Asia Pacific Market Update

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Asia Pacific Market Update

• New Orleans May 2001

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Asia Q1 2001 Total Exports
Source SCMP (not including PRC)
3
Record 2000 Beef Exports to Asia(metric tons)
4
2000 Pork Exports to Asia Mixed(metric tons)
5
Korea Won-Dollar Exchange Rate
6
Korea Beef Supply Demand
7
Korea First Quarter Beef Imports(Metric Tons)
8
Korea Trade Issues

• Country of Origin
• Freezing of Chilled Meat
• WTO Discriminatory Retailing System
• Country of Origin Signage for Restaurants
• Foreign Retailer Harassment

9
Korea Food Safety Issues

• BSE
• FMD
• Listeria (US Sausages)
• Live Cattle Imports

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Korea Beef Market Scenarios
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Korea Impact of BSEFMDWeekly Beef Sales of
Major Seoul Retail Chains
12
Korea Impact of BSEFMDUS Short Rib Wholesale
Price (Select/No-roll)
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Korea US Short Rib PromotionNational Newspaper
Ads.(March April)
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Korea Chilled Beef Imports
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Korea Pork Supply Demand
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Korea 2000-2001 Pork Imports (January-March
Metric Tons)
EUHungaryPoland AsiaMexicoAustralia
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Korea Sober Pork Trade Scenario
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Korea Pork Wholesale Price TrendsSingle Ribbed
Bellies
(Chilled)
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Korea MERC Update

• Total 876 graduates thru 4/01
• 48 courses conducted
• Customized Participants incl. COSTCO, Hanwha,
  Lotte Magnet, Bodam Korean Quarantine Officials

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Korea Merchandising Training at MERC
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Korea MERC Success Stories

• KOSCA adds New Chilled Beef Items
• COSTCO adds Chilled Middle Meats
• US Dominates Growing Chilled Beef Trade

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Taiwan Beef Import Statistics
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Taiwan Chilled Beef Imports
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Taiwan Competitive Beef Situation
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Taiwan 1998-2000 Pork Imports
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Taiwan Principal Beef Marketing Channels

• HRI Outlets
• Mercuries 6 (short plate)
  164
• Yoshinoya 5 (short plate) 46
• My Home Steak 5 (ribeye, short rib)
  120
• Bull Fight Crew 5 (tenderloin, ribeye,
  striploin, short rib) 36
• Formosa Steak 5 (short rib)
  12
• Others 35 (all items)
  thousands
• Retail
• Costco 7 (all items)
  3
• Makro 5 (all items) 8
• RT-Mart 5(all items) 17
• Traditional Markets 15 (short rib, rib finger,
  shin shank) thousands
• Others 7 (all items)
  hundreds
• Total 100

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Taiwan U.S. Beef In-Store PromotionCarrefour -
Pingtung Store
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Taiwan Costco - Neyhwu Store
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Taiwan Case Study - Makro

• Makro adopts volume strategy to promote U.S.
  beef. U.S. rib finger selling for NT149 per kg
  small packaging is offered at NT140 per kg for
  box purchase.

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Taiwan U.S. Beef in Wet Market
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Taiwan USMEF Recipe Card- Short Plate
Chinese medicine soup
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Taiwan USMEF Recipe Card - Short Rib
Boneless short rib
Bone-in short rib
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Taiwan U.S. Beef Mega-Ball Sales
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Taiwan U.S. Pork Mega-Ball Poster
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Taiwan U.S. Pork Mega-Ball Sticker, Coupon,
Banner
Coupon
Sticker
Banner
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Taiwan U.S. Pork Festival- Consumer Activity
Three cooking instructors demonstrate U.S. pork
Chinese dishes to consumers.
Items picnic, baby ribs.
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Taiwan U.S. Pork Festival- Consumer Activity
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Hong Kong Beef Imports(metric tons incl.
Variety meats)
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Hong Kong Pork Imports(metric tons incl.
Variety meats)
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Hong Kong Pork Imports Market ShareTrends
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China Increased Beef Import Costs

• North China minimum customs valuation increased
  from US 900/ton ?US 1,300-1,400/ton
• South China Freight rates increase 30-45
• US Short plate CF offers up 15-20

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China Guangzhou Restaurant
Table Mat
Tent Card
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China Guangzhou Green Island
Light Box
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China Guangzhou Zhongshan Venezia Restaurant
Light Box
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China Guangzhou Zhuhai Holiday Resort Hotel
46
China Dalian Xuan Feng Hot Pot King
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China Beijing Texas Beef Festival

• Henry J. Beans, China World Hotel, Beijing April
  5-22, 2001

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China BeijingUS Beef Chef Table
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China ShanghaiU.S. Steak Festival

• Chateau de Peace, Peace Hotel, Shanghai Jan
  15-31, 2001

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China DalianRetail Promotion - Dalian Wal-Mart
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China Guangzhou Zhuhai US Beef Seminar
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China ShanghaiRetail Training Program
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China ShanghaiUS Hot Pot Beef Seminar
Tasting Reception
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Hong Kong Steak Expert
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Hong Kong Clippings
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Hong Kong JuscoUS Chilled Pork Promotion
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ASEAN 2001-2002 Issues/Priorities

• Market Access (Thailand, Malaysia)
• Training (Underutilized Cuts)
• Pork for Processing, Offals, Processed Meats
• Safety Reinforcement to Trade

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ASEAN Recent Chef Training Success Stories

• Thailand
• Fuji Restaurant Chain (11 stores) switched
  Shabu-Shabu beef from Australia Striploin to US
  Top Blade Muscle
• Philippines
• Le Roy Bistromet now using US Top Blade Muscle
  for minute steak added one-bone short ribs for
  appetizers
• Indonesia
• PRO-Steak (4 steaks) now using US pork spare ribs
  US beef hanging tender for fajitas

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Singapore New Cuts Demonstration
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Singapore Chef Training in Guangzhou
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Singapore Chef Training
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Singapore Chef Training in Indonesia
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Philippines Beef Import Market Share
(Total Volume)
74,909M/T
54,114M/T
70,158M/T
88,735M/T
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Philippines Pork Import Market Share
(Total Volume)
14,867M/T
16,902M/T
41,930M/T
38,417M/T
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Spotlight on the Competition Indian Beef

• By-product of buffalo dairy industry
• (307 million head total cattle and buffalo herd)
• Exports 250,000 tons in 2001 (?12)
• Now Malaysia, PI, UAE, Egypt, Jordan
• Future Iran, Indonesia, Russia
• Promoting Safety
• - Hormone-Antibiotic free
• - FMD-free
• - Modern Abattoirs
• Price 1,250 Metric Ton 90 CL

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Indian Beef
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Indian Beef
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Spotlight on the Competition Australian Pork

• Production 370,000 tons
• Exports 39,200 tons (?137)
• Singapore 24,500 tons
• Japan 7,000 tons (?21)
• Imports 36,500 tons
• - Canada Denmark
• - US banned