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
KSC & USAPEEC Partnering Together Since 2008 COMMUNICATING THE USAPEEC KSC PARTNERSHIP 2
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
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
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 2018 12,000,000 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
19 COMMODITY MEMBERS - 2018 COMMODITY FUNDING 1996-2018 (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 $0 2018 2016 2014 2012 2010 2008 2006 2004 2002 2000 1998 1996 6
COMMODITY 2018 PROJECTS BY REGION 12 # of projects 10 8 6 4 2 0 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
KSC FUNDING TO USAPEEC 2010-2018 $250,000 $225,000 $200,000 $175,000 $150,000 $125,000 $100,000 $75,000 $50,000 $25,000 $0 2010 2011 2012 2013 2014 2015 2016 2017 2018 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
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
PR Campaign in South Africa http://usapoultry rsa.co.za/ https://twitter.com/uspoultryrsa https://www.facebook.com/uspoultryrsa VIDEO MEXICO 10
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 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(p) Source: USDA/FAS Total export value in 2017 is projected to be $4.45 billion, up 9.1% from 2016. U.S. POULTRY & EGG EXPORTS IN SOYBEAN AND CORN EQUIVALENTS million bushels 550 500 450 400 350 300 250 200 150 100 50 0 Corn Soybean 2021(p) 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(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 2016. Source: USDA/FAS 11
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 116.0 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
PERCENTAGE OF PRODUCTION EXPORTED 1990 2000 2010 2015 2016 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% 19 18 17 U.S. Broiler Production and Consumption Production Consumption 16 Million MT 15 14 13 12 11 10 Source: USDA & FAO 13
7.6 7.4 7.2 7.0 6.8 U.S. Egg Production and Consumption Production consumption Billion dozen 6.6 6.4 6.2 6.0 5.8 5.6 Source: USDA & FAO U.S. BROILER EXPORTS SINCE 2000 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(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
U.S.TURKEY EXPORTS 1,000 tons 250 225 200 175 150 125 100 75 50 25 0 $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 million US$ 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 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 400 350 300 250 200 150 100 50 2000 2001 2002 2003 0 (In million dozen) Quantity (left axis) Value (right axis) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 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. 2017 (p) 400 350 300 250 200 150 100 50 0 million U.S. dollars Source: USDA/FAS 15
U.S. POULTRY AND EGG LOSS OF VALUE IN 2015 DUE TO HPAI BAN (in million US$) Broiler Turkey Eggs Total Export Loss 1,157 115 20 1,292 U.S. domestic drop in value 2,262 358 289 2,909 Total 3,418 474 309 $4,201 Note: does not include expenses to fight the HPAI (indemnification cost, etc.) AI OUTBREAKS AROUND THE GLOBE (2014-2017) Source: OIE 16
ON-GOING OUTBREAKS AS OF SEPT. 2017 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
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 2016.6 million from Kansas! 18
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
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
STAYING CONNECTED COMMODITY CLASSIC February 27- March 1, 2018 MEMBER APPRECIATION BREAKFAST & COOKING DEMONSTRATION 21
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 30087 Mobile: 770 597 2232 Email: Jgeckott@usapeec.org 22
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 2001. 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 2018. 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.