Overview. Building Demand for U.S. Poultry & Eggs Around the World 1/5/2018. Jennifer Geck Ott, Director of Allied Industry Relations, USAPEEC

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1 Building Demand for U.S. Poultry & Eggs Around the World Jennifer Geck Ott, Director of Allied Industry Relations, USAPEEC Kansas Soybean Expo January 10 th, 2018 Overview USAPEEC s Mission, Work, and KSC Partnership KSC Dollars at Work U.S. Poultry & Egg Export Statistics Overview Top Trade Issues Questions/Comments 1

2 KSC & USAPEEC Partnering Together Since 2008 COMMUNICATING THE USAPEEC KSC PARTNERSHIP 2

3 POULTRY IS THE LARGEST LIVESTOCK CONSUMER OF SOY AND CORN MEALS 8% 25% 56% 25% 30% 33% SOURCE: SOY STATS, ERS & USDA USAPEEC The USA Poultry & Egg Export Council (USAPEEC) is a non profit trade association whose members account for more than of all U.S. poultry and egg exports. MISSION 95% Increase U.S. poultry and egg exports by protecting, opening, and developing markets throughout the world and by serving as the industry s voice on trade policy issues. 3

4 USAPEEC LOCATIONS Based in Stone Mountain, Georgia, USAPEEC has 14 international offices located in major export markets Mexico City Monterrey Hong Kong Singapore Moscow Beijing Auckland Shanghai Tokyo Seoul Middle East South Africa Europe Latin America/ Caribbean USAPEEC S ATLANTA STAFF Jean Murphy Dr. Renan Zhuang Jim Sumner Greg Tyler Susan Rushing David Markiewicz Dr. Shelly McKee Leah Mulcahy Jennifer Geck Ott Tom Taylor Amy Myers Chris Fee Barbara Moore Sana Makkani David Thao 4

5 USAPEEC S INTERNATIONAL STAFF Lan Sohn Margaret Say Albert Davleyev Izumi Amano Richard Hu Lisa Lindblad Ernesto Baron Carl Shi Alma Lilia De Leon Nina Bakht Halal Zelda Sharp Sarah Li Jose Luis Cruz Nicole Dehnert USAPEEC BUDGET/FUNDING 16,000,000 14,000,000 PROJECTED FOR ,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 MEMBERSHIP DUES EXPORT TRADING COS TPTF FAS (FMD) MAP COMMODITY 5

6 19 COMMODITY MEMBERS COMMODITY FUNDING (excluding dues) $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 FY18 funding sets a record of $4.5 million $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 1,221% increase since 1996 $

7 COMMODITY 2018 PROJECTS BY REGION 12 # of projects Based on 46 Projects Currently Approved in 2018 COMMODITY FUNDING BY GROUP: 2018 SD Soy, 4% KS Soy, 5% Corn, 8% IN Soy, 6% Total of $4.5 Million (Excludes dues) USB, 45% IL Soy, 13% IA, OH, NE Soy, 5% [CATEGORY NAME], 14% American Egg Board (AEB) 14% Corn 8% Soy 78% 7

8 KSC FUNDING TO USAPEEC $250,000 $225,000 $200,000 $175,000 $150,000 $125,000 $100,000 $75,000 $50,000 $25,000 $ Excludes dues KSC DOLLARS AT WORK Total FY2018 Funding: $232,295 Meat Processors Program Mexico PR Campaign South Africa Workshops Armenia Foodservice Programs Korea Chef Cooking Competition Colombia 8

9 KANSAS SOYBEAN COMMISSION FY2018 Funding: $232,295 Colombia Chef Cooking Competition Mexico Meat Processors Program Armenia Meat Processing Program In-house Menu Development & Tie-in Promotion - Korea 9

10 PR Campaign in South Africa rsa.co.za/ VIDEO MEXICO 10

11 U.S. POULTRY AND EGG EXPORT VALUE (In million U.S. dollars) $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Eggs Other poultry Turkey Value Broiler Value (p) Source: USDA/FAS Total export value in 2017 is projected to be $4.45 billion, up 9.1% from U.S. POULTRY & EGG EXPORTS IN SOYBEAN AND CORN EQUIVALENTS million bushels Corn Soybean 2021(p) (p) 2018(p) 2019(p) 2020(p) More than 138 million soybean bushel equivalents were exported through U.S. chicken, turkey, duck, and eggs worth $4.1 billion in Source: USDA/FAS 11

12 U.S. POULTRY & EGG EXPORTS IN SOYBEAN EQUIVALENT 138 million bushels of soybean were exported through poultry and eggs (2016) Broiler Turkey Egg Other Poultry m bushels 10.9 m bushels 4.8 m bushels 6.3 m bushels IMPORTANCE OF U.S. POULTRY PRODUCTION & EXPORTS TO SOYBEAN & CORN FARMERS Without U.S. poultry and egg production U.S. corn prices would decrease by 45% and U.S. soybean prices would decrease by 61%, all other things being equal. Without U.S. poultry and egg exports U.S. corn prices would decrease by 7% and U.S. soybean prices would decrease by 8%, all other things being equal. 12

13 PERCENTAGE OF PRODUCTION EXPORTED Jan Sept 2016 Jan Sept 2017 Broiler 6.0% 17.4% 19.8% 16.5% 16.9% 16.9% 17.0% Turkey 1.6% 8.4% 10.4% 9.5% 9.6% 9.4% 10.2% Eggs 1.5% 2.1% 3.1% 3.4% 2.8% 2.6% 3.4% U.S. Broiler Production and Consumption Production Consumption 16 Million MT Source: USDA & FAO 13

14 U.S. Egg Production and Consumption Production consumption Billion dozen Source: USDA & FAO U.S. BROILER EXPORTS SINCE (p) $5.0 $4.5 $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 Quantity (left axis, M T) Value (right axis, billion US$) Broiler export value in 2017 is projected to be $3.36 billion Source: USDA/FAS 14

15 U.S.TURKEY EXPORTS 1,000 tons $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 million US$ Quantity (left axis) Value (right axis) Up 9.7% in volume and 2.9% in value year on year. Source: USDA/FAS U.S. EGG EXPORTS SINCE 2000 million dozen (In million dozen) Quantity (left axis) Value (right axis) Includes table eggs and egg products in shell egg equivalent. For the first 9 months of 2017 total egg export volume is up 35.7% and value is up 22.4% compared to the same period a year ago (p) million U.S. dollars Source: USDA/FAS 15

16 U.S. POULTRY AND EGG LOSS OF VALUE IN 2015 DUE TO HPAI BAN (in million US$) Broiler Turkey Eggs Total Export Loss 1, ,292 U.S. domestic drop in value 2, ,909 Total 3, $4,201 Note: does not include expenses to fight the HPAI (indemnification cost, etc.) AI OUTBREAKS AROUND THE GLOBE ( ) Source: OIE 16

17 ON-GOING OUTBREAKS AS OF SEPT AVIAN INFLUENZA SEMINARS MIDDLE EAST & AFRICA Dr. Ameen Ajeel Dawood, Chief of Aquatic & Poultry Diseases Division, Iraq Veterinary Doctorate Dr. Ahmed Zahran, veterinarian, Animal Health Division, Ministry of Climate Change and Environment, Dubai, UAE, Dr. John Clifford, Chief Trade Advisor, OIE delegate, Jean Murphy, USAPEEC, and Kurt Seifarth, USDA regional agricultural counselor, Office of Agricultural Affairs. 17

18 USAPEEC MEETS WITH SECRETARY PERDUE AUGUST 2017 NAFTA Mexico is the #1 for U.S. chicken and turkey and a top market for eggs USTR announced that maintaining duty-free status of U.S. egg exports is one of key NAFTA objectives We see the bigger opportunity is expanding our access to Canada which has restrictive quotas USAPEEC supports the Do No Harm Approach Source: U.S. Poultry & Egg Exports to Mexico represented 32 million soybean bushel equivalents worth $925 million in million from Kansas! 18

19 CHINA Trump Administration appears to be helping us with China Market to China has been closed for nearly 3 years While imports of cooked Chinese poultry to U.S.is part of Trump and Xi s 100-day plan, unfortunately exports of U.S. to China are not Proposed ruling on approval of Chinese slaughter plants could lift its ban CUBA POLICY Cuba has developed into one of our most important markets for chicken At the end of 2016, Cuba was our fifth leading market by volume First half of 2017: Cuba passed Angola, Canada, and Taiwan Third place for broiler exports Chicken is one of the only U.S. agricultural exports to Cuba Uncertain future and potential sanctions make us unsure of where this will lead 19

20 New Market Opportunity? POTENTIAL MARKET IN INDIA Population of about 1.33 billion Projected annual growth of 1.1% in the next decade Real per capita GDP in 2016 was US $2,000 (in 2010 U.S. dollars) Projected annual growth of 6.5% in the next decade Per capita chicken consumption in India is only about 3.2 kilograms in 2016 India s National Institute of Nutrition (NIN) recommends 10 kilos per capita consumption 20

21 STAYING CONNECTED COMMODITY CLASSIC February 27- March 1, 2018 MEMBER APPRECIATION BREAKFAST & COOKING DEMONSTRATION 21

22 THANK YOU Jennifer Geck Ott, Director of Allied Industry Relations USA Poultry & Egg Export Council (USAPEEC) 2300 W. Park Pl. Blvd. Ste. 100 Stone Mountain, GA Mobile:

23 JENNIFER GECK OTT, DIRECTOR OF ALLIED INDUSTRY RELATIONS Jennifer Geck Ott began her career at USA Poultry & Egg Export Council (USAPEEC), headquartered in Stone Mountain, Georgia, in October In her role, she directly manages about 50 annual worldwide marketing projects funded by the council s soybean, corn and egg commodity members valued at $4.5 million. Those projects, which include the work supported by the Kansas Soybean Commission, seek to increase exports of U.S. chicken, turkey, duck and eggs. Through her work at USAPEEC, Ott has raised the number of commodity boards partnering with USAPEEC from six to 19 and has increased the council s non-government funding from $879,000 to a record of $4.5 million in fiscal year Ott has traveled to 33 countries and is a graduate of Mercer University in Macon, Georgia, where she received a Bachelor s of Business Administration degree in international business and German. A certified personal trainer, she enjoys teaching ballet and serving in the community in her spare time. She lives in Buford, Georgia, with her husband.