3 minute read
on Strong Global Demand for U.S. Beef, by Don Schiefelbein
NCBA
PresideNt ’ s rePort
By DON SCHIEFELBEIN National Cattlemen’s Beef Association
Summer is one of my favorite times of year. For me, summer provides a break from the cold northern winters, and it gives my family plenty of opportunities to fire up the grill and enjoy steaks and burgers. Let’s face it, American consumers love high quality beef, and nobody comes close to competing with U.S. beef in our domestic market. But when was the last time you sat down to a nice dinner of tongue or liver? If you’re like most American consumers, it’s probably been a while. A top priority for NCBA is increasing producer profitability. One important way to achieve that goal is through beef exports.
Certain cuts like tongues, lips, hearts, short plate, and chuck rolls are less popular with U.S. consumers but fetch a premium in foreign markets. By exporting these cuts to locations with greater demand, you benefit as a cattle producer. Approximately 85 percent of U.S. beef is consumed domestically, but global demand for U.S. beef is stronger than ever, and that should bode well for U.S. cattle producers.
In 2021, U.S. beef export sales shattered the 2018 record by more than $2 billion, finishing just shy of $10.6 billion. Our record sales were driven in large part by strong demand in Asian markets like Korea, Japan, China, Hong Kong, and Taiwan, which accounted for $7.5 billion cumulatively. Asia is home to some of the fastest growing economies in the world, and consumers in those markets are incorporating more protein into their diets at increasing rates. Fortunately for U.S. cattle producers, 2022 sales have already exceeded $4 billion through April, the equivalent of roughly $478 per head. Altogether, strong global demand and tight global protein supplies are setting the stage for another record breaking year for U.S. beef exports.
Many of us remember a time when our export opportunities were limited to Canada, Mexico, and a handful of smaller markets. A decade ago, we faced a 40 percent tariff in Korea, a 38.5 percent tariff in Japan, and we had little-to-no access to Taiwan, Hong Kong, or China. Many of the trade barriers we faced were not based on science, and they were protectionist measures that unfairly targeted U.S. beef. NCBA worked diligently on behalf of our members to advocate for science based, rules based, and market based terms of trade that ultimately removed those unfair barriers and opened the door for us to build our brand with global consumers. The results speak for themselves. In ten years, U.S. beef exports have nearly doubled from $5.5 billion in 2012 to $10.6 billion in 2022. Without question, strong demand is a key driver of our success, but it would be very difficult to meet that demand without effective trade policies that made market access a reality.
NCBA works closely with the U.S. Department of Agriculture, the Office of the U.S. Trade Representative, the U.S. Department of State, and the U.S. Congress to identify trade opportunities and provide technical advice related to trade, beef products, cattle production, and emerging issues like sustainability, animal health, and animal welfare. NCBA also meets regularly with representatives of foreign governments who represent consumers that want greater access to U.S. beef and want to gain a better understanding of how our cattle are produced. Our industry is not always portrayed in a positive light by media in some of these markets, and it is up to us to correct the stigma of “factory farming” created by inaccurate and biased reporting. Sometimes these discussions can be difficult, but NCBA will continue to be a strong proponent of science-based production practices, and we will work with our government and other governments to promote scientific standards over politically motivated standards.
The Biden Administration has proposed new trade platforms (not trade agreements) such as the Indo-Pacific Economic Framework, the Americas Partnership for Economic Prosperity, and the U.S.-Taiwan Initiative on 21st Century Trade. These proposals are still in early stages, and while they currently do not contain market access provisions, NCBA will look for opportunities to engage as more information becomes available. International trade will continue to be a priority for NCBA as we seek to diversify and increase our marketing opportunities.
