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U.S. Red Meat Exports: Growth and Opportunities

U.S. Red Meat Exports: Growth and Opportunities . Phil Seng President & CEO U.S. Meat Export Federation. USMEF’s Mission. To increase the value and profitability of the U.S. beef, pork, and lamb industries by enhancing demand for their products in export markets through a dynamic

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U.S. Red Meat Exports: Growth and Opportunities

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  1. U.S. Red Meat Exports:Growth and Opportunities Phil Seng President & CEO U.S. Meat Export Federation

  2. USMEF’s Mission To increase the value and profitability of the U.S. beef, pork, and lamb industries by enhancing demand for their products in export markets through a dynamic partnership of all stakeholders

  3. USMEF Offices & Representatives St. Petersburg London Denver Moscow Tokyo Seoul Monterrey Beirut Mexico City Shanghai Taiwan Guangzhou Hong Kong Singapore

  4. Membership Sectors • Packer/Processor & Purveyor Trader • Beef/Veal Producing & Feeding • Pork Producing & Feeding • Lamb Producing & Feeding • Feedgrain Producing • Oilseed Producing • Farm Organizations • Agribusiness/Service Organizations

  5. Is meat consumption in the U.S. at a saturation point? U.S. Red Meat Consumption Per Capita, Retail Weight, Annual Source: USDA

  6. Exports have been a growth market for U.S. Red Meats Growth in Red Meat Consumption: Rest of World  387% U.S.  58% Source: USDA

  7. Global Meat Imports Source: Worldmapper

  8. Exports help diversify our markets Picnics &Trimmings to Central EU and Russia Hams to Mexico Bellies and Butts to Korea Variety Meats to China Loins & Tenderloins to Japan

  9. Pork Exports as a % Of Domestic Production is Rising • Exports accounted for only 3% of domestic production as recently as 1990. • Has doubled in the past 6 yrs to over 15% today.. • Export growth helps to diversify market portfolio and allows industry to arbitrage on a global basis. Data from USDA statistics and USMEF

  10. Will 2006 U.S. Pork Exports SetAnother New Record High? • 2005 U.S. pork export levels set new milestones: • 1.2 million MT • $2.6 billion • YTD ‘06 pork export volumes are 12% ahead of 2005. • Longer-term outlook for U.S. pork exports is bullish. (1,000 MT) Data from World Trade Atlas/USDA

  11. Top Pork MarketsUSMEF Export Forecast (000 MT) Source: USDA/USMEF

  12. 30 Years of U.S. Pork ExportsVolume (000 MT) Source: USDA/USMEF

  13. Daily Live Hogs Represented by U.S. Pork Exports Based on 200# carcasses, no pvm included Source: USDA, USMEF

  14. 30 Years of U.S. Beef ExportsVolume (000 MT) Source: USDA/USMEF

  15. Current Status of Beef Exports U.S. Beef & BVM Exports (1,000 mt) • 133 countries imported U.S. beef in 2003 and prior years • 72 instituted bans in late December 2003: • Six markets accounted for 90% of ’03 exports • Korea and China remain ‘closed’ to U.S. beef • Of those that have reopened, access is usually limited • Russian inspections • Colombia, Peru, and Panama Bilateral Agreements • Korea and Malaysia FTAs?? Source: USDA/USMEF

  16. Top Beef MarketsUSMEF Export Forecast (000 MT) 2003 Volume Source: USDA/USMEF

  17. Beef Export Premiums Export premiums on these 5 cuts alone represent $78 per head Source: USMEF

  18. Maintain Competitiveness EU-25 Beef Surplus/Deficit Source: FAO/USMEF (million pounds)

  19. We Care Happy Holiday Advertisement

  20. We Care Promotion Activities

  21. Global Issues • USMEF Involvement • Maximum Residue Levels. • Labeling issues in Japan relating to “Kurobuta” pork. • China pathogen and residue levels. • Japan “gate price”. • Increasing EU access. Research • Pork muscle profiling • Competitive analysis of Brazil and Chile pork • Beef alternative cuts - 17 cuts for Japan

  22. The Brand Promise Randy Blach, CattleFax, Branded beef products (not even counting store brands) account for about 10% of annual fed-cattle production, and he expects it to grow significantly by the end of the decade. Source: BEEF, January 2005

  23. What is a Brand? • Generic Brands – U.S. Beef, U.S. Pork, • Store Brands – Tesco • Geographic Brands – Kobe Beef • Natural Brands- Meyer Natural Angus • Private Brands – Tyson

  24. Consumers Trust the Brand

  25. Branding & Traceability • Consumers want to know who stands behind the product, how the animal was raised & what it was fed – “story pork”. • Increasing importance of source and process verification. • Driven by BSE, AI, E-coli, mis-labeling, etc. • Branding represents a promise of quality to consumers.

  26. Benefits of U.S. Red Meat Trade • Market Expansion • Global Involvement • Build “Brand” Equity • Traceability • Export Premiums • Adding value to corn & soybeans

  27. Thank You Farm Bureau Members • American Farm Bureau Federation • Idaho Farm Bureau • Illinois Farm Bureau Federation • Indiana Farm Bureau, Inc. • Iowa Farm Bureau Federation • Kansas Farm Bureau • Kentucky Farm Bureau Federation • Minnesota Farm Bureau • Missouri Farm Bureau • Nebraska Farm Bureau Federation • Ohio Farm Bureau Federation, Inc. • South Dakota Farm Bureau • Texas Farm Bureau

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