In this file:
· OSU's Dr. Derrell Peel Examines the Role of Exports in the Evolution of Today's Beef Trade in the US
· Nebraska Has Stake in Beef Exports
· Moo-ving back into China
OSU's Dr. Derrell Peel Examines the Role of Exports in the Evolution of Today's Beef Trade in the US
Oklahoma Farm Report
Mon, 17 Jul 2017
Dr. Peel revisits his topic from last week, to delve deeper into how the US beef trade is evolving under current market pressures. Specifically, Peel examines exports, in this week's article.
"U.S. beef exports have varied in the quantity of exports and the mix of countries receiving U.S. beef over many years. The latest trade data for May shows total beef exports up 6.8 percent compared to one year ago with January through May total beef exports up 17.1 percent for the year to date. May beef exports were down to Canada, Mexico and South Korea while exports were strongly higher year over year to Japan and Hong Kong. Year to date beef exports are up year over year to all major U.S. beef export destinations. This follows annual growth of 12.6 percent in total beef exports in 2016 which included increased year over year exports to Japan, South Korea and Mexico along with Taiwan and Vietnam. 2016 exports to Canada and Hong Kong were down year over year.
"Continued growth in beef exports to Japan has helped the country to once again be the largest U.S. beef export market since 2013. Prior to the first U.S. case of Bovine Spongiform Encephalopathy (BSE) in 2003, Japan routinely represented one third to nearly one half of total U.S. beef exports. 2016 beef exports to Japan were 29 percent smaller than the 2003 total. However, total U.S. beef exports recovered and surpassed the 2003 export total in 2011 due to the increasing role of other markets post-BSE along with regrowth in Japan.
"South Korea is currently the second largest U.S. be export market, a position that it had achieved prior to BSE in 2003. Like Japan, South Korea was largely out of the U.S. market post-BSE and recovered second place status only in 2016. South Korea has shown robust growth the past couple of years and was the only major beef export market to increase in 2015, during the record high U.S. prices.
"Mexico was the only major market to remain largely open after BSE and as a result has had the largest average beef export share over the past decade. However, beef exports to Mexico have generally decreased after peaking in 2008. Mexico’s share of beef exports is under 15 percent so far in 2017 but total exports are still up 6.8 percent year over year following a nearly 9 percent annual increase in 2016. Beef trade with Mexico has become much more integrated and product specific in recent years with growth in beef imports from Mexico.
"Canada is currently the fourth largest beef export market with 2017 year to date share of nearly 12 percent. Canada’s share of total U.S. beef exports has generally declined in recent years though, like Mexico, Canada has had a larger share in the post-BSE world. Beef exports to Canada in 2016 exceeded the level prior to BSE in 2003.
"The biggest change in U.S. beef export markets in recent years has been the emergence of Hong Kong...
Nebraska Has Stake in Beef Exports
The Cattle Site
17 July 2017
US - Nebraska Governor Pete Ricketts has seen off the first shipment of US beef products on a flight to a client in Shanghai on 14 June. It came after a 14-year absence in the market, and Governor Ricketts realised that it signaled a new era for his state's agricultural sector.
"Having a great market like China open up for us was really fantastic news for our ranchers here, and an incredibly exciting opportunity for our state," Governor Ricketts said in an interview in his office on the day of that flight.
"If we can achieve the same sort of market share in China as we've achieved in other countries, that could mean a potential 20 percent increase in the exports of beef from Nebraska, potentially [adding] another $200 million to the economy for us," the governor said. "This is a big deal for us."
That first test shipment to China from Greater Omaha Packing Co, one of the biggest beef processors in the country, carried not only individually wrapped steaks - rib eyes, tenderloins and New York strips - but also represented a new opportunity for cattle ranchers across the Cornhusker State and other beef-producing states in the United States.
China's lifting of a ban imposed on US beef imports in 2003 - because of a case of mad cow disease - fulfills one of the achievements of a Sino-US 100-day action plan, which was reached by President Xi Jinping and US President Donald Trump during their meeting in Florida in April.
During the meeting, Presidents Xi and Trump agreed to establish new bilateral mechanisms, including a comprehensive economic dialogue and initiate a 100-day economic cooperation plan, regarded as win-win moves by experts. In May the two countries announced initial results in areas like agriculture, electronic payments, financial services and energy, and proposed that China begin importing US beef no later than 16 July, according to a US Department of Commerce release dated 11 May.
Agriculture is the biggest economic driver in Nebraska, and beef exports are its biggest segment...
Moo-ving back into China
US beef returns to Chinese dining tables where appetite for the meat has been growing rapidly, but its prohibitive pricing might hamper its efforts to gain market share in a country where many people don't know the difference between a ribeye and a sirloin
By Xu Junqian in Shanghai | China Daily USA (China)
Liang Jiahao first encountered beef in a local chain restaurant called Haoxianglai, which literally means "really wish to come" in Chinese.
The meal was considered a luxury. Liang, who was then a fifth grader, spent 10 times his weekly allowance on a steak that cost 200 yuan ($29.4). But it was money well-spent.
"It was the first time I was asked how I wanted my steak done. That completely blew my mind. I never knew there was a scale for the doneness of meat. The only question my mom or grandma would ask me regarding meat is whether I wanted my pork fried or braised," quipped the 26-year-old Shanghai native.
Today, as the founder and owner of My Butchery, a trendy butchery cum deli in Shanghai, Liang is usually the one asking his customers questions about their choices of meat. He said he opened the shop after noticing a gap in the market between overpriced offerings from import supermarkets and the greasy counters at local markets.
Soon, the butchery will expand its offerings by including a new product: the eagerly-awaited US beef.
Exports of US beef to China resumed in July under a new trade deal that followed the meeting of Chinese President Xi Jinping and US President Donald Trump in Florida in April. US beef had previously been absent in the Chinese market since 2003 when China banned all beef imports from the US following the outbreak of bovine spongiform encephalopathy, more commonly known as mad cow disease.
As part of the 100-day action plan for Sino-US economic cooperation which was unveiled in mid-May, an initial batch of five tons of beef arrived in China just before Independence Day on July 4 in the US, according to the US Meat Export Federation.
"The reinstitution of US beef to China is huge. I can never overestimate how important it is. Because of the growing middle class and the consumption of good and tasty protein, I think US producers can supply the products in demand here," Sonny Perdue, the US Secretary of Agriculture, told China Daily USA on July 1.
While Perdue declined to forecast the volume or value of US beef entering China in the coming years, he noted that US beef producers have been looking forward to satisfying the appetite of Chinese consumers.
"As you know, there has been a boom in the growth of beef in China over the last four or five years and I am convinced that once Chinese consumers taste US beef, this growth will be 10 or 20 times larger in the coming years," he added.
A massive appetite for beef ...
Warm reception ...
Accessibility is key ...