What Is Happening In World
Milton Madison
Assistant Professor
Poultry Science
Penn State
A recent report, “The Role of
the South in the United States
Poultry Trade,” by Stephen Ford
gives us some insight into the
world poultry market of today.
World poultry production has
more than doubled since 1975. It
reached an estimated level of 35.7
million metric tons in 1990.
The United States has main
tained its share of world produc
tion, at a relatively constant 30 per
cent, over the 15-year period.
The European Economic Com
munity (EC-12) has had steady
production increases over this time
period, but not as rapid. Their
share of world production has fal
len to 17 percent in 1990 from 25
percent in 1975.
The Soviet Union shows a simi
lar pattern of production growth
with its share of world production
falling from 10 percent to 9
percent.
Brazil has had the most dramatic
increase in production. Nearly six
times as much poultry was pro
duced in 1990 as in 1975 and Bra
zil’s share of world production
increased from 3 percent to 6
percent.
Along with the rapid growth of
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poultry production has been a tri
pling of trade in poultry products.
The EC-12 has been a major
exporter of poultry. Much of their
trade is within Europe, which
means that the EC-12 is also a
major importer. When trades with
in die group are eliminated, the net
exports average slightly more than
for the U.S. over the fifteen-year
period, and net exports were more
than for the U.S. from 1981 to
1986. Eastern Europe, also a major
exporter of poultry, has had net
exports averaging slightly less
than for the U.S. with exports from
1982 to 1988 exceeding the level
of U.S. exports.
Brazilian exports were 27 times
as large in 1990 as in 1975. Cur
rently more than 10 percent of pro
duction is exported. Brazil has
gone from exporting less than one
tenth as much poultry as the U.S. in
1975 to exporting over one-half as
much in 1990.
Japanese investment in process
ing facilities in Thailand and China
have helped them enter the export
market recently and each com
mand about 5 percent of the export
market in 1990. Thailand supplied
37 percent of the Japanese poultry
imports in 1990, slightly more than
the U.S. (35 percent). Brazil and
China each supplied about 12
percent.
Exports of meal from the United
States are a small part of produc
tion. The red meats, (beef, pork,
and lamb) all have less meat
exported than is imported for
domestic use imports arc about
two and a half times as large as
exports. Poultry product net
exports for 1990 were 6 percent of
broiler production, 4 percent of
mature chicken production, and 1
percent each of egg and turkey pro
duction. These proportions seem
small when compared to grain
exports. In 1989 the U.S. exported
63 percent of wheat production, 30
percent of com production, and 32
percent of soybean production.
Broilers dominate the U.S. poul
try exports, representing 63 per
cent of the value of all poultry
exports. Whole broilers are a small
part of exports, over 80 percent of
broiler exports are cutup portions.
The export market has provided an
outlet for dark meat that is not as
popular here at home. Leg and
thigh meat has been popular in
Oriental markets because of their
preference for more flavorful
meats, and with the Soviet Union
because of the low price. Eggs
make up 13 percent of poultry
exports, live poultry 11 percent,
and the combination of feathers,
turkeys, and processed meats 13
percent.
The United States Department
Poultry Markets?
of Agriculture predicts that U.S.
exports of broilers will be lower in
1991 than in 1990. Sales to most
countries are expected to increase
slightly, but last year’s leading
buyer, the Soviet Union, is
expected to reduce purchases sub
stantially due to hard currency cre
dit constraints. Credit guarantees
of $25 million from the U.S.
helped finance purchases of grain
and 57 million pounds of chicken
earlier this year, but the prospects
of further credit and what would be
bought with it are uncertain at this
point.
Japan has historically been the
largest buyer of U.S. broilers and
eggs. In 1989, Japan purchased 24
percent of all U.S. poultry exports.
About half of all U.S. poultry
exports go to Asia. In addition,
Mexico, Canada, and Caribbean
nations have been consistent
importers of U.S. poultry products.
Growth in exports to Canada
should continue as trade restric
tions are reduced under the Free
NCGA Applauds
‘Fast Track’ Extension
ST. LOUIS, Mo.—TheNation
al Corn Growers Association
(NCGA) recently applauded Con
gress for approving the extension
of “fast track” negotiation
authority.
NCGA was the first commodity
organization to endorse the Mexi
can Free Trade Agreement, which
was announced at its annual meet
ing in Kansas City in February
1991.
Randy Cruise, a Nebraska com
grower and vice president of gov
ernmental affairs for NCGA, said
that the action to turn back
attempts to block an automatic
extension gave hope to increased
international markets for
U.S.-grown com.
“NCGA recognized at an early
stage that market development and
successful trade talks with Canada
and Mexico as well as at GATT
represent important markets for
US com farmers,” Cruise said.
Trade Agreement. The Middle
East is seen as a potential growth
area for exports, this year, as pro
duction in that area has been dis
rupted by the Gulf War. Export
Enhancement Program funds will
be necessary to serve this market
because of competition from sub
sidized exports from the EC-12,
particularly France and the United
Kingdom.
U.S. turkey exports go primarily
to Canada, Mexico, and Asia.
West Germany, Egypt, and Tai
wan have purchased U.S. turkey
on a more sporadic basis.
Increases in domestic poultry
meat consumption will protect the
poultry industry from major
impacts because of export market
changes. Increasing world produc
tion will provide additional com
petition for U.S. producers, but
less restricted trade in general and
the opening of markets in Eastern
Europe should provide some new
opportunities for trade.
“We know that the key to profita
bility for U.S. agriculture lies in
making markets for our products,
which are needed around the
world.”
Cruise said that NCGA had been
an active supporter of an extension
in many other ways.
“Our Washington office was
included in a White House meeting
with President George Bush. Our
president. Jack Kintzlc, a com far
mer from Coggon, lowa, and our
Washington representative gave
testimony before Congress, and
we conducted a ‘Grassroots’ cam
paign among membership,” Cruise
said. “We also were part of a coali
uon that placed an ad in the
‘Washington Post’ urging exten
sion of ‘fast track.”’
Cruise said NCGA will continue
to support efforts to improve
access to world markets for
U.S.-grown com.
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