USMEF Conference Concludes with Focus on Marketing Innovations and Factors Impacting U.S. Red Meat Supply
The U.S. Meat Export Federation (USMEF) wrapped up its Spring Conference in Oklahoma City on Friday with a panel discussion detailing innovative marketing strategies and activities that have helped expand demand for U.S. red meat in Asian and Latin American markets. Panelists included Jihae Yang, USMEF vice president for the Asia Pacific, who shared insights from Taiwan, South Korea and Japan.
One of the latest innovations in Japan is the marketing of U.S. beef short plate as a barbecue cut available to retail consumers. While short plate has long been a staple of Japan’s foodservice sector, new variations of the cut are gaining traction at supermarkets and other retail outlets. In Taiwan, Yang explained how USMEF is working with 7-11 convenience stores to expand the availability of chilled U.S. beef cuts. She noted that this is a marketing breakthrough not previously achieved in Taiwan – or even in Japan and Korea, which have long been considered the leading-edge markets for the convenience store sector.
In South Korea, Yang explained that USMEF has partnered with retail giant E-Mart to heighten awareness of Prime grade, chilled U.S. beef cuts, including the chuck eye roll, top blade and chuck flap tail.
Lucia Ruano, USMEF representative in Central America and the Dominican Republic, offered highlights from campaigns that inform health-conscience consumers about the nutritional and fitness benefits of U.S. red meat. She also spotlighted online training tools that help educate prospective customers and other key decision makers about the attributes of specific U.S. pork and beef cuts.
Ruano noted that USMEF has also expanded its engagement with restaurateurs and foodservice purchasing managers in the region, showcasing the attributes of underutilized U.S. pork and beef cuts that can enhance the range and quality of restaurant menus.
USMEF Latin America Representative Homero Recio addressed USMEF members on developments in other Western Hemisphere markets, including Colombia and Mexico. Recio explained that the presence of U.S. pork continues to expand in Colombia’s retail sector, but added that the introduction of underutilized beef cuts in a wider range of retail venues has also opened new doors for U.S. beef. USMEF also has promotional activities planned in conjunction with the upcoming FIFA World Cup soccer tournament – which is wildly popular in Colombia – allowing retail customers to qualify for entry into VIP viewing venues.
Recio also highlighted Cantina Vibes, a campaign in which USMEF has expanded the penetration of U.S. pork and beef variety meats in Mexico’s casual dining sector. He also explained how U.S. pork jowls are being merchandised as a flavorful, convenient, high-protein snack by street vendors and at stadium concession stands.
On Thursday, USMEF members gained insights from a distinguished panel of livestock industry experts that included Dr. Derrell Peel of Oklahoma State University, Dr. Nevil Speer of Turkey Track Consulting and Don Close, senior animal protein analyst with Terrain.
The panel addressed factors impacting protein demand in both the international and domestic markets, noting the important role exports play in bolstering the profitability of livestock producers and incentivizing industry expansion. But expansion of the beef cattle herd has been elusive, due to factors such as volatile grazing conditions and hay availability, and persistently higher operating costs.
“You cannot stabilize the cow inventory by not killing cows,” Close explained. “If we're not putting replacement heifers on top of that, we're going to continue to decline. By not killing the cows and not replacing with females, the average age of our cow herd is getting substantially older. When we do finally start to expand, we're going to have to retain enough females, not only to rebuild what we've lost, but we're going to have to retain additional replacement females because of the accelerated attrition of the cows that are still out there.”
The tight cattle supply has fueled misperceptions about the impact of trade, with some media outlets suggesting that exports reduce availability for U.S. consumers. Peel illustrated the benefits of trade by drawing a comparison with households that periodically fill their home freezer with a full range of beef cuts.
“I always remind producers, because they almost all have freezer beef, what's it like when you get down to the stuff that’s in the bottom of the freezer,” he said. “When you start talking to the other half of the household about how you need to get another beef in the freezer, you get reminded: ‘no, you've got to eat that stuff before we get another one.’ By exporting the cuts we don’t like to eat as much, trade allows us to clean out the bottom of the freezer, so that we can focus U.S. demand on the cuts we really want.”
Speer highlighted the benefits producers have realized from raising higher grading cattle that meet consumers’ demand for high-quality beef. He contrasted the current situation with the 1980s and 90s, when the beef industry was losing the battle for consumer dollars spent on protein.
“Now we're in a whole new realm,” Speer said. “This is what's bringing consumers back – the quality and the consistency. And this did not just happen, right? We've gotten better at genetics, we've gotten better at management, and we're starting to listen to consumers, and it makes all the difference in the world.”
Thursday’s agenda also included breakout sessions for USMEF’s pork, beef, exporter and feedgrain/oilseed sectors, in which members received additional market updates from USMEF’s international staff.
The conference kicked off on Wednesday, when the program focused on the rapid growth of U.S. red meat exports to Central America and recent developments impacting access to China, Saudi Arabia and other key markets. Session highlights and photos from the conference’s opening day are available here.
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