Soybeans On The Hoof

 

Not all of soybean exports leave the country as whole beans, meal or oil. Sometimes, they leave on the hoof.

 

The good news for soybean farmers is that even though commodity soybean prices are down, global demand for red meat is up, so raising and exporting meat products is an important way to capture more value for soybeans.

 

 

“Any time we can feed animals here and then export the meat, we take advantage of all the value-added opportunities closer to home,” says Marc Reiner, a Tripp, South Dakota beef and hog farmer and chair of the South Dakota Soybean Research and Promotion Council.

 

Despite flat or even declining domestic consumption of red meat products, exports of U.S. pork and beef are strong. Greg Hanes, assistant vice president of international marketing for the U.S. Meat Export Federation (USMEF) said beef exports were up 16 percent by value in 2014 to more than $7.14 billion, while pork export value was up 10 percent to about $6.78 billion.

 

“Global demand is strong, driven by the fact that 96 percent of the world’s population lives outside of the U.S.,” Hanes said. “Globally, the middle class is increasing, especially in Asia.”

 

It is estimated that by 2030, 60 percent of the world’s middle class will live in Asia. As the middle class grows, the demand for protein grows.

 

Much of Asia is already hungry for meat, milk and eggs. Hanes said China produces and consumes about half of the world’s pork, but still imports U.S. products because of concerns with domestic food safety. Consumers in other countries look for U.S. meat products because they’re synonymous with high quality.

 

“The dollar is getting stronger, so our products are more expensive,” Hanes said. “However, the quality is so good and demand is so strong that we are still very competitive.”

 

The bulk of U.S. pork exports go to Mexico and Japan. Mexico takes in a greater volume, while Japan imports higher-value cuts. Japan is a highly competitive market, targeted by many countries. The U.S. has the capability to ship chilled pork products rather than frozen, which is a distinct competitive advantage. Other key red meat export markets include Hong Kong, Korea, Canada, Colombia and the Philippines.

 

Hanes says there is a global shortage of beef, so worldwide exports are expected to be lower. Currently, Mexico and Japan are top markets for U.S. beef products along with Hong Kong, Canada, Korea, Taiwan, Egypt and Peru.

 

USMEF is leading efforts to expand markets around the world. Emerging markets for both beef and pork include Southeast Asia, Africa and New Zealand.