Putting U.S. Meat On The World’s Table Building International Demand For U.S. Beef Lynn Heinze V.P. Information Services U.S. Meat Export Federation.

Putting U.S. Meat On The World’s Table

Building International Demand For U.S. Beef

Lynn HeinzeV.P. Information Services

U.S. Meat Export Federation

Putting U.S. Meat On The World’s Table

USMEF Worldwide

Denver

Mexico City

MoscowLondon

Beirut

Tokyo

ShanghaiTaipei

Seoul

Singapore

Guangzhou

Monterrey

St. Petersburg

Hong Kong

Putting U.S. Meat On The World’s Table

Int’l Staff “Makes it Happen”

Putting U.S. Meat On The World’s Table

USMEF Snapshot

• Public-private sector cooperation• Multi-species – beef, pork, lamb• Multi-segment

– Grain/livestock checkoffs/producer groups– Packers/processors/purveyors/traders– Agribusiness

• Strategies: – Gain market access; maintain market presence– Educate buyers; build loyalty– Support trade– Promote industry/product image– Educate consumers regarding food safety– Utilize the total carcass

Putting U.S. Meat On The World’s Table

Leveraged Checkoff Dollars

Checkoff40%

Soy2%

USDA53%

Grains5%

$6.3 Million Beef Checkoff Investment Buys …

$15.5 Million In Beef Foreign MarketingBased on FY’06 Estimates

Global Beef Consumption

0

10

20

30

40

50

60

70

'60 '70 '80 '90 '00

Rest of World 129%

U.S. 61%

MM

T

Putting U.S. Meat On The World’s Table

Importance of Exports

• Beef and beef variety meats exports in 2003 amounted to 1.2 million mt, valued at $3.5 billion:– 9% of all muscle cuts– 47% of all variety meats

• The equivalent of 3.5 million head of cattle (roughly 67,000 head per week)

• Most significant: exports added value to producer’s bottom line

$0

$10

$20

$30

$40

$50

$60

$70

$80

$ / Head

ShortPlate

Tongue Skirt ShortRibs

Tripe

Dom. Price Without Exports Export Premium

Export premiums on these 5 cuts alone

represent $78 per head

Source: USMEF

Beef Export Premiums

Putting U.S. Meat On The World’s Table

Value To Producers

In 2003, before BSE,exports added more than

$175 per headin value to producers

Source: Cattle-Fax

Putting U.S. Meat On The World’s Table

Current Status

• 133 countries imported U.S. beef in 2003/prior; 72 instituted bans in December 2003– 22 markets currently

‘closed’ to U.S. beef– Of those reopened,

access is usually limited

– Six markets accounted for 90% of ’03 exports; two of these remain ‘closed’

0

200

400

600

800

1,000

1,200

1,400

'01 '02 '03 '04 '05 '06

U.S. Beef & BVM Exports (1,000 mt)

Putting U.S. Meat On The World’s Table

Europe/Middle East

Putting U.S. Meat On The World’s Table

Mexico

Putting U.S. Meat On The World’s Table

Central/South America

Putting U.S. Meat On The World’s Table

Hong Kong/ASEANChef training, seminars,trade shows

Putting U.S. Meat On The World’s Table

Taiwan

Putting U.S. Meat On The World’s Table

Japan

“We Care” Theme

Putting U.S. Meat On The World’s Table

Japan

Putting U.S. Meat On The World’s Table

Obstacles Remain• Bone chips continue to be an issue• S. Korea open since September, but – • China – declared ‘open’ but technical

discussions/terms still undetermined• Russia – new deal being implemented• Full access:

– Variety meat usually still banned under most agreements

– Bone-in exports very limited• Source/age verification

Putting U.S. Meat On The World’s Table

Korea

• “Open”• But no trade• Importers, customers

anxious to buy

• Situation is perfect opportunity for anti-trade activists

Putting U.S. Meat On The World’s Table

Korea

Putting U.S. Meat On The World’s Table

Value To Producers

In 2006, U.S. exported:•655,920 mt beef/bvm (+39%)

•Worth $2.04 billion (+50%)

$95-$100 of the pre-BSEexport value of $175 per head

has been regainedSource: Cattle-Fax, Feb. ‘07

Putting U.S. Meat On The World’s Table

www.usmef.org

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