BISMARCK, N.D. – The beef export market equated to about 13 percent of the total U.S. beef industry last year, according to John Hinners, director of the U.S. Meat Export Federation (USMEF).
In the future, that figure will likely increase with more access of U.S. products in foreign markets.
Hinners met with the N.D. Beef Commission last month to give an update on the agency’s recent efforts to expand the U.S. beef presence in the global market.
USMEF, which is a non-profit association, represents the U.S. beef, pork and lamb industries with an annual budget of $67 million.
It’s mission is to put those products on “the world’s plate,” Hinners said.
In 2012, U.S. meat was sold in 105 countries with Japan and Mexico leading the way.
And studies show that world pork consumption will increase by 18 percent and beef consumption by 14 percent by 2020.
As the global economy rebounds and world population increases, more people will be looking to eat higher on the food chain, Hinners said, adding more protein in their diet.
“It’s a very optimistic time for the meat industry (in relation to the global market),’’ he said.
Indeed, increasing the market size helps to increase profitablity back home for livestock producers.
About $5.5 billion dollars was generated last year through beef exports which creates about 60,000 jobs.
Although the U.S. herd size shrunk by about three percent this year, U.S. value of beef remains high. The export value fluctuates between $225 and $216 per head. Hinners said projections are for that value to increase due to the growing demand in Asian markets for grain-fed beef. And changes in the restrictions on the age of cattle allowed to enter Japan.
While much of the middle meats processed in the U.S. are consumed here, Hinners said a large majority of the other cuts are going overseas. Short ribs and short plate going into Southest Asia; chucks and rounds into Russia.
About 90 percent of livers, hearts and kidneys are sold to Russia and Egypt and served as a delicasse.
Seventy-five percent of stomachs are going to Mexico and Southeast Asia and 90 percent of the tongues go to northern Asia and Mexico. That is good news for producers who are seeing more of their product sold.
Meat consumption in the U.S. has dropped from about 220 pounds annual to 200, Hinners said. Thus, it’s increasingly important to promote and market U.S. products to the rest of the world.
Continue to add markets
U.S. beef is sold in just over 100 counties, but the USMEF is always working to develop new markets for U.S. meat products.
China is the fastest growing beef exporter in the world, but it’s a closed market for the U.S. beef industry right now.
Hinners said the USDA is working hard to change that. Saudia Arabia as well as some parts of Russia are also closed to U.S. beef.
Inroads are being made, however, and the USMEF sees the opportunities exceed the challenges.
Others parts of the world have greater market access, including South America and the Middle East.
Burgeoning economies in countries such as Dubai and the United Arab Emirates spell potentional for added exports – especially in their hotel and restaurant industry, which will prefer high-quality U.S. beef products.
Checkoff dollars working
U.S. livestock producers are getting more bang for their buck when it comes to the promotion and marketing of beef, pork and lamb internationally.
USMEF applies for about $21 million in USDA MAP funds annually.
A 10-year study recently conducted by the USMEF through an independent contractor, revealed that for every beef checkoff dollar producers provide, an additional $4 is generated.
And that is a significant amount for the USMEF to work with in promoting U.S. products and insuring they get into the supermarkets, restaurants and homes of other countries.
Those checkoff dollars are used to facilitate trade, marketing programs and education about the value of U.S. meat products.
One successful campaign involved promoting middle meats in Asia through advertising.
USMEF has 60 representatives across the globe in such places as Tokyo, Moscow, Beijing, Seoul, Brussels, Beirut, and Singapore.
In addition to a partnership with livestock organizations and producers, USMEF also works with with commodity groups like corn and soybean who are linked closely to value-added livestock.
Also, meat packers, traders and chemical companies, have a vested interest in seeing U.S. meat exports grow.
Future of US meat exports looks bright
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