In this file:


·         Exports in 2019: Bigger Risk, Bigger Reward?

·         USDA Gives $200 Million To Help Promote Overseas Trade



Exports in 2019: Bigger Risk, Bigger Reward?


By Jennifer Shike, Farm Journal's Pork, Editor

via AgWeb - February 4, 2019


As per capita animal protein consumption in the U.S. soars to all-time highs in 2019, the U.S. animal protein sectors will need to increase their focus on international markets for growth. Export growth will be key for U.S. beef, pork and chicken producers as growing meat supplies and processing capacity outstrip domestic demand, according to a new report from CoBank’s Knowledge Exchange Division.


This has some producers concerned because the more exports play a role in supply and demand, the more exposure producers and industry participants have to increased market volatility and lower margins, said Will Sawyer, animal protein economist with CoBank’s KED.


“While the need for increasing exports is clear, it’s frequently met with concern or skepticism among producers and all links throughout the supply chain,” Sawyer said.


The animal protein sector is entering a period of transition, as four consecutive years of significant domestic consumption growth is now beginning to pressure prices and producers’ bottom lines.


“The domestic consumption growth rate animal protein has experienced over the last five years is expected to plateau soon,” Sawyer said. “With the cow herd at multi-year highs and pork and poultry processors expanding capacity, exports will likely underpin further industry expansion for the U.S. in the years ahead.”


In 2018, the U.S. exported 12% of beef production, 16% of chicken production and 23% of pork production. Although these figures are far above where the industry was 20 years ago, more export growth will be needed if U.S. producers want to expand production in the coming years.


An increased reliance on exports has resulted in higher prices for the animal protein sectors in other exporting nations, including Australia, Brazil and Canada. However, CoBank’s analysis shows that greater profitability is offsetting price volatility for beef, pork and poultry producers in each of those countries, despite declining domestic consumption in both Australia and Canada.


Export growth opportunities can carry significant risks...





USDA Gives $200 Million To Help Promote Overseas Trade



via KTIC (NE) - February 4, 2019


Ag Secretary Sonny Perdue announced that his department awarded $200 million to 57 organizations through the Agricultural Trade Promotion Program.


The Hagstrom Report says the goal is to help U.S. farmers and ranchers find and get into new export markets around the globe. The promotion funds are part of the package that also included the Market Facilitation Program payments to farmers hurt be retaliatory tariffs, as well as a food distribution program to assist producers of targeted commodities. In making the announcement, Perdue made a thinly-veiled reference to China by saying, “This infusion will help us develop other markets and move us away from being dependent on one large customer for our agricultural products. This is seed money, leveraged by hundreds of millions of dollars from the private sector that will help to increase our agricultural exports.” Every sector of U.S. agriculture was allowed to apply for cost-share assistance under the program.


The Foreign Agricultural Service looked at all the applications in terms of the potential for export growth in the target market, direct injury from the imposed retaliatory tariffs, and the likelihood...