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High Steaks Trade

Nebraska surpassed a milestone in 2014 when, for the first time in its proud, bovine-rich history, the state exceeded $1 billion in beef exports. That’s not so much surprising—given that cows outnumber people in the state, four-to-one—as emblematic of the growing popularity of red meat throughout this big blue marble. Yes, despite the warnings of the World Health Organization and The Biggest Loser, it’s clear more people in more places want their beef. Such desires have not only filled bellies but fueled innovation, signaled a nation’s emerging level of middle classes wants and/or gout. And, if you were wondering, no, there will not be a single “Where’s the Beef?” reference in this article. C’mon, you’re better than that.

1. Nebraska’s two top export markets outside of North America are Japan and Korea; Nebraska beef is also used at Hong Kong Disneyland. Just five years ago, exports accounted for only $409 million for Nebraska beef producers. Today, exports have become such an important part of business that Angelo Fili, executive vice president of Greater Omaha Packing Co., says “Thirty percent of our company’s meat products are now exported.”

2. As Nebraskans know, beef consumption is growing in Asia, where there is continued growth in a middle class and demand for products long popular in western nations. In fact, Hong Kong leads the world in beef consumption per capita at 123.51 pounds per person, more than double of the 53.84 pounds that Americans consume.

3. While American beef continues to grow in popularity in Japan, Japan’s Kobe beef has become something of a gold standard in the States. And we do mean gold. The Homestead Steakhouse in New York sells a 12-ounce Kobe steak for $350. If that’s too rich for your blood, you may want to downsize with the Kobe burger which will cost you $43 but does come with fries.

4. Beef’s global popularity has meant the world’s 11 largest beef-exporting nations shipped a record 7.7 metric tons of beef in 2014. Australia led the way shipping 1.49 metric tons, followed by the U.S. at 1.22 metric tons.

5. Fortunately, as demand has grown so have better methods of producing beef, which can be devastating on the environment. A paper, published by animal scientist Jude Capper of Washington State and economist Dermot Hayes of Iowa State, states that modern production practices have dramatically decreased the beef industry’s carbon footprint.

6. According to Capper and Hayes’ findings, to produce the same amount of beef today without these new methods would require 10 million more cattle in the U.S. beef herd; 17 million more acres—about the size of Scotland—of land for grazing and growing feed; and 18 million more metric tons of carbon dioxide released in the U.S. alone, the equivalent to the annual emissions of three million cars.

7. Beef has long been an engine for better production methods. The development of refrigerated cargo ships, commonly known as “reefers,” can be traced to the beef industry. In 1869, frozen beef carcasses were transported from Indianola, Texas, to New Orleans. By 1873, frozen beef, loaded in an insulated cargo space cooled by ice that was loaded upon departure, was being shipped from the U.S. to London.

8. Reefers were soon used not only for beef but for produce, introducing the era in which folks in America could eat a banana—Dole, along with Seatrade and Maersk, still has one of the largest reefer fleets in the world. But, though there are about 1,000 reefer ships in the world, they have for decades been losing market share to shippers using refrigerated containers. In 1980, containers accounted for 33 percent of refrigerated cargo; by 2013, that figure had climbed to 72 percent.

9. Increasingly, many of those containers are finding their way to the Middle East, where an expanding middle class is demanding more beef. For years, the majority of U.S. beef exports have gone to Egypt. But sensing the demand, the U.S. Meat Export Federation (USMEF) has conducted training workshops in Oman, Bahrain and Qatar for chefs and hospitality officials on culinary possibilities and underutilized cuts.

10. The USMEF may want to be careful. Beef has proven so popular that Middle East countries such as United Arab Emirates and other Gulf countries are buying land in Egypt, Sudan and Pakistan to grow fodder and, according to Arabian Business magazine, could “begin to challenge the U.S. [beef] companies.”

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