March 21, 2011

US animal agriculture remains largest consumer of soy

Domestic animal agriculture continues to be the biggest consumer of US soy, making up about 98% of the domestic supply of US soymeal.

As soymeal makes up a significant portion of animal feed, the United Soybean Board (USB) and soy checkoff work to maintain domestic demand for US soy by supporting organisations such as the US Meat Export Federation (USMEF). In 2010, this support helped the US livestock industry achieve strong export numbers for US pork and beef, according to USMEF.

"The downturn in the economy has lowered the consumption of meat in the US," explained Jim Schriver, a soy farmer from Montpelier, Ind., and the chairman of the USB domestic marketing programme. "As the soy industry, we feel the responsibility to help our number one customer, animal agriculture, move the meat offshore. We do this through our alliances and significant soy checkoff funding with organisations such as USMEF."

Consumption of meat dropped one pound per person in the US in 2010 according to the Livestock Marketing Information Center. Meat exports bolster US animal agriculture when domestic demand is down.

With US$4.08 billion of beef exported during the year, 2010 proved to be a record year. USMEF helped increase beef exports in many regions, including Canada, the EU, the Middle East, Japan, Russia and Southeast Asia.

US pork exports posted record numbers in Japan and Mexico, contributing to a total of US$4.78 billion worth of pork exports in 2010, the second-highest amount ever. USMEF predicts that there is still room for US pork exports to grow in these countries and others.

"In 2008, there was an oversupply of domestic pork and not enough cold storage to handle the supply," added Schriver. "The soy checkoff, working with state soy boards and USMEF, created a surge plan to export excess pork backs to Japan. The benefits of this programme, which is still active today, are evident in these recent export numbers."