Thu, Dec 25, 2003 - Page 10 News List

Beef importers foresee large price hike

UNDERMINING CONFIDENCE Although only 20 percent of imported beef originates in the US, consumers could become wary of all beef products, industry officials said

By Amber Chung  /  STAFF REPORTER

Beef importers yesterday expressed mixed reactions toward the discovery of mad cow disease in the US. Some said the ban on US imports may presage a pick-up in other markets, while others were concerned over a possible consumer backlash to all beef products.

"US beef accounts for around 20 percent of Taiwan's beef imports, while Australia and New Zealand have a more than 70 percent market share," said Tracy Lee (李遠貞), trade manager at Yung Yeh Glory Enterprise Co (永燁企業).

Yung Yeh Glory imports over 1,633 tonnes of beef from Australia and New Zealand annually.

"Although there exists an opportunity for Australian and New Zealand's beef imports to expand their market share following the ban on US beef products, importers may face a potential shortage of beef products from both Australia and New Zealand," Lee said.

Australia and New Zealand's beef exports to Taiwan comprise only 5 percent of their total beef exports.

Lee said importers in Japan and South Korea -- which have higher rates of beef consumption than Taiwan and are the main export destinations for antipodean beef -- have been rushing to contact Australia and New Zealand for beef products to fulfil their domestic needs.

"With few available stocks at hand to meet the market's dem-ands after Lunar New Year, and a possible scarcity of supplies from import countries, prices of beef products from Australia and New Zealand may rise in the future," Lee said.

Another importer agreed, saying that the losses of American beef importers may not necessarily be the gain of others.

"The appearance of mad cow disease may destroy consumer confidence in all imported beef products no matter where the beef's origin is, and this harms the entire beef industry," said an official, who asked to remain anonymous, at Keeper Group (欣伯國際). Keeper imports meats from several countries, including the US, Australia and New Zealand.

With a growing awareness of the concept of food safety, most consumers choose to purchase beef imported from countries other than the US.

"I think I will put the US steaks I just grabbed back in the freezer and choose another country's beef product," said a 28-year-old office employee surnamed Chang, who was shopping for Christmas Eve dinner at a supermarket in Breeze Center (微風廣場). Chang made the remark after learning about the BSE case that surfaced in the US.

"My family and I will stop eating all beef products until authorities confirm it is safe," said Eleanor Chen (陳穎芸), a 30-year-old human resource specialist.

While consumers' worries about beef imports are rising, local retailers said they have not considered withdrawing US beef from the sales floor.

"According to a Department of Health announcement, beef imported into Taiwan before Dec. 24 can still be sold in the market," said Huang Kuan-I (黃冠怡), RT-Mart's (大潤發) marketing specialist.

"Our beef from the US was imported prior to the incident and we would not withdraw these products from the shelves," Huang added.

Wellcome supermarket said it would expand the supplies of Australian and New Zealand beef it offers to consumers. Cosco Taiwan said they would also continue offering US beef unless authorities give a mandatory order to stop selling beef imported from the US.

Mad cow disease is also known as bovine spongiform encephalopathy or BSE. The BSE case which was detected in the US may not have any negative impact on consumers' impressions of imported beef, according to the National Animal Industry Foundation (中央畜產會) under the Council of Agriculture.

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