developing countries… how u.s. red meat is

Developing Countries… How U.S. Red Meat is Perceived in Other Countries

Paul Clayton, U.S. Meat Export Federation

Sustainability….Food Security….Food Waste

1160# Annual food loss for a US Family of 4National Geographic November 2014

Asian Retail Stores

Europe Retail Stores

Latin America Retail Stores

Alibaba.com

• Others Using This Platform• Costco• Neiman Marcus• Saks 5th Ave• Ann Taylor

• 2014 $15 Billion US/China

• 2020 $291 Billion US/China

On-line Food Service UBER - Deliveries

Amazon Virtual Storefront for Restaurants

Retail Delivery/Pick-up

Sufficient Food for the World• WHO: Food Security: when all people at all times have access to

sufficient, safe, nutritious food to maintain a healthy and active life. • Commercially

– Food Security= US helps fill the gap between demand and a country's self sufficiency

Exports Impact Food Security

0

2,000

4,000

6,000

8,000

10,000

12,000

1950 2013 2025 2050 2100

World United States

000,000

0%10%20%30%40%50%60%70%

10.9 Billion

Global Middle Class in 2030 • 96% of the World

Population Lives out of the US,

• 80% of the buying power

Source: United Nations, Department of Economic & Social Affairs, Population Division (2013)Source: OECD Development Center, 2010

Population Growth to 2100

Under-developed, Developing and Developed Countries

Gross domestic product (GDP) based on purchasing-power-parity (PPP) per capita Darkest red: highest GDP per capita (PPP)Medium red: medium-high GDP per capita (PPP)Light red: medium-low GDP per capita (PPP)Lightest red: lowest GDP per capita (PPP)

Source: International Monetary Fund World Economic Outlook Database, April 2013.

Developing: ChinaMexicoPhilippinesColumbiaPeruEgypt VietnamIndonesia Malaysia

Gross Domestic Product (2015)

Source: The World Bank

US Red Meats in Developing Countries

Source: 2014 USMEF & USDA

Beef: Retail and some food service Pork: Retail and further processingLamb: Food Service

(000)

050,000

100,000150,000200,000250,000300,000350,000400,000

Developing Countries Volume (MT)

Beef & BVM Pork & PVM Lamb & LVM

$0

$1,000,000

$2,000,000

Developing Countries Value (US$)

Beef & BVM Pork & PVM Lamb &LVM

Importance of Variety Meats

Source: 2014 USMEF & USDA

0.0

20.0

40.0

60.0

80.0

100.0

Developing Countries Percent Variety Meats

BVM PVM LVM

0200,000400,000600,000800,000

1,000,0001,200,0001,400,000

Developing Countries Value by Product (US$)

Beef BVM Pork PVM Lamb LVM

(000)

US Pork Market Opportunity

Self Sufficiency

65%

Import Potential

35%

MEXICO PORK

US Mkt Share92%

Other Share

8%

MEXICO PORK

Self Sufficiency

74%

Import Potential

26%

COLUMBIA PORK

US Mkt Share71%

Other Share29%

COLOMBIA PORK

710,000MT

43,000MT

6 Competitors

5 Competitors

US Beef Market Opportunity

Self Sufficiency

94%

Import Potential

6%

CHINA BEEF

US Mkt Share

9%

Other Share91%

CHINA BEEF

Self Sufficiency

57%

Import Potential

43%

EGYPT BEEF

US Mkt Share27%

Other Share73%

EGYPT BEEF

135,000MT

122,000MT

8 Competitors

Source: 2014 USMEF & World Bank

• Tongues to Japan & Mexico - $3.40/lb.– $2.00/lb. domestic– $1.40/lb. premium = $5.00/head

• Livers to Egypt - $0.53/lb.– $0.20/lb. domestic pet food value– $0.33/lb. premium = $4.00/head

• Short Plates to Asia - $1.64/lb.– $1.05/lb. domestic trim value– $0.59/lb. premium = $4.13/head

• Bone-in Chuck Short Ribs Asia - $3.00/lb.– $2.50/lb. domestic– $.50/lb. premium = $1.80/head

US Beef Value Optimization

2014 Total Beef and BVM = 1.2M MT $7.1BVariety Meats 338K MT $838M Source: USMEF

U.S. Pork Value Optimization

• Bungs to Asia- $1.50/lb.– $.20/lb. Domestic– $1.30/lb. premium=$.45

• Feet to China– Today $56-$.80/ lb. but without the export

markets the price could be $.20/lb.

• Hams to Mexico, South America and Asia: – Today $.65/lb. but without the export

markets the price could be $.50/lb.

• Loss of these items in the export markets would amount to $9.20/Hd.

2014 Pork and PVM 2.2M MT $6.7BVariety Meats 526K MT $1.0B Source: USMEF

Japan

Taiwan

Raw Material for Processing

Sacred to the US

Beef Competition

Pork Competition

Why Is Thin Slicing Popular In Foreign Cuisine?

• Historical Meat Quality– Minimal Grain Feeding– Old cows, bulls, sows and boars – Flame broil or slow roast– Cultural

• Present Day– Asia

• High marbling, “Streaky Fat”– Fat flavor

• Family style dining– “Camp fire” effect

• Pre-cut individual cuts – chop sticks

– Latin America• Prefer lean cuts - tougher• Price point cuts• Chop and mix with other

ingredients• Hand held

Yakiniku (Korean Barbeque)

Carne Asada (Mexican Bar-B-Q)

Hot Pot, Rice Bowl and ShabuShabu

Tonkatsu (Japanese Pork Cutlet)

Lamb cuts - Asia

Lamb Shoulder Ribs, Dinner Ribs (Lamb Chuck Short Ribs)- Western Cuisine: BBQ Lamb Ribs- Oriental Cuisine: Double Boiled

Chinese Herbal Soup- Indian Cuisine: Curry Lamb Ribs

Lamb Breast Bone-Indian Cuisine: Curry Lamb-Meat crumbs for Lebanese/Indonesian

rice dish

Lamb Cuts - Caribbean

• Lamb Belly– Capitalize on Pork Belly

trendiness to give application idea

– Show versatility as “Beyond Bacon” [Pancetta!]

Bolero’s Lamb Belly AppetizerCraft’s Lamb Pancetta with Fig Salami

Lamb Loin Double Chop• Only one per loin as there is only

one rib bone left in the break• Special to the USA!• Steakhouse cut “beyond rack”

Beef Hind Shank - Asia

Menu Application:Cold cut beef heel steak

with garlic vinegar dip

New Menu Application: Japanese table-top grilling-

Yakiniku (Wet Aged, thinly sliced, 4-

millimeter thick, lightly flatten)

Deep fried beef heel steak as appetizer

Beef Brisket - Mexico

• It is cubed or chopped in small pieces

• Complement in Stocks and soups : “Puchero”, “Birria”

• Stews (Guajillo, Morita and Pasilla sauces)

Pork Brisket (Deckle) - Mexico

• Marinated in Achiote sauce, sliced, piled and spin roasted for “pastor” tacos

• Chopped and cooked in lard for “Carnitas”

• Cubed and included in “Pozole”

Pork Shoulder Butt—Beyond BBQCaribbean

Pizza Sliders “Mighty Cone”

Country-style RibsCT Butt Jerk Pork on Bammy Crudites

Summary• Developing countries are key to the red meat industry

because of their growing economies and purchasing power for red meat products.

– The US can get the most out of value from countries that have lower self sufficiency

• Diversity of meat products to meet consumer demand

– Products have to fit the local cuisine at an acceptable price point

• Superior quality attributes, versatility and consistency of US meat product creates demand in foreign markets