News Update
April 8, 2013
Trade Barriers, Slow Demand in Selected Markets Challenge February Meat Exports
February continued the trend set at the end of 2012 for U.S. beef and pork exports with higher values on lower volumes for beef and a continued slight decline for pork, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef exports managed a 5% increase in value ($430 million) over February 2012 despite a slight decline in volume (86,367 mt). February pork exports slipped 5% in volume (178,510 mt) and 6% in value ($494.6 million) compared to a year ago.
“The good news is that the long-awaited change in beef access to Japan came through in February,” said USMEF President and CEO Philip Seng. “Conversely, trade barriers and other obstacles seem to be emerging at a rather alarming rate in 2013. Sluggish economic conditions in certain markets also create a challenge, but this is why we have made such a strong effort to diversify our destinations for red meat exports over the years. As some of our key markets struggle, growth in other regions has helped provide balance.”
Canada, Hong Kong lead beef export value growth. Through the first two months of the year, beef exports totaled 172,975 mt valued at $873.8 million —2% lower in volume, but 7% higher in value than last year’s pace. Beef export value in February averaged $239 per head of fed slaughter — up nearly $31 from a year ago. This drove the January-February export value to $220.39 per head, compared to $202.89 in 2012. The percentage of U.S. beef production exported in February was 10% for muscle cuts and 13.4% for combined muscle cuts and variety meat. This compares to 9% and 12.6%, respectively, from a year ago.
Beef exports to Canada are off to an outstanding start in 2013, totaling 31,464 mt (+31%) valued at $200.2 million (+46%) through February. Other markets performing well above year-ago levels include:
- Hong Kong, 15,821 mt (+144%) valued at $85.5 million (+126%).
- Taiwan, 5,708 mt (+16%) valued at $42.6 million (+39%).
- Philippines, 2,463 mt (+19%) valued at $11.3 million (+45%).
- Dominican Republic, 617 mt (+41%) valued at $5.6 million (+70%).
Because access for U.S. beef exports to Japan was expanded on Feb. 1 to include beef from cattle less than 30 months of age (up from 21 months), expectations for the month were very high. Exports to Japan did record small gains in February and moved 3% higher in volume (19,918 mt) and 12% higher in value ($137.9 million) for the year. Based on weekly export data the improvement in market access didn’t trigger an increase in export activity late February, so the impact will be more pronounced in March.
The ractopamine impasse with Russia has had a dramatic impact on this year’s export results. Coming off a record year in 2012, beef exports to Russia through February totaled only 1,693 mt (-82%) valued at $2.1 million (-94%). The downturn in beef exports to Russia alone more than accounted for the overall volume decline in February.
Exports to former No. 1 market Mexico were also sharply lower at 29,933 mt (-21%) valued at $130.6 million (-23%).
Complete export results for U.S. beef, pork and lamb are available online.
New Board of Animal Health Rules Address Needs of Today
The Minnesota Board of Animal Health today announced that its new rules are now in effect. The Board has been working with livestock groups to adopt rules that allow the Board to control diseases and are sensible for Minnesota farmers.
“After four years of talking with stakeholders, we are pleased to have rules that address the topics facing livestock agriculture today,” said Bill Hartmann, state veterinarian and executive director of the Minnesota Board of Animal Health. “Thanks to the input of producers, the new rules will better equip us to do our job while making sure they can still do theirs.”
The new rules were drafted with animal traceability in mind. The USDA had been working to adopt a federal traceability rule for several years. The Board took a proactive approach to federal requirements and included language that enhances Minnesota’s ability to effectively trace livestock during disease events. An overhaul of the rules was also needed to eliminate outdated language, clarify the Board’s authorities, address current topics and consolidate rules into a new, easy-to-understand chapter.
Read more about the new rules.
Nominate Someone Today
Vance Publishing’s “40 Under 40” Awards will recognize the young leaders in our industry who will be instrumental in meeting the 2050 challenge. Vance Publishing is seeking the most innovative people in agriculture under the age of 40 to honor for their ideas and leadership — from animal and crop production, biotechnology and university researchers to food and nutrition technology, agricultural equipment, agronomy and beyond. Help Vance to recognize the young professionals who will help find the solutions that will pave the way for success in 2050.
To nominate someone click here.
Farm Bureau Sends Farm Bill Proposal to Capitol Hill
The American Farm Bureau Federation (AFBF) is sending a farm bill proposal to Capitol Hill today. Approved this weekend by the AFBF board of directors, the proposal offers a diverse mix of risk management and safety net tools to benefit a wide range of farms, and it saves $23 billion compared to the cost of continuing the current program.
The American Farm Bureau farm bill proposal helps reduce the nation’s budget deficit, provides an adequate economic safety net for the nation’s farmers and is based on several core policy principles, according to AFBF President Bob Stallman.
The proposal:
- offers farmers a choice of program options;
- protects and strengthens the federal crop insurance program, and does not reduce its funding;
- provides a commodity title that works to encourage farmers to follow market signals rather than making planting decisions in anticipation of government payments;
- refrains from basing any program on cost of production; and
- ensures equity across program commodities.
“There is far less money this year than last with which to secure an adequate safety net for the many family-owned farms that make up the bulk of America’s agricultural system,” Stallman said. “Last year, Congress merely extended the old 2008 farm bill until Sept. 30 of this year. Now, while unfortunately we have less money to work with, it is vital that Congress complete a new five-year farm bill this year. Doing so is in the economic interest of our entire nation.”
Stallman said the goal of the AFBF proposal is to provide a measure of fairness among regions and crops, while providing each commodity sector a workable safety net provision for farmers who grow that crop.
“Farm policy should provide a strong and effective safety net and viable risk management programs for farmers that do not guarantee a profit but, instead, protect them from catastrophic occurrences,” Stallman said. “We also want to ensure that terms of our farm programs do not affect a farmer’s decision of which crop to plant. The program must comply with our World Trade Organization agreements.”
To read the full release, click here.
Novus Talks About Food Safety, Poultry Nutrition and Sustainability
Novus International Inc. is excited to participate in the 4th Global Feed & Food Congress (GFFC), which will take place April 10-12 in Sun City, South Africa. This important meeting was organized by the International Feed Industry Federation (IFIF), with support by the Food and Agriculture Organization of the United Nations (FAO). Hosted by the Animal Feed Manufacturers Association (AFMA) of South Africa, GFFC will bring leaders from around the world together to discuss issues related to global feed, food and sustainability.
“It is valuable for Novus to participate with global industry leaders at the GFFC concerning the important role we all play in the growing worldwide demand for sustainable protein,” said James Gerardot, executive director of global marketing. “This meeting aligns well with Novus’s vision of helping feed the world affordable, wholesome food and achieve a higher quality of life.”
This year’s GFFC theme “safe feed and food for all” goes hand in hand with Novus’s commitment to the global industry.
“We all share the responsibility of food safety and consumer health, both within our borders and around the globe,” said Bayella Thiam, executive manager–Africa at Novus, a speaker at the conference. “That is why we need to work together to improve food safety and reduce barriers. Consumers will have safer food to choose from and our industry will enjoy increased success.”
For more information visit www.novusint.com.
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