OTTAWA — Canadian beef exports for 2017 are up 5.7 percent in volume but six percent in value at $2.4 billion.
Seventeen percent of Canada’s exports went to Mexico, Japan, South Korea, China and Hong Kong. The United States remains the top destination for Canadian beef, said Francis Andres, president of Canada Beef.
In 2017, Canada exported 380,000 tonnes worldwide, compared to 356,232 tonnes in 2016.
Projections are to export 100,000 tonnes of beef to Asia in the next five years, a growth rate of 35 percent per year.
There are other opportunities with the opening of the European Union and potential in the Middle East, Andre said at the Canadian Cattlemen’s Association annual meeting in Ottawa held March 21-23.
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“The highest value market is really the EU and the Middle East,” he said.
In the Middle East, beef is sold for about $12 per kilogram.
Saudi Arabia is the place to be, but there are technical restrictions around halal protocols that are hard to meet.
China would be the best market overall because of its population and the volume it requires.
China opened access to frozen, boneless beef in 2010 and a pilot project to export fresh-chilled beef is underway but it has been slow going.
“We know it is a massive market but there is always more work to be done,” said John Masswohl of the CCA.
Exporters are subject to import inspections and the Chinese authorities test shipments for pathogens, parasites, heavy metals, pesticides and drug residues. Any shipments found positive are returned to the country of origin or are destroyed and the company is delisted.
With the signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Canada can prepare a strategy to offer more beef to Japan as tariffs decline. The goal is to ship 28,000 tonnes in the 2018-19 period.
