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June 21, 2010
FTA likely to boost US state's livestock industry
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The passage and implementation of the three Free Trade Agreements (FTAs) currently pending would lead to an increase in exports and the creation of new jobs in Nebraska, US, the American Meat Institute reported.
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An additional US$2.3 billion in meat and poultry exports and 29,524 new jobs would be created.
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"It is clear that the road to both robust job and economic growth lies in expanding America's export markets," said J. Patrick Boyle, president and CEO of the American Meat Institute (AMI).
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Boyle said that the trade expansion deals between the US and South Korea, Panama and Colombia have been awaiting congressional approval for years and the US is losing market share as a result.
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"While the US is waiting to enact these FTAs, our competitors are moving forward," said Boyle.
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The report said passage of the agreements could increase US exports of beef by US$1.4 billion, pork by US$772 million and poultry by US$102 million. The jobs resulting from this growth, both in the commodity groups and downstream, would include an estimated 18,000 jobs in the beef industry, 10,300 jobs in the pork industry and 1,200 jobs in the poultry industry. Trade numbers are based on projections from the respective commodity groups.
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Senator Mike Johanns, R-Neb., said the US must act quickly to ratify the trade agreements. "As we pull ourselves out of a recession, American producers and exporters deserve every opportunity they can get to maintain their unrivalled status in distributing food and other goods throughout the world," Johanns said.
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Johanns also said it is time for the Obama administration to begin making serious strides toward having those trade agreements approved. "Nothing is stopping the president from sending the agreements to Congress for an up or down vote," Johanns said. "He can do this today. Our businesses are waiting; our farmers are waiting. Our trading partners and allies are no longer waiting."
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Johanns said this country's international trade partners are "ready to write off the US as a country that signs agreements with no intention of putting them into place."
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"They're moving forward with our competitors, leaving American products in warehouses," he said. "The time is now for the president to act on his export pledge; the future of American trade rests on his shoulders."
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According to the AMI report, for every US$1 billion in beef exports, 12,700 jobs are created. For every US$1 billion in pork exports, 13,333 jobs are created. For every US$1 billion in poultry exports, 11,853 jobs are created.
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In 2009, the value of exported meat, poultry and related products totalled US$11.7 billion, up from US$9.4 billion in 2007, the report said.
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According to the USDA, US meat exports are predicted to rise during the next decade, from 5.9 million tonnes in 2009 to nearly 7.1 million tonnes in 2019.
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"However, if we are going to realise this potential, we need to pass these trade agreements and move forward on expanding our export markets as well as exploring new trade opportunities," said Boyle.
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The US Meat Export Federation recently reported that the value of US beef and pork exports in April rose by 27% and 7%, respectively, over the same month last year.
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USMEF said that beef and beef variety meat export value also was 10% higher than numbers recorded in April 2003, prior to market restrictions resulting from a US case of bovine spongiform encephalopathy. And pork/pork variety value reached its highest level since November 2008.
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According to the report, the US meat and poultry industry contributes about US$832 billion in total to the US economy, nearly 6% of the GDP. The industry directly employs 1.8 million people, paying US$45.5 billion in wages and benefits. An estimated 524,000 people have jobs in production and packing, importing operations, sales, packaging and direct distribution of meat and poultry products.
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Wholesaling directly employs an estimated 63,000 individuals in every state in the country, and 1,227,600 retail jobs depend on the sale of meat and poultry products to the public.
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"With meat and poultry consumption rising in many nations around the world as a result of economic development and population growth, we have millions of increasingly affluent, potential customers," said Boyle.
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"But, if the United States is not there to fill their plates, other major exporting nations will,'' he added.
