USMEF fears greater competition from EU
10/12/2013
Philip Seng said while the US Congress debates budget cuts that could affect spending on programmes that support agricultural exports, the European Commission has proposed more than tripling its spending to support EU agricultural and agri-food sector products.
“There is no question that exports create jobs and support a positive balance of trade,” said Mr Seng. “The European Commission sees that link and is looking to put significantly more resources into their export initiative, so we can expect to face even heavier competition in the top value markets going forward.”
Top beef export markets Japan and Mexico both increased the volume of their purchases in excess of 40% for the month, while sales to the booming Hong Kong market skyrocketed 148%. Overall, October US beef exports reached 107,471 metric tons valued at $564.5 million, increases of 6% and 14%, respectively.
Export value per head of fed slaughter averaged $251.06 in October, up $29 from last year.
“Hong Kong is clearly emerging as a major beef market, and USMEF’s initiatives there cover retail, food service and trade sectors in this highly competitive and progressive market,” said Mr Seng. “We are the second-largest supplier to Hong Kong, trailing only Brazil, but we are continuing to miss out on even larger opportunities in mainland China, where we have not had access since 2003.”
Mainland China’s beef imports through the first 10 months of this year have reached 253,196 metric tons valued at nearly $1.1 billion – increases of 562% in volume and 595% in value over last year, according to the Global Trade Atlas. Australia holds more than a 50% market share there in the US’s absence.
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