Meat&Poultry - January 2012 - 32

Mining for global gold
US meat and poultry exports tap into growing international demand for protein
BY BRYAN SALVAGE
bsalvage@sosland.com

ust as the oceans are the last frontier on Earth, exporting products

events, just to mention a few. Despite these challenges, US industry remains on an export roll. Tyson Foods sees exports trending strongly. “With strong exports, domestic availability of proteins should decline again in 2012 for the sixth year in a row, from its peak of 284 lbs. per capita in 2006 to about 255 lbs. per capita in 2012,” said Donnie Smith, Tyson Foods president and CEO, during the company’s recent 4Q call with analysts. “According to the USDA, beef domestic availability will be about 6 percent lower in 2012 compared to 2011. Chicken is expected to be down over 3 percent and pork should be up less than 1 percent and turkey up just over 1 percent,” Smith added. “In total, meat and poultry [domestic] availability is projected to be down 2.1 percent in 2012, which should lead to higher protein prices.”

a recent Livestock, Dairy and Poultry Outlook from the US Dept. of Agriculture Economic Research Service. Twenty-one percent growth was expected for 2011 – US beef exports were forecast to total 2.78 billion lbs. Increased demand for US beef as disposable incomes of global consumers increased; a worldwide, multi-year decline in total US cattle inventories and beef production; more foreign countries purchasing US beef; and a favorable exchange rate with a relatively weaker US dollar drove the strong export market last year. Through October, the largest US beef export increases were from South Korea, up 45 percent; Japan, 31 percent; and Canada, 33 percent. Along with Mexico, which was up 1 percent, these countries were the largest importers of US beef, totaling almost two-thirds of the total US beef exported through October. Exports to Hong Kong, up 41 percent; Egypt, 23 percent; and Russia, 85 percent, increased greatly. Combined, these

may well be the last business frontier for US meat and poultry companies. Yes, growth and sales opportunities will always exist domestically, but it’s the global market that holds the most promise. By 2050, the planet’s rapidly growing population will likely total around 9 billion people who will consume 73 percent more animal protein than they do today, estimates a new study from the Food and Agriculture Organization of the United Nations, “World Livestock 2011”. Fueling this trend, parSmith

ticularly in developing

countries, are increasing populations plus middle-income growth. But the road to export success is paved with many pitfalls, including tough foreign competition, trade bans and tariffs, political unrest, animal diseases and catastrophic weather

Robust beef exports
Last year’s US beef exports remained robust through the end of 2011, stated

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