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BUILDING TOWARD NEW EXPORT SUCCESS
The Canada Beef Export Federation’s (Federation) programs
and activities continue to aggressively drive the Canadian
beef value proposition in key export markets. To our
industry partners, we deliver the message of Canada’s
animal health and food safety through seminars, food
shows and publications, and by our offices directly
engaging individual clients. To consumers, we support
the positive points of differentiation of Canadian beef
with retail and food service promotions, focusing on
high-quality, grain-fed, tender and tasty Canadian beef.
Key to differentiating Canadian beef was the 2006 Beef
Quality Perceptions Audit (BQPA) commissioned by
the Federation to identify international buyers’ quality
preferences for beef and their perceptions of Canadian
beef. With the BQPA, the Federation established a
benchmark against which we will judge our future
successes. The audit will be completed every five
years to gauge changing perceptions of Canadian beef
and changing market demands.
The findings of the BQPA enabled the Federation to
establish a technical base to promote points of
differentiation
for Canadian beef. Based on this, we developed
a series of technical marketing materials for use in Asia
and Mexico. These materials include brochures on the
Canadian cattle identification system, beef grading system,
food safety systems, an overview of the Canadian beef
industry and a guide to importing Canadian beef as
well as an Asian merchandising guide.
The technical materials have proven highly successful,
generating a positive response with importers in all key
markets. We have now produced these materials in a
global version for use in new and emerging markets, and
are in the process of producing the merchandising guide
in a version focussed on Latin America. Underway, too,
is a consumer mark for Canadian beef that will be used in
all markets outside of Canada and the United States (US).
The Canadian value proposition is also generating a
high level of interest at Federation seminars. In the last
year fiscal year, the Federation delivered nineteen
‘Differentiation’ and ‘Demand Building’ seminars in
Japan, South Korea, Taiwan, China, Hong Kong and
Mexico. These seminars directly engaged a total of 2
345 importers and purchasers from the retail and food
service sectors. Surveys of seminar participants
showed that 68% found the seminars to be ‘Very
Valuable’; an average 70% gained a better understanding
of Canada’s value proposition of food safety and high
quality beef; and 90% asked for a follow-up contact
from CBEF.
There is great enthusiasm for Canadian beef in all our
priority markets, and we are confident that as market
access is regained, expanded and normalized, export
volumes will increase incrementally. The Federation’s
international representatives have worked hard to
maintain relationships with importers, distributors and
end users. These, our customers, have experienced
great success in the past with Canadian beef – and are
welcoming the opportunity to do so again.
Currently, 86 markets are effectively open to Canadian
beef. Of these, 68 countries accept all edible Canadian
beef products; 18 accept under-thirty-month (UTM)
products; and one country, Japan, accepts under-twentyone-
month (U21M) products. With Russia now having
officially opened to UTM boneless beef and offal, this
leaves just two major markets – Korea and Mainland
China – which have yet to re-establish trade.
A strong Canadian dollar, higher costs of production
and processing in Canada and restricted access in all
of our major export markets continued to contribute to
a significant decline in Canadian beef exports to the
end of 2006. These economic realities saw Canada
export over one million live cattle to the US in 2006
and 2007, while Canadian processors operated at less
than 65% capacity. In 2007, however, exports rose
approximately 4% over 2006 – and this, we believe,
is our turning point. Significant increases have been
produced in Mexico, Hong Kong and Macau, Japan
and Southeast Asia. Canada’s exports to these markets
have increased far faster than our 3% increase to the
United States.
The entire Canadian beef cattle industry is today
positioned to aggressively compete in the global beef
export marketplace. As an industry, it is doing what it
needs to do. It has incorporated the measures that are
establishing Canada as an international leader in animal
health and food safety. It has the grading system that
has been demonstrated to deliver the high quality beef
attributes most in demand in key export markets.
Producers are bringing record large cattle numbers to
the table – the beef cow herd numbered 5 million in
2007 – and in 2006 beef processing capacity reached
5.1 million head and self-sufficiency.
From individual producers to provincial cattle organizations
and national associations, there is strong determination and
will to diversify into international markets. The industry
has recognized the importance of export markets to its
sustained profitability, and it is focused on capturing
higher volumes of product into the high value markets
of the world – into Japan, South Korea, Taiwan,
Mainland China, Hong Kong and Mexico.
We are building toward this export success. We are
undertaking the market research and establishing the
performance measures. We are developing new
materials that reflect the research as well as strategic
input from industry and government partners. As
access is regained, we are delivering aggressive market
development programs to drive demand for Canadian
beef – and increase volume sales out of international
meat cases and off of international menus. As we move
forward, we are also building upon a solid foundation
of established supply chain and distribution channels
that promote Canadian beef. Developed over nearly
two decades of Federation activities, it is a foundation
that lends strong support to our efforts. |
