Traceability gives Canada an advantage in export markets, says U.S. meat exporter
Posted Jan. 27th, 2012 by Barbara Duckworth
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DENVER, Colo. — The head of international trade for one of the world’s largest meat processing companies predicts Japan might relax its age requirements on cattle by this summer.
Mark Gustafson of JBS Inc. at Greeley, Colorado, said Japan’s food safety committee is considering raising the age limit for beef from cattle younger than 21 months to less than 30 months.
Public hearings and studies are underway that could make it possible to find more age appropriate cattle for that market, he told the recent International Livestock Congress in Denver.
However, Canadian exporters are encouraged to continue building the maple leaf brand rather than waiting for a change in age rules.
“Canada Beef is focused on marketing and promotions and brand building in the Japan market value chain through to consumers. As for changes to the regulations, it is not for us to expend energy,” agency president Rob Meijer wrote in an e-mail.
“The existing rules do create some challenges, but together with our market partners we have been able to manage.”
Even if Japan agrees to accept older cattle, it will continue to demand its suppliers provide age and source verification.
“The Japanese want traceability within the whole context of all products coming into the country,” Gustafson said.
That gives Canada an advantage with its mandatory traceability system, he added, even though it is not perfect. He also said the United States will never get a beef agreement with China without full traceability. Canada has an agreement in place, but no exports have been made.
Gustafson questions why trading partners ask for traceability.
“In all the countries that I deal with and all the people I discuss this with, I don’t think anybody can define traceability and I don’t think they can tell you why they want traceability and I don’t think they know what traceability is,” he said.
He argued that beef buyers do not need the ability to trace an animal back to the farm because it may not been there for a year or more. However, the U.S. cannot be the only hold out in the world, he added.
“We should have an identification system and it should be part of our animal health system,” he said.
Even without full traceability, the U.S. has had a stellar export year because its grading system defines quality and age attributes.
“The one thing we have an advantage over any other competing country … is we produce the highest quality grain fed beef in the world.”
Worldwide acceptance of U.S. beef was gained with little government support, Gustafson said.
“We don’t really put a strong priority or emphasis on export markets. Because of that, some of our systems and policies have moved away from international policies,” he said.
“I don’t think there is one agency in Washington that has trade in their file,” he said. “We are at a disadvantage to a lot of countries.”
The U.S. Meat Export Federation predicted that beef export values from last year should eclipse the $5 billion mark for the first time when the final figures from December become available.
The January-November export total was 1.179 million tonnes, up 22 percent from 2010.
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DENVER, Colo. — The head of international trade for one of the world’s largest meat processing companies predicts Japan might relax its age requirements on cattle by this summer.
Mark Gustafson of JBS Inc. at Greeley, Colorado, said Japan’s food safety committee is considering raising the age limit for beef from cattle younger than 21 months to less than 30 months.
Public hearings and studies are underway that could make it possible to find more age appropriate cattle for that market, he told the recent International Livestock Congress in Denver.
However, Canadian exporters are encouraged to continue building the maple leaf brand rather than waiting for a change in age rules.
“Canada Beef is focused on marketing and promotions and brand building in the Japan market value chain through to consumers. As for changes to the regulations, it is not for us to expend energy,” agency president Rob Meijer wrote in an e-mail.
“The existing rules do create some challenges, but together with our market partners we have been able to manage.”
Even if Japan agrees to accept older cattle, it will continue to demand its suppliers provide age and source verification.
“The Japanese want traceability within the whole context of all products coming into the country,” Gustafson said.
That gives Canada an advantage with its mandatory traceability system, he added, even though it is not perfect. He also said the United States will never get a beef agreement with China without full traceability. Canada has an agreement in place, but no exports have been made.
Gustafson questions why trading partners ask for traceability.
“In all the countries that I deal with and all the people I discuss this with, I don’t think anybody can define traceability and I don’t think they can tell you why they want traceability and I don’t think they know what traceability is,” he said.
He argued that beef buyers do not need the ability to trace an animal back to the farm because it may not been there for a year or more. However, the U.S. cannot be the only hold out in the world, he added.
“We should have an identification system and it should be part of our animal health system,” he said.
Even without full traceability, the U.S. has had a stellar export year because its grading system defines quality and age attributes.
“The one thing we have an advantage over any other competing country … is we produce the highest quality grain fed beef in the world.”
Worldwide acceptance of U.S. beef was gained with little government support, Gustafson said.
“We don’t really put a strong priority or emphasis on export markets. Because of that, some of our systems and policies have moved away from international policies,” he said.
“I don’t think there is one agency in Washington that has trade in their file,” he said. “We are at a disadvantage to a lot of countries.”
The U.S. Meat Export Federation predicted that beef export values from last year should eclipse the $5 billion mark for the first time when the final figures from December become available.
The January-November export total was 1.179 million tonnes, up 22 percent from 2010.
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