In this file:
· UPDATE: Beef exports to Hong Kong, the EU and China
· USMEF Chair sees great benefits for U.S. beef in new agreement with Japan
UPDATE: Beef exports to Hong Kong, the EU and China
China holds potential as a significant export market for U.S. beef. But it won’t be easy.
Nevil Speer, BEEF Magazine
Nov 07, 2019
During the past several weeks, this column has featured the implications of the African swine fever (ASF) outbreak in China. The first discussion dealt with the magnitude of China’s lost pork production as a result of ASF. By many estimates, roughly 40-50% of the country’s sow herd has died from ASF. Ultimately, the country’s pork production capacity is severely hampered and will result in a shortfall approaching 22 to 25 million metric tons (mmt) in 2020.
Last week’s column highlighted the extent of global trade and the potential to backfill some of China’s protein deficit. Accordingly, forecasts by USDA have China’s beef imports surging to 2.9 mmt (around 6.4 billion pounds) in 2020 and pork exports climbing to 3.5 mmt (7.7 billion pounds).
Those estimates represent roughly 30% and 35% of total global imports for beef and pork, respectively. However, that still falls short of covering the deficit.
Meanwhile, there’s seemingly been lots of chatter in the beef industry about the prospect of U.S. beef exports to China. For some perspective, this week’s graph details U.S. beef exports to Hong Kong, the EU, and China, respectively, during this decade.
It’s important to remember that China requires ractopamine NOT be used in production. Hence, beef being shipped to China is sourced from the non-hormone treated cattle process verified program (NHTC PVP), the program developed for shipment to the EU; that safeguards against potential rejection and/or punitive sanctions.
Also important here, beef shipments to Hong Kong climbed sharply in ’13 and ’14; Hong Kong import/export businesses subsequently used the venue as means to transfer product into China.
Note that all-combined EU and China sales peaked...
more, including chart
USMEF Chair sees great benefits for U.S. beef in new agreement with Japan
Assuming the U.S.-Japan trade agreement is implemented soon, and reduced tariff rates are in place for the full year, USMEF projects U.S. beef exports to Japan to reach $2.3 billion in 2020 and to approach $2.8 billion by 2025.
Source: U.S. Meat Export Federation (USMEF)
via BEEF Magazine - Nov 07, 2019
"Visiting Sendai (Japan) was especially interesting because the city and surrounding region have an insatiable appetite for U.S. beef tongue. We had the opportunity to visit a tongue processing plant and see the product making its way into commercial channels. Having the ability to export tongues to Japan adds more than $12 per head to every fed steer and heifer slaughtered in the United States, so as a cattle feeder this was a great experience."
That’s just one of Cevin Jones’ reactions to his recent visit to Japan. Jones, a cattle feeder from Eden, Idaho, begins his one-year term as chair of the U.S. Meat Export Federation (USMEF) on Nov. 8. Jones has a long history of involvement with USMEF, dating back to his leadership roles with the Federation of State Beef Councils and the National Cattlemen's Beef Association.
Jones takes the helm at USMEF at an exciting time for the cattle industry, bolstered by the recent announcement of a new trade agreement with Japan. Though the agreement still requires approval by the Japanese Parliament, it is expected to take effect in early 2020.
Jones' most recent visit to Japan was with the USMEF Heartland Team – a delegation of 31 U.S. beef, pork, corn and soybean producers who spent a week in Tokyo and Sendai, meeting with importers, distributors and other buyers of U.S. beef and participating in USMEF promotional activities. He returned from Japan more enthusiastic than ever about the benefits delivered by the No. 1 destination for U.S. beef exports.
In addition to his experience in Sendai...