first eight months of this year, U.S. pork and pork variety meat exports to Chile increased 42 percent in volume to 8 metric tons (mt) and 115 percent in value to $39,147 compared to the same period last year.

The Chilean pork industry’s expansion into international markets is creating a shortage in the domestic pork supply as exports are more lucrative. Animal disease issues prevent several Brazilian states from sending pork to Chile, increasing the potential for the U.S. industry.

Chile opened its market in late July to both chilled and frozen boneless U.S. beef from animals of under 30 months of age. Through the first eight months of this year, U.S. beef and beef variety meat exports to Chile increased 419 percent in volume to 14 mt and 393 percent in value to $58,210 compared to the same period last year.

The FTA provides for the mutual recognition of each country’s beef grading systems, allowing USDA to certify U.S. beef for export to Chile. The agreement also removes all tariff and quota restrictions for beef in January 2007.

Vernazza-Paganini said U.S. beef will find success in Chile with a niche market approach since there is strong price competition from imports from other South American countries. The target audience is high-end consumers who already see the consumption of U.S. products as a mark of high socioeconomic status.

The U.S. Meat Export Federation is the trade association responsible for developing international markets for the U.S. red meat industry and is funded by USDA, exporting companies, and the beef, pork, lamb, corn, sorghum and soybean checkoff programs.

– USMEF –

The following photos are available with this release:

Photo 1– Chefs prepare samples of U.S. pork for trade show visitors in Chile. Meat samples and direct contact with U.S. companies sparked interest from potential customers.

Photo 2– USMEF shared a booth with USDA at the trade show in Chile to draw in potential importers of U.S. red meat in efforts to expand the growing market.