For US red meat exporters, securing ground and ocean transportation capacity continues to be challenging, although congestion at US ports has recently eased to some degree.
The US Meat Export Federation (USMEF) is encouraged by passage of the Ocean Shipping Reform Act and the subsequent development of Federal Maritime Commission rules regarding detention and demurrage charges and making vessel space available for export cargo. It is essential that red meat exports — especially chilled products — depart our ports in a timely and consistent manner so that the US can maintain its reputation as a reliable supplier.
Labor availability is also a major challenge at every phase of the meat production, processing, and transportation chain. This situation has improved as the impact of COVID-19 has eased, but still represents a notable constraint. The Biden administration has made expansion of meat processing capacity a top priority, and initiatives aimed at achieving this goal show a great deal of promise. However, finding sufficient labor will be a key component in making these new and expanded processing facilities successful.
USMEF is optimistic that global demand for US red meat will be strong in 2023, although economic headwinds continue to grow. Inflationary pressure on consumer spending and weakened currencies in key markets are significant challenges. These conditions make it all the more essential that our industry is able to move shipments in an efficient and cost-effective manner, so that our products remain price-competitive.