Background Banner

Opening Day Theme of USMEF Board Meeting: Exports Booming, but with Right Tools We Can Do Even More

Published: May 26, 2011
Opening day of the USMEF Board of Directors Meeting in Washington, D.C., had an optimistic tone – one that is well-deserved considering the record pace U.S. beef and pork exports have established so far in 2011. But the discussion also highlighted the critical importance of exports in a period of very high agricultural production costs, and included reminders that the industry is still being held back by a number of obstacles and trade barriers.

USMEF Chairman Keith Miller, a farmer-stockman from Great Bend, Kan., addressed members on the importance of maintaining USDA Market Access Program (MAP) funding, which supports many U.S. beef and pork promotions in key foreign markets. He said MAP funding is a critical component of the nation’s efforts to make U.S. products more competitive in the global marketplace.
“President Obama keeps saying he wants to double exports in the next five years,” Miller said. “I agree with him – we need to try to do that. And that will provide a lot of jobs in rural communities.”

Miller also emphasized that the premiums derived from meat exports are especially critical to livestock producers at a time of record-high production costs.

“Without red meat exports, think about how you would pay for the $4 per gallon diesel fuel that I’ve been buying lately, or the $700 anhydrous ammonia that I just paid the bill for last week,” he said. “Or the $7 per bushel corn to feed our livestock. We couldn’t do that if we didn’t have meat exports. That’s where the premiums are coming from that help pay those costs.”

U.S. Sen. Max Baucus (D-Mont.) addressed USMEF members on the importance of removing trade barriers and giving U.S. products a more level playing field. He reminded the group of Winston Churchill’s saying, “Success is not final, and failure is not fatal. It is the courage to continue that counts.”
“This year farm exports are on pace to exceed $130 billion, with a trade surplus of nearly $50 billion,” Baucus said. “But this success is not final. Our competitors are gaining ground. We must stay focused on the task at hand, removing barriers and opening new markets for our farmers and ranchers.

“Congress is poised to approve free trade agreements with three important partners – Colombia, South Korea and Panama,” he continued. “It is estimated that these agreements, once implemented, will increase U.S. exports by more than $12 billion and increase our gross domestic product by more than $15 billion. These three FTAs are being readied for Congressional approval. We are holding hearings and drafting implementing legislation. But we’re not there yet - our success is not final.”

Baucus had resisted ratification of the U.S.-Korea FTA due to barriers that limit access for U.S. beef in Korea, but said recent developments have drawn his support for the agreement.

"Earlier this month, with the help of USMEF, I reached an agreement with the Obama Administration on two important steps to address these (beef access) concerns," he said. "First, I urged USMEF to develop an ambitious, five-year plan to educate Korean consumers about the safety, quality and vale of U.S. beef. USMEF did so, and requested $10 million from USDA to help carry out that plan, I commend you for that - my very strong belief is that we have to do more in Korea than the status quo. Second, at my urging, U.S. Trade Representative Ron Kirk announced that the United States will invoke its right, under our existing beef import protocol with Korea, to request consultations once the FTA enters into force."

U.S Agriculture Secretary Tom Vilsack also addressed the meeting. He said the $75 billion in agricultural exports in the first half of this fiscal year were the best six months in the nation’s history, and that this success is a major boost to the U.S. economy.

“But we’re not going to stop – we’re not going to be satisfied with this level,” he said. “Every $1 billion of ag sales generates 8,400 jobs. So when you see a dramatic increase in the number of ag exports, and you see an increase in private-sector job growth and you see a recovering economy, I think it’s not much of a stretch to make a link that ag is helping the country move its way out of the deep recession it was in.”

Earlier in the day, Miller joined USMEF Chair-elect Danita Rodibaugh, President and CEO Philip Seng and several international office directors for a press conference/media conference call at the National Press Club. The group discussed many key trade and market access issues with members of the agricultural and business media and discussed trends and developments in specific export markets.

Thursday’s agenda is dominated by USMEF committee meetings, including the Exporter Committee, Feedgrain Caucus, Pork and Allied Industries Committee and Beef and Allied Industries Committee. The conference will conclude with a meeting of the full USMEF Board of Directors on Friday morning.