From staff reports SAN DIEGO – Speaking at the Cattle Industry Summer Business Meeting, U.S. Meat Export Federation President and CEO Dan Halstrom said that May’s export numbers have been relatively good, showing robust growth in Latin American countries, and some rebound in Japan’s food service arena.
“We are in a 30-some year low of the yen against the dollar, which makes our products more expensive in yen terms,” he said. “However, the positive of that is that tourism is booming, because the dollar is so strong in Japan.”
He believes that U.S exports to Mexico are strong in part because they are in a drought which puts pressure on their supply chain, raising their own prices, and demand is at an all-time high. Similarly price conscious to Japan, the focus is shifting to supply and quality.
Looking forward, Halstrom expects pork exports to remain strong. Despite higher beef and pork prices, he believes the U.S is still in a good position.
“People are buying a little bit hand-tomouth,” he said. “When that happens, price isn’t the main concern; supply is. I think that is the situation we are in as we look at the last half of the year which is a good place for us to be.”
Halstrom noted that worldwide, consumers have proven willing to pay for quality.
“There is a reason that 85-plus percent of our product is grading choice and higher,” he said. “Because that is what the consumer wants. Mexico used to be primarily a select and lower market, but it’s now changing to a choice and higher market because they want the quality and consistency. We aren’t trying to market to everybody. We are trying to market to those demographics that appreciate and can afford our quality, and that’s what we are seeing in Mexico today.”