Meeting cultural tastes | Different countries looking for specific cuts are willing to pay more than Canadians might pay
Canadians are loyal to home-grown beef, but export markets are needed to get full value from every carcass.
Canada exports 45 percent of its beef, and one of the best customers is turning out to be the Hispanic market in southern California.
It consists of 14 million potential consumers who are looking for specific beef cuts that can earn Canada a premium rather than being sold as a generic product.
“Canadian beef should not just be a box going into the U.S. It should be dedicated to a specific market,” said Marty Carpenter, executive director of North American market development for Canada Beef Inc.
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Canadian beef is sold to 71 countries as a high quality product. Sales totalled $1.3 billion last year, and 70 percent of it went to the United States. Most of it was sold fresh and was destined for dozens of markets where diverse cultures are looking for specific products.
“The term niche is a funny term because some niche markets are bigger than you think,” Carpenter told the International Livestock Congress in Calgary July 9.
For example, the U.S. Hispanic market extends from California to Texas. They eat three times as much beef as Canadians and have specific cuisine preferences. Most of the beef is typically sold from full service meat cases, where it is sliced thin and piled high in a package.
Another niche is the halal market, which serves more than 10 million Muslims in North America. There are probably 1.6 billion potential consumers worldwide, said Carpenter.
Canada Beef also works with Asian customers. Many are not big beef eaters, but that is starting to change. With their style of cooking they are looking for products that can be sliced thin and prepared quickly.
Cuts from the chuck, hips, brisket and shanks as well as blade meats and shoulder clods are often sent to alternative markets and consequently earn more money than Canadians might pay.
However, it is a competitive market, in which sellers from around the world are trying attract the same customers. As a result, Canada has to offer something different.
Part of the plan includes promoting the Canadian Beef Advantage as a set of verifiable standards and processes to ensure quality and safety.
Canada’s clean, fresh water, mountains and wide open spaces is widely promoted with the idea that customers believe this is a good place to produce wholesome food.
