USMEF: We have to rebuild the market for US beef in Saudi Arabia
EUROMEATNEWS.COM: How was the US beef production in 2017? What will 2018 bring in terms of meat production?
Dan Halstrom, USMEF: Regarding the US beef production, according to USDA data, it reached 26.175 billion pounds in 2017, up 3.8% from 2016. Beef production is expected to be record-large in 2018 at 27.760 billion pounds, up 6.1%.
How much beef was exported from the United States in terms of volume and value in 2017 and how much was imported? And what do you expect for 2018?
USDA estimates that 2.875 billion pounds of beef were exported in 2017, an increase of 12% over 2016. 2018 exports are expected to be up 3.8% to 2.985 billion pounds. The U.S. imported about 2.976 billion pounds of beef in 2017, down slightly from 2016. The U.S. is expected to import about 3.03 billion pounds of beef in 2018. These volumes are the latest estimates from USDA, are in carcass weight equivalent, and do not include variety meats. Although December data is not yet available, USMEF expects U.S. beef and variety meat export value to reach a record-large level in 2017, exceeding $7.2 billion. We project export value to increase by another 4% to 6% in 2018.
How much Halal meat does the USA produce?
No official data is available to determine how much halal meat is produced. There are procedures in place to ensure that halal meat is produced in accordance with proper procedures and practices, and this process is overseen by approved halal certifiers. But no data on the amount produced or consumed is available to USMEF.
How much from the US halal meat production was exported in 2017? Whici were the destinations?
Unfortunately, we don’t official data available to determine the exact volume of halal meat that is produced or exported. We do know, however, that all U.S. beef exported to Middle Eastern markets, Indonesia and Malaysia was halal-certified, because this is required in order for an export certificate to be issued for those countries. Through November 2017, U.S. beef exports to the Middle East (excluding some kosher product exported to Israel) totaled 75,172 metric tons valued at $176.6 million. Exports to Indonesia were 12,964 metric tons valued at $49.3 million, and exports to Malaysia were 141 metric tons valued at about $850,000.
It is important to note that some halal-certified U.S. beef was also exported to markets such as Canada, Hong Kong, the Philippines, Singapore, the Caribbean and West Africa. But because halal certification is not required in order to export to these markets, we have no way of knowing the percentage of product that was halal-certified. Once it arrives in these markets, halal-certified product still must meet any labeling and handling requirements that are in place. But in contrast to the markets listed above, halal certification is not required for shipments to be made.
Which were the consumption trends in 2017 and what do you expect we will witness in the following years?
Total beef consumption in the U.S. was 26.42 billion pounds in 2017, with per capita consumption at 56.8 lbs. per person. Per capita consumption was up 2.2% from the 2016 level of 55.6 lbs. In 2018, total domestic consumption is expected to be 27.837 billion pounds, with per capita consumption at 59.4 lbs., up 4.6%, again based on the latest USDA estimates.
How was the evolution of the meat prices in 2017 and what do you expect for 2018?
Choice beef retail prices averaged $5.91 per lb. in 2017, down 1% from $5.96 per lb. in 2016. Wholesale prices averaged 2% higher in 2017, with the Choice cutout at $2.10 per lb. compared to $2.07 per lb. for 2016.
What can you say about the Gulfood exhibition? Was last year’s edition a success for the US halal meat producers?
Gulfood is an excellent venue for showcasing the world’s safest and highest-quality beef and lamb. Gulfood presents U.S. exporters with great opportunities for new business, not only with buyers from the Gulf Region but also those participating from Europe, Africa and Asia. Last year’s event was successful, but one area in which we still need to make more progress is rebuilding the market for U.S. beef in Saudi Arabia, where we had a great deal of success before the market closed to U.S. beef in 2012. Now that we again have access to the Saudi market (it reopened in 2016), it is very important to re-connect with those customers.
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