On this weeks audio report from the U.S. Meat Export Federation (USMEF), Dave Juday, World Perspectives senior analyst, discusses a commissioned study aimed at quantifying the value delivered to U.S. corn producers through exports of beef, pork and lamb. The independent study was conducted by World Perspectives, a leading agricultural consulting firm, and key findings were unveiled at the USMEF Board of Directors Meeting and Product Showcase.
The study analyzed feed rations and U.S. livestock production practices to establish feed use and then used beef and pork export data to determine the amount of consumption attributable to red meat exports. The findings revealed that, on a per-head basis, 800-pound calves fed to 1,360 pounds each consume 35 bushels of corn, as well as 806 pounds of distiller’s dried grains with solubles (DDGS). The study also showed that every 12-pound pig finished to 284 pounds consumes 11 bushels of corn, 37 pounds of DDGS and 136 pounds of soybean meal. According to these results, 2015 exports accounted for:
-355 million bushels, or 2.1 million acres, of corn
-$1.3 billion in value to corn
-1.48 million tons of DDGS, or a 169 million bushel equivalent
-$205.4 million in value to DDGS
-11.7 million tons, or 3.1 million acres, of combined corn and DDGS fed
“When you look at 2015, it was not a great year for U.S. meat exports, and yet beef and pork exports from the U.S. still brought $1.3 billion to the corn sector,” said Juday. “Looking back at last year, if there were no red meat exports at all and that corn was added to carryover stocks, instead of a season average annual price of $3.60 per bushel, the price would have been about $3.15 per bushel without the contribution from meat exports. That’s a loss of 45 cents per bushel, which would have amounted to about $6 billion to the corn industry last year.”
According to this study, red meat exports’ positive impact on the corn sector seems even stronger when looking ahead to the future, and the study projects that indirect exports of corn through red meat exports will grow from 355.5 million bushels in 2015 to 482.4 million bushels in 2025, which is an increase of nearly one-third. Indirect exports of DDGS will see a 44 percent increase from 1.48 million tons in 2015 to 2.14 million tons in 2025. Over the next 10 years, the value of red meat exports to corn is estimated to be about $16.1 billion.
Slides accompanying Mr. Juday’s presentation of the study at the USMEF Board of Directors Meeting are available here.
Listen to the full report here:
USMEF Report, World Perspectives Study