000149 U.S. Beef Sales to Asia Recover And May Rise-USMEFJanuary 30, 2000Phoenix, AZ - Exports U.S. beef to Asia have nearly recovered from two years ago when the struggling economies of some Asian countries led to a drop in sales, said Philip Seng, president and chief executive officer of the U.S. Meat Export Federation. “I think what we are seeing is pretty much this whole crisis is in the rear view mirror. Asia is going to get a lot better for us,” said Seng, during a press conference at the National Cattlemen's Beef Association annual convention. Japan continues to be the leading export market for U.S. beef. On a tonnage basis in 1998 it bought nearly half of all U.S. beef exports. Mexico was second followed by South Korea and Canada, according to the NCBA. Seng said China may soon be a leading buyer of U.S. beef, providing that Normal Trade Relations status can be established with that country. “There are probably about 200 million people (in China) that we would call middle class. It has a lot of potential. There hasn't been over the years very much consumption of beef at all,” said Seng. Chuck Lambert, the NCBA's chief economist, told Reuters that within five years China has the potential to buy up to $500 million worth of U.S. beef annually, which could make it a major beef export customer. “I don't think it will replace Japan, but it could vie with Mexico,” said Lambert Obstacles that may slow China's rise as a major buyer of U.S. beef include its large area, poor transportation system, and a lack of refrigeration, said USMEF's Seng. “There is not even a major road from Beijing to Shanghai,” said Seng. “So, when you talk about China as a market, definitely it's a potential market but there are still a lot of obstacles.”
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