future u.s. red meat export opportunities and challenges joel haggard senior vice president asia pacific region u.s.

1. Future U.S. Red Meat Export Opportunities and Challenges Joel Haggard Senior Vice President Asia Pacific Region U.S. Meat Export Federation September 28, 2010

3. Policy to Focus on U.S. Export Competitiveness Executive Order - National Export Initiative of March 2010: goal is to double U.S. exports in 5 years High potential exports: capital intensive-low labor goods: e.g. aircraft pharmaceuticals machinery chemicals grains and oilseeds meat

4. U.S Red Meat and Poultry Exports as a Percentage of Production 

5. U.S. Consumer Demand Indexes

6. Long-term Asian Pork Trade Trends Suggest Greater Import Reliance

7. Growing U.S. Exports of Red Meat & Poultry vs. Feed Grains

8. Pork Imports as a Percent of Consumption

9. China : Global Trade Impact of Drop in China’s Pork Self Sufficiency to 90%

10. U.S. Corn Supply & Disappearance : Blue Sky Model

11. U.S. Livestock Sector GHG (2007)

12. Sustainability & The U.S. Livestock Industry Government Legislation and Regulations LAND Food Security Act : Conservation Reserve Program Various Federal & state grazing acts WATER Clean Water Act (1973) & subsequent legislation (2002 & 2008) regulating concentrated animal feeding operations (CAFOs) AIR Clean Air Act (1970 & 1997) ; mandatory reporting of GHG from manure management systems (2009)

13. Sustainability & The U.S. Livestock Industry Proposed Legislation American Clean Energy and Security Act of 2009 - Cap and trade system requiring regulated entities to hold rights, or allowances, to emit greenhouse gases; 2012-50 Exempt sectors include agriculture and forestry; USDA develops “offsets program” defining eligible offset practices including land use change, conservation & manure management; use of 3rd party verifiers; Would create USDA Greenhouse Gas Emission Reduction and Sequestration Advisory Committee; Enteric fermentation of ruminants exempt from additional GHG emission restrictions under Clean Air Act.

14. What to Measure ? Use of non-renewable energy Use of other non-renewable resources Soil erosion Land use Water use Nitrogen fertilizer use Pesticide use GHG emissions Ozone depleting gas emissions Acidifying gas emissions Nitrifying substance emission Emission of pesticides Photo-chemical oxidant emissions potential Emissions related to terrestial ecotoxicity Emissions concerning aquatic toxicity Emissions concerning human toxicity Waste production

15. U.S. Livestock Industry Initiatives Beef Beef LCA working group & WWF; Sustainable Beef Resource Center; development of voluntary standards? Pork Pork industry Environmental Stewards Program; NPB’s LCA; “We Care” Dairy Just-completed LCA: “Investing in America’s Future” Meat Processing American Meat Institute’s Environmental MAPS Program

16. Sustainability: Company Initiatives

19. Technology & Sustainability: U.S. Corn’s Improving Efficiency : 1987-2007

21. Changes in U.S. Beef Production Efficiencies 1977-2007(Decline in inputs per pound of beef produced)

22. China: Agriculture Sustainability Challenges

23. The Meat Trade & Sustainability : Corn & Land Equivalence of Chinese Meat & Poultry Imports

24. Towards Sustainable Global Fisheries Production: Increase in Aquaculture vs. Capture