(Jamie) We’re back! Let’s join Kyle and Don as they discuss the international outlook for the beef market.
(Kyle) Hi this is Kyle Bauer with Don Close. We’re in San Diego at the Cattlemen’s Meeting. Don is with Rabo AgriFinance and Don let’s talk about the international outlook for the beef market. How does your company see the future for beef across the world? (Don) We’re really seeing the potential for some pretty dynamic changes in the global front. Not only are we seeing an increase in the opportunities in China and Asia, we’re seeing big changes because of the fallout from the drought in Australia, New Zealand. Also seeing changing relationships with the bilateral trade agreements that Australia has with Japan, with China for both live cattle and beef, with Korea, that will have some changes in trade flow of Australian product in the future. The other big change we see potentially is development in a large export of fresh and frozen beef from Brazil, possibly Argentina. So, we could see some change up in who the players are in the future. (Kyle) Well with the change in the players does United States beef have a chance of competing against those countries around the world? (Don) Absolutely, we believe we do. First and foremost Kyle is we’re still the centerpiece of the world for that quality and food safety product. So, yes, we still hold that opportunity. But still as we rebuild cattle numbers, see an increase in beef production, we very much believe the U.S. has a big role in that global trade front. (Kyle) Hope I don’t sneak up on you with this question, but it seems to me that we produce a unique product at least with the United States and Europe, a similar product for North America and Europe. When we have countries like India and Australia and Brazil producing a product that’s much more lean, much smaller carcass, is that actually what the market for people that as they get more income, want more of our product, or does it take away from our demand? (Don) I think you hit on a very key point, and certainly a lot of the global trade is for the views of a U.S. producer or consumer a much more leaner and a much more commodity oriented product and certainly price driven. That doesn’t mean there’s not opportunities. Certainly in the role of China as that market develops, as Chinese consumers become a more sophisticated, more mature palette for beef, does that create the opportunity for the U.S. to have more of a role in selling high quality, high finished U.S. beef in the future. We think there’s extreme opportunities there down the road. (Kyle) We’re visiting with Don Close. He’s with Rabo AgriFinance. This is Kyle Bauer reporting. Back to you Jamie.
(Jamie) Thanks, Kyle. Next up is this week’s Kansas Soybean Update.