USMEF Works to Diversify Global Markets- and Dan Halstrom Offers China Update

In today’s Beef Buzz, senior farm and ranch broadcaster Ron Hays speaks with Dan Halstrom, president and CEO of the U.S. Meat Export Federation, about the future of U.S. beef exports. As the organization celebrates its 50th anniversary, Halstrom discusses the importance of adapting to changing international markets, finding new opportunities for a wider range of beef products and working to restore more reliable access to China.

U.S. Beef Exports Must Adapt to Changing Markets

Halstrom said the industry cannot assume the strategies that worked in the past will continue to deliver the same results in the future. “I think the key there is we can’t assume what’s worked the last 50 years is going to work the next 50, and for that matter, you can’t assume what worked last year is going to work next year,” Halstrom said.

He said U.S. beef has a strong international reputation for safety, quality and eating experience, providing a foundation for continued export growth. However, exporters must also offer international buyers more options as they manage high beef prices and changing purchasing decisions. “They still want U.S. beef, but maybe they’re going to use more of a variety of the carcass,” Halstrom said.

He explained that some buyers may shift away from traditional cuts and explore other options, including rounds, inside and outside skirts, and variety meats.

Halstrom pointed to Guatemala as an example of a market purchasing products ranging from Prime U.S. beef to variety meats. He also identified Colombia and the Philippines as markets where exporters can pursue additional opportunities by helping buyers find uses for a broader range of products.

China Remains a Major Opportunity for U.S. Beef

Halstrom said recent discussions between U.S. and Chinese leaders have acknowledged the need for both countries to work together to address trade challenges. One priority is getting suspended U.S. beef processing plants relisted, along with establishing greater clarity around residue testing and compliance requirements. “The groups acknowledge that there’s work to be done, so there’s reason for some optimism,” Halstrom said.

However, he cautioned that the progress has not yet translated into a major increase in business. While U.S. beef exports to China are modestly higher than a year ago, uncertainty continues to make some companies hesitant to ship product. “For the most part, the industry is on the sidelines until we give a little more clarity, a little more comfort in the fact that we’re all going to follow the same set of rules,” Halstrom said.

The high value of beef shipments adds to the risk. Halstrom noted that a container of mixed products that was worth approximately $200,000 three or four years ago could now be worth $400,000, making the possibility of a shipment being rejected much more costly.

Diversifying Export Markets While Working Toward China

Despite the challenges, Halstrom said China remains one of the largest potential opportunities for adding value to U.S. beef exports if trade issues can be resolved. “Make no mistake, the number one opportunity to add value, at least theoretically, if we get everyone on the same page, is China,” Halstrom said.

He added that the industry cannot simply wait for China to reopen fully. Exporters must continue building relationships and developing new markets to create additional demand for U.S. beef products. “And if the China thing works out, great,” Halstrom said.

China Previously Generated More Than $1.2 Billion in U.S. Beef Exports

Halstrom recalled that U.S. beef exports to China reached a value of more than $1.2 billion in 2022, including both muscle cuts and variety meats.

He said there remains demand for U.S. beef among Chinese retailers, including Sam’s Club, Costco and high-end domestic retailers. The primary challenge, he explained, is not a lack of interest in the product but establishing consistent trade rules and confidence that shipments will be accepted. “The reality is that there is no replacement for U.S. beef in China,” Halstrom said.

The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Ag Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR above for today’s show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.

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