John Hinners U.S. Meat Export Federation, Denver, Colorado. Kansas Beef IT GETS INVITED TO THE BEST PLACES

Transcription

1 John Hinners U.S. Meat Export Federation, Denver, Colorado Kansas Beef IT GETS INVITED TO THE BEST PLACES

2 Members Membership is comprised of nine sectors: Beef/Veal Producing and Feeding Pork Producing and Feeding Lamb Producing and Feeding Packing and Processing Purveying and Trading, including Jobbing, Retailing and Wholesaling Oilseeds Producing Feedgrains Producing Farm Organizations Supply and Service Organizations /Agribusiness

3 3 USMEF s Global Network

4 The USMEF Checkoff Investment

5 U.S. Soybean Exports Through Beef & Pork mil Bushels of U.S. Soybeans Exported Through U.S. Beef and Pork Exports '80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 10'12F'14F Source: USMEF, million bushels

6 U.S. Corn Exports Through Beef & Pork Nearly 500 million bushels indirectly exported through red meat exports '80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 ' Source: USMEF, million bushels

7 Kansas: Adding Value through Beef Exports From 1984 to 2014, beef exports to Japan contributed a total value of $2.52 billion to Kansas s economy Japan fed cattle per head values increased from only 11 cents after BSE in 2004 to over $66 in 2014 From 1984 to 2014, beef exports to Mexico contributed a total value of $1.44 billion to Kansas s economy Mexico fed cattle per head values increased by 373% from 1994 to 2014 alone to reach from $10 to over $49 $80.00 $70.00 $60.00 $50.00 $40.00 Kansas Value Per Head of Fed Cattle from Exports to Japan $66.44 $60.00 $50.00 $40.00 $30.00 Kansas Value Per Head of Fed Cattle from Exports to Mexico +373% $49.11 $30.00 $20.00 $15.07 $10.00 $0.00 $0.11 $20.00 $10.00 $- $0.93 $10.39

8 Impacting the pork trade China Hog prices have rebounded, now the highest since the 2011 spike but U.S. largely on the sidelines Russia Aug 2014 ban was extended for another year (through July 2016); limiting suppliers to Brazil, Chile & China EU Cheap pork into the Asian markets continues with closure of Russian market Strong U.S. dollar Vs. competitors (Euro & Canadian dollar) & importer currencies, especially the Japanese yen & the Mexican peso 15

9 EU is capturing 78% of exports to China with limited U.S. access U.S. industry losses: >$9 per head 19

10 Japan still #1 & potential w/ TPP U.S. chilled exports took a hit with the WC port issues, but Japan s high domestic pork prices indicate future opportunities TPP holds promise for other products as well, like further processed pork 20

11 Decision makers Japan Target Audience 30 s 50 s Housewives Over 90% of women make grocery purchasing decisions Japanese consumer prefer high quality products Willing to pay more for high quality products Data: Ministry of Public Managemen

12 Ratio of working mother Working mother Working mother Data source Japan MHLW (N=6,342)

13 Japanese consumers shopping style Internet Super (Net Super) Most of major super market conducting Net super/ Deliver charge is $2 to $3 4:00pm Purchase through internet Store staff select products for customer 7:00pm Deliver purchased product

14 Japanese consumer s diet change from fish to meat Fish Meat 100 Kcal Japanese government recommend to take meat to have healthy life for both young generation and seniors

15 Chilled Category Management The USMEF Difference Before After

16 International Pork Primal Cut Utilization Korea Hong Kong Japan Philippines Guatemala Honduras Panama Dominican Republic 20% Butt Northern Asia 40% Picnic 20% Loin Northern Asia 5% Belly Northern Asia 33% Leg/Ham Mexico, Canada, South America Northern Asia, South America, Mexico, Canada Note: when open, Russia was also a top market for hams and picnics

17 U.S. Beef

18 Kansas BEEF It Gets Invited to the Best Places - JAPAN

19 U.S. beef exports continue to set value records, with Japan as the top market Billions $8 $7 $6 U.S. Beef & Variety Meat Export Value 2014 Record Value $7.135 Billion, up 16% $5 $4 $3 $2 $1 $ F Japan ROW Source: USDA/FAS & USMEF

20 Beef & Variety Meat Exports Value Per Head at Record Levels $300 $ : $ Value Per Head New Record! $ : $ $150 $100 $50 $ Source: USDA/USMEF, fed slaughter

21 Kansas Beef Exported to 121 Countries

22 U.S. beef exports in 2015 & outlook Relatively steady volumes for Japan; growth to Korea &Taiwan China is the big drag Also WC port issues & strong USD Opportunities with shrinking Aussie supplies Longer-term opportunities with TPP especially for our exports to Japan TPP 38.5% duty reduces to 9% over 15 years 7

23 A Few Cut Premium Examples $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 +$150/head on 6 cuts & 3 variety meats Domestic Alternative Asia

24 Export Premium Beef tongue US: US$ 1.00/lbs but Japan 5.00/lbs x 35 Million lbs>>> US$ 140 Million Beef intestine US: US$ Zero/lbs but Japan 1.5/lbs x 11 Million lbs>>> US$ 16.5 Million

25 Challenges in the Japan Market Domestic Product is considered superior Negative Perceptions of US production Industrial Image Profit not quality focus Freshness (How can meat from across the ocean be fresh?) Extremely competitive market many countries vying for market share with competitive prices Duty disadvantages Other competitors gaining advantage with EPAs

26 Japan s beef imports continue to recover from BSE 1,000,000 Japan s Beef & Variety Meat Imports 900, , ,000 U.S. beef is up 20% per year Metric tons 600, , , , , , U.S. Rest of world

27 Japan Beef Strategy Introduce new logo and message American Beef For You Think Beef, Think American Build high quality, Oishii tasty perception of US beef among consumers and trades Build buyer loyalty Expand usage of cuts, grades, brands, and variety meats as well as expand into regional accounts. Displace other imported beef mainly Aussie beef

28 John J. Hinners Jr. Assistant Vice President, Industry Relations U.S. Meat Export Federation John J. Hinners Jr. joined the U.S. Meat Export Federation in As the Assistant Vice President, Industry Relations, Hinners is responsible for the financial aspect of USMEF s export marketing programs, new business development, membership, and industry relations. The mission of the U.S. Meat Export Federation is to increase the value and profitability of the U.S. beef, pork and lamb industries by enhancing demand for their products in export markets through a dynamic partnership of all stakeholders. Headquartered in Denver, Colorado, USMEF has 90 staff stationed in 18 offices around the world and carries out market development activities in more than 100 countries. Prior to his employment at USMEF, John worked 13 years for State and National Livestock Trade Associations. He was raised on diversified cattle and hog farm near Carroll, Iowa and has a bachelor s degree in Animal Science from Iowa State University. Mr. Hinners, his wife Melissa, and their three sons reside in Highlands Ranch, CO.