KANSAS CITY, Mo. – America’s major beef packers say the customer is always right when it comes to capturing a big chunk of the world meat market.
The corporate philosophy for companies like Cargill, IBP and Montfort Beef has changed from a take it or leave it attitude to a customer service program that costs them $10 million a year collectively.
Excel Corporation employs 15 people in Tokyo and Osaka, said Cary Humphries, vice-president of international sales for Excel.
He said these companies made substantial changes in the last five years and are more sensitive to attractively packaged items, portion control and guaranteed freshness. Excel is the packer division of Cargill Inc. in the United States.
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“We ensure it is beautiful in the meat case, as well as in the warehouse,” said Humphries.
“Today, we’ll put a bow around it if they want it,” he said during the international trade committee meeting at the national Cattlemen’s Beef Association convention held here Jan. 29-Feb. 1.
Excel plans to substantially increase sales to Japan, especially in the chilled beef. Chilled beef is shipped fresh to the Far East ready to go to retailers in 18 to 20 pound boxes. In special vacuum packaging the cuts have a shelf life of about 60 days from the time they leave the U.S. until delivered to a grocery store or restaurant.
At one time, Excel shipped the same frozen boxed beef to the Japanese as it shipped
to other customers. That was a mistake and sales showed it. The company learned to be more conscientious about appearance because that aspect is important to Japanese buyers.
As well, Excel now offers a wider variety of beef cuts.
Japanese cooking and eating styles call for different cuts than those used by North Americans.
The Japanese will pay a premium for the variety meats like intestines, beef navels or short ribs, items many Americans consider waste.
Excel also plans to increase sales in Russia, China and South Korea.
One in every three livers produced in North America goes to Russia, said Humphries.
Russia also wants chicken and will buy 700,000 tonnes of chicken leg quarters.
Sales forecasts for China see a 40 percent increase but that is from a base of about 16,000 tonnes annually.
Humphries said the market is potentially lucrative but is still relatively small compared to Japan.
