Florida Beef Cattle Short Course
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2 Florida Beef Cattle Short Course Competition in the Global Beef Industry Clint Peck, director Beef Quality Assurance, Montana State Univ.
3 The competition is TOUGH
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6 10 Largest Cattle Populations India Brazil China USA EU Argentina Australia Russia Mexico Canada Source: USDA
7 Major Beef Producing / Consuming Countries PRODUCTION U.S.A. Eu. Union Brazil China Argentina Australia Mexico Russia Canada CONSUMPTION U.S.A. Eu. Union Brazil China Argentina Russia Mexico Japan * USDA Foreign Agricultural Service
8 Major beef exporting countries 2003 Australia Brazil U.S.A. New Zealand Canada Argentina Uruguay 2006 Brazil Australia New Zealand Canada Argentina Uruguay U.S.A. * USDA Foreign Agricultural Service
9 Top 10 Beef Importing Regions % of world imports United States 31% Russia 12% U.E % Eastern Med. 10% Japan 9% Other Far East 6% Mexico 4% South Korea 4% South America 3% Canada 2% * USDA Foreign Agricultural Service
10 The major drivers of U.S. beef imports???
11 Live-Cattle Slaughter Prices in Selected Countries 86.00/cwt Compiled by Clint Peck April 2006, World Meat Congress, Brisbane (*USD/cwt approx.) 60.00/cwt 46.00/cwt 42.00/cwt 39.00/cwt 35.00/cwt 32.00/cwt
12 Ground Beef = 59%* of all fresh beef eatings in the U.S. *NPD Group s National Eating Trends Service 2004
13 What differentiates U.S.A. beef from the rest of the world? Mississippi West Virginia Montana Hawaii
14 CORN, baby Corn!
15 Grass Countries Uruguay Argentina Oceania Brazil
16 The Australian Cattle Industry Strong cattle prices, but hampered by persistent drought Export demand boosted by the absence of competitors Strong growth in feedlot sector
17 What drought? We don t have a drought, mate. It s always bloody dry here Roy Reynolds Rosalie Plains Station Toowoomba, QLD
18 Australian beef exports by destination ,400 tonnes USA 35.2% TRQ = 378,214 MT & no In quota tariff Over-quota tariff = 26.4% Other 5.3% Japan 44.5% Korea 11.7% Taiwan 3.3% Source: Meat & Livestock Australia
19 Australian Beef Exports 5 A$ millionaud Japan Korea USA other Source Meat & Livestock Australia Calendar year
20 Australian Cattle Feeding Capacity 1 million head. 3X increase since 1996 Grain sorghum, barley, wheat. 47% for export markets
21 Grazing land is limited and under pressure in Oceania
22 Tropic of Capricorn
23 The Brazilian Cattle Industry Est. 190 Million Head - Low cost of production - 97% grass-fed - Vast room for expansion - Poor infrastructure - FMD, FMD, FMD - Low productivity
24 Nelore 85% of Brazil s beef genetics
25 Cattle Feeding - Brazilian style
26 Less than 1% finished by grain-based feeding
27 Corn and the The Principle of the Three Ps #1 - People #2 - Poultry #3 - Pigs
28 And then there s the fourth P Pfuel
29 Sugar cane ethanol Ethanol extracted from sugar cane yields about 830% more fuel than the fossil fuels used to produce it.* * Brazil's Road to Energy Independence Washingtonpost.com Sunday, August 20, 2006
30 Driving Cattle North By 2010, in the state of Sao Paulo 800,000 hectares of cattle pasture will convert to sugar cane.* *Brasil International Gazeta, March 9, 2005
31 12 million head of cattle The Uruguayan Cattle Industry
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33 Uruguay 80% of production is exported. 78% of fresh beef exports go to NAFTA countries - Anabolics/growth hormones are banned. - Animal protein banned in feed. - FMD / BSE Free 20,000 mt U.S. TRQ Importers of Uruguayan beef paid nearly $100 million to the U.S. Treasury in over-quota tariffs.
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35 Carcass Weights & Yields wt, kg Yield, % Source: INAC
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37 Mexico Expanding Markets Japan -- cooked meat and offals (thermally processed) Increasing U.S. or E.U. quotas
38 The Argentine Cattle Industry 55 Million head
39 The Pampas The Pampas 190,000 sq miles (OK, AR, MO) Supports 31 mil head of cattle
40 Argentine Beef 80% English genetics FMD, FMD, FMD No added hormones 75% grass fed
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42 Argentina Exports 28,000 metric tons/year of high quality ( Hilton Quota ) bone-in and boneless cuts.
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44 Carnivore Heaven!!! In Argentina a vegetarian is like a duck out of water. Carlos Menem, former president of Argentina
45
46 Traceability
47 "Traceability is the non-negotiable foundation of trust. Without traceability how can you be held accountable for what you produce? How else can you be rewarded for what you produce? Marcos Fava Neves, University of São Paulo professor of food marketing strategy. World Meat Congress, Brisbane, April 2006
48 But, what is QUALITY BEEF???
49 QUALITY beef Consistently satisfies customer expectations for eating & preparation characteristics and value. Is harvested and processed under strict inspection systems that ensure it is safe, wholesome, and correctly labeled & properly packaged.
50 Quality Beef?
51
52 Identifying and defining the competition Quantity versus quality. Cost of production? Natural resources Animal health status Government support?
53 In today's world, the competition is no longer between farmers the competition is between treasuries. -João Vinicis Pratini de Moraes Former Brazilian Ag Minister
54 Infrastructure Railroads and highways Ports and port facilities Cold storage & warehouses Sanitary / phytosanitary Ag production subsidies Energy
55 Challenges and Advantages for U.S. Beef Producers - Traceability - Competition for Land & Water - A Global Outlook - Cost of Production - Uniformity & Consistency of Product - High Quality Beef - Infrastructure - Productivity
56 What can you do today? 1) Become BQA certified. 2) Measure/monitor input & output. 3) Evaluate your genetic package. 4) Maintain a sound herd health program. 5) Evaluate your pre-weaning/weaning protocol. 6) Establish source/age verification. 7) Continually seek better market opportunities. Think supply chain management
57 Does anyone have a question? Qualquer um tem uma pergunta?
58
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