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The U.S. Meat Export Federation (USMEF) has announced the recipients of its Distinguished Service Award and Michael J. Mansfield Award. The awards will be presented Nov. 7 at the USMEF Strategic Planning Conference in Tucson, Arizona.

The USMEF Distinguished Service Award recognizes individuals who have demonstrated outstanding leadership in the pursuit of USMEF’s export goals. This year’s honoree is Danita Rodibaugh of Rensselaer, Ind., a former USMEF chair and longtime advocate for the U.S. red meat industry. Active in the management of a family farm operation that raises pigs, corn, soybeans and wheat, Rodibaugh is a past president of the National Pork Board (NPB) and has held many key industry leadership roles, chairing the Ethics of Pork Production Task Force and serving on the board of directors of both the National Pork Producers Council and Indiana Pork, the NPB Trade Committee and several committees focused on environmental stewardship.

“I really admire the past recipients of the USMEF Distinguished Service Award, and I am humbled to receive such an honor,” Rodibaugh said. “I marvel at an organization like USMEF that can work with so many different agricultural sectors and bring them together to accomplish a common goal. Looking back at my time as USMEF chair and as an officer, it’s that kind of collaboration that I am most proud of — working jointly and making key decisions together. I was truly blessed to have such an outstanding officer team when I was USMEF chair.”

Rodibaugh added that fostering trust was a top priority during her time in the USMEF leadership, not only among the USMEF officers and executive committee, but also the organization’s funding sources.

“Enhancing communication between the various sectors allows USMEF to benefit from the expertise each sector brings to the table and to better understand the challenges we all face,” she explained. “When that level of trust is established, it helps us educate fellow producers about the value red meat exports deliver and how exports benefit all of U.S. agriculture.”

The Michael J. Mansfield Award is presented in honor of the former U.S. Senate majority leader and U.S. ambassador to Japan who helped form the foundation for U.S. trade relations throughout the world. This year’s co-recipients of the award, which recognizes individuals whose leadership has helped expand international trade opportunities, are Barry Carpenter, who recently retired as president and CEO of the North American Meat Institute (NAMI), and Wendy Cutler, vice president of the Asia Society Policy Institute (ASPI).

Carpenter’s 50-year career in the public and private sectors included 37 years at USDA, where he led the Agricultural Marketing Service’s Livestock and Seed Division. Carpenter oversaw creation of USDA’s beef export verification programs, which were critical to restoring market access for U.S. beef following the nation’s first case of bovine spongiform encephalopathy (BSE) in December 2003. His leadership was also critical in developing video technology for beef yield and quality grading. During his time at NAMI, Carpenter was a highly respected spokesperson for the U.S. meat industry who provided steady guidance on key policy issues and represented the industry on several international governing bodies. His many career honors include Presidential Rank Awards, NAMI’s E. Floyd Forbes Award and induction into the Meat Industry Hall of Fame.

“I am overwhelmed at the honor of receiving the Mansfield Award,” Carpenter said. “Having worked on trade issues for many years in various capacities, trade is something that I care deeply about, and I never anticipated that I would be honored at this level.”

When asked to reflect on the contributions he is most proud of, Carpenter cited USDA’s efforts that laid the groundwork for U.S. beef exports’ impressive recovery following the BSE-related market closures.

“Coming up with an export verification program that bridged the gap between our government’s regulatory food safety scheme and what our trading partners were expecting was just phenomenal,” he said. “I don’t know how else we could have ever broken that logjam and satisfied the needs of those countries. For some trading partners it obviously worked faster and better than others, but for all practical purposes it was the tool that got us back into all of those markets.”

Cutler also has a long history of helping the U.S. meat industry overcome barriers in the international marketplace. Prior to joining ASPI, she had a very accomplished career with the Office of the U.S. Trade Representative (USTR). Cutler worked on a wide range of trade negotiations and other initiatives in the Asia-Pacific region, serving as USTR’s chief negotiator on the Korea-U.S. Free Trade Agreement (KORUS) and leading the bilateral negotiations with Japan under the Trans-Pacific Partnership (TPP).

When reacting to the Michael J. Mansfield Award announcement, Cutler was quick to emphasize the team approach that underpinned these advancements in U.S. trade relations.

“I am delighted to be recognized for my efforts, but this award also belongs to the other hard-working negotiators with whom I worked so closely,” she noted. “By working as a team, we made important inroads into the lucrative and growing meat markets in Asia.”

While Cutler knew that USTR had secured very favorable terms for the red meat sector in KORUS, the remarkable success the U.S. industry has achieved in Korea has exceeded her expectations.

“I am pleasantly surprised that the United States has now become the leading beef exporter to Korea, because this was such a sensitive issue during and after the FTA negotiations,” Cutler said. “The KORUS model is a great example of a genuine partnership between the U.S. government and U.S. industry. Trade agreements can open markets by eliminating tariff and non-tariff barriers, but then it’s up to the private sector to take advantage of these opportunities. The U.S. meat industry has done an incredible job of marketing its products in Korea and other international markets.”

She emphasized that Korean consumers are benefiting greatly from KORUS because it has made beef and other U.S. agricultural products more affordable.

“In many Asian countries, including Korea and Japan, agriculture has traditionally been one of the most-protected markets in their economy,” Cutler said. “As those markets open up and consumers are able to avail themselves of different cuts of meat at competitive prices, consumption increases. At the same time per capita income is also rising in the region, which contributes to more meat consumption.”

In addition to receiving the Michael J. Mansfield Award, Cutler will be a featured speaker at the USMEF Strategic Planning Conference. On Friday, Nov. 8, she will update USMEF members on the status of U.S. trade relations in Asia and where she sees opportunities to further increase trade and strengthen economic ties with key trading partners. More details on the conference are available online.

U.S. pork exports continued to post very strong results in August, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF), while beef exports were below the record-large totals of August 2018.

August pork exports increased 22% from a year ago to 221,586 metric tons (mt), while export value climbed 19% to $588.8 million. These results pushed January-August export volume 4% ahead of last year’s pace at 1.7 million mt, while value increased 1% to $4.35 billion.

Pork export value averaged $54.18 per head slaughtered in August, up 22% from a year ago. For January through August, the per-head average was down 2% to $51.70. August exports accounted for 27.1% of total U.S. pork production and 23.7% for muscle cuts only, up significantly from a year ago (21.9% and 19.2%, respectively). January-August exports accounted for 26.4% of total pork production and 23% for muscle cuts, both up slightly year-over-year.

August beef exports totaled 114,119 mt, a 4% decline from last year’s large volume, while export value ($690.3 million) was down 8%. January-August beef exports were slightly below last year’s record pace, declining 2% in volume (881,526 mt) and 1% in value ($5.44 billion).

Beef export value per head of fed slaughter averaged $298.94 in August, down 7% from a year ago, while the January-August average was down 3% to $309.85. August exports accounted for 14% of total U.S. beef production and 11.3% for muscle cuts only, down from 14.3% and 12.2%, respectively, last year. Through the first eight months of the year, exports accounted for 14.2% of total beef production and 11.6% for muscle cuts, down from 14.6% and 12.1%, respectively, in 2018.

Emerging markets strong for U.S. pork, even as exports rebound to China and Mexico

Although still held back by China’s retaliatory duties, China/Hong Kong was the largest destination for U.S. pork in August at 63,656 mt, more than tripling the August 2018 volume, while export value climbed 160% to $137.6 million. For January through August, exports to China/Hong Kong were up 38% in volume (356,322 mt) and 17% in value ($717.9 million).

Since Mexico removed its 20% retaliatory duty on U.S. pork in late May, exports have rebounded significantly but are still trailing the record-large numbers posted in 2017. August exports to Mexico were down 1% year-over-year in volume (61,365 mt), but value increased 18% to $121.1 million. A slow start to the year still weighs on January-August exports to Mexico, which were down 11% from a year ago in both volume (473,309 mt) and value ($821.8 million).

“China’s demand for imported pork has increased steadily over the past few months and the U.S. industry is well-positioned to help fill that need,” said USMEF President and CEO Dan Halstrom. “But the really positive story behind these numbers is that even as U.S. exports to China/Hong Kong have surged and exports to Mexico rebounded after the removal of retaliatory duties, demand in other markets is proving resilient and continues to grow. This is exactly why the U.S. industry invested in emerging markets over the years, and it is definitely paying dividends.”

The U.S. and Japan recently announced an agreement that will bring tariffs on U.S. pork in line with those imposed on major competitors, and August export results illustrated the pressing need for tariff relief. August volume was down 19% to 28,240 mt, while value fell 18% to $120.1 million. Through August, exports to Japan trailed last year’s pace by 6% in both volume (250,540 mt) and value ($1.03 billion). U.S. exports of ground seasoned pork to Japan have been hit particularly hard by the tariff gap (20% compared to 13.3% for the European Union and Canada), with Japan’s imports through August falling by 28% — nearly $60 million — compared to last year.

January-August highlights for U.S. pork include:

  • Led by steady growth in mainstay market Colombia and surging demand in Chile, exports to South America climbed 28% above last year’s record pace in volume (105,344 mt) and 30% in value ($264.7 million). Shipments to Peru cooled in August but have also contributed to export growth in 2019.
  • Exports to Central America were 16% above last year’s record pace in volume (60,727 mt) and 19% higher in value ($147 million). Honduras and Guatemala are the largest Central American destinations for U.S. pork, and exports trended higher to both markets. Panama, Costa Rica and Nicaragua also contributed to regional growth, with exports increasing by double digits.
  • Exports to Oceania were up 38% from a year ago to 77,556 mt, while value increased 32% to $217.1 million. A key destination for hams and other muscle cuts used for further processing, exports to Australia jumped 36% from a year ago to 69,692 mt, valued at $192.5 million (up 31%). Growth to New Zealand was also impressive, with exports up 52% in volume (7,864 mt) and 48% in value ($24.6 million).
  • While January-August exports to South Korea were down 9% from last year’s record pace in volume (145,690 mt) and fell 10% in value ($411.8 million), August exports were up significantly as volume climbed 27% to 14,336 mt and value surged 35% to $42.2 million. In mid-September, South Korea confirmed its first cases of African swine fever (ASF), with 13 outbreaks reported in the northwest corner of the country near the border with North Korea. While the disease is still confined to a relatively small area, ASF is certainly a pressing concern for Korea’s domestic pork industry.
  • ASF has also impacted pork production in Southeast Asia, especially in Vietnam but also recently spreading into the Philippines. While U.S. exports to the ASEAN trailed last year’s pace by 10% in volume (35,164 mt) and 19% in value ($81.1 million), the region’s need for imported pork is likely to trend higher in coming months.

U.S. beef exports cool in August, but remain on strong pace

After setting new value records in June and July, U.S. beef exports to South Korea slowed 9% from a year ago in August to 22,307 mt, while value dropped 11% to $157.4 million. But for January through August, exports to Korea were still 8% ahead of last year’s record pace in volume (174,290 mt) and 10% higher in value ($1.26 billion). Korean import data through August showed double-digit growth for U.S. beef in the top two cut categories: short rib and short plate/brisket. The United States accounted for more than 55% of Korea’s chilled/frozen beef import volume, up from 53% in the first eight months of 2018.

Similar to pork, the U.S. beef industry looks forward to gaining tariff relief in leading market Japan, where August exports slipped 15% from a year ago to 28,646 mt. Value was down 22% to $164.3 million, although it is important to note that exports in August 2018 were a post-BSE record $209.3 million. For January through August, exports to Japan were 3% below last year’s pace in volume (217,698 mt) and 4% lower in value ($1.36 billion). Beef variety meat exports to Japan (mainly tongues and skirts) have been a bright spot in 2019, increasing 31% in volume (44,617 mt) and 18% in value ($260 million). U.S. tongues and skirts face higher duty rates than competitors’ products but are tariffed at 12.8% compared to 38.5% for U.S. muscle cuts.

“The U.S. beef industry is extremely excited at the prospect of lower tariffs in Japan, as 38.5% is the highest rate assessed in any major market,” Halstrom said. “As we’ve seen in Korea, where the tariff rate was once 40% but has been reduced by more than half, lower tariffs make U.S. beef even more affordable for a wider range of customers. While the agreement still needs parliamentary approval in Japan, importers are already enthused and preparing for long-awaited tariff relief.”

January-August beef exports to China/Hong Kong fell 24% from a year ago in volume (60,259 mt) and 20% in value ($510.7 million). Several factors have impacted U.S. exports to the region, including street protests in Hong Kong that have slowed commerce and tourism. While supermarket sales remain strong in Hong Kong, the disruption has been particularly hard on the restaurant sector. Although China remains a small destination for U.S. beef and exports are hampered by China’s retaliatory duties, January-August volume increased 23% from a year ago to 5,625 mt, valued at $44.7 million (up 12%).

January-August highlights for U.S. beef include:

  • Exports to Mexico, the third-largest international market for U.S. beef, were slightly lower than a year ago in volume (156,528 mt, down 1%), but value increased 5% to $729.5 million. Beef variety meat exports to Mexico were down 3% from a year ago to 62,504 mt, but commanded better prices as export value increased 12% to $166 million.
  • Although beef exports to Taiwan were modestly lower year-over-year in August, January-August exports were still 10% percent above last year’s record pace in volume (42,785 mt) and 7% higher in value ($383.9 million).
  • Led by surging demand in Indonesia and solid growth in the Philippines and Vietnam, beef exports to the ASEAN region were 27% above last year’s pace in volume (37,206 mt) and 12% higher in value ($180.6 million).
  • Strong August results in Central America pushed exports 4% above last year’s pace in volume (9,898 mt) and 10% higher in value ($56.7 million), led by a strong performance in Panama and steady growth in Guatemala and Honduras.
  • Beef exports to the Dominican Republic continue to reach new heights, as volume increased 45% from a year ago to 6,060 mt, while value climbed 35% to $48.6 million.

Halstrom noted that the temporary loss of a major processing plant to a fire likely had a negative effect on August exports, but he does not expect to see a lasting impact.

“Beef supplies are tight throughout the world but the U.S. maintains a supply advantage, as production is expected to be record-large in 2020,” he said. “Both domestic and international demand for U.S. beef remains strong, and there is significant potential for further export growth, especially once the U.S.-Japan agreement is implemented.”

Lamb exports trend lower in August

August exports of U.S. lamb were down 12% year-over-year at 1,193 mt, while value declined 8% to $1.84 million. For January through August, exports remained 32% above last year’s pace at 10,626 mt, while value increased 13% to $17.5 million. Lamb muscle cut exports were 17% lower than a year ago in volume (1,397 mt) but slightly higher in value ($9.5 million, up 1%). Markets showing promising muscle cut growth included the Dominican Republic, Trinidad and Tobago and Panama.

Complete January-August export results for U.S. beef, pork and lamb are available from USMEF’s statistics Web page.

Monthly charts for U.S. pork and beef exports are also available online.

If you have questions, please contact Joe Schuele at jschuele@usmef.org or call 303-547-0030.

NOTES:

  • Export statistics refer to both muscle cuts and variety meat, unless otherwise noted.
  • One metric ton (mt) = 2,204.622 pounds.
  • U.S. pork currently faces retaliatory duties in China. China’s duty rate on frozen pork muscle cuts and variety meat increased from 12 to 37% in April 2018, from 37 to 62% in July 2018 and from 62 to 72% on Sept. 1, 2019. Mexico’s duty rate on pork muscle cuts increased from zero to 10% in June 2018 and jumped to 20% the following month. Beginning in June 2018, Mexico also imposed a 15% duty on sausages and a 20% duty on some prepared hams. Mexico’s duties were removed in May 2019 but were in effect for much of the period reported above.
  • U.S. beef faces retaliatory duties in China. China’s duty rate on beef muscle cuts and variety meats increased from 12 to 37% in July 2018 and from 37 to 47% on Sept. 1, 2019. Canada imposed a 10% duty in July 2018 that applied to HS 160250 cooked/prepared beef products. Canada’s duty was removed in May 2019 but was in effect for much of the period reported above.