Washington - U.S. meat industry officials said Friday that although every little bit helps, the Agriculture Department's decision to allocate only $60 million in additional export credits for meat sales to South Korea is disappointing.
“We're very appreciative of it and we think it'll be snapped up immediately,” said Chandler Keys, vice president of public policy for the National Cattlemen's Beef Association.
"It'll help," he said. "Any little bit helps."
The U.S. meat industry had aggressively lobbied the USDA to allocate another $400 million for meat sales to South Korea.
On Friday, the USDA announced the commodity allocations for $500 million in export credits for South Korea. A total $1.5 billion has now been released for sales of all eligible commodities to South Korea. Under the GSM-102 export credit program, the USDA guarantees loans made by commercial lenders against the possibility that importers may default.
Keys said the meat industry, however, needed more than $60 million to make a big impact on pork and beef producers who are facing record production levels, dwindling exports due to the Asian economic crisis and continuing imports.
“We're in a sea of meat,” he said. “It's a lot of pressure. We're hurting out there.”
Nick Giordano, assistant vice president for foreign trade at the National Pork Producers Council, said he was frustrated with the USDA's decision.
“We're sorely disappointed,” he said. “We've worked long and hard to build market share in South Korea. Sixty million (dollars) isn't enough.”
Giordano and Keys said they do not understand why the USDA did not allocate more credits when Seoul has supported its own industry and propped up high tariffs for meat imports. They also pointed out that South Korea is exporting more and more meat to Japan, the top export destination for U.S. meat.
“We question the wisdom of U.S. trade policy,” Giordano said.
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