developing countries… how u.s. red meat is
TRANSCRIPT
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
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