News Update
Feb. 25, 2010

Despite Tough Economy, U.S. Pork, Beef Faring Very Well in Japan

Japan reinforced its position as a key trading partner for the U.S. beef and pork industries in 2009, clearly outperforming the market and either maintaining or increasing U.S. beef and pork imports even as total retail and foodservice spending in Japan slumped in the global economic slowdown.

In calendar year 2009, U.S. pork sales in Japan — our top market for pork export value — nearly matched the all-time value record set one year ago ($1.54 billion vs. $1.545 billion in 2008).

While that fact may not seem astonishing, consider that the global pork industry slumped 15% in 2009 vs. the year prior, and Japan’s supermarket sales dropped 4.3%, reaching a 21-year low of 12.83 trillion yen (about $142.6 billion). At the same time, Japan’s foodservice sales dropped 1.5% — the first decline in the past six years.

In this same environment, sales of U.S. beef in Japan ended the year 23% higher than the previous year in both volume and value while the global market for all beef exporters fell 16%.

“Because of its strong currency and financial stability, there has been a tendency to think of Japan as an oasis in the global economic downturn,” said Philip Seng, president and CEO of the U.S. Meat Export Federation (USMEF). “But make no mistake about it, Japan’s retail and food service sectors have faced serious challenges in recent months. One of the keys to growing market share for U.S. beef and pork in this economic environment has been to meet these challenges with products that deliver tremendous versatility and value.”

USMEF also emphasizes the versatility of U.S beef for restaurants that want to attract price-conscious diners. Yakiniku (Korean barbecue) is one of the largest sectors of the Japanese foodservice industry, with approximately 20,000 outlets across the country. To increase penetration for U.S. beef in these popular restaurants, USMEF is promoting alternative beef cuts such as chuck rib, boneless short rib, chuck eye roll, brisket, outside skirt and tongue. With support from the Beef Checkoff and MAP, these cuts were recently featured by USMEF at the Yakiniku Business Fair in Tokyo, where many key buyers from Yakiniku restaurant chains were among the 13,000 attendees. USMEF demonstrated several new menu ideas at the event, including salted beef tartare, beef roll rice ball, beef and gelatin noodle salad and beef meatball.

A strong presence in the processing sector is also critical to the success of U.S. pork and beef in Japan, which is why USMEF maintains close relationships with the country’s leading processors and distributors. Nippon Ham, Japan’s largest meat distributor and sausage manufacturer, prominently featured U.S. beef and pork at its mid-January product showcase in Tokyo and at six similar regional events. In late January, a wide range of U.S. items were also promoted by Ito Ham, Japan’s second-largest meat distributor, during its product showcase. With support from the Beef Checkoff and Pork Checkoff programs, USMEF provided point-of-sale materials for U.S. beef and pork for each of these events.

The United States now holds 46% of the imported pork market share in Japan (up steadily from 30% in 2004) and 72% of the chilled pork market. Since reentering the market after BSE, U.S. beef market share is also on the rise. The U.S. captured 20% of the market in 2009, compared to just 10% two years earlier.

“Japan will always be a destination for the finest cuts of U.S. pork and beef,” Seng said. “But, obviously, when you’re facing tough economic conditions, it’s important to feature products that appeal to a wide range of consumers. The U.S. meat industry’s ability to deliver products of tremendous quality, value and versatility has been critical to the success we are seeing in Japan.”

— Adapted from a USMEF release.

Kentucky Farm Bureau Beef Expo

The Kentucky Farm Bureau Beef Expo will take place next week, March 3-7, at the Kentucky Exposition Center in Louisville. It will include 11 breed shows and sales and one all-breed pen heifer sale as well as a junior judging contest, a junior steer and heifer show, and a trade show. In addition, many of the participating breeds (including Angus) will hold their Kentucky association annual meetings during the event. The combined total of cattle from the sale cattle and the junior show will feature approximately 1,000 head.

The Expo shows and sales are unique because of the support received from the Kentucky Department of Agriculture, as well as from the major corporate sponsor, the Kentucky Farm Bureau. The assistance from these organizations allows the competitors to take home more than $100,000 in premiums. A brief history of the Expo, the 2009 Expo results, and complete information about the 2010 event may be viewed at www.kybeefexpo.com.

For more information contact Tim Dievert, treasurer, Kentucky Beef Expo, at 859-236-4591 (office), 859-238-3195 (cell) or www.dievertsales.com. Also contact Kentucky Expo Co-ordinator from the Kentucky Department of Ag, Chris Caudill, who can be reached at 502-564-4983 (office) or 502-352-0905 (cell).

— Release by Kentucky Beef Expo.

Make Plans to Move Livestock, Hay Now

Livestock producers need a plan for moving their animals and hay to higher ground before floodwaters start rising.

“Make arrangements now in case cattle and other livestock need to be moved, or have a plan to utilize other facilities in case of flooding,” says Charlie Stoltenow, North Dakota State University (NDSU) Extension Service veterinarian.

“Trying to rescue cattle and other large livestock in deep-water situations is a dangerous and losing proposition, and it can be deadly both to the animal and you,” he adds. “Water temperatures are near freezing, and there’s floating ice and debris.”

A rainy fall and heavy snowfall this winter make flooding likely in some parts of North Dakota.

“As with last year, areas may flood that have not seen flooding before,” Stoltenow cautions.

This could be a problem for livestock producers because calving often occurs in low-lying, sheltered areas. Also, hay production was above average in 2009, and some of this hay is being stored in areas with a high risk of flooding, such as low spots in fields and along creeks and rivers, and on the wrong side of washed-out roads.

More than 91,000 cattle, including about 72,000 calves, were estimated to have died in North Dakota in spring 2009. Many were trapped by floodwaters. Flooding also prevented producers from reaching feed supplies for their livestock.

“It is easier to move or blow snow on top of frozen ground to get to your hay now than it is to try to fight 3 feet of mud with 3 feet of water on top of that,” Stoltenow says.

Having feed supplies on hand is important because producers can’t count on feed or fuel assistance being available during a flood.

However, if feed supplies do run short, NDSU’s FeedList web site — www.ag.ndsu.edu/feedlist/ — may be able to help. It’s a place producers can go to find feedstuffs for sale. It’s also a place for feedstuff sellers to market their supplies.

— Release by NDSU.

Missouri Beef Industry Council Launches Farmer Freedom

The Missouri Beef Industry Council has launched a social media web program called “Farmer Freedom” to keep Missouri’s 60,000 beef producers informed about activist attacks on agriculture and equip them to become “pro-activists.”

The program, located at www.farmerfreedom.com, was launched to protect farmer freedom to operate and help ensure grocery shoppers enjoy a continued supply of low-cost, nutritious food, according to Executive Director John Kleiboeker.

“The farm families of Missouri deliver a low-cost supply of abundant, safe and nutritious food, but the future of that food is threatened by an increasing amount of extreme activism,” Kleiboeker says. “Many environmentalist or green organizations fight for the same goals we producers do, and we work in partnership with those groups. However, Missouri farmers are seeing an increased number of groups that threaten to take over on-farm decisions, increase food costs and even decide what people should eat.”

Internet and big-city media are increasingly churning out stories planted by activist groups that spread myths about farming, question food safety, claim cow burps are melting ice caps or even claim that eating beef is immoral, Kleiboeker says. “Most farmers are too busy caring for their cattle and tending their crops to keep tabs on these threats, so we’ve decided to help them stay informed with farmerfreedom.com.”

The web site includes regular blog posts about activist activities, and an e-newsletter to provide frequent updates, Kleiboeker says. In phase two, farmerfreedom.com will give producers the same tools that activists use, he adds. “We have a positive story to tell about Missouri agriculture that will balance out the misinformation some groups are spreading to raise funds and trick consumers into attacking farm families. Activism is big business; and we want to make sure producers know what they are up against so we can respond and be proactive with balanced information about on-farm decisions and America’s food choices.”

The Farmer Freedom program was developed by Blue Spring Communications, a St. Louis company specializing in environmental and marketing communications for agricultural and energy businesses.

For more information about the program contact John Kleiboeker at 573-817-0899 or John Osthus, Blue Spring Communications, at 636-825-7656.

— Release by the Missouri Beef Industry Council.

— Compiled by Mathew Elliott, assistant editor, Angus Productions Inc.