He said that while the US red meat industry had achieved outstanding export growth in recent years several issues have affected this in 2015.
These included congestion in the West Coast ports, large supplies of European pork and Australian beef and key competitors that have achieved gains due to free trade agreements.
But Seng argued the one of the biggest obstacles for growth is lack of access to China. “China is one of only a handful of international markets that never reopened to US beef following the 2003 BSE case,” he said.
‘Import demand surged’
“At that time, and for several years thereafter, China was not a large importer of beef. But that changed dramatically in 2012, when beef import demand in China surged due to strong economic growth and a sharp decline in domestic production.”
He said other countries such as Australia, Uruguay, New Zealand, Argentina and Canada were all gaining a strong foothold in China.
“Being shut out of the Chinese market also affects the prices US beef cuts command in other Asian destinations, as China has begun to exert significant influence on global beef trade.
‘Lost opportunity’
“For the US beef industry, the lost opportunity due to our lack of access to China is currently estimated at more than US$100 per head,” he said.
While he admitted the Chinese market was not entirely closed to pork exports, he said a significant amount of pork production was ineligible to ship. That was due to ractopamine use and other factors that conflicted with China’s import requirements, he explained.
“China’s import conditions are stringent, but China is not lacking for suppliers willing to meet its demands,” he added. “This means the US industry faces some difficult decisions as we look for ways to expand access for US meat in this critically important market.”