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A Canadian Strategy for Export Prosperity
The international marketplace, to which Canadian beef is
returning, has changed. The absence of North American
beef has shaped new trade dynamics, with other beef
exporting nations moving in to fill the void. Most are
dedicating considerable resources to keeping their market
share as North American beef regains access.
CBEF’s (the Federation) strategy to regain and grow beef
export sales to key markets must, of necessity, be one of
displacing the competition that has moved in to take our
place. To do this, we must demonstrate to the meat buyers
and sellers of the international meat-buying community
that Canadian beef is a better deal and will provide them
with a quality and competitive advantage in their markets.
To determine the current perceptions of beef quality in the
international marketplace – and to find out how Canadian
beef measures up – in 2006 the Federation commissioned
independent market research firms to go out and ask the
meat experts in Japan, South Korea, Taiwan, Hong
Kong/Macau and Mexico about the beef in their markets.
This research adds to the work done in 2004 by the Beef
Information Centre in the US. A combined total of 965
senior managers and managers in the retail and food
service sectors were surveyed. These are the people who
are in the business of buying what sells – and who have the
purchasing power and market influence to drive demand.
The survey asked about marbling standards, meat colour
and quality, fat colour and quality and meat texture. In
each category, participants were asked whether they had
experienced problems with quality issues, whether they
would prefer never to receive beef with these issues – and
what their preferred attributes were.
Finally, they were asked whether grading standards
designed to deliver all their preferred attributes – of
marbling,
white/light-amber fat, bright red meat colour, and firm
muscle texture – would give their company a quality
advantage in the marketplace. An overwhelming 95
percent of all participants in all markets said, yes, such
grading standards would provide them with a quality
advantage in the marketplace.
These are the attributes delivered by Canada’s high quality
beef grades. By an overwhelming majority, the respondents
endorsed Canada’s beef grading system – and confirmed
that Canadian beef presents a quality and competitive
advantage in the marketplace.
The Federation is taking the message to market. In October
2006, we launched an extensive and ongoing round of
seminars in the key markets of Japan, South Korea, Taiwan,
Hong Kong, Mainland China and Mexico, to differentiate
Canadian beef from the competition and build demand.
Without exception, the seminars are being received with
keen interest by the international beef-buying community.
These seminars are being held through March 2007.
The Federation is also rolling out a series of six technical
promotional materials designed to communicate the
Canadian Beef Advantage to the meat buyers – to
importers, distributors and retail and food service end
users. It is these people who must have confidence in our
product. It is they who will communicate confidence to
the supermarket managers and restaurant chefs and wait
staff who will feature Canadian beef in their meat cases and
on their menus – and in turn will inspire confidence in the
consumer. We are reinforcing consumer confidence with the
adaptation of our technical materials to point-of-purchase
consumer messages about Canadian beef quality and food
safety. Always, we link our products to the positive images
that Canada – as a country – is known for around the world.
Progress is Being Made
Canadian beef has been welcomed back in many countries
around the world. In pre-BSE 2002, Canadian beef was
shipped to 66 markets. In 2005, the number of countries
totalled 76, clearly demonstrating that the Canadian
industry has regained its essential ability to export. At
this
time, 84 markets are effectively open to Canadian beef:
67 countries accept all edible Canadian beef products; 16
accept under-thirty-month (UTM) products; and one
country, Japan, accepts under-twenty-one-month (U21M)
products. Four major markets, Korea, Taiwan, Mainland
China and Russia, have yet to re-establish trade – although
Russia and Canada have reached agreement on an export
certificate governing boneless beef, an important step in
achieving access.
In 2005, Canada exported a total of 458,000 tonnes of
beef ($1.9 billion), with 371,000 tonnes going to the US
and 73,000 tonnes going to key markets in Asia and
Mexico. From January to October 2006, those exports
totalled over 309,000 tonnes ($1.1 billion), of which
254,000 tonnes were shipped to the US and 45,000 tonnes to
Asia and Mexico. This level of export has
been reached in the absence of access in the key Asian
markets of South Korea, Taiwan and Mainland China.
The BSE crisis has seen the Canadian industry endure
three extremely difficult years, and there are challenges
still ahead. The resolve of Canada’s cattle producers to
continue to operate in the face of the BSE crisis and
ongoing trade disruptions has been nothing short of
remarkable. Canada’s cattle population currently stands
at 15 million head, with its beef production estimated
at 1.6 million tonnes in 2006. The Canadian industry
today is larger, and with a higher beef processing capacity,
than at any time in its history. Technically, it has never
been
better positioned to exploit international opportunities.
As the dynamics of the international marketplace have
changed, so has the Canadian industry. While we must
face the realities of not having access to all those key
markets where we need to be in order to derive maximum
value for our product, there are opportunities to be
realized.
The Canadian industry – with its supply, capabilities,
systems, knowledge and commitment – is well
positioned to take advantage of these opportunities
as they develop. |
