April 4, 2023

Study shows US red meat exports' value to corn and soybean sectors

An independent study conducted by World Perspectives and released by the US Meat Export Federation (USMEF) showed that beef and pork exports accounted for 503.4 million bushels of US corn usage, which equated to a market value of US$3.4 billion, National Hog Farmer reported.

The study showed the total economic impact of US exports of pork and beef on corn and soybean prices in 2022 was estimated to be 15% and 13%, respectively.

Dean Meyer, chairman of the USMEF, said a little over US$1 was attributed to red meat exports for every bushel of corn the US marketed in 2022. With soybeans, pork exports contributed US$1.94 per bushel.

By contributing a portion of their checkoff funds to USMEF's market development initiatives, US corn and soybean growers help to promote American pork, beef and lamb abroad.

Dave Juday, senior analyst for World Perspectives, said this study shows the value of indirect exports of corn and soybeans through pork and beef."

Juday said the contributions of pork and beef exports to the per-bushel value of US corn and soybeans in 2022 were the highest estimates they have seen, and this is important as US corn and soybean farmers worked to maintain margins with higher input costs across the board.

US exports of beef and pork accounted for 503.4 million bushels of US corn usage, valued at US$3.4 billion based on an average corn price of US$6.75 per bushel. Additionally, 3.42 million tons of DDGS were used for beef and pork exports, which amounted to US$834 million at an average price of US$244 per ton. It is estimated that the economic impact of beef and pork exports contributed to 15% or US$1.01 of bushel value in 2022 at an average price of US$6.75 per bushel.

US pork exports accounted for 89.7 million bushels of US soybeans, which translated to a market value of US$1.33 billion at an average price of US$14.83 per bushel. Pork exports were estimated to have contributed to a total economic impact of 13% of bushel value, equivalent to US$1.94, in 2022 at an average price of US$14.83 per bushel.

-      National Hog Farmer