Farm Director KC Sheperd talked this week with the CEO of the United States Meat Export Federation, Dan Halstrom, about the USMEF annual Spring Conference and an update on U.S. beef exports and demand.
Halstrom first talked about highlights from the USMEF annual Spring Conference which was held in Kansas City, MO on May 22-24. Speakers at the conference covered topics ranging from domestic and global consumer perspectives to recognizing the value of U.S. production and high-quality supply.
“It was a resounding success,” Halstrom said. “We had good weather, we had record attendance, and despite a few headwinds that are out there, we had some pretty good news to report on in general. I think it was quite the successful week.”
Regarding the latest beef export results, Halstrom said that first-quarter statistics show that tonnage is down slightly for the year at four percent less than a year ago. On the value side, Halstrom said beef is up six percent year-to-date.
“What that tells me is that with lower volume and higher value, the international-global customer still sees value in U.S. beef even though tonnages that are available are a bit lower, and prices are a bit higher. I think our unique quality of U.S. grain-fed beef is the selling point because we have a very unique product out there.”
Halstrom also noted that while food service in Asia had struggled initially, it is now rebounding, with Japan and Korea seeing a significant increase in visitors and revitalization of the food service sector. Halstrom identified emerging regions such as Central America and Southeast Asia as offering significant opportunities.
Emphasizing the importance of selling the entire carcass to maximize value, Halstrom addressed concerns about herd rebuilding, assuring that buyers were well-educated and understood the cyclical nature of the industry.
“They understand while the price is high, but they are trying to understand what the opportunity is going forward for a rebound in production,” Halstrom said. “I think these are good spots to be in.”
One important thing to note about international trade, Halstrom said, is that other countries value variety meats highly, whereas in America some of those cuts are less popular. Halstrom said the demand for U.S. beef from international countries is a testament to the high-quality product produced by American ranchers.
“The key to maximizing the cutout and the value for the U.S. beef industry and the whole supply chain is selling the entire carcass,” Halstrom said.
Lastly, Halstrom outlined that educating customers about the industry’s conditions and partnering with them would be the focus for the coming months.
“I think that will be the focus for the next six months and for the rest of this year is to continue to push and educate our customers around the world and really partner with them knowing full well that production is going to be down here for the next year or two,” Halstrom said.
