Daily News Update, Jan. 24, 2008

Barbados, Indonesia open trade for U.S. beef

The United States Department of Agriculture's Food Safety Inspection Service (FSIS) has revised its Export Library for U.S. beef export requirements to Barbados and Indonesia following separate agreements by the USDA and  both countries' authorities to allow access for all U.S. beef and beef products.

All fresh, frozen or chilled beef and beef products (beef products include offal, variety meats and processed beef) derived from cattle slaughtered on or after Jan. 16, 2008, are now eligible for export to Barbados.

Cattle 30 months of age and over must remove specified risk materials (SRM) as listed in the Food Safety Inspection Service Export Library. The move ends restrictions on U.S. beef imposed as a result of BSE, or mad cow disease.

More detailed information on the deal with Barbados is online in the export requirements of FSIS at http://www.fsis.usda.gov/Regulations_&_Policies/Barbados2_requirements/index.asp.

Barbados is a key market in the Caribbean for bone-in prime rib, veal rack chops, and T-bone and porterhouse steaks, currently being sourced from Canada. Barbados is also one of the biggest vein-in (end) steak markets for New York strips.

Barbados imported an estimated $2.6 million of beef and beef products in 2007, 92 percent of which was boneless beef.

Also under the new import conditions, the Indonesian Ministry of Agriculture's Directorate General of Livestock Services (DGLS) recognizes the safety of the U.S. beef food safety regulatory system, and all beef products except for USDA-defined specified risk materials (SRMs), are now eligible for export to Indonesia, as well.

Exporters must obtain a Certificate of Islamic Slaughter from a member of a North American Islamic Center or an Islamic organization that is approved by the Indonesian Ulemas Council (MUI). The MUI has approved four U.S. establishments and one Halal-approval authority for handling beef for export to Indonesia based on a privately arranged inspection tour conducted early last November.

U.S. establishments and Halal authorities must be inspected and approved by MUI to gain approval for accrediting and exporting beef to Indonesia, but no dates for any upcoming inspections have been specified.

Like other Asian markets, Indonesia closed to U.S. beef imports shortly after the first U.S. BSE finding in late 2003. Indonesia re-opened to U.S. boneless beef and several offal products derived from cattle under 30 months of age in August of 2004, but closed the market again in June 2005 after the second U.S. BSE case.

Indonesia imported just over 350 metric tons of U.S. beef cuts in both 2004 and 2005 but 10,390 metric tons and 13,949 metric tons of U.S. beef variety meat in the same years, respectively. In 2005, Indonesia imported $17 million in beef and beef products, but nothing in 2006 and 2007.

Indonesia should be a strong market for beef hearts, which are processed into meat balls called Bakso, a popular dish commonly consumed with noodles. Other in-demand offal items include livers, tails, tongues and feet.

Acting Agriculture Secretary Chuck Conner spoke Wednesday regarding full market access for beef and beef products in line with international standards, praising Indonesia and Barbados for opening their borders and encouraged other countries to follow suit.

"I applaud the Indonesian and Barbados ministries of agriculture for making a decision that is based on science and in line with international guidelines. This shows that constructive and steady discussions with our trading partners are bearing positive results for future U.S. beef exports.

"Indonesia is setting a standard for other Asian nations by agreeing to import U.S. beef and beef products consistent with World Organization for Animal Health (OIE) guidelines. Much like our recent agreement with the Philippines in November, this agreement with Indonesia emphasizes that we will continue to press for full market access for U.S. beef and beef products of all ages throughout the Pacific Rim.

"We are equally optimistic about what this agreement means for U.S. beef exports to the Caribbean region. Barbados possesses one of the strongest economies in the entire Caribbean and enjoys some of the largest per capita incomes. Moreover, tourism accounts for more than half of the gross domestic product (GDP) in Barbados.

"With this agreement, Barbados and Indonesia signal their determination to be guided by the same international standards that help to deliver top quality cuts of U.S. beef and beef products to consumers and retailers around the world.

"More than 100 countries now allow the entry of at least some U.S. beef and beef products, a result of intensive efforts by USDA to regain market access. Exports of these products to Indonesia reached a high of $17 million in 2005 with partial market access.

"Under this new agreement, USDA estimates that U.S. beef exports to Indonesia could potentially double in 2008 and 2009. Exports of U.S. beef and beef products to Barbados were roughly $2.7 million in 2007 (January-November) with partial market access."