The U.S. Meat Export Federation is seeking more than $8 million to conduct an...

The U.S. Meat Export Federation is seeking more than $8 million to conduct an extraordinary consumer promotion in Japan aimed at restoring confidence in U.S. beef, as the result of action taken by the USMEF Board of Directors meeting in Scottsdale, Arizona, November 9.

Japan is the No. 1 market for the U.S., last year importing more than 526,000 metric tons of beef and beef variety meat, valued at nearly $1.8 billion. Exports to Japan represent 43 percent of the total volume of beef exported and 50 percent of total beef export value. Nearly 70 percent of all beef consumed in Japan is imported.

A recent poll found that 89 percent of consumers were “very or somewhat concerned” about the BSE issue, 34 percent said they ate beef less often or consumed less beef, and 25 percent of all respondents said they had stopped eating beef. Still, since BSE was confirmed in Japanese herd in September, beef consumption has dropped 50-80 percent.

“The impact on the U.S. industry has been devastating,” said Philip Seng, USMEF President and CEO. “We estimate that lost U.S. sales currently amount to more than $80 million a month. This means a loss of about $2.50 per hundredweight on fed cattle, or about $36 a head.”

Since early September, USMEF has worked with the Japanese industry and media to make sure the message about the safety of U.S. beef was clear and consistent. Immediately diverting $1.7 million from other projects, USMEF conducted food safety seminars and media conferences, conducted direct advertising to more than 26 million consumers and provided point-of-purchase materials in retail and foodservice outlets. USMEF also worked with Ambassador Baker as he prepared to meet with Japanese agriculture and health officials, and helped expand a recent visit by USDA Food Safety and Inspection Service (FSIS) and Animal and Plant Health Inspection Service (APHIS) officials to include meetings with Japanese trade representatives and the media. USMEF is currently working with FAS to develop BSE-free statement on export documents.

In addition, USMEF is working with other major importers (Australia, New Zealand and Canada) to develop a food safety resource center, exchange information and coordinate consumer response. These nations have agreed to not compete on safety.

The proposed plan approved by the USMEF Board of Directors would include at least these four elements:

• A consumer campaign, including media, nutrition symposium, PR and consumer education;
• A safety campaign, including international BSE symposium, town meetings and Food Safety Consultancy;
• A U.S. beef promotion campaign, including retail promotions and competitions, and foodservice promotions; and
• Evaluation.

To fund this effort, USMEF will seek at least $8 million from three primary sources: beef producers through their $1 checkoff, packers and other companies which do business in Japan, and the U.S. government, through the efforts of affiliated organizations which can lobby. Other segments of agriculture also will be asked to support the effort.

Other Business

In other business, Randy Sims, Liberty, Ill., was elected chairman; Philip Wolfstein, Studio City, Calif., was elected chairman-elect; R. H. Mohesky, Rocky Mount, N.C., was chosen vice chairman; and Alan Smith, Amarillo, Texas, was elected secretary/treasurer.

The board also elected sector representatives to the USMEF Executive Committee, they are: Michael O’Leary, Danvers, Minn., oilseeds sector; Dennis Erpelding, Indianapolis, Ind., supply and service sector; Rick Harbaugh, Hawarden, Iowa, lamb sector; and Greg Brown, Smithfield, Va., Packing and Processing Sector.

Appointed to the Executive Committee by Sims in at-large positions were: Jim Peterson, Buffalo, Mont., beef sector; Mark Jagels, Davenport, Nebr., grains sector; Dan Halstrom, Greeley, Colo., packer sector; Jon Caspers, Swaledale, Iowa, pork sector; and Ron Mapes, Stockton, Ill., advisory.

In 2000, according to newly revised USDA statistics, total U.S. beef exports grew by 12 percent in volume to more than 1.24 million metric tons, while value grew 13 percent to $3.6 billion. Pork exports grew 12 percent in volume to more than 568,000 metric tons, while value grew 18 percent to $1.3 billion. Exports now account for nearly 13 percent of U.S. beef production and more than 8 percent of U.S. pork production on a wholesale weight basis.

Exports now account for nearly 13 percent of U.S. beef production and more than 10 percent of U.S. pork production on a wholesale weight basis. These exports also benefited U.S. grain and soybean producers – it required 305.6 million bushels of feed grains and 32.9 million bushels of soybeans to produce the U.S. red meat exported in 2000.

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 –