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Beef Buzz News


CoBank Analyst Will Sawyer Sees Great Opportunity in Continued Growth of Meat Export Business

Fri, 29 Mar 2019 11:31:34 CDT

CoBank Analyst Will Sawyer Sees Great Opportunity in Continued Growth of Meat Export Business Will Sawyer is lead economist for animal protein at CoBank and contributed to a recently published report entitled, Protein Passport, designed to look at the value of exports for beef, pork and poultry and address the concerns some producers harbor about growing too dependent on the export market.


“As we speak to industry groups around the country, we do hear that fear of ‘what are we getting ourselves into as we increase our exports as a percentage of production,” Sawyer said citing specific worries of increased volatility and lower profit margins. “What we’ve seen in comparable markets is that they are a little more volatile, but prices have risen significantly over the last 10 to 15 years. So, for producers we think the value proposition makes sense and future initiative should be seen as opportunities, not threats.”


Sawyer used Australia as a prime example of how to successfully implement an export-oriented approach. According to him, Australia exports 70 percent of its production and has become one of the most competitive protein industries in the world. Sawyer says the US is well positioned to take advantage of a similar situation - experiencing a taste of that this past year in 2018 when beef export demand grew 10 percent, pork by 5 percent and poultry between 2-3 percent. Sawyer believes this is indicative of even greater opportunity waiting to be tapped into.


“The key I think about this year versus what we’ve seen over the last five or six, is per capita, meat consumption in the US is going to hit an all time high. It’s going to return to where we were prior to the Great Recession,” he explained. “So, when we think about going forward, we need to think about growing supply and finding a profitable home for it and in our opinion - that’s going to be through trade.”


Listen to Sawyer’s full remarks on the benefit of growing the US meat export market, with Radio Oklahoma Ag Network Farm Director Ron Hays, on today’s Beef Buzz - brought to you by the American Angus Association. America’s breed.


The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.



   




   

Listen to Sawyer's full remarks on the benefit of growing the US meat export market, on today's show.
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