For Immediate Release October 29, 2007
Contact: James Hunt (806) 358-3681 james@tcfa.org
CONTINUED REVIVAL OF BEEF EXPORTS EXPECTED
Progress on recovering export markets continues despite abundant challenges. That was the message delivered at the 2007 Texas Cattle Feeders Association Annual Convention during a joint presentation by U.S. Department of Agriculture Deputy Undersecretary for Marketing and Regulatory Programs Chuck Lambert and U.S. Meat Export Federation President and CEO Phil Seng.
Seng projected exports of U.S. beef will be back up to pre-BSE 2003 levels in about 2009 or 2010. "A lot of it depends on how (export customers) open and when (export customers) open up to full bone-in and boneless and 30 months and beyond or OIE consistency."
Mexico remains the top U.S. beef export market at the present as it nears 400,000 metric tons (mt). Seng said Japan and South Korea should join Mexico at the 400,000 mt threshold at some point after 2010.
Exports to Canada are also rebounding well, according to Seng, who noted, "We're looking in 2007 to eclipse or get close to 120,000 mt, and we're looking at that to gradually increase over the years."
"Traditionally (Canada) has been about our third or fourth largest market. It will be at least our fourth market once we get normalization in the markets," added Seng.
As they work to open up export markets, Lambert said U.S. negotiators continue to push for acceptance of World Organization for Animal Health (OIE) standards.
With the OIE's decision in May to classify the U.S. as a controlled risk country for BSE, Lambert explained that, "OIE would say that we can export all products from animals of all ages (except specified risk materials or SRMs). Tonsils and distal ileum are SRMs from animals of all ages, and then the brains, eyes, spinal cord, skull and vertebral column are only SRMs from animals over 30 months of age."
However, as is widely understood in the beef industry, getting other countries -- most notably Japan and South Korea -- to accept the OIE standards has been difficult. Both Japan and South Korea are staking out positions that would hold the line on age restrictions at 30 months and maintain more extensive lists for what constitutes SRMs, Lambert said, noting that the U.S. does not consider those offers acceptable.
Seng and Lambert identified the internal politics of Japan and Korea as a key reason that efforts to regain full access to those two markets continue to advance slowly.
Lambert said he doesn't expect any "big bold moves" out of Japan where the government is struggling to reconstitute itself in the wake of a parliamentary shakeup and the prime minister's resignation. Meanwhile, Korean officials have asked U.S. beef trade negotiators to take a break now that Korea's presidential race is heating up, Lambert said, adding that, "I would not anticipate virtually any more discussions until after their elections in mid-December."
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