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Building International Demand For U.S. Beef

Building International Demand For U.S. Beef. Lynn Heinze V.P. Information Services U.S. Meat Export Federation. USMEF Worldwide. St. Petersburg. London. Denver. Moscow. Tokyo. Seoul. Monterrey. Beirut. Mexico City. Shanghai. Guangzhou. Taipei. Hong Kong. Singapore.

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Building International Demand For U.S. Beef

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  1. Building International Demand For U.S. Beef Lynn Heinze V.P. Information Services U.S. Meat Export Federation

  2. USMEF Worldwide St. Petersburg London Denver Moscow Tokyo Seoul Monterrey Beirut Mexico City Shanghai Guangzhou Taipei Hong Kong Singapore

  3. Int’l Staff “Makes it Happen”

  4. 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

  5. Leveraged Checkoff Dollars $6.3 Million Beef Checkoff Investment Buys … $15.5 Million In Beef Foreign Marketing Based on FY’06 Estimates

  6. Global Beef Consumption MMT Rest of World  129% U.S.  61%

  7. 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

  8. Beef Export Premiums Export premiums on these 5 cuts alone represent $78 per head Source: USMEF

  9. Value To Producers In 2003, beforeBSE,exports added more than$175 per headin value to producers Source: Cattle-Fax

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

  11. Europe/Middle East

  12. Mexico

  13. Central/South America

  14. Hong Kong/ASEAN Chef training, seminars,trade shows

  15. Taiwan

  16. Japan “We Care” Theme

  17. Japan

  18. 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

  19. Korea • “Open” • But no trade • Importers, customers anxious to buy • Situation is perfect opportunity for anti-trade activists

  20. Korea

  21. 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 headhas been regained Source: Cattle-Fax, Feb. ‘07

  22. www.usmef.org For additional information:

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