News Update
Nov. 6, 2008

Global economic crisis slows U.S. meat exports

Limited credit availability, volatile currency exchange rates and global economic uncertainty will create an uphill climb for U.S. beef and pork exports in many foreign markets for the remainder of the year, according to the U.S. Meat Export Federation (USMEF).

“The financial crisis that has plagued us in the past six weeks has obviously had a major impact,” said USMEF President and chief executive officer (CEO) Philip Seng in a news release.

Japan

Japan is one of the few key trading partners whose economy has fared well in recent weeks, according to Greg Hanes, USMEF Japan director.

“There will be some slowdown there, but not as much as we expect to see in some of the other countries,” Hanes said. “Japan is an extremely steady, consistent customer.”

Hanes noted that seafood consumption is trending downward in Japan, creating opportunities for red meat. Unlike other currencies, the yen has strengthened against the dollar recently, enhancing Japan’s appetite for imported products. Through August, U.S. pork exports to Japan increased 29% in value over the same period last year, while beef exports increased 64%.

According to Hanes, Japan’s gate-price system for imported pork hinders imports by moderating the current purchasing power of the yen. But that obstacle is not likely to go away until further progress is made in the Doha round of the World Trade Organization (WTO) negotiations.

U.S. beef exports are slowed by Japan’s policy that limits imports to U.S. beef from cattle 20 months of age or younger. Hanes said he is cautiously optimistic that this age limit could be raised to 30 months at some point next year, but this remains a very sensitive and volatile issue in Japan.

South Korea

South Korea has had a sluggish economy and the Korean won has performed poorly in 2008 versus the U.S. dollar. Still, Korea increased U.S. pork imports through August by 47% in volume and 28% in value compared to last year. U.S. beef has re-entered Korea, finding some success among small retail outlets, but Jihae Yang, USMEF director in South Korea, said large retailers are still reluctant to sell U.S. beef.

Russia

Russia has also been slammed by the devaluation of its currency as well as a severe drop in oil revenues and other economic issues.

“Russia is oversupplied and overstocked,” said John Brook, USMEF director for Europe, Russia and the Middle East. “There is a period of correction going on, which could last several months.” Still, Brook pointed to strong imports of U.S. beef and pork in the first eight months of 2008 as hope for the future.

China

The recent slower pace of U.S. pork exports to China appears more related to shifts in China’s policy priorities than to current economic conditions.

“China has started to rebuild its domestic herd, and the numbers suggest they are having success and it is paying off,” said Joel Haggard, USMEF senior vice president for the Asia Pacific region. “So we’ve seen some slowing of pork moving to China, even though we’ll still achieve record totals for the year.”

— Release provided by Meatingplace.com.

USDA Launches COOL Listserv

USDA’s Agricultural Marketing Service on Tuesday launched a country-of-origin labeling (COOL) listerv to notify subscribers of significant additions to the agency’s COOL web site, http://ams.usda.gov/cool.

The web site offers detailed information for both industry and consumers. The site includes various resources, such as a question-and-answer section, a PowerPoint presentation on the COOL Interim Final Rule and links to current and historical legislative information.

The new COOL listserv will reach out to subscribers with immediate updates and help retailers to more easily achieve compliance with COOL requirements in a cost-effective manner. To subscribe, go to the web site and follow the link to registration information.

— Release provided by Meatingplace.com.

Farm Transition Workshops Planned in Kansas

Bringing family members into the farm business and passing the farm from one generation to the next can be the best — and worst — of times. To help families develop a plan to suit their operation, K-State Research and Extension and the K-State Farm Analyst Program will again host “Keeping the Family Farming” workshops in January 2009.

The topics to be addressed include Understanding Tax Repercussions and Legal Issues in Selling and Transferring Assets; Comparing Business Entity Options; Estimating Financial Needs in Retirement; Evaluating Strategies for Transferring the Family Farm; Making Explicit Plans; Determining your Current Financial Situation; and Being Aware of the Potential for Conflict and Identifying Ways to Resolve it.

“This year, we will have meetings in three locations, with a maximum of 20 to 25 families in each location,” said LaVell Winsor, who is with the Kansas Farm Analyst Program. “We’ve restructured the meetings to be two one-day meetings about two weeks apart, and they will be held in more southern parts of the state than the previous sessions.”

The workshop dates and locations include:

• Fri., Jan. 2 and Sat., Jan. 17 – Chanute
• Fri., Jan. 3 and Sat., Jan. 16 – El Dorado
• Fri., Jan. 10 and Fri., Jan. 30 – Garden City

“At the end of the meetings in each location, the families will have the option of meeting with someone from the Farm Analyst Program to review their personal situation,” Winsor said.

The cost for the two-day session is $225 per family of four, if paid by Dec. 15, plus $75 for each additional participant. The cost per family of four after Dec. 15 is $300. The fees include all materials, two lunches and one evening meal.

More information on the “Keeping the Family Farming” Workshops is available online at http://agmanager.info (click on Upcoming Events) or by contacting Lavell Winsor at 785-313-4974 or lwinsor@ksu.edu.

— Release provided by K-State Research and Extension News.

— compiled by Tosha Powell, assistant editor, Angus Productions Inc.