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US BEEF EXPORTS                    — valued at about $1.8 billion                         The Midwest Cattleman · February 4, 2021 · P10
      continued from page 3              —  from  January  through  No-       Bacus said that if the safe- prefer the great American beef
                                         vember in 2020. Most of that       guard tariff is triggered, those  that we produce.”
      the National Cattlemen’s Beef  trade (238,539 tons worth $1.4         consultations will need to hap-      That’s not to say that the
      Association. “I hope it’s some- billion) was in muscle cuts, ac-      pen.                              U.S. beef sector does not want
      thing that can be avoided, but  cording to USMEF.                       “These are conversations  a bigger quota for U.S. beef.
      we are pretty close to hitting        But  even  if  Japan’s  safe-   that we’ll need to have so our  The Japanese quota for mem-
      that (trigger).”                   guard tariff is triggered, there   governments can figure out  bers of the Comprehensive
         If the trigger is hit in Febru- may  be  a  way  to  stop  Japan   the best path forward,” he said.  and  Progressive  Agreement
      ary, the tariff on U.S. beef will  from implementing it.              “This is something we need to  for  Trans-Pacific  Partnership
      increase for 45 days. If that         U.S. negotiators convinced      pursue because it’s overwhelm- (CPTPP), which includes Aus-
      happens in March, the tariff  Japan to scrap its quarterly            ingly clear that Japanese con- tralia, is bigger at 613,600 tons
      will increase for 30 days.         safeguard trigger in the free      sumers want more U.S. beef.”      for the Japanese fiscal year.
         Either way, it will have a  trade agreement that went into           It is unclear how long it          The U.S. quota is set to begin
      negative  impact  on  U.S.  beef  effect about a year ago. It was     would take to set up those con- growing by 4,860 tons per year,
      exports, says Bacus.               replaced with a yearly mecha-      sultations between the U.S.  beginning  in  the  2023  Japa-
         “It’ll be a temporary setback  nism believed to be much less       and Japan, and what the result  nese fiscal year for the follow-
      for us,” he told Agri-Pulse. “Ob- of a threat to disrupting trade,    would be.                         ing six years.
      viously, when you raise the  but that may still happen un-              Regardless,  the  safeguard        Nevertheless,      expanding
      price on a hot commodity like  less the two sides agree to re-        tariff would only be temporary    the quota for U.S. beef is some-
      beef in such a prolific market  negotiate — an option made            and won’t stop U.S. beef, says  thing both countries are “going
      like Japan, that could have  possible by a provision tucked           Bacus.                            to have to revisit,” Bacus said.
      some temporary restrictions on  into a side letter of the U.S.-Ja-      “I think the important             But the Japanese govern-
      our sales.”                        pan Trade Agreement.               thing to keep in mind is that  ment has become increasing-
         U.S. Meat Export Federa-           Japan, according to the Of-     the safeguard — if it is trig- ly  concerned  about  too  much
      tion  economist  Erin Borror  fice of the U.S. Trade Represen-        gered — would be temporary,”  imported beef hitting the Jap-
      said she is also concerned.        tative, agreed “to consult to ad-  he stressed. “But it’s also just  anese market, according to a
         “Because the United States  just the applicable safeguard          another signal of how strong  new analysis by USDA’s For-
      is the only beef supplier ap- trigger level to a higher level         our sales are in Japan and how  eign Agricultural Service.
      proaching its safeguard thresh- if the safeguard is ever  trig-       much the Japanese consumers          Japan’s Agriculture  and
      old, USMEF is concerned that  gered.”                                                                   Livestock Industries Corpo-
      chilled exports to Japan could                                                                          ration,  a  state  trading  enter-
      decline if and when the snap-                                                                           prise, began offering on Jan. 1
      back tariff rate is in place,” she                                                                      to pay importers to freeze the
      said.  “This may include the                                                                            more expensive chilled cuts of
      weeks leading up to the ‘Gold-                                                                          beef they bring into the coun-
      en Week’ holidays, a key time                                                                           try.  The government organi-
      period for Japanese buyers.”                                                                            zation is willing to spend the
         Japan is the largest foreign
      market for U.S. beef, and U.S.                                                                          equivalent of $14.2 million to
                                                                                                              pay importers “to fill the price
      exports, despite the logistical                                                                         gap between chilled and frozen
      and demand problems caused                                                                              products given the deteriora-
      by the COVID-19 pandemic,                                                                               tion in quality due to freezing”
      have been on track or better in                                                                         in order to  “stabilize beef de-
      2020 than they were in 2019,                                                                            mand and supply in Japan due
      according to data and analysis                                                                          to potential demand declines
      from the USMEF.                                                                                         as a result of COVID-19.”
         The U.S. exported 280,954
      metric tons of beef to Japan        U.S. beef exports to Japan have been very good in recent months — maybe too good.

      ANOTHER NAMIBIAN                   is designated as safe for export.  NCBA ROLLS OUT                    clude a Washington, D.C. issues
      continued from page 3              Namibia has extensive mea-         continued from page 3             update and expectations with
                                         sures in place, including a cor-                                     the new administration.  Ten
      lems plaguing cattle produc-       don fence and a buffer zone to       Winter Reboot attendees will    educational programs will be
      tion in other parts of the world   prevent the spread of FMD from     receive a sneak peek into plans   offered, covering topics such as
      do not  reach our  shores.  While   the northern zone to the south-   for the Cattle Industry Conven-   sustainability, as well as a tech
      NCBA supports regionalization      ern zone. NCBA supports re-        tion and the Cattlemen’s Col-     tool introduction.
      as a tool to protect against the   search to develop protocols and    lege.                                A virtual  marketplace  also
      spread of disease while facilitat-  determine the economic impact       “Despite the move of the main   will be featured during the Win-
      ing science-based trade, NCBA      of regionalization of states or an   event in August, we’re excited to   ter Reboot to allow attendees in-
      encourages USDA to remain          area to establish risk avoidance   host this event allowing cattle-  teraction with leading agribusi-
      vigilant in ensuring all preven-   for animal diseases.  With that    men and women to engage in in-    nesses.
      tative measures are in place to    said, FMD is a highly contagious   dustry-leading content in a way      To register and for more infor-
      protect the U.S. cattle industry   disease that would devastate the   that is accessible for everyone,”   mation,  visit  convention.ncba.
      from exposure.”                    U.S. cattle industry and NCBA      said NCBA CEO Colin Woodall.      org/winter-reboot.
         “In regard to FMD, Namibia      will continue to support USDA’s    “NCBA continues to focus on
      is divided into two zones.  The    efforts to prevent our herd from   meeting the needs of our mem- AgriNews
      northern zone, where FMD con-      exposure.”                         bers and the industry. This vir-
      tinues to occur and is not ap-                                        tual experience will provide vital
      proved for export to the United  NCBA                                 industry updates and education
      States, and the southern zone—                                        as we start the new year.”
      an area that is free of FMD and                                         Winter  Reboot sessions  in-
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