Economy, U.S. Relations

U.S. Beef with El Salvador!

The U.S. Meat Export Federation (USMEF) reported this week that El Salvador has “lifted all age and product restrictions on U.S. beef, eliminating the need for an export verification program.”

USMEF regional director for Central America said El Salvador is “a potentially strong market, as it currently imports a significant amount of beef (about 28 million pounds last year) from Nicaragua.” The article reports that U.S. beef exports more than doubled between 2009 and 2011, totaling more than $1.2 million. Now that the restrictions have been lifted, exports of beef and beef products from the U.S. are expected to rise dramatically.

El Salvador’s age restrictions meant that beef and beef products had to be from cattle that were no more than 30 months old. This is a fairly common restriction meant to protect against the spread of bovine spongiform encephalopathy (mad cow disease). Japan has one of the more restrictive age-limits; beef and beef products have to be from cattle no more than 20 months old. So far in 2012, the U.S. has reported four cases of mad cow disease – the last was in April.

A report from the US Department of Agriculture Foreign Agricultural Service says that since 2008 the USDA/FAS/San Salvador has been “in an intense negotiation with the Government of El Salvador [Ministry of Agriculture] to allow full access for U.S. bovine meat and its products to the local market.” The report says that until recently, El Salvador did not recognize the U.S. mad cow disease “controlled risk status granted by the World Animal Health Organization.” As a result, El Salvador restricted access of “bone-in beef, and beef and products of animals over 30 months of age.” These products were not completely banned; they just had to go through an Export Verification program that increased the cost of the products and made them less competitive with local products.

Last year, USMEF led a campaign to promote U.S. beef consumption in El Salvador. They set up stands in “18 high-end Super Selectos retail locations” throughout the country. USMEF told customers that the majority of their meat was produced domestically or in Nicaragua, meaning that it is grass-fed and therefore “severely lacking in tenderness.” But in the U.S., there is actually a movement to promote grass-fed beef. Whole Foods Market and many others have even organized campaigns of to inform their customers about the benefits of grass-fed beef and introduce customers to their producers. The Tallgrass Beef Company has even declared, “the grass-fed revolution is here.” So either the USMEF really only likes grain-fed beef or their campaign to educate Salvadoran consumers is more an effort to run their competition out of town and sell U.S. beef.

While doing away with the age restriction may increase competition for cattlemen in Nicaragua, it probably won’t have much of an impact on Voices’ local partners in the Lower Lempa who mostly raise dairy cattle. And as in most rural communities throughout El Salvador, beef sold in local markets is from local cattle. U.S. beef will mostly end up in higher-end grocery stores that are already full of goods imported from the U.S.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s