CapitalPress.com
Friday, February 25, 2022
Subscribe to our weekly dairy or livestock email
newsletter at CapitalPress.com/newsletters
Beef, pork exports set
value records in 2021
Capital Press
Exports of beef and pork
set records last year, accord-
ing to the U.S. Meat Export
Federation.
U.S. beef exports in 2021
surpassed $10 billion for the
first time, while pork exports
topped $8 billion for the first
time, the federation said.
Beef export value soared
to $10.58 billion, up 38%
from 2020, shattering the
previous record in 2018 by
27%. Export volume at 1.44
million metric tons was up
15% from 2020 and up 7%
from the previous record in
2018.
Beef exports to Korea,
Japan and China/Hong
Kong each exceeded $2 bil-
lion, setting volume and
value records in Korea and
China/Hong Kong and a
value record in Japan.
Beef exports also set a
new value record in Taiwan
at $668 million, up 21%
over 2020, and reached new
heights in Central America,
Colombia and Indonesia.
Global exports of U.S. beef
variety meat also set a new
value record of $1.09 bil-
lion, up 24% year over year.
“The beef export results
are truly remarkable, espe-
cially considering the
COVID-related obstacles in
the global foodservice sector
and all the supply-side and
logistical challenges faced
by the U.S. industry,” Dan
Halstrom, USMEF presi-
dent and CEO, said in the
annual export report.
“Obviously, our large
Asian markets accounted
for much of the growth,
but it really takes broad-
based global demand to
reach these impressive lev-
els. So this success story is
not just about Korea, Japan
and China, but also a strong
performance in Taiwan,
excellent growth in Cen-
tral and South America and
a rebound in Mexico and
Southeast Asia,” he said.
Pork export volume in
2021 was 2.92 million met-
ric tons, down 2% from the
2020 record. But export
value climbed 5% to a
record $8.11 billion, sur-
passing the previous record
of $7.71 billion in 2020.
Record pork exports to
Mexico, Central America,
the Dominican Republic,
Colombia and the Philip-
pines helped offset a decline
in demand from China in
2021.
Pork
exports
also
increased to Japan and South
Korea, including larger vol-
umes of chilled pork. Global
exports of U.S. pork variety
meat set a new value record
of $1.24 billion, up 19%
year over year.
“Entering last year, we
knew it would be a daunting
task to match the record level
of pork exports reached in
2020 because of the recov-
ery in China’s swine herd
and its rising domestic pork
production,” Halstrom said.
“But the U.S. is less
dependent on China than
other major pork export-
ers, and this is definitely
reflected in the 2021 results.
Even with shipments to
China falling nearly 30%,
total U.S. exports posted a
very strong performance
thanks to outstanding
growth in Latin America and
other key markets,” he said.
Lamb exports in 2021
increased 9% year over year
to 14,053 metric tons, valued
at $20.45 million and up 19%.
While volume growth
was driven primarily by lamb
variety meat exports to Mex-
ico, lamb muscle cut exports
rebounded to the Carib-
bean — achieving impres-
sive growth in the Domini-
can Republic and increasing
to Bermuda, the Bahamas,
Trinidad and Tobago and
Turks and Caicos.
Dairy/Livestock
Dairy exports break records in 2021
By CAROL RYAN DUMAS
Capital Press
2021 was the best year ever for U.S.
dairy exports, which were up 10% in vol-
ume and 18% in value from the previous
year.
A rebound in exports to Mexico and
a sharp increase in whey and milk pow-
der to China led widespread gains and
new records, according to the U.S. Dairy
Export Council.
Total U.S. dairy export volume reached
2.3 million metric tons of milk solids
equivalent to break the record volume of
2020, and total export value surpassed the
highs of 2014 to reach $7.75 billion.
Cheese volumes also beat the 2014
record with a final total of 404,675 metric
tons. Nonfat dry milk and skim milk pow-
der beat the volume record set in 2020 to
reach nearly 900,00 metric tons, and whey
exports reached a new high of 613,943
metric tons.
Dairy exports set multiple other market
and product records as well.
“Indeed, by all metrics, 2021 was a tre-
mendous success for U.S. dairy exports,”
William Loux, USDEC director of global
trade analysis, said in a year-end report.
U.S. dairy exporters managed to find
success despite substantial headwinds
from logistics, he said.
“Lack of trucking availability, short-
ages of equipment and containers, car-
rier companies ignoring export orders for
blank loads and, most recently, declining
productivity at ports have all taken their
toll on U.S. exports — even though U.S.
exports have clearly been positive,” he
said.
Sierra Dawn McClain/Capital Press FIle
U.S. dairy exports set records for volume and value last year.
Slower delivery times, higher shipping
costs, unexpected fees and reputational
damage all hurt U.S. exporters in key mar-
kets overseas and continue to limit the
ability of U.S. dairy exports to reach their
full potential, he said.
“As we look to 2022, we expect many
of these headwinds to remain even as
USDEC staff and policymakers look to
find ways of easing the burden,” he said.
In addition, slower-than-average U.S.
milk production could limit product avail-
ability for export in the short term — even
if overseas demand for U.S. dairy is plen-
tiful, he said.
For 2022, slower growth in milk pro-
duction combined with the usual expan-
sion of domestic consumption, as well as
port congestion adding costs to export-
ing, will make double-digit export growth
challenging, he said.
But USDEC remains bullish about the
U.S. having a clear opportunity to be the
growing dairy supplier to the world.
“U.S. milk production growth should
return to above 1% by the second half of
2022. And in the longer term, underlying
supply-demand fundamentals, a support-
ive investment and policy environment
and U.S. dairy’s commitment to inter-
national customers all signal long-term
export growth potential,” he said.
But short-term tightness in the market
is likely to create headwinds to substantial
growth in the near term, he said.
“To be 100% clear, there remain plenty
of opportunities for growth in U.S. dairy
exports. Demand is expanding around the
world, and competitors are struggling to
keep up,” he said.
Tony Romo new face of beef promotion
By CAROL RYAN DUMAS
Capital Press
The iconic “Beef — It’s
What’s For Dinner” brand
announced a new partner-
ship with football commen-
tator and former Dallas Cow-
boys quarterback Tony Romo
at the 2022 Cattle Industry
Convention.
The partnership, which
will last one year and tap into
Romo’s vast fanbase, will
promote all things beef —
from beef nutrition, to how
beef is raised
and beef’s
great taste.
“Kicking
off this part-
nership
in
early 2022
Tony
is the perfect
Romo
time to gear
up for sum-
mer nutrition and grilling,
spending time with friends and
family and, of course, tailgat-
ing,” said Sarah Reece, senior
executive director of brand
marketing at the National Cat-
tlemen’s Beef Association.
“From his nutrition exper-
tise to his love of beef and
family, Romo is the perfect
spokesperson for the brand,”
she said.
“I’m really excited to be
your new spokesperson,”
Romo said.
“Me, my wife and the
kids eat beef all the time, and
I think we’re going to eat it
even more if that’s even pos-
sible at this point. Hearty and
sustainable beef is my new
team,” he said.
In addition to the general
consumer appeal associated
with celebrity spokespeople,
Romo will be featured pro-
moting beef in photo and video
advertisements on digital and
traditional media platforms.
Additionally, social media
content will be developed
and promoted posts across the
“Beef. It’s What’s For Dinner.”
social channels and on Romo’s
personal pages.
The brand is managed by
NCBA and funded by the Beef
Checkoff.
USDA extends Dairy
Margin Coverage sign-up
By CAROL RYAN DUMAS
Capital Press
USDA has extended the
deadline to enroll in Dairy
Margin Coverage and Sup-
plemental Dairy Margin
Coverage to March 25 for
2022.
The original deadline was
Feb. 18.
USDA expanded the
DMC program to allow dairy
producers to enroll sup-
plemental production. The
agency has also improved
feed cost calculations.
Nearly 9,000 dairies,
about 55% of the national
total, have already enrolled.
In 2021, enrolled dairy
farmers received a total of
$1.2 billion.
The supplemental DMC
will provide $580 million
to help small and mid-sized
producers who increased
production over the last few
years but were not able to
enroll the additional produc-
tion Now they will be able
to retroactively receive pay-
ments for that supplemental
production for 2021.
It will require a revision
to a producer’s 2021 con-
tract and must occur before
enrollment in DMC for
2022. Eligible dairy opera-
tion with less than 5 million
pounds of established pro-
duction history can enroll
supplemental pounds based
on a formula using 2019
actual milk marketings.
DMC covers the margin
between feed costs and milk
prices between $4 and $9.50
a hundredweight of milk.
USDA has also changed
the feed cost formula to bet-
ter reflect the actual cost for
premium quality alfalfa hay.
It will calculate payments
using 100% premium alfalfa
rather than 50%. USDA
will make retroactive pay-
ments to producers based on
the new formula to January
2020.
Little dairy market
reaction to Ukraine
By LEE MIELKE
For the Capital Press
T
S278381-1
8
he world is hearing the
drumbeats of war this
week as Russian troops
moved into Ukraine. Energy
markets moved higher, as did
grains. Dairy markets showed
little reaction Tuesday.
CME cheese headed
higher early last week, then
slowed. The Cheddar blocks
climbed to $1.99 per pound
last Tuesday, highest since
Jan. 13, but closed Friday at
$1.9875, up 8 cents on the
week and 45 cents above a
year ago.
The barrels jumped to
$1.95 last Monday but saw
their Friday finish at $1.9350,
up 2.50 cents on the week and
52.25 cents above a year ago.
Seven sales of block were
DAIRY
MARKETS
Lee
Mielke
reported last week at the
CME and 14 of barrel, high-
est weekly totals for both so
far in 2022.
The markets were closed
Monday for the President’s
Day holiday. The blocks
inched up a quarter-cent Tues-
day, with 3 cars exchang-
ing hands, and hit $1.99 per
pound, as traders anticipated
the afternoon’s January Cold
Storage report and Wednes-
day afternoon’s Milk Produc-
tion report.
The barrels were up 2 cents
Tuesday on a trade, reaching
$1.9550, 3.50 cents below the
blocks.