This week, the U.S. Meat Export Federation (USMEF) will hold their spring conference in Kansas City, Missouri. The group will discuss multiple issue impacting the red meat industry from trade to meat prices to African swine fever.
Trade and the far economy are on the minds of many livestock producers. USMEF said despite Congress still not voting on the U.S.-Mexico-Canada Agreement (USMCA), Mexico remains a top market for U.S. red meat. But, uncertainty in trade is hurting American meat producers who sell meat to Mexico, according to USMEF President and CEO Dan Halstrom.
“Despite all the uncertainty around USMCA and possible further retaliation, beef hung in there with some modest growth, but growth nonetheless for the first quarter,” said Halstrom. “Our purpose in being down in Mexico is to really talk with the trade teams and reassure them that we are reliable suppliers and we are hopeful for some resolutions some of the issues.”
Halstrom said because of the uncertainty with USMCA and other trade deals, consumers in Mexico have turned to Canada and the European Union to meet their red meet need. He added customers in Mexico don’t want to establish those supply chains, but until trade issues settle, those alternative relationships will continue to grow.
Also, at this week’s conference a panel will discuss African Swine Fever (ASF).
“Dr. Pyburn, who is going to kick off the panel, is going to talk about what the disease (ASF) is and what it isn’t,” said Halstrom. “He’s also going to talk about the efforts to protect the North American Market. So, I think that’s issue number one.”
Other issues that USMEF will address concerning AFS is understanding the trade implications a pork shortage will create in China.
“Not only is China the largest producer of pork in the world, but also the largest consumer of pork in the world,” said Halstrom. “Then you overlay some of these tariff issues that are out there today, these are the sort of discussions that we are hoping to have and lay out for the membership.”
The USMEF spring conference runs through Friday.
Expanding on African swine fever, the USDA expects pork production to increase 3.5 percent to over 28 billion pounds in 2020. The increase comes in response to higher international pork prices caused by pork deficits in China.
Prices of live equivalent 51-52 percent lean hogs are expected to average $60 per hundredweight, more than 10 percent higher than average prices in 2019. Those higher prices mean farrowings likely will accelerate in late 2019 and into the following year.
Beef producers in Montana can expect to see animal proteins increase in 2020. Beef production will rise by one percent and broiler production should jump by 1.3 percent.
The Montana Farmers Union is heading to Kalispell June 5th and 6th for the groups mid-year conference.
‘Exploring Agriculture in the Flathead Valley’ is the theme for this year’s event, which include a variety of area tours and presentations.
The cost to register is $35 and includes conference meals and two nights lodging at the Red Lion Hotel. For more on this year’s midyear conference, visit montanafarmersunion.com.
The latest World Agriculture Supply and Demand Estimates Report forecasts increases in beef production in 2020 based on higher projected steer and heifer slaughter and carcass weights.
Under the assumption trade policies remain consistent, it is expected tightness in competitor beef supplies, and firm global demand will support strong U.S. beef exports in comparison to 2019.
-Reported by Lane Nordlund/MTN News
