Washington - U.S. cattle producers urged U.S. Agriculture Department to extend South Korea another $400 million in export credit guarantees for meat purchases.
"Increasing the allocation for GSM credit guarantees will build additional loyalty among Korean customers and increase U.S. market share," Dana Hauck, chairman of the National Cattlemen's Beef Association's international markets committee, told the House Agriculture Committee.
USDA has already extended $1.1 billion in export credits to South Korea for purchases of U.S. farm goods. Of that amount, South Korea quickly exhausted $100 million in credits that were earmarked for meat purchases.
USDA Foreign Agriculture Service Administrator Lon Hatamiya met Wednesday with South Korea government officials in Seoul to discuss the possibility of extending more credit guarantees.
Hatamiya was also expected to discuss how USDA should allocate a remaining $100 million of the $1.1 billion credit package that has not yet been earmarked for any commodity.
South Korea originally asked for $1.6 billion in USDA export credit guarantees. USDA officials have not said how much additional credit they could offer South Korea.
Meat Industry Insights News Service
P.O. Box 553
Northport, NY 11768
Phone: 631-757-4010
Fax: 631-757-4060
E-mail: sflanagan@sprintmail.com
Web Site: http://www.spcnetwork.com/mii