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68th RECIPROCAL MEAT CONFERENCE
Developing Countries… How U.S. Red Meat is Perceived in Other Countries
PAUL CLAYTON, U.S. MEAT EXPORT FEDERATION
68TH RECIPROCAL MEAT CONFERENCE
Sustainability….Food Security….Food Waste
1160# Annual food loss for a US Family of 4National Geographic November 2014
68TH RECIPROCAL MEAT CONFERENCE 68TH RECIPROCAL MEAT CONFERENCE
68TH RECIPROCAL MEAT CONFERENCE
Asian Retail Stores
Europe Retail Stores
Latin America Retail Stores
68TH RECIPROCAL MEAT CONFERENCE
Alibaba.com
• Others Using This Platform• Costco• Neiman Marcus• Saks 5th Ave• Ann Taylor
• 2014 $15 Billion US/China
• 2020 $291 Billion US/China
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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
68TH RECIPROCAL MEAT CONFERENCE
Exports Impact Food Security
0
5,000
10,000
15,000
1 2 3 4 5
Series1 Series2
000,000
0%
20%
40%
60%
80%
1 2 3 4 5 6
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) , OECD Development Center, 2010
Population Growth to 2100
68TH RECIPROCAL MEAT CONFERENCE
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
68TH RECIPROCAL MEAT CONFERENCE
Gross Domestic Product (2015)
Source: The World Bank
68TH RECIPROCAL MEAT CONFERENCE
US Red Meats in Developing Countries
0
100,000
200,000
300,000
400,000
1 2 3 4 5 6 7 8
Developing Countries Volume (MT)
Series1 Series2 Series3
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
1 2 3 4 5 6 7 8
Developing Countries Value ($US)
Series1 Series2 Series3Source: 2014 USMEF & USDA
Beef: Retail and some food service Pork: Retail and further processingLamb: Food Service
(000)
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Importance of Variety Meats
0.0
20.0
40.0
60.0
80.0
100.0
1 2 3 4 5 6 7 8
Developing Countries Percent Variety Meats
Series1 Series2 Series3
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1 2 3 4 5 6 7 8
Developing Countries Value by Product ($US)
Series1 Series2 Series3 Series4 Series5 Series6 Source: 2014 USMEF & USDA
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US Pork Market Opportunity
165%
235%
MEXICO PORK
192%
28%
MEXICO PORK
174%
226%
COLUMBIA PORK
171%
229%
COLOMBIA PORK
710,000MT
43,000MT
6 Competitors
5 Competitors
68TH RECIPROCAL MEAT CONFERENCE
US Beef Market Opportunity
194%
26%
CHINA BEEF
19%
291%
CHINA BEEF
157%
243%
EGYPT BEEF
127%
273%
EGYPT BEEF
135,000MT
122,000MT
8 Competitors
Source: 2014 USMEF & World Bank
68TH RECIPROCAL MEAT CONFERENCE
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
68TH RECIPROCAL MEAT CONFERENCE
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
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Japan
Taiwan
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Raw Material for Processing
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Sacred to the US
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68TH RECIPROCAL MEAT CONFERENCE
Beef Competition
68TH RECIPROCAL MEAT CONFERENCE
Pork Competition
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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
68TH RECIPROCAL MEAT CONFERENCE
Yakiniku (Korean Barbeque)
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Carne Asada (Mexican Bar-B-Q)
68TH RECIPROCAL MEAT CONFERENCE
Hot Pot, Rice Bowl and Shabu Shabu
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Tonkatsu (Japanese Pork Cutlet)
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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
68TH RECIPROCAL MEAT CONFERENCE
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”
68TH RECIPROCAL MEAT CONFERENCE
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
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Beef Brisket - Mexico
It is cubed or chopped in small pieces
Complement in Stocks and soups : “Puchero”, “Birria”
Stews (Guajillo, Morita and Pasilla sauces)
68TH RECIPROCAL MEAT CONFERENCE
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”
68TH RECIPROCAL MEAT CONFERENCE
Pork Shoulder Butt—Beyond BBQCaribbean
PIZZA Sliders “Mighty Cone”
Country-style RibsCT Butt Jerk Pork on Bammy Crudites
68TH RECIPROCAL MEAT CONFERENCE
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
