South China’s foodservice industry is expanding rapidly and its upscale hot...

South China’s foodservice industry is expanding rapidly and its upscale hotels and restaurants are demanding increasing supplies of consistently high-quality beef.

Using funds from the USDA Quality Samples Program (QSP), the U.S. Meat Export Federation (USMEF) in partnership with a Guangzhou-based meat importer and distributor recently tested the feasibility of producing consistently-sized portion-control U.S. beef cuts to meet the demands of the market. Because the cuts are uniform in size and quality, buyers can rely on them to produce regular sales and a consistent profit. The importer/distributor offers these U.S. beef cuts to western-style restaurants, a rapidly expanding segment of South China’s foodservice industry.

Through this initiative and other trade and education-related activities, USMEF is leading the development of the portion-control beef market in Southern China.  QSP funding allowed USMEF and its partner to sponsor samples of U.S. beef products packaged as trial portion-control beef items for hotels and restaurants.  USMEF assisted the company in evaluating the test products in terms of appearance, consistency of size, quality (i.e., palatability) and profitability.  The evaluation proved these U.S. beef products have commercial potential, and the importer/distributor is now selling them.  USMEF is assisting the importer with further education on the proper use and handling of U.S.portion-control beef products.

USMEF enlisted a leading Guangzhou restaurant to promote the portion-control U.S. beef products developed with the importer.  By displaying the new products in a chiller prominently located at the entrance of the restaurant, the fresh, safe and enticing appearance of the product attracted more customers to buy U.S beef.  USMEF is confident other restaurants will follow the lead set by this trend-setting restaurant and increase restaurant sales of U.S.beef.

The importer/distributor now has more than 40 accounts for its portion-control U.S. strip loins, rib eyes, bone-in ribeyes, bone-in short ribs, boneless short ribs, and T-bones.  USMEF provided $2,600 dollars in bone-in short ribs, strip loins, ribeyes, T-bones, and top blade muscle for the product development.

Although China is the fourth largest producer of beef in the world — domestic beef production grew 6 percent in 1999, 7 percent in 2000, and 9 percent in 2001 — farmers raise cattle to utilize excess crop residues from grain operations and very little grain-fed, intensive cattle production occurs. The domestic industry cannot provide the high-quality beef which is in increasing demand by China’s tourist industry and urban consumers.

China (including Hong Kong) was the fifth largest export market for U.S. beef (including variety meat) in 2002, when the U.S. sold the Asian giant 39,788 metric tons (see chart below).

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, corn, sorghum and soybean checkoff programs.

—USMEF—

Photo Caption: Diners walking into this USMEF American Beef Club restaurant in China see U.S. meat products displayed prominently.

Photo: http://www.usmef.org/photoGallery/pics/03_1206Sanxiang-Venice-(12).jpg