Shifting Tides of Global Beef Trade
Competition in global beef market grows.
The U.S. beef industry faces an increasingly competitive global beef market, according to Rabobank’s Don Close. Close, who is the vice president of food and agribusiness research for the organization, addressed attendees during a Learning Lounge session at the 2016 Cattle Industry Convention & NCBA Trade Show Jan. 28. He noted that producers and processors in the United States and around the world are watching to see whether consumption will maintain pace with potential production growth.
“The answer is far from straightforward,” Close stated.
For the U.S. beef industry to remain competitive in the future, Close said Rabobank offers three recommendations:
- a) focus on enhancing U.S. export opportunities;
- b) producing beef that meets emerging consumer preferences; and
- c) implementing programs such as a voluntary, industry-driven cattle and beef traceability program.
Regarding a traceability program, Don Close said he recognizes the challenges, but said that in adapting to consumer demand for knowing more about where their food comes from it may be essential.
To enhance exports, Don Close encouraged all beef stakeholders to work with industry and organizations to encourage the Trans-Pacific Partnership (TPP) legislation to be enacted.
He noted that the TPP agreement will be signed Feb. 8 and will likely be up for a vote later this year.
Regarding a traceability program, Close said he recognizes the challenges, but said that in adapting to consumer demand for knowing more about where their food comes from, it may be essential.
“Given the number of known-source programs we have, I think there’s a sizeable pool of cattle to serve as a foundation for a traceability program,” he said.
In closing, Close expressed that, given the market situation going forward, it may be time for the beef industry to develop and accept the advantages that a traceability system would offer.
Editors note: Kindra Gordon is a freelancer and cattlewoman from Whitewood, S.D. This article was written as part of Angus Media’s online coverage of the Cattle Industry Convention & NCBA Trade Show. For additional coverage, visit the Newsroom at www.4cattlemen.com.