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Building International Demand for U.S. Beef: Success Stories and Collaborative Efforts

Learn how U.S. Meat Export Federation leverages checkoff dollars to reach global markets, successes in the Middle East, Japan, and Mexico, and collaborative efforts to enhance trade and industry image.

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Building International Demand for U.S. Beef: Success Stories and Collaborative Efforts

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  1. Building International Demand For U.S. Beef Philip Seng President/CEO 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. Leveraged Checkoff Dollars $6.3 Million Beef Checkoff Investment Buys … $15.5 Million In Beef Foreign Marketing Based on FY’06 Estimates

  4. Current JIMC Priorities • Regain lost ground • Develop comprehensive trade strategy to prioritize markets • Enhance product/carcass value • Leverage competitive advantages: corn-fed, sell selected cuts in large quantities, variety meat availability • Provide trade information

  5. Success Stories

  6. Middle East • Exports to ME likely > 85,000 mt in ‘06 • Why? • Egypt: • Regained access 3/05; 28,868 mt sold in ’05 • MAP-funded shelf-life study during ’05; data presented at end ’05 • Egypt changes regs in spring ‘06 U.S. Beef & BVM Exports (1,000 mt)

  7. Japan • ‘We Care’ builds consumer confidence • Research-based message • Built on 30 years of in-country experience • Consumer receptivity not the problem that some expected • Supply inadequate to meet demand • Moving from 20 moa standard remains domestic issue

  8. Japan

  9. Mexico • USMEF has 15-year presence • No. 1 U.S. beef destination • 339,035 mt YTD exceeds ’03 total • $1 billion YTD is 122% of ’03 value • First country to re-open after BSE • First to allow bone-in product

  10. Being A ‘Good Neighbor’ • In sector: • Butcher certification • ‘Mystery Shopper’ • Chef competition • In-store training/demonstrations • Consumer-directed: • Mother’s Day • Diabetes foundation • Youth programs on obesity/nutrition

  11. Collaborative Effort • How will it benefit U.S. industry? • Improved access? Fewer challenges? • Sales growth short-/long-term? • Higher volume? Higher price? • Additional benefits to local industry? • Total demand growth? • Improved product skills? • Improved product image?

  12. Collaboration In Mexico • Build public receptivity to U.S. beef • Offset negative image portrayed to public by Mexican industry • Improve business atmosphere • Bottom Line: Reduce cross-border tensions to lessen likelihood of antidumping or other trade restrictions

  13. Questions?

  14. Global Planning Dennis Erpelding Chairman U.S. Meat Export Federation

  15. Beef Industry Vision A beef industry that is profitable, growing and sustainable for future generations 2

  16. Results Succeed against international competition: • Increase U.S. beef exports from 1.0 billion pounds in 2005 to 3.0 billion pounds by 2010 (including bvm) • Improve the balance of trade by becoming a net value exporter by 2010

  17. USMEF Planning Process Analysis & Forecasts Evaluation & Country Progress Reports Strategy Planning & Strategic Market Profiles Implementation Funding Approved Market Intelligence(24-7-365) Industry Discussionof SMPs Funding ProposalsReviewed Performance Measures Developed Funding ProposalsDeveloped Tactical Planning & Budgets Developed Forecasts Updated

  18. Global Planning • Collaborative effort between USMEF, NCBA, CBB, Cattle-Fax and exporters • SWOT • Strategic ‘themes’ • Organizational implications

  19. Opportunities Growing global populations/ incomes Desire for high-quality protein Proficient U.S. producers, marketers U.S. product advantage Challenges Growing world competition Limited access to important markets Public and consumer issues A ’90/10’ U.S. industry mindset SWOT Found

  20. Strategic Priorities • Optimize: • Beef carcass utilization • Market penetration • Gain/maintain key market access • Address global consumer issues • Industry image that builds trust

  21. Critical Factors To Success • Become globally responsive by addressing “90/10” mindset • Develop knowledge needed for sound market decisions • Achieve greater collaboration among USMEF, NCBA, U.S. exporters and multi-national companies

  22. Next Steps • Discussion here • Further refinement of plan details • Seek input from industry • USMEF Strategic Planning Task Force • Operating Committee discussion • Industry adoption (USMEF May BOD; July beef industry summer meeting)

  23. Questions?

  24. Committee Priorities • Optimize: • Beef carcass utilization • Market penetration • Gain/maintain key market access • Address global consumer issues • Industry image that builds trust

  25. www.usmef.org For additional information:

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