The landscape of international trade is showing significant promise as the U.S. Meat Export Federation (USMEF) reports a strong upward trend in global export growth. USMEF President and CEO Dan Halstrom recently sat down with Farm Director KC Sheperd to discuss the positive momentum seen in the last several months, particularly when excluding the unique challenges currently faced in the Chinese market. While China remains a primary focus for regaining access, other regions such as South Korea, Japan, Taiwan, Central America, and Colombia are demonstrating robust demand for U.S. beef and pork.
Diversification and Emerging Markets
A strategic shift toward market diversification is currently underway, with the USMEF investing in newer regions to ensure long-term stability and expansion. This strategy involves not only strengthening ties with mainstay Asian partners but also exploring opportunities in emerging markets like the West and South Africa.
- Market Synergy: Halstrom noted that Japan, Korea, Taiwan, and China often share similar product interests, meaning that when China is active, it tends to “raise all tides” for the region.
- Latin American Strength: Beyond the mainstay Asian markets, the momentum in Central America and Colombia remains a standout success story.
- African Expansion: Variety meats remain the entry point in Africa, with huge potential in Egypt, Angola, and Morocco.
- Long-term Vision: The ultimate goal in emerging regions like Senegal is to move from food service into retail with higher-end muscle cuts.
“Strategically, we are looking as an industry to diversify in the sense of growing these markets, but also investing in some of these newer regions.”
“Mexico—we don’t usually think of Mexico as an emerging market, but there’s some things going on in Mexico in certain sectors that are new for U.S. beef.”
“The real opportunity is muscle cuts long term… It usually starts at food service and then expands to retail, and that’s always our goal at USMEF.”
Navigating Tight Supplies and High Prices
Despite tight cattle supplies and higher prices, international demand remains exceptionally solid. The USMEF is successfully promoting alternative cuts that offer value in a high-price environment, such as items from the round complex and short plates, which are utilized heavily in Asian Yakiniku and BBQ formats.
“It’s a very educated buyer base. These buyers know why the price is high. Their questions today are: what do you think about heifer retention? How soon will the cycle happen where we see an expansion of supply?”
“Short plate is a wonderful example. You’ve got a lot of the Asian markets that use short plate as center of the plate for barbecue—Yakiniku, etc.”
“Demand’s never been better for U.S. beef even at higher prices. I think there’s a real appreciation for the quality of our product, the taste experience, and the fact that we’re differentiated from a lot of global competitors.”
Dark Horse Markets and Regional Success
When discussing potential surprises in the global market, Halstrom pointed toward Latin American regions that continue to innovate with U.S. products.
“The Latin American markets continue to—I don’t want to say surprise—but they continue to amaze me. Guatemala, or all of Central America for that matter, but Guatemala would be the really good example.”
“Peru has done some amazing things. They’re a big variety meat market, but they’re doing a lot of case-ready SKUs featuring U.S. variety meats. Really, really innovative stuff.”
USMEF Spring Conference in Oklahoma City
The USMEF is set to return to Oklahoma City for its Spring Conference from May 20th to May 22nd at the Omni Hotel. Following a highly successful meeting in the city in 2022, the federation is eager to engage with its strong local membership, including the Oklahoma Beef Council and the Oklahoma Farm Bureau.
The conference will feature:
- Government Representation: Oklahoma Secretary of Agriculture Blane Arthur will deliver the welcome remarks.
- CAFTA-DR Focus: A dedicated breakout session will explore the history and future growth potential of the Central American Free Trade Agreement.
- Expert Insights: Dr. Darryl Peel and Dr. Neville Speer will join breakout sessions to discuss the competitive landscape of beef and pork in both domestic and international markets.
- Global Presence: Approximately 22 international staff members from regions like Japan, Korea, Africa, and South America will be on-site to provide first-hand market intelligence.
“It’s one thing to read stuff and listen to stuff, but to hear it in person and hear what they’re dealing with—what their headwinds and tailwinds might be—is the beauty of our meetings.”
“One of the tailwinds is that our product is so unique, and the taste experience and the appreciation for our quality really—I don’t want to say it makes their jobs easy because they are not easy jobs—but it certainly is one of the big selling points.”
The conference is an ideal time to see how Oklahoma’s agricultural products are being positioned on the world stage. Registration and hotel booking information are currently available through the official USMEF website.
