FiMancasttr Farming, Saturday, January 4,1992
U.S. Pork Industry Makes Gains, Faces Japanese Market Challenges
Dcnver--The conclusion of the
U.S. Meat Export Federation
(USMEF) and pork industry offi
cials, following discussions with
Japanese pork importers at a
recent Tokyo trade conference, is
that the pork industry will need to
unite and work together in order to
achieve its full potential in the
Japanese market.
Representing the U.S. pork
industry at the conference with
leading Japanese pork importers
was Joel Haggard, USMEF vice
president of international prog
rams and Tim Rose, National Pork
Producers Council (NPPC)
president-elect. Also present were
Russ Sanders, NPPC executive
vice president and Jim Ledger,
lowa Pork Producers Association
(IPPA) president.
The Japanese trade praised the
U.S. pork industry for advances
made in significantly extending
the shelf-life of its chilled pork,
commenting on Japan's preference
for U.S. chilled pork loins. They
also commented that the occur
rence of PSE (pale, soft and extra
dated) pork has been greatly
reduced. Another strong point of
the U.S. industry, they said, is the
U.S.' ability to ship iarge quanti
ties of a specific cut, versus the
full sets that are sold by Japan's
major supplier, Taiwan.
"The U.S. pork industry has the
advantage in price and the flexi
bility to sell large quantities of
specific cuts to Japan. There is tre
mendous opportunity for U.S.
pork producers, but we must work
together as an industry to deter
mine what adaptations can be
made to cater to the Japanese
market," said Haggard.
Japanese pork importers told
the U.S. representatives that speci r
ficalions for bellies must change if
the U.S. expects to increase their
sales of bellies to Japan. They
urged the U.S. pork industry to
work toward providing a leaner
belly, adding that more flexibility
in culling the bellies would also
enhance product marketability.
"U.S. pork producers know that
expanding business is more than
just having high volumes avail
able. They know that it is impor
tant to provide pork that is safe
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and that has the type of quality market, making it difficult for
Japan demands," said Sanders. buyers to accept. We will continue
"We’re only as strong as our to educate the Japanese trade on
weakest link,” said Sanders. "E- why our market fluctuates, as well
veryone, from the producer to the as how they can benefit from it,"
packer to the exporter, must coop- sa *d Haggard, pointing to the
erate if we are to produce a com- USMEF-sponsored Chicago Mer
petitive product suitable for the cantile Exchange seminar that was
Japanese consumer, while also held in Tokyo in March 1991 for
satisfying our domestic market.” Japanese importers.
Another concern expressed by Haggard also noted that the var-
Japanese importers was price vol- * a hl® levy system in Japan is a
utility. "Pricing is a key issue," trade restriction that the U.S. is
said Haggard. "Due to the absence studying very closely,
of controls, the U.S. market flue- Japanese per capita pork con
tuates more than the Japanese sumption is just under 37 pounds,
Oak Ridge Study Reveals
Increased Efficiency
ST. LOUIS, Mo. A new sci
entific study by an independent
research laboratory reveals that
fuel ethanol, which is refined from
fermented com, generates at least
20 percent more usable energy
than its production requires.
In addition, ethanol production
costs will continue to decrease
over the next three years, reducing
reliance on traditional fuel resour
ces, the National Com Growers
Association (NCGA) announced
recently.
The study, completed by Oak
Ridge National Laboratory of Oak
Ridge, Term., asserts that corn
based ethanol is a “low-cost path
way for deriving liquid fuel” and
that “the entire energy cycle from
com production to combustion in
the gas tank is extremely energy
positive.”
‘The Oak Ridge study provides
additional proof that corn-based
ethanol maximizes energy effi
ciency and can satisfy our nation’s
need for reliable fuel alternatives,”
said Mike Bryan, NCGA ethanol
program manager.
According to the study, about
56,000 BTUs are required to pro
duce one gallon of fuel ethanol.
However, one gallon of ethanol
produces at least 76,000 BTUs,
resulting in a 20 percent net
increase of usable energy, Bryan
said.
Oak Ridge researchers analyzed
the total energy used to grow and
harvest com, transport feedstock,
and process fuel ethanol by the
coal-fired co-generation methods
typically in use today. The study
noted that efforts to reduce the
energy required to refine fuel etha
nol are continuing in the industry
and processing costs will be “sub
stantially” reduced in the next
three to five years because
improved com fomentation pro
cesses, improved ethanol process
ing yields, greater economies of
scale achieved through ethanol
plant upgrades and expansions,
and increasing use of low-cost
materials in the ethanol co
generation process, including used
tires and garbage rather than coal.
“NCGA is very enthusiastic
about the Oak Ridge study,” said
Bill Northey, chairman of the
NCGA ethanol subcommittee and
com farmer from Spirit Lake,
lowa. “It’s good news for com
growers and ethanol producers
who rely on com feedstocks. Wc
believe the study will have a posi
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double their beef consumption.
While consumption is expected to
remain steady, or increase slight
ly, Japan predicts a SO percent
reduction in the number of domes
tic hog farms.
According to Haggard, home
consumption of pork cuts has
dropped, as more Japanese
women are working outside the
home. At the same time, the
amount of pork eaten in restaur
ants has increased. This trend is
expected to continue, as is an
increased demand for prepared
and processed pork.
tive impact industry-wide and,
ultimately, on consumers who util
ize ethanol-blended fuels to reduce
air pollution and improve vehicle
performance.”
Ethanol, which has a high oxy
gen content, is blended with gaso
line in 10 percent quantities to
reduce emissions of carbon mono
xide and other pollutions and to
boost octane. It currently is
blended in about 8 percent of
motor vehicle fuels sold in the U.S.
Fuel ethanol demand is
expected to increase dramatically
when the nation’s Clean Air Act
standards take effect in November,
1992, requiring 39 U.S. cities with
high carbon monoxide levels to
maintain 2.7 percent oxygen con
tent in all gasoline sold for at least
four months a year.
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In 1990 the U.S. exported
46,133 metric tons or $241 million
worth of pork and pork variety
meats to Japan. The U.S. has 13
percent of the imported pork
market, whereas Taiwan has 45
percent and Denmark 32 percent.
USMEF is a non-profit,
member-supported organization,
charged with planning and imple
menting programs to promote
U.S. red meat in foreign markets.
Activities to promote U.S. pork
are funded by the USDA and pri
vate sources. Both NPPC and
IPPA are USMEF members.
Since ethanol is the most cost
efficient method of adding oxygen
to gasoline, ethanol demand may
reach two billion gallons by 1995,
up from 940 million gallons in
1990.
“Com for annual ethanol pro
duction may jump to 1.25 billion
bushels by the year 2000, up from
400 million bushels today,” North
ey said.
“Ethanol has been endorsed by
the U.S. Environmental Protection
Agency, the U.S. Department of
Agriculture, and many other enti
ties as a reliable, environmentally
friendly and domestically avail
able fuel resource,” he said. “The
Oak Ridge study will help advance
awareness of corn-based ethanol’s
advantages and productive energy
efficiencies.”
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(503) I7MUI