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INTERVIEW-USMEF sees 2011 beef exports at 8-year high

Published 02/09/2011, 02:10 PM
Updated 02/09/2011, 02:12 PM

* U.S. 2011 beef exports seen up 10 percent to a 8-yr high

* Pork exports seen up 5 percent to a 3-year high

* Asia, Middle East good markets for beef

* Forecast conservative given Japan, China pent up demand

* S.Korea to offset losses due to foot-and-mouth disease

By Bob Burgdorfer

CHICAGO, Feb 9 (Reuters) - U.S. beef exports this year could be the highest in eight years, the head of the U.S. Meat Export Federation said, as a weak U.S. dollar, improving economies and a growing hunger for meat continues to drive sales, particularly in Asia and the Middle East.

Phil Seng, chief executive of the export promotion group, also told Reuters in an interview this week that pork exports in 2011 were forecast to be the highest in three years.

Strong meat exports will be needed to justify the record high cattle and hog prices that some analysts expect this year, according to a Reuters poll last week. [ID:nN04126900]

(Graphic: http://r.reuters.com/sad87r)

Seng said Asian countries were expected to buy more beef and pork this year, and the Middle East more beef.

U.S. beef exports from January to November last year were up nearly 18 percent from a year earlier and pork was up 2.5 percent and were the key reasons for the high cattle and hog markets. The final 2010 meat export figures will be released on Monday.

For 2011, beef exports should be up about 10 percent and pork up about 5 percent, said Seng.

PENT UP DEMAND

Seng's projected increases would still put exports shy of the record 2.52 billion lbs of beef exported in 2003 and the 4.65 billion of pork in 2008.

"The 10 percent on the beef side could be conservative if the U.S. gains more access to Japan and China," said Seng.

Japan, the No. 3 export market for U.S. beef, only buys U.S. beef from cattle under 20 months of age, but Seng is optimistic that age limit could be relaxed this year because of domestic and international pressures.

"If we could get some more access there beyond this 20 months, it would be huge. There is tremendous pent up demand in Japan," he said.

China said in December it will lift its seven-year-old ban on U.S. beef, but provided few details. China may need to import beef and pork to tame food price inflation there, Chinese industry sources said.

USDA Secretary Tom Vilsack told Reuters on Wednesday that talks are under way with China and relate to offal products, or non-meat items such as organs.

SOUTH KOREA NEEDS PROTEIN, EGYPT BUYING BEEF

South Korea should again be an important market for U.S. beef and pork as it needs the imports to offset lost production because of foot-and-mouth disease in its livestock herds.

"It is desperately in need of protein," Seng said.

About 25 percent of South Korea's hog herd has been culled as its fight to halt spread of the disease.

"I think they are starting to get their arms around it, but they are not there yet," Seng said of disease-fighting efforts.

Beef shipments to Egypt have resumed after coming to a halt about two weeks ago at the outset of the anti-government demonstrations there.

"It looks like Egypt might getting back to more normal. They are starting to clear product again. It was at a standstill for the last 12 days," he said.

Egypt primarily buys beef livers and recently opened its market to all ages of U.S. beef, said Seng.

Saudi Arabia continues to be an important buyer of both beef and beef variety meats, the latter including such things as livers and internal organs, he said. (Reporting by Bob Burgdorfer; Editing by Marguerita Choy)

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