Export expectations
Mark came back with that stat after attending the CattleFax 2014 Outlook and Strategies Session a couple weeks ago. He also shared that only 21% of global beef production is grain-fed and the U.S. ranks 4th in global beef exports behind Brazil, India (re: buffalo production), and Australia.
That tells me that there are a lot of people in the world, more each day. And if they want good beef, they’re going to get it from us.
“There is a hunger for high-quality beef and North America is still the leader. We’re really the only ones focusing on high quality,” Mark concurs.
CattleFax predicts beef exports will reach 18% of all production by 2020. Of course that’s good news for any producer because of the value it adds. The U.S. Meat Export Federation’s (USMEF) most recent figures show a per-head export advantage of more than $250. (By the way, if you’re ever looking for those numbers, they’re regularly updated on the Beef Board’s website.)
At CAB, Mark says, “I would expect we’ll follow that trend.” It’ll probably be a mix of entering new markets and increasing market penetration in the countries we’re currently in.
Last year CAB’s international division represented 12.7% of our total sales. The 110-million-pound record was a 17% increase over the previous year, enjoyed by consumers in 45 countries beyond our borders.
So back to why that matters to you: just ask one of our teammates who work in exports. Maggie O’Quinn is a USMEF board member and an expert when it comes to representing the beef your raise to those outside our country.
She says, “You are the design engineers for the No. 1 thing that we export: quality. We are not going to be all things to all markets, but U.S. beef is known for quality from Dubai to Tokyo to Aruba. Quality is our unique selling proposition.”
So even though they’re not the first thing you see each morning, this is just a friendly suggestion: you may want to think of some of those 78 million people as you go to select next year’s bull battery or weaning strategy.
Your profit may depend on them wanting what you’ve got.
May your bottom line be filled with black ink,
Miranda
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