Who doesn’t like to hear or talk about good news? There just never seems to be enough of it.
The trio laid out the past 20 years of
By now everyone should know that 20 years ago the
By 1995, the
Fast forward to 2005;
Stop and think about that a moment. Pork byproduct sales alone now add nearly twice as much value to each market hog as all
Another fact you should know well, is that last year was the 14th consecutive record year for
It shouldn’t come as a surprise to get a sprinkling of cautious (not bad) news in the mix. The 22 percent gain in export sales for first-quarter 2006, means that 15 percent of the pork produced from all
That’s why exports can be a good-news/bad-news business venture.
“We’ve seen a change in the world market (for pork). It was just
There are many reasons for the export gains.
Philip Seng, USMEF president, points to producers’ commitment as a significant reason. Not only have producers improved product quality and consistency— packers also get a share of the credit— but they’ve consistently funded educational and promotional efforts to expand markets.
The economists support this by reviewing pork checkoff spending. In 1987 (the first year of the mandatory pork checkoff), producers spent $125,834. By 1997, annual funding was pushing $5 million. It then fluctuated between $5.7 million and $4.3 million annually, with 2005 coming in at $4.75 million.
Positive returns aren’t guaranteed, but big payoffs came in 2004 and 2005 at $1.608 billion and $1.654 billion respectively.
Total it up, and for the past 20 years pork checkoff spending has been $54.66 million, with returns equaling $6.33 billion.
Another factor adding to increased sales involves gains in more countries’ per capita incomes. “More of the world is shifting away from cereal diets and toward protein diets,” notes Seng.
“I think by next year,
Certainly attention to trade agreements, and the deepening embrace of a full global economy has advanced export opportunities for
“This industry is the posture child for trade agreements. Every time we get an agreement, pork exports increase,” says Giordano. He’s seen aggressive trade action in recent years, and expects that to continue. “Trade is just too important today.”
“Momentum is a difficult ally. It’s hard to get, and once you loose it, it’s hard to get back,” says Steve Murphy, NPB’s chief executive officer. Now that 15 percent of the pork from all