Meat + Poultry - January 2008 - 42

Adding to the market-share battle
is that the top three companies have
7.7 percent more kill capacity than
they did a year ago. The majority of
the increase came as a result of JBS's
decision to operate a full second shift
at its Greeley, Colo., plant. Capacity at
Tyson Fresh Meats' eight U.S. plants
also increased by 1,300 head. But
the Top Three's combined capacity
of 83,400 head per day still put their
capacities lower than the 85,350 head
per day in 2004.

gust, the U.S. exported 31,352 metric
tons of beef and beef variety meats,
83 percent below the same period in
2003. USDA forecasts a 29 percent increase in total beef exports in 2008.
Much will depend on quickly gaining
greater access to Japan and Korea.

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Increased exports will be vital to beef
packers. But relief might not come
anytime soon. Exports to all markets
increased from 1.15 billion pounds in
2006 to an expected 1.45 billion in
2007. But U.S. beef was shut out of
South Korea in early October and is
unlikely to regain entry until late in
2008's first quarter. Expanded access to
the Japanese
market is also
likely to be
delayed until
then. Korea
will maintain its suspension of quarantine inspection of U.S. beef until it
agrees to new import protocols. Talks
between the two countries reached another impasse in early October. Korea
was insisting on maintaining an under
30-month age restriction on U.S. beef.
No more formal talks were planned
until after Korea's general election
on Dec. 19.
The U.S. and Japan are also at an
impasse over the age issue. Japan is
adamant it will only relax its current
under 21-month age limit to 30 months
and under. The U.S. wants all countries to remove all age restrictions. It
bases its stand on guidelines from the
World Organization for Animal Health
(OIE). Negotiations with Japan were
also hampered by Japan having a new
government and five Agriculture Ministers in five months. Japan's age restriction and the lack of age verification
of live cattle severely limited exports
in 2007. From Jan. 1 to the end of Au-

As previously noted, the U.S. will
produce a record amount of meat
and poultry in 2008 - 91.654 billion
pounds, according to USDA. That
would be nearly 2 percent more than
was produced in 2007. Production in
2008 might be even higher, as USDA's

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January 2008

MEAT&POULTRY

http://www.MEATPOULTRY.com

Meat + Poultry - January 2008

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