Commodities Supporting Commodities, USMEF Shares Value Impacts
As the commodity groups recently wrapped up the Commodity Classic event in Orlando, Fla., U.S. Meat Export Federation (USMEF) leaders share the importance of supporting fellow producers and other key partners at the industry meeting.
“If it wasn't for the checkoff dollars from corn, soybean, beef and pork, we wouldn't be able to do the activities we do in in the various countries,” says Dean Meyer, USMEF chair. “That's certainly important for us to be here and to support them also, like they support us, and show our appreciation.”
At the event, USMEF released new impact numbers of red meat exports on corn and soybean values in the U.S.
“Every bushel of corn that we market, there's a little over $1 of that attributed to red meat exports,” Meyer notes. This value has grown significantly in recent years, he adds, with 12% of value being attributed to red meat in 2021 and 15% in 2022.
Likewise, red meat exports can be attributed to $1.94 for every bushel of soybeans, or 13% of the price of every bushel, Meyer says.
While red meat exports bring value to U.S. commodities, USMEF Chair-elect Randy Spronk voiced his concerns over inflationary impacts on profitability for all grain and livestock producers.
Spronk says, “I think everybody's genuinely concerned about increasing input costs. They're very conscientious of their breakeven and their cost of production. It's true of all farmers here. I mean, that's just what's happened with our economy coming out of COVID—inflationary pressures and higher interest rates.”
Additionally, Spronk wonders how this will have an impact on the consumer and their ability to buy meat products at the store.
“Are they going to buy up when we're buying our products at the grocery store? Are they going to limit the value of that dollar that they have when they go to the grocery store?” Spronk questions.
There’s some uncertainty around the return to profitability, Spronk says, though he believes there is a silver lining.
“That's what's the great thing about having a diversified portfolio when we talked about exports. We're so thankful for Latin America, Central America and Colombia, with the reduced exports that we've had to China on some of the fresh meat products. We need to continue down that path and continue to be able to develop those markets,” he says.
