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USMEF Strategic Market Profile
Middle East
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Market Trends and Growth Potential
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Egypt
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Saudi Arabia
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Per Capita Beef Consumption (2006)
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8.7 kg
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+118% (vs. 2001)
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4 kg
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Total Beef Imports (2006)
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207,837 mt
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+98% (vs. 2001)
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72,147 mt
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+99% (vs. 2001)
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Total Beef Variety Meat (BVM) Imports (2006)
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85,289 mt
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+224% (vs. 2001)
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2,827 mt
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+120% (vs. 2001)
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High oil revenues are leading to phenomenal growth, particularly in the retail sector (hypermarkets) and HRI sector (U.S. food franchises, American Grill concepts, steakhouses).
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A wider variety of cuts are going to the HRI and retail sectors (brisket, shoulder clod, top butt sirloin, flank, boneless/bone-in short ribs, tri-tip, petit tender, chuck eye roll and knuckle).
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Enormous development in casual dining, grab-and-go sandwich concepts and “Shawarma” meat skewer eateries is leading to potential growth for new beef muscle cuts region-wide, particularly for underutilized, low-cost, high-profit cuts.
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Competition/Competitiveness
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Egypt
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Saudi Arabia
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Beef
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BVM
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Beef
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BVM
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U.S. Share of Total Beef/BVM Import Market (2006)
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<1%
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92%
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2.5%
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55%
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Other Beef/BVM Suppliers & Market Shares (2006)
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Brazil 97%
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Brazil 7%
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Brazil 56%
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Brazil 34%
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India 2.8%
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Argentina <1%
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India 38%
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Australia 7%
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China <1%
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Canada <1%
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Australia 1%
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Paraguay 3%
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Domestic Self Sufficiency (2006)
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67% (75% in 2001)
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N/A
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Brazil is competing in beef kidneys and hearts by cutting prices. Hearts are mainly going into the processing industry in Egypt.
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An abundant supply of decent quality, lower-priced beef supplied by traditional competitors (Brazil, Australia, Argentina and India) and new players (Paraguay and China), paired with flexible credit terms and increased promotional support, has resulted in a higher perceived profit potential for beef from these sources. The availability and diversity of affordable retail products from the competition (especially muscle cuts) is widening end-user awareness and demand for these products.
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There is huge momentum for value-added and pre-cooked beef products. Locally produced, economical, processed beef items (using imported low-cost beef) are creating competition for retail and HRI sales. These products are labeled “Halal” and are gaining brand image and demand.
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Market Penetration
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Egypt
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Saudi Arabia
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Beef
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BVM
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Beef
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BVM
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Customers for U.S. Beef Imports Processing
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4%
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0%
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0%
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0%
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HRI
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96%
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60%
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85%
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5%
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Retail
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0%
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40%
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15%
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95%
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Top Imported U.S. Beef Cuts: tenderloins, rib-eyes, striploins, T-bones
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Top Imported U.S. Beef Variety Meat (BVM) Items: livers, kidneys, hearts
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U.S. Beef/BVM Exports to Middle East as a % of Total U.S. Beef/BVM Exports (2006): 28% (EGT); <1% (SDA)
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Introduction of U.S. beef kidneys and hearts into the local retail chains and traditional restaurants in Egypt has been successful, as well as moving beef hearts into the processing industry.
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New markets are developing for U.S. beef variety meat. However, insufficient supply from U.S. exporters is limiting the expansion of U.S. beef livers sales and giving way to the competition.
Product/Industry Image
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Buyers continue to recognize the U.S. as the producer of the best quality beef, though they have perceptions that it as expensive, and safety concerns (post-BSE) still need to be addressed.
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U.S. “Halal” certification is sometimes questioned.
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USMEF has worked to Improve product perception, acceptance and confidence among consumers through trade relations, retail promotions and consumer media educational programs.
Operating/Marketing Environment and Trade/Distribution Issues
Access Conditions
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GCC countries are proposing standardized import procedures to take effect on January 1, 2008. While this should simplify preparation of documents, adoption of the most restrictive requirements could impede trade.
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Bone-in beef is still banned in Egypt. Qatar is still closed and their requirements are not yet consistent with OIE guidelines and FSIS practices. The UAE will levy Halal certification fees starting in December 2007. U.S. beef variety meat is still banned in Jordan although transit through the country is permitted.
Import and market share data is based on reported exports to Egypt and Saudi Arabia (from GTA), and U.S. export data is from the U.S. Department of Commerce, Trade Census Bureau.
Long Term Strategy:
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Educate importers and distributors about U.S. beef safety measures and increase their knowledge and awareness of the availability of U.S. beef and beef variety meats to create increased demand.
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Build the image of U.S. beef among Middle Eastern HRI customers and the tourist industry as the premier beef available and expand the number of HRI outlets which incorporate U.S. beef onto their menus by demonstrating the high profit potential and safety inherent in U.S. beef products.
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Break into the HRI, retail and processing sectors with underutilized cuts and end meats by building product perception and acceptance of the profitability and applications.
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Establish new distribution links for U.S. beef to further access the retail sector and build product loyalty among target end-users through trade servicing.
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Improve and raise consumers’ perceptions and demand for U.S. beef by continuing media activities and retail promotions.
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Work to lift remaining bans and regulatory restrictions on U.S. beef
USMEF Export Forecasts:
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2006
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2007
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2008
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2009
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2010
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2011
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2012
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2013
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2014
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Beef
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6,645
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8,000
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9,200
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10,300
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11,500
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12,000
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12,300
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12,800
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13,300
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BVM
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81,409
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89,550
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55,000
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40,000
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35,000
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30,000
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30,000
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28,000
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26,000
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Total
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88,054
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97,550
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64,200
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50,300
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46,500
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42,000
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42,300
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40,800
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39,300
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% Change
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165%
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11%
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-34%
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-22%
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-8%
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-10%
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1%
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-4%
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-4%
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2006 export data are from U.S. Dept. of Commerce/Trade Census Bureau; 2007-14 represents USMEF forecasts, October 2007
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Copyright 1996-2008 U.S. Meat Export Federation
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