QUEBEC CITY — Despite record 1993 exports into Asian markets, the Canadian beef industry still has an image problem in the world’s fastest growing market.
Beef exporters were told last week to work harder, be more sensitive to local needs and tastes and be prepared to stay for the long haul.
“Do not expects fruits of your labor at the beginning of your business in Japan but expect it in the long-term relationship developed,” Yasuo Ono, Japan director for the Canada Beef Export Federation, told the semi-annual meeting Feb. 2.
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“We think there are prospects for Canadian beef (in the Korean market),” said Don Hoover of the Edmonton-based Serecon management consultant firm that studied the market for the federation. “But it is up to you to make it happen. There are problems.”
Among those problems throughout the region are price, quality, stiff competition and a view of the Canadian industry as not aggressive and consistent enough in its sales efforts.
Canadian exporters have not always understood Japanese customs, nor followed up trade contacts, nor spent enough time developing contacts, Ono said.
And Canadian beef faces stiff price and quality competition from American and Oceanic product, he said. Although it is changing, the Japanese image of Canadian beef has been that it is too costly and too tough.
The news about the Korean market was more discouraging.
Hoover told federation members that while there is an opportunity to increase Canadian sales from 500 tonnes last year to 16,000 tonnes in 10 years, there are hurdles.
Canadian beef is not always priced competitively, the quality does not always suit Korean tastes and the Canadian industry has “a very negative image.”
Demand is increasing
Despite all the warnings, the beef exporters were in an upbeat mood about their Asian prospects. New international trade deals will bring a liberalization of Asian import rules and the Asian taste for imported beef is soaring.
Last year, the 6,000 tonnes sold into Japan represented a 30 percent increase over 1992 levels but were just a small fraction of the 725,000 tonnes imported by the Japanese.
Neil Jahnke, president of the five-year-old export federation, told the meeting that getting an increased share of those growing imports is key if the Canadian industry is to prosper.
And the Asian market is key to reducing dependence on the American market, which now takes 90 percent of Canadian exports.
“I think we’re on the edge and anyone who goes over there (to Asia) and makes an effort can make a big splash,” he said.
