News Update
September 13, 2010

Exports Remain Strong Through July

July values for U.S. beef exports dipped slightly from the totals achieved in June but still easily exceeded year-ago levels, posting a jump of nearly 40% ahead of 2009 levels.

Based on statistics released by the U.S. Department of Agriculture (USDA) and compiled by the U.S. Meat Export Federation (USMEF), a contractor of the beef checkoff, beef export value surged to $366.3 million in July, pushing the cumulative January-July value to more than $2.19 billion — 25% ahead of last year’s pace and virtually even with the pre-BSE peak value of 2003. In terms of volume, the 1.3 billion pounds of beef exported through July is 15% higher than in 2009.

Despite being well below last year’s results in Mexico — the No. 1 export market for U.S. beef — and remaining relatively flat in No. 2 market Canada, beef exports are performing extremely well across the globe. South Korea, Vietnam and Russia posted the largest year-over-year increases in July, but strong growth also is being achieved this year in Japan, the Middle East, Taiwan, Hong Kong, the European Union (EU) and the Caribbean.

Exports to Mexico still trail last year’s pace by more than 20% in both volume (306 million lb.) and value ($450.5 million), but showed signs of strengthening in July as export value ($70.1 million) was just 3.5% below last year’s level.

“While Mexico has been very slow to recover from the economic crisis that first took hold two years ago, we are beginning to see some promising signs,” said Chad Russell, USMEF regional director for Mexico, Central America and the Dominican Republic. “The peso has strengthened modestly in the past few months, and U.S. beef still holds a very strong market share in Mexico. Consumer confidence and buying power also appear to be on the upswing, and recent sales results for U.S. beef reflect that. While we are still a long way from the outstanding results U.S. beef achieved here in 2008 … we are headed in the right direction.”

January-July exports to Canada were even with last year in terms of volume, at about 186 million lb., but up 6% in value at $387.4 million. In every other major market, results are substantially above year-ago levels. Beef highlights include:

• Exports to Japan are 25% higher, both in terms of volume (143.2 million lb.) and value ($336.2 million). A USMEF promotion with nearly 13,000 7-Eleven stores in Japan has helped fuel U.S. beef sales there. The “Sumibiyaki Gyu Karubi Bento” promotion is projected to sell 30 million bento (lunch) boxes containing U.S. beef short plate during the coming year.
  
• Korea continues to climb the export-market rankings, with results of 139.3 million lb. valued at $290.8 million — an increase of 122% and 162%, respectively. 
  
• Vietnam is still the leading market in the ASEAN region, with exports during the seven-month period of 68.4 million lb. valued at $112.5 million — up 6% and 20%, respectively. But more dramatic growth in Indonesia and the Philippines pushed the ASEAN region’s results 28% higher in volume (98.5 million lb.) and 33% higher in value ($145.5 million).
  
• Led by strong exports to Egypt, the Middle East was up 31% in volume (154 million lb.) and 56% in value ($77.3 million), as the region shows an increasing appetite for U.S. muscle cuts. Excellent results were also achieved in The United Arab Emirates and Saudi Arabia.
  
• Exports to Russia totaled nearly 73 million lb. valued at $94.1 million — an increase of 154% in volume and 575% in value, reflecting a surge in muscle cut demand. Muscle cut exports to Russia reached 37.3 million lb. but likely will slow during the remainder of 2010 as the U.S. share (47.8 million lb.) of Russia’s import quota is nearly filled. The higher out-of-quota tariff rates do not, however, apply to variety meat.
  
• Taiwan is likely headed for another new value record this year, with January-July results reaching $109.7 million — up 48% compared to last year’s record pace. Volume was up 36% to 45.3 million lb. 
  
• Exports to Hong Kong were up 66% in volume (41 million lb.) and 87% in value ($68.9 million).

“In every corner of the world, U.S. beef has made tremendous strides this year,” said USMEF President and CEO Philip Seng. “And as Mexico begins to show signs of an economic recovery, our product is well-positioned to capitalize because we are still the dominant provider in that market. If we can move Mexico back into the ‘plus’ column, the global results will be even more impressive.”

— Release by the Beef Checkoff Program.

Ag Coalition Calls For Repeal of Onerous 1099 Ruels

The National Cattlemen’s Beef Association (NCBA) and 26 other ag organizations have sent a letter to U.S. Rep. Dan Lungren of California requesting a repeal of new Internal Revenue Service Form 1099 filing requirements. Under new reporting rules set to take effect in 2012, a Form 1099 must be issued to any incorporated vendors or unincorporated service providers paid more than $600 during a tax year. The ag coalition indicated this will cover virtually all business-to-business transactions.

“The business of producing food, fiber and fuel is a hands-on venture where productivity and competitiveness is compromised by government rules and regulations that turn producers into bookkeepers,” the letter read. “Prompt action is needed by Congress to reverse this onerous tax reporting requirement.”

Among groups signing the letter were the American Farm Bureau Federation, American Soybean Association, Farm Credit Council, National Association of Wheat Growers, National Corn Growers Association, National Council of Farmer Cooperatives and National Milk Producers Federation.

— Release by the Kansas Livestock Association.

Better Breeding of High-Quality Beef is Theme at MU Thompson Farm Field Day, Sept. 21

Proven ways to produce grouped, high-quality calves aimed at the USDA Prime grade markets will be presented during the annual field day at the University of Missouri (MU) Thompson Farm, Tuesday, Sept. 21.

In the opening talk, David Patterson, MU Extension beef reproduction specialist, will explain how “Fixed Time AI and High-Accuracy Sires Improve Carcass Quality.” The breeding used in the research led to the award-winning pen of cattle that topped all feedlot pens in the AngusSource® Carcass Challenge’s central region in the second quarter of 2010 when sold in Kansas.

The feedyard manager who fed those cattle will explain what he looks for in Missouri cattle. Mark Sebranek of Irsik and Doll Feed Yard, Garden City, Kan., will talk about managing high-quality cattle.

From Manhattan, Kan., Larry Corah, vice president of Certified Angus Beef LLC (CAB), will report on the growing demand for high-quality beef. He will explain how artificial insemination (AI) is used to increase the supply to meet that demand. CAB led the cattle industry in marketing branded beef.

In the final talk of the general session, Abner Womack, MU agricultural economist, will talk on economic returns of producing high-quality beef. Womack, founder of the MU Food and Agricultural Policy Research Institute (FAPRI), will also look ahead at the U.S economy and demand for beef.

The field day will then break into three groups for tours.

• Tour A features management and marketing of high-quality beef.
  
• Tour B covers breeding synchronization, economics of high-accuracy sires and reproductive health.
  
• Tour C will show the region’s portable AI breeding barn, discuss winter hay quality and present weaning management tips.

Pasture tours to see cattle and forages will follow the tour talks.

The goal of the field day is to show the latest beef research, including new breeding protocols, said David McAtee, Trenton, Mo., manager of Thompson Farm.

Commercial exhibits, including AI studs, will be on view during breaks. Free lunch will be served at noon. There is no advance registration or fee to attend the field day.

The day starts with registration at 8 a.m. Welcome will be at 9 a.m. by Rod Geisert, Thompson Farm superintendent, and Tom Payne, dean of the MU College of Agriculture, Food and Natural Resources.

For more information, see www.aes.missouri.edu/thompson/contact.php.

— Release by MU Extension.

Perry, Dewhurst Expected to Speak at TSCRA Fall Meeting

Both Texas Gov. Rick Perry and Lt. Gov. David Dewhurst are scheduled to speak at the Fall Meeting during the Texas and Southwestern Cattle Raisers Association (TSCRA) General Session on Friday, Oct. 1, in Austin. They will discuss the important upcoming legislative session and issues facing Texas in the coming months.

Rounding out the roster will be Texas Ag Commissioner Todd Staples, who will be the keynote speaker at the Thursday Luncheon. Also in attendance will be State Rep. Allan Ritter, Chairman of House Committee on Natural Resources and Sen. Craig Estes, Chairman of Senate Ag and Rural Affairs Committee, who will speak on water issues.

If you haven’t made your hotel reservations, you’ll want to do so before room runs out! For more information on the Fall Meeting hotels and schedule of events, click here: www.tscra.org/fallmeeting/index.html.

— Release by TSCRA.

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