Europe, Russia and the Middle East

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Europe, Russia and the Middle East

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• Unlocking Export Opportunities

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Unlocking Europe
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U.S. Beef Exports To Europe
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U.S. Pork Exports To Europe
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The European Union

• Rich Market 373 million
• Pork quotas 78,000 mt
• High Quality Beef quota 11,500 mt
• Zero duties on offals
• Barriers to entry need to be overcome
• Hormones, paylean
• Residues
• Plant Approval

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U.S. Pork To EU

• U.S. pork well received.
• License system acts as a constraint to trade
• TRQ for 34,000 mt of boneless hams.
• A major potential market
• EU largest market for livers for petfood

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U.S. Bacon An Opportunity?

• UK Imports 260,000 mt of bacon from Denmark and
  Netherlands
• Average retail bacon price (smoked streaky) in UK
  is now over 5.00 per pound
• Full tariff is 62 cents per pound
• U.S. wholesale price is around 2.25 per pound

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U.S. Beef To EU

• U.S. beef has a niche market
• Round cuts
• Middle meats
• Approvals needed for shipment
• High Quality Beef Quota for 11,500TRQ for 34,000
  mt of boneless hams.
• A major potential market

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Poland - Beef

• 19,501 mt TRQ (30 tariff) mainly manufacturing
• ABC program well established 48 restaurants
• Fall in beef consumption
• US smoked brisket chefs, processing
• Large market for US tripe in competition with
  Mexico

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Identifying U.S. Beef
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Poland - Pork

• Pork TRQ 46,000 mt
• Mainly processing picnics, shanks
• Also pork livers
• Storage within Poland increases sales
  opportunities

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Bulgaria - Beef

• Launched HQB through ABC chef seminars in May
  2001.
• First ABC Member
• Four more restaurants signing contracts

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U.S. Beef Seminar
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The Shopska Burger
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Bulgaria - Pork

• Work with importers to influence Meat Association
• 3000 mt duty free quota opened in January 2001
• Traders estimate 1000 mt of US pork imported, but
  through Canada no export data.

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Hungary

• Pork Tariff Rate Quota 18,000 mt
• Processing Market
• Trichinae Certification
• Beef Tariff Rate Quota 13,395 mt
• Processing Market
• 200 mt Duty Free Quota For US HQB

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Malta

• Small population 386,000 people
• Over 1 million tourists
• Growing cruise line business
• Dependent on meat imports
• 9,000 mt beef / year
• 2,000 mt pork / year

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Malta

• Initial trade servicing visit April 2001
• Market for high quality beef
• American Beef Club
• Retail showcases
• Market for pork for HRI and processing
• Follow up with importers / distributors

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284 Trade Leads - 2000
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Unlocking Russia the Former Soviet Union
St. Petersburg
Moscow
Baku, Azerbaijan
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Russian Representation
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U.S. Beef Exports To Russia
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U.S. Pork Exports To Russia
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The Market Rebounds

• Removal of EU pork export subsidies
• Restructuring of domestic industry post crisis
• Commercial shipments of U.S. red meat increasing
  since July 2000

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U.S. Products In Russia

• Beef
• Livers
• Hearts
• Trimmings
• High Quality Items for HRI

• Pork
• Picnic
• Trimmings
• Bone-in hams
• Livers (retail preferred)
• Cutting fat
• Enhanced pork (HRI)

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USMEF Activities

• Account Development / Trade Servicing
• Public Relations
• American Beef Club
• 20 Restaurants, 7 Licensed Distributors
• Pork Processing Consultant
• Educational Seminars
• Trade Shows Outreach

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U.S. Pork Mini Hot Dog

• Aim to highlight use of U.S. pork in Russian made
  products
• New York brand mini hot dog
• To be promoted in June by manufacturer, in own
  outlets

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Food Safety

• Increased awareness of BSE / FMD in Russia
• Ban on EU bone-in beef from June 1
• FMD ban enacted swiftly

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USMEF Response

• American Beef Club
• Restaurant Cards American Beef Your Guarantee

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U.S. Meat. Safety, Quality, Taste, Consistency'
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CIS Representation

• Market development position
• CIS Countries
• Georgia, Armenia, Azerbaijan
• Kazakhstan, Turkmenistan, Tajikistan, Krgyzstan
• Trade Servicing / Market Reports

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Unlocking The Middle East
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Middle East Representation
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U.S. Beef Exports
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BSE New Opportunities

• EU Exports to the region totalled over 177,000 mt
• Importers seeking non-BSE beef
• Other suppliers aiming for share Australia,
  South America, India
• Need to meet halal and other certification
  requirements
• Political situation
• Market for high quality and commercial beef

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Tactics

• Expand trade servicing and account development
  activities
• Increase number of importers handling U.S. beef
• Assist suppliers to expand opportunities
• American Beef Club program
• Increase number of restaurant members
• Consumer education campaign
• Assure safety of U.S. beef

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Trade Servicing

• Market Intelligence
• GMO Labeling
• Importer Inquiries
• Exporter Assistance
• Trade Education

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American Beef Club

• 16 ABC Restaurant Members
• 12 ABC Licensed Distributors
• Growing hotel / tourist industry reduction in
  reliance on oil revenues
• United Arab Emirates (Dubai, Abu Dhabi)
• Lebanon (new developments)
• Bahrain (1 billion resort Gem of Bahrain)
• Saudi Arabia (establishment of tourist board)

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Egypt

• EUs largest market close to 150,000 mt
• Egypt is a significant market for U.S. livers
  (30,000 mt in 2000)
• Large potential market for U.S. beef (2,000 mt in
  2000)
• Cuts hotel industry, retail, processing
  briskets, rounds
• Local ability to overcome 7 fat limitation

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Competition

• Australia
• South America
• India