Organization better positioned to capitalize on export markets
CALGARY, Oct. 4, 2013 /CNW/ - In order to strategically align the
Canadian beef cattle industry in the Asian market, Canada Beef is
positioning its operations in the region to maximize current export
opportunities and set the industry for future growth.
"The Asian market continues to be an important market for Canadian beef
and veal exporters providing opportunities to increase carcass values
across a wide variety of product types and diversify our customer
base," says Chuck MacLean, Canada Beef Chairman. "Many regions of Asia
are poised for vigorous growth and will only become more important to
the Canadian industry going forward. Canada Beef will be strategically
aligned with our Canadian packers and exporters to identify priority
and emerging Asian markets and be properly positioned to deliver on the
In response to changing market access and demand trends and
opportunities, Canada Beef continues to evaluate its marketing
strategy, organizational structure, and resource allocations in order
to position itself to maximize its return on cattle producers'
check-off investment. Consequently, a number of changes are being made
to Canada Beef's Asian operations to position the Canadian beef
industry for future success and growth.
Canada Beef recently adopted a 'hub approach' in the Asian markets with
senior leadership in Asia overseeing coordinated marketing efforts
across the entire region. This has allowed the regional offices to
increase efficiencies, market intelligence and program alignment, and
program execution. Canada Beef is also working with the Federal
Government to better utilize existing in-market resources such as
Embassies, Consulates and the Canadian trade commissioners to promote
and market Canadian beef more effectively.
Additional staff and marketing resources are being added to the Canada
Beef Japan and mainland China offices. With the acceptance of beef
from cattle under 30 months of age, Canadian beef and veal market
opportunities in Japan have increased significantly. As well, strong
economic growth in China with additional Canadian processing plants
approved for export has seen exports double over the past year. In
order to support the increased investment in Japan and China, resources
from other markets will be redirected as needed.
Resources in the mature Hong Kong and Taiwan markets will be reallocated
to support growing Canadian beef and veal marketing efforts in southern
China and Southeast Asia. Canada Beef's office in Hong Kong will be
downsized, representing a significant cost savings. Canada Beef's
office presence in Taiwan has also been reduced to reflect the shift of
trade towards other Asian countries.
While the South Korean market reopened to Canadian beef exports last
year, the effects of the South Korean/U.S. free trade agreement has led
to an accelerated reduction of tariffs on U.S. beef which has severely
impacted the competitiveness of Canadian exports in the market. While
Canada has actively engaged with South Korea over the past 18 months to
negotiate a Canada-South Korea free trade agreement of its own,
unfortunately the negotiations have not progressed. With Canada unable
to secure a free trade agreement of its own, future market prospects
for Canadian beef are extremely limited in South Korea due to the
higher tariff barriers it faces. Consequently, Canada Beef's office in
South Korea will be closed immediately and future market development
work will be conducted with the help of the Canadian Embassy and trade
"Based on projected cattle marketings and the wind-up of industry
development funds, Canada Beef knows that revenues for industry
marketing and promotion activities will be significantly reduced in the
next few years," adds Canada Beef President Rob Meijer. "Therefore, we
are taking proactive steps to ensure Canada Beef's limited resources
are targeted in the right markets and with the right customers to bring
the greatest return on producers' investment."
In 2012, Canada exported 37,816 tonnes of Canadian beef and veal valued
at $175.6 million to Asian markets. From January to July 2013,
Canadian export volumes are trending up 54% and value is trending up
95%. Canadian beef and veal exports to all markets outside of Canada
in 2012 represented 30% of the total carcass value or about $462 per
head on average.
Canada Beef is the cattle producer-funded and run organization
responsible for domestic and international beef and veal market
development. It has offices in Canada, Mexico, Japan, China, Hong Kong
and Taiwan. Canada Beef works to foster loyalty to the Canadian beef
brand and build strong relationships with trade customers and
partners. These efforts increase demand for Canadian beef and veal and
the value producers receive for their cattle.
SOURCE: Canada Beef Inc.
For further information:
Chuck MacLean, Chairman
Rob Meijer, President
Ron Glaser, VP Corporate Affairs
Phone: 403-275-5890, ext 206