The Canada Beef Export Federation has expanded its priority markets and scaled back export goals as trade restrictions continue and a worldwide recession slows demand.
“Our 2015 goals currently indicate that we hope to only slightly exceed our 2002 performance,” said CBEF president Ted Haney at the organization’s annual meeting in Calgary Sept. 17. Canada’s most successful export year was 2002 but international sales nearly ground to a halt the next year when a BSE embargo closed borders around the world to Canadian beef.
Read Also
Beef check-off collection system aligns across the country
A single and aligned check-off collection system based on where producers live makes the system equal said Chad Ross, Saskatchewan Cattle Association chair.
“Our vision is to get back to where we were,” he said.
The federation has set market priorities, with the highest being Japan, South Korea, Taiwan, Hong Kong, China, Russia and Mexico. The other priorities aim for greater penetration into the Middle East, Central and South America and the Caribbean.
The federation established a 10-year goal in 2006 to export 521,000 tonnes of beef that would require one million head of cattle. The meat would go to key markets like Asia and Mexico to reduce dependency on the U.S. market.
Those goals have been reduced to 479,000 tonnes primarily because of restricted access and reduced demand due to the economic recession. Nearly 30,000 tonnes of beef and veal were exported in the first six months of 2008 and 26,500 tonnes have been exported for the same period in 2009.
New markets continue to appear but often the total sales are small.
Scott Wooding, outgoing chair of the technical committee, said there are a number of markets open in the Middle East but until a major source of halal processed meat for the Muslim population is found, open borders do not mean much.
Other larger markets granting wide access have slowed down as consumers buy cheaper meat and eat out less.
Exports to Hong Kong peaked in 2005 at 20,000 tonnes or $76 million. In 2008, 17,675 tonnes were sold but starting in 2009 a new agreement to expand access for a greater variety of Canadian beef in a staged process was announced. It permits products like rib cuts, boneless beef and offal from all ages and the majority of bone in cuts from under 30 month animals.
Asian markets
China remains closed. Taiwan is expected to increase imports to 2,500 tonnes by year end.
Japan only accepts beef from cattle younger than 21 months. Negotiations to raise the age to 30 months continue.
South Korea remains closed. Canada initiated a world trade organization challenge, which CBEF representative Amos Kim believes Canada can win.
European markets
Comprehensive access is available to all 27 member nations in the European Union but restrictions continue with a ban on beef with growth hormones.
“The European Union could be the largest potential market if issues over hormones and carcass cleansing could be resolved,” said Wooding.
“It would open the doors to a rich market that prefers good beef.”
Canada is working on a free trade deal with the EU and wants beef included in the higher quota of 20,000 tonnes per year offered to the U.S.
This quota will grow to 45,000 tonnes in a phased approach.
Canada and the U.S. share an 11,500-tonne quota with a 20 percent tariff for high quality beef and bison.
Russia accepts boneless beef and some offal from cattle younger than 30 months but there are only three companies allowed to export beef there. Negotiations are underway to expand to 12 eligible plants.
The next step is to prepare export certificates for bone-in beef from the youthful category once export certificates are made available to Canadians.
Exports to Mexico peaked in 2004 at 87,000 tonnes where Canada can ship all under 30 month edible beef products.
