MercoPress. South Atlantic News Agency

US open market to Chilean beef, lamb and pork

After three long years of negotiations Chilean beef, lamb and pork have achieved direct access to the United States market informed the US Food Safety Inspection Service to its Chilean counterpart Agriculture and Livestock Survey, SAG.

The decision became effective Monday following its publication in the Chilean Gazette.

Chilean authorities in anticipation of the opening of the US market last year contracted a survey to assess the competitive potential of the Chilean beef industry both for manufacturing and prime cuts.

"If the proposals suggested in the survey are adopted, Chilean beef will have the necessary competitive edge to access the special niches in United States. The point is how this and other productive sectors are, or are made competitive", said Michael Grasty, president of the American-Chilean Chamber.

United States per capita consumption of beef has remained relatively stable in the last few years with an accumulated growth of 1.3% annually between 1991 and 2003.

According to information gathered by Chilean officials, US imported 2.6 billion US dollars of beef in 2003, including a million tons of prepared and preserved meat mostly manufactured or grinded.

Prices are considered attractive, between 1.95 and 3 US dollars a kilo (June 2004). The best prices are for special cuts with a 5 to 10% fat content.

The market survey suggests that Chile should begin access to the US market with beef for manufacturing or grinding, gradually working on suppliers and produce reputation, while exploring other opportunities for the more elaborate and expensive cuts.

The free trade agreement between Chile and United States stipulates that as of January 2007, Chilean beef will have full access free of tariffs and quotas to the US market.

In practical terms this means Chile will be at the same level as other competitors that have special agreements with the US such as Canada, Mexico and some Caribbean countries. But Chile will have a slight advantage over the more traditional suppliers such as Australia, New Zealand, Argentina and Uruguay.