U.S. beef exports to the Middle East are flourishing.  The latest statistics...

U.S. beef exports to the Middle East are flourishing.  The latest statistics from the U.S. Department of Agriculture (USDA) show that the U.S. shipped more high quality beef to the Middle East in the first five months of 2003 than to SARS-impacted Hong Kong and China.  High quality beef exports to Saudi Arabia are up 183 percent over Jan.-May, 2002 and at 1,213 metric tons (mt) are already more than the U.S. shipped to the Arabian kingdom in the whole of 2002. U.S. beef exports to Kuwait are up 951 percent to 1,261 mt.  In 2003, the Middle East region is the sixth largest overseas market for U.S. beef. 

Perceptions of America and its involvement in Iraq are steadily improving in some countries of the Middle East, especially after the discovery of mass graves in Iraq. Opportunities for the U.S. to reassert its beef products in this region are growing; retail opportunities in particular are expanding.  More U.S. chilled beef is being purchased in Saudi Arabia and the United Arab Emirates (UAE), and processed meat sales – primarily sausages and luncheon meats – are picking up.

In addition, there are opportunities for U.S. suppliers to provide beef to the Coalition Forces stationed in the Middle East.  The coalition has identified prime vendors responsible for selecting suppliers.  The U.S. Meat Export Federation (USMEF) has already been in contact with the prime vendor responsible for securing beef.  A guide for U.S. suppliers interested in participating in this program is available online on the USMEF Web site at:

http://www.usmef.org/Misc_News/03_0812_MilitaryVendorsMiddleEast.pdf

Another avenue for beef sales is through large contractors assigned to help in the reconstruction of Iraq.  The reconstruction contracts include food contracts.

Despite the Iraq war, tourism in the Persian Gulf grew by 10.6 percent last year. According to the World Tourism Organization, 24 million tourists, primarily from other Arab countries, visited the Gulf in 2002.

More than 4.7 million visited Dubai alone in 2002, a 30 percent gain over 2001. Moreover, Dubai’s tourist industry hopes to increase its visitors by 15 percent in 2003 and to more than 15 million by 2010. New hotel facilities, prime buyers of high-quality U.S. beef, are springing up to accommodate demand. Although the lion’s share of retail meat sales are conducted in baqalas, small-scale  shops, supermarkets are set to increase their current 30 percent market share. Fifteen major retailers operate more than 50 supermarket outlets across Dubai.

The perception that U.S. beef and beef products are too expensive to profitably handle arises from an unfamiliarity with the quality of U.S. beef products and a lack of knowledge about the higher profit potential inherent in these products.  To counter this impression, USMEF is educating importers and distributors about the available range of U.S. beef items. In tandem with the importers and distributors, USMEF will work with their downstream customers by using its flagship American Beef Club as a vehicle to expand demand for high quality U.S. beef in restaurants and hotels.  USMEF underscores the safety, quality, profitability and BSE-free status of U.S. beef, and, through its trade education activities, teaches Middle Eastern importers and distributors about the variety of products available to their customers.

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 —

U.S. High-Quality Beef Exports to the Middle East

Country

MT

01/03-5/03

MT

% Change

$000

01/03-5/03

$000

% Change

Middle East (Region)

5,885

+42%

21,907

+61%

Kuwait

1,261

+951%

7,061

+825%

Saudi Arabia

1,213

+163%

5,206

+124%

NOTE:  Percentage change denotes change from previous comparable time period in 2002.