Meat Export Federation Sees Positive Signs
Willie Vogt 
Published: May 28, 2010
It's hard to gauge the consensus of a group, but during a teleconference Thursday, the folks from the U.S. Meat Export Federation were relatively upbeat as they see gains in exports on a number of fronts. While problems remain - from beef import issues in Japan to expanding trade in Russia - the USMEF board and its CEO Phil Seng remain upbeat about 2010.
"The president wants to double exports in five years and from agriculture's standpoint we want to work to help meet that goal," says Phil Seng, USMEF CEO. He summarized the St. Louis event with its trade floor and meetings as a way for buyers and sellers to communicate. The international meeting brings industry players from all over the world to one location.
He notes that in the first three months of 2010, beef exports have done well with volume up 11% and value up 14%. Pork exports are soft with a drop of 4% in volume and 1% in value, due in part to weaker demand from Russia and China. Chinese pork exports are just resuming and Seng is optimistic about the future there.
Interestingly, Seng notes a growing level of the sophistication in competition worldwide. "Others see the value of trade and they're using economic partner agreements - or free trade agreements - to expand," he says. "If we don't have these signed free-trade agreements we'll be at a disadvantage."
FTAs languishing in Congress are a problem for any trade group. Seng alluded to the Korea FTA and others that still require action. As the U.S. dollar strengthens that also causes challenges with other market players getting a price advantage. However, Seng does see a good year for pork exports over the next 8 to 10 months.
Challenges ahead
While there is optimism, there is worry as well. The weak European economy, which could also soften the euro compared to the dollar will make trade more challenging. The Japan market is still not opening its doors wider to U.S. beef, even though Ag Secretary Tom Vilsack has had high-level meetings in the country. Seng notes this will take time.
One observation made during the conference call is that U.S. beef production is falling. While that's pushing up prices for local producers, long-term it will make it a challenge for the U.S. to provide all the beef world buyers may want. "That's a good question," he notes. "We're working to develop more markets from alternative cuts, for example in the middle meats. We know if we can't meet the demand the world buyer will turn to another supplier."
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