Global Marketing: Why It’s Important for Beef Industry Success

The Beef Checkoff is dedicated to improving global consumer demand and building trust in U.S. beef around the world. Why is this such a focus for the checkoff? The numbers tell the story.

The checkoff works with the U.S. Meat Export Federation (USMEF) to market U.S. beef in global markets. Eighty percent of global buying power is located outside the U.S., and 95 percent of the world’s population lives elsewhere. That’s why once global trade is opened in a particular country, the checkoff implements marketing tactics in those countries to improve profitability for beef producers. And, recent events have shown a positive industry outlook for the future.

Multiple factors are currently affecting how the U.S. performs in the global protein marketplace. To help producers understand the big picture and how exports affect their beef operations, CattleFax, a global leader in beef industry research and analysis, presented their predictions for the beef industry in 2020 at the Cattle Industry Convention and NCBA Trade Show.

In 2019, multiple trade deals were signed, giving the U.S. potential to improve exports substantially over the next several years. One example is the “Phase One” trade deal between the U.S. and China. Chinese beef demand is increasing, and with African Swine Fever continuing to affect global protein markets, the resulting pork shortage, coupled with the Chinese trade deal, will boost U.S. beef exports to that area of the world. In fact, China has committed to increasing U.S. agricultural purchases by 12.5 billion and 19.5 billion over the next two years compared to a 2017 baseline of 22.5 billion ¹.

The Japan–U.S. bilateral trade agreement was also completed, decreasing tariffs on U.S. beef from 38.5 percent to just 9 percent ². In 2019, Japan accounted for the largest share of beef exports at 26.4 percent. USMEF projects that by 2025, U.S. beef exports to Japan will approach roughly 2.8 billion. Due to these agreements, U.S. beef exports for 2020 are expected to increase 5 percent to 3.2 billion pounds. Another factor changing the marketplace is Australia’s plight with drought and wildfires. The country’s anticipated decrease in production there will allow the U.S. to surpass Australia as the third largest beef exporting country.

These trade agreements create multiple opportunities for U.S. beef to have a front row seat in a shifting and growing global protein marketplace. The Beef Checkoff is dedicated to promoting U.S. beef overseas and supporting beef to meet demand, wherever in the world it is most desired.