News & Events | Soybean Growers Create Pork Stimulus Package

Soybean Growers Create Pork Stimulus Package

State, National Soybean Organizations Step up Support of U.S. Pork Exports

Two state soybean organizations and one national organization have dug deep into their coffers to find $1.25 million to support U.S. pork exports. The additional funding is intended to bolster support for foreign marketing of U.S. pork at a time when the industry faces unusually severe challenges from the global economic downturn, lower domestic demand and market closures inappropriately linked to the H1N1 influenza virus.

The Minnesota Soybean Research and Promotion Council (MSRPC) started the ball rolling on what has become known as the soybean industry’s “2009 Pork Stimulus Package” by voting recently to invest $800,000 of its funds toward USMEF pork marketing programs in Japan and Mexico during the next six months.

“There comes a time when agricultural associations have to band together and focus on what’s important for all of us,” said Mike O’Leary, a farmer from Danvers, Minn., and a member of the MSRPC board of directors. “The pork industry has seen real economic hardship for some time now, and being one of the soybean industry’s largest customers, we felt we needed to step up and show additional support for pork exports.

“During tough economic times, the question on everyone’s mind is whether we can export more pork, or will we have to cut our herd size,” he added. “Well, the herd size might have to be cut somewhat, but that will obviously impact our soybean usage. So our objective is to help on the export side by further developing our overseas markets so we can sell more product.”

Japan and Mexico have been the two leading pork export markets for the United States in 2009 and have demonstrated that they each have room for continued growth. During the first eight months of the year, Japan is the leading value market for U.S. pork, buying just over $1 billion in pork products – a 6 percent increase over the same timeframe in 2008.

Mexico is the leading volume market for U.S. pork, with exports so far this year up 38 percent in volume to 328,801 metric tons (724.9 million pounds) valued at nearly $487 million – a 17 percent increase. The growth in Mexico comes even as that nation has rebounded from a severe H1N1 influenza outbreak this spring.

The $800,000 MSRPC commitment comes on top of the organization’s earlier designation of $200,000 to USMEF for the coming fiscal year. MSRPC didn’t stop there, however. MSRPC also organized a conference call for USMEF with other state soybean organizations to announce its contribution to the pork effort and encourage other state organizations to follow suit.

The Nebraska Soybean Board (NSB) soon followed with a commitment of $200,000 toward the same Japan/Mexico effort, bringing the fund for that specific marketing outreach program to $1 million.

“Ninety percent of soybeans grown in the United States are used in livestock feed, so when we’re supporting pork exports, we’re supporting the soybean industry,” noted NSB Chairman Greg Fujan, a soybean farmer from Weston, Neb.

Fujan, who participated in a trade mission to Japan in August, sees further growth potential for U.S. pork in Japan.

“It was really encouraging to see the enthusiasm for U.S. pork and for us as American producers - the consumers really seemed to respond well to us,” he said. “There’s also a lot of enthusiasm among the processors and retailers. A lot of energy, and that’s pretty exciting for me as a producer.”

The Pork Stimulus Package recently received another significant boost when the United Soybean Board (USB) contacted USMEF with a $250,000 contribution that will be targeted toward pork marketing programs in South Korea. Previously, USB had designated $920,000 for the coming fiscal year for marketing programs in Japan and Mexico.

“The USB has always supported livestock-base initiatives because it’s the best way for us to build a market for our soybean meal, and the health of the pork industry directly affects us as soybean producers.” said USB director Jim Schriver, a soybean grower from Montpelier, Ind. “So this infusion of marketing support to South Korea is very timely. It will help USMEF reinforce the quality and value of U.S. pork to Korean consumers.”

In early October, USMEF launched a new Web site in South Korea aimed at boosting consumer awareness and appreciation for U.S. pork. The Pork Story Web site was created with the support of Pork Checkoff funds.

“This outreach by the soybean industry is well-timed and certainly very welcome,” said Danita Rodibaugh, secretary-treasurer of the USMEF Executive Committee from Rensselaer, Ind., whose family farm operation produces corn, soybeans, wheat and purebred seedstock swine. “This is testimony to the great synergy between U.S. livestock producers and the feedgrain sectors that support them.”

Rodibaugh noted that the purchasing power of the soybean industry funds will actually be closer to $4 million when USMEF is through leveraging it.

“For every $1 in checkoff funds, USMEF is able to match that with an average of $1.21 in U.S. Government funds (Market Access Program/Foreign Market Development), 85 cents in third-party contributions from retail partners in overseas markets, and 7 cents in non-checkoff funds to magnify the return on investment,” she said.

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The U.S. Meat Export Federation (www.USMEF.org) is the trade association responsible for developing international markets for the U.S. red meat industry and is funded by USDA, exporting companies, and the beef, pork, corn and soybean checkoff programs.

For more information, contact Jim Herlihy at jherlihy@usmef.org.

USMEF complies with all equal opportunity, non-discrimination and affirmative action measures applicable to it by contract, government rule or regulation or as otherwise provided by law.