CB-Lartcaster Farming, Saturday, June 18, 1994
Beef Exports To Reduce Impact Of Increased Domestic Production
“Exports are a growing part of
our beef demand picture. Over the
next four years, increased sales of
U.S. beef to foreign markets will
absorb almost one-third of our ex
pected increase in production,”
said Mullins. “So although beef
supplies are on an upward trend,
our beef exports are also rising.
We’re off to an excellent start with
a very strong performance in the
first quarter.”
According to the most recent
Council Opposes Ag
Spending Cuts To
Pay For
MONTEREY, Calif. Strong
growth in U.S. beef sales to for
eign markets will reduce the im
pact of increased beef supplies,
according to Jim Mullins, chair
man of the U.S. Meat Export
Federation and a Corwith, lowa,
beef producer.
Mullins attended the recent
USMEF Mid-Year Meeting and
Foreign Buyers Conference in
Monterey, Calif.
WASHINGTON,
D.C. The National
Council of Farmer
Cooperatives’ (NCFC)
board of directors voted
to oppose any General
Agreement on Tariffs
and Trade (GATT)
implementing legisla
tion that would unfairly
single out U.S. agricul
ture to bear a dispropor
tionate share of die cost
of GATT.
The farmer coopera
tive leaders expressed
concern about reports
that the administration
may propose significant
spending cuts in
agriculture-related
programs to help offset
potential revenue losses
resulting from tariff
reductions. Such a
proposal is not only
contrary to previous
assurances, but grossly
unfair since U.S. agri
culture accounts for less
than five percent of the
estimated Sl3-Sl4 bil
lion cost of GATT.
“Such proposals
would place U.S. agri
culture at a competitive
disadvantage since
other countries would
not be required to make
similar reductions, and
make it difficult to capi
talize on potential
market opportunities
under the Uruguay
Round GATT agree
ment,” said NCFC
Board Chairman Terry
Fredrickson.
In the resolution, the
NCFC board pointed
out that the recently
completed GATT
agreement will allow
countries to maintain, at
a reduced level the use
of export subsidies and
trade barriers, and to
maintain and increase
support for non-trade
distorting or "green
box” programs such as
market development
and promotion, export
credit, and food assis
tance. History has
shown that other
nations, especially the
European Union, will
likely continue to
aggressively utilize
every available weapon
to maintain and increase
their share of the world
market.
“U.S. policies and
programs must be
equally competitive if
U.S. agriculture is to
GATT
remain viable and com
petitive under GATT,”
Fredrickson said.
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USDA data, exports of U.S. beef
and beef variety meats in the 1994
January-March period were up 19
percent in volume from the same
period last year. USMEF projects
total U.S. beef and beef variety
meat exports will continue to in
crease rapidly in the years ahead,
reaching a volume of 1.06 million
metric tons in 1997 and a whole
sale value of $4.08 billion. In
1993, total U.S. beef exports, in
cluding beef variety meats, were
valued at $2.46 billion.
Mullins explained that the anti
cipated growth in export sales rep
resents a cumulative increase of
850 million pounds of beef for the
1994-1997 period, or 32 percent
of the cumulative increase in pro
duction (2,700 million pounds) for
the same period. The production
td %.
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estimate is based on the latest data
from Cattle Fax.
‘This type of growth doesn’t
just happen on its own, we have to
keep fighting for market share,”
said Mullins. “USMEF has mar
keting programs in more than SO
different countries around the
world. In virtually every one of
these markets, producer checkoff
dollars are working with USDA
market development funds to in
crease demand for high-quality,
grain-fed U.S. beef.”
Mullins cited USMGF’s $1.4
million spring retail campaign in
Japan and an intensive marketing,
push in Mexico as two checkoff
programs that will help boost de
mand for U.S. beef during a tradi
tionally slow period in these im
portant markets.
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“We’ll also use our Foreign
Buyers Conference in Monterey to
stress the competitive pricing and
availability of U.S. beef to the ma
jor buyers from key export mar
kets,” said Mullins. ‘This year’s
conference is a real opportunity to
reach our foreign customers.”
Mullins said 140 foreign buyers
are attending the USMEF confer
ence. The countries represented
by these buyers account for 80
percent of total U.S. beef exports.
In addition to conference parti
cipation, foreign buyers will view
the U.S. production system first
hand to gain a better appreciation
for the quality and safety of U.S.
beef. Key stops for the foreign
teams will include packing plants,
fcedlots, ranches, and a variety of
retail outlets.
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