Beef Buzz News
Derrell Peel Explains Why International Trade of Beef is Valuable
Tue, 11 Oct 2022 08:19:28 CDT
Senior Farm and Ranch Broadcaster, Ron Hays, is visiting with Oklahoma State University Livestock Marketing Economist, Derrell Peel about the value of imports and exports for the U.S. beef market.
Ron Hays Beef Buzzes with Derrell Peel about Trade Value
Peel and his colleague, Dr. Glynn Tonsor of Kansas State University had the opportunity to work on a study researching the value of imports and exports of beef. The report was commissioned by the Kansas Beef Council, Oklahoma Beef Council, and the Texas Beef Council. Peel talks about their findings during this study as it applies to the beef industry.
“The bottom line is, there continue to be conversations in the industry about the value of trade and how that value has changed over time,” Peel said. “Sometimes we want to focus on exports, sometimes we focus on imports, but the fact of the matter is, in terms of the reality of trading in a global market, we have to do both.”
This report looks at both beef imports and exports, Peel said, but strictly the meat part. The report asks a question, Peel said, of what would happen if we didn’t trade.
“We looked at it in two stages,” Peel said. “One was a ten percent reduction, and we sort of extrapolate that to what would happen if we just totally withdrew from the global market.”
A ten percent reduction in import and export trade, Peel said, would mean billions of dollars worth of losses for both futures and fed cattle sellers.
When running different adjustments for imports and exports together through the economic model, Peel said the net impact over a ten-year frame of a 10 percent reduction in trade was valued at over 12 billion dollars of impact on feeder cattle producers and over 6 billion dollars in the feedlot sector.
On the imports side of the equation, many people have a hard time understanding why the United States is allowing international beef to come in and compete with us when we have an adequate amount of beef to feed the country. Peel says the beef market is much more complex.
Once each individual animal is fabricated, Peel said thousands of basic products are produced and each has its own market.
“The markets are related in some cases, heavily related in some cases, so both imports and exports are driven by this underlying tendency of any market to seek out value, and so in the case of beef imports, we seek out value because we have such a huge ground beef market primarily in the U.S.- that is the primary driver of the imports- and we need additional lean to drive that market.”
Peel said the United States brings in additional lean to supplement domestic production of cull cow beef and other lean products that we can use, but also as a way to add value to our fed cattle because it gives us the ability to utilize all of the fatty trimmings from fed cattle in the ground beef market by supplying the additional lean that we need to turn it into ground beef products.
To read more conclusions from the report estimating the impacts of ceasing both U.S. beef exports and imports, click here.
Click the LISTEN BAR below to listen to Ron Hays and Dr. Derrell Peel talking about the value of beef trade for the United States.
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.
right-click to download mp3
WebReadyTM Powered by WireReady® NSI
January Cattle on Feed Report Three Percent Under Year Ago- Derrell Peel Says Tighter Supplies Will Be Around for Awhile Mon, 23 Jan 2023 05:15:04 CST
Derrell Peel Talks Latest Cattle on Feed Report- Showing Fewer Cattle on Feed, Lighter Placements and Stronger Marketings. Mon, 26 Dec 2022 08:19:00 CST
Kara Lee with Certified Angus Beef Tells Cattlemen 'Cut the Bull' Fri, 23 Dec 2022 14:30:39 CST
Beef Checkoff Utilizes Digital Marketing Techniques to Interact with Consumers Thu, 22 Dec 2022 16:02:51 CST
Beef Checkoff Research, Education, and Promotion Efforts Point Consumers to Beef Wed, 21 Dec 2022 16:15:46 CST
OSU Economist Derrell Peel Expects US Beef Export Strength to Continue Into the New Year Tue, 20 Dec 2022 08:00:35 CST
NPPC's Michael Formica Feeling Positive About Supreme Courts Upcoming Proposition 12 Decision Mon, 05 Dec 2022 10:08:27 CST
NCBA Fights to Improve Marketing Options for Cattle Producers Fri, 02 Dec 2022 09:58:28 CST
Chinese Consumers Continue to Grow Appetite for U.S. Beef Thu, 01 Dec 2022 09:23:49 CST
Merck Creates Value for Producers and Consumers with Technology and Biopharmaceuticals Wed, 30 Nov 2022 09:55:28 CST
NCBA’s Todd Wilkinson Ready to Fight Back Against Regulatory Overreach in the Cattle Industry Tue, 29 Nov 2022 10:13:33 CST
NCBA and PLC Call ESA Listing Plan of Lesser Prairie Chicken Punitive for Cattle Producers in Southern Plains Wed, 23 Nov 2022 14:51:02 CST
November Cattle on Feed Report Confirms October Pattern of Lower Placements and Tighter Cattle Numbers in Feedlots Tue, 22 Nov 2022 05:07:02 CST
Turning the Corner- OSU's Derrell Peel Sees Tighter Cattle Inventories into 2023 in Latest Cattle on Feed Report Mon, 21 Nov 2022 04:36:33 CST
Turning the Corner- OSU's Derrell Peel Sees Tighter Cattle Inventories into 2023 in Latest Cattle on Feed Report Mon, 21 Nov 2022 04:27:40 CST
Midterm Elections to Set Stage for What Can Be Expected in 2023 Farm Bill Mon, 07 Nov 2022 12:13:57 CST
USMEF's Dan Halstrom Remains Cautiously Optimistic about Strong Beef Demand Going Forward Thu, 03 Nov 2022 09:35:46 CDT
Economic Factors Create Hesitancy in Beef Plant Expansion Plans Wed, 02 Nov 2022 11:03:34 CDT
NCBA's Mike Simone Says Consumer Interest in Fake Meat is on the Decline Tue, 01 Nov 2022 11:41:02 CDT
Beef Remains Valued Product for Consumers as it Allows Them to Stretch their Dollar Mon, 31 Oct 2022 09:15:56 CDT
Hugh Aljoe Provides Methods to Begin and Maintain Good Land Stewardship Fri, 28 Oct 2022 09:30:13 CDT
Implement Soil Health Practices Now to Increase Forage Production when Rains Come Thu, 27 Oct 2022 15:14:07 CDT
Third Beef. It's What's For Dinner. 300 Promotes the Beef Industry on a National Level Wed, 26 Oct 2022 15:32:23 CDT
Latest Cattle on Feed Report from USDA Implies Fewer Pounds of Beef Available in 2023 Tue, 25 Oct 2022 10:17:53 CDT
OSU's Derrell Peel- Lower Placements and Smaller On Feed Number Highlight October Cattle on Feed Report Sun, 23 Oct 2022 12:45:37 CDT
Beef Checkoff Research Continues to Share Beef Sustainability Story with Consumers Fri, 21 Oct 2022 09:23:36 CDT
Beef Checkoff Research Works to Ensure Consumers Beef is a Product They Can Trust Thu, 20 Oct 2022 13:44:44 CDT
Odds for Significant Wheat Pasture Going Lower Daily in the Southern Plains Wed, 19 Oct 2022 14:35:46 CDT
NCBA Weighs in on California's Proposition 12 Tue, 18 Oct 2022 11:32:24 CDT
2022 Stockyards Steak Out Takes Oklahoma Beef to the Next Level Mon, 17 Oct 2022 11:09:07 CDT
Holding Onto Your Cow Herd a Little Longer is Projected to Pay Off, says Randy Blach Fri, 14 Oct 2022 08:14:05 CDT
Randy Blach Confident in Better Cattle Market Conditions Down the Road Thu, 13 Oct 2022 09:43:02 CDT
No Imports or Exports Would Result in a Smaller U.S. Beef Cattle Industry Wed, 12 Oct 2022 16:11:15 CDT
Derrell Peel Explains Why International Trade of Beef is Valuable Tue, 11 Oct 2022 08:19:29 CDT
Animal Agriculture Hopeful for a Win as U.S. Supreme Court Looks at California's Proposition 12 Mon, 10 Oct 2022 09:26:17 CDT