NASHVILLE, TENN. (RFD NEWS) — China continues to refuse to renew registrations for U.S. beef production and cold storage facilities, leaving most U.S. beef exports locked out for nearly a year. The U.S. Meat Export Federation (USMEF) says there has been minimal progress on China’s lockout of U.S. beef, a situation that continues to concern producers.
“Unfortunately for China, we don’t have any type of breakthrough news, but just explaining to the producers the situation there and kind of the complicated market closure that we’re dealing with, but also explaining further the importance of the China market and that we still need to get that market back, including in this time in the cattle cycle and the need to be able to export even with relatively low supplies,” explains USMEF President and CEO Dan Halstrom.
Even with low cattle numbers, the federation emphasizes that access to China is vital for maintaining value across the entire beef carcass.
“You’ve got to have that market to be able to add value back to the whole industry,” Halstrom said. “We also touched on the affordability component, and trying to sort of re-message the need for access to also benefit the American consumer. So updating on how we’ve been talking with D.C. about, again, the benefits not just for our industry, but also for the consumer when we have the ability to export and really add that full value across the whole carcass.”
To address the issue, USMEF representatives recently traveled to Washington, D.C., to meet with officials from the U.S. Department of Agriculture (USDA) and the Office of the U.S. Trade Representative (USTR) to emphasize the importance of restoring market access.
“The China market is important not just for the actual market itself, but the fact that being a bidder in the market helps with the whole value of the carcass that those cuts that go overseas in those other Asian markets,” Halstrom said. “I can tell you from being back with folks in D.C. at USTR who are engaged in these negotiations to help us with market access, they are completely dedicated. They understand the beef market. They understand our challenges. I can honestly say, even if the markets don’t open automatically overnight, they are working on it day in and day out.”
Despite the challenge in China, the global demand for U.S. beef remains strong. Halstrom highlighted growth in other markets, including Central America and South Korea.
“You look outside of China, the demand continues to be — I’ve been using the word ‘resilient’ — I’d say it’s even record-breaking in places like Central America, for example,” Halstrom said. “You look at even Korea, year-to-date is up 3% or 4%. And when you’re talking about a $2.5 billion market, that’s a lot of money. So it’s not all bad news. And I think the other thing that’s exciting in Central America, in particular, is a good example. We’re seeing an evolution in buyers in some of these markets, where, five, six, seven years ago, buyers in Central America were buying select and no role. Well, they’re maturing, so to speak, to where they’re recognizing our quality, and they’re demanding choice and higher.”
Halstrom also pointed to progress in smaller but high-potential markets, including Indonesia, where a new framework agreement has simplified trade by addressing permit and halal certification issues. The United Arab Emirates has also shown signs of a market rebound.
