The U.S. Department of Agriculture (USDA) yesterday (June 26) announced that ...
The U.S. Department of Agriculture (USDA) yesterday (June 26) announced that the U.S. Meat Export Federation allocation under the Market Access Program (MAP) for fiscal year 2002 will be $8,503,362. USMEF is the largest recipient of MAP funds for the fourth successive year. The FY 2002 $90 million MAP funding was shared between 67 cooperators.
“We’re very pleased with this award,” according to USMEF President and CEO Philip Seng, “and I think it’s an indication of how USDA looks at USMEF, and the efficacy of its marketing programs.”
The USDA allocates MAP funding to applicants based on four criteria: the accuracy of past export goals; historic export performance; projected export goals; and the support the organization receives from the private sector. Seng noted USMEF’s funding level reflects an endorsement by USDA of its programs, strategies, planning, implementation and, most importantly, its support from the U.S. red meat industry.
USMEF has been a USDA cooperator throughout its 26-year history. During this time, U.S. meat exports have grown from a meager 247,000 metric tons to more than 1.99 million metric tons last year. Value has increased from less than $500,000 to $5 billion today.
“This huge increase has been the result of two things,” Seng added, “First, we’ve worked to gain trade access, both on a multilateral and on a bilateral basis, and second, we’ve dignified those negotiations with marketing programs that have garnered a commanding market share for us in the international marketplace.” Seng cited three markets – Japan, Mexico and Korea – where this one-two combination resulted in the development of major markets where U.S. producers now are the major suppliers.
Seng noted that 1985 was a benchmark year for international market development. The farm bill that year created beef and pork checkoff programs and the forerunner to the MAP program at USDA.
“The combination of checkoff and government funding is one of the main reasons that we’ve had the success we’ve enjoyed,” Seng said. “When you apply funding in a focused, well-directed fashion, you can make a sizable difference. And this would not be possible without either the MAP program or the checkoff programs.
“In addition, producers like the idea that for every checkoff dollar they invest, they are able to carry out programs worth more than $2 because of additional funding USMEF brings to the table through USDA and other industry investment, and through third-party in-country program participation,” Seng notes.
This year’s farm bill added $10 million to the MAP funding for FY 2002 and USMEF has applied for additional funding. New allocations will be announced later this summer. If USMEF succeeds in gaining additional funding, Seng noted, the money will be put to good use. “The potential for market growth is so much greater internationally. Worldwide growth in meat consumption has been up three to five percent annually for the last 10 years. We know the growth is there, it’s just a matter of whether or not we will be allowed to participate. Getting those dollars would mean that we’d be an even bigger factor in the international marketplace.”
The U.S. Meat Export Federation 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, sorghum and soybean checkoff programs.
-- USMEF --
In 2001, according to revised USDA statistics, total U.S. beef exports declined in volume by .4 percent to 1.274 million metric tons, while value declined by 5.7 percent to $ 3.406 billion. Higher U.S. beef prices and a strong U.S. dollar helped push export volumes slightly lower for the first time in more than 10 years. Pork exports grew 21 percent in volume to more than 703,000 metric tons, while value grew 13 percent to nearly $1.6 billion. Exports now account for nearly 13.4 percent of U.S. beef production and more than 9.9 percent of U.S. pork production on a wholesale weight basis.