Trade Agreements, Price Reporting News
By Pat Lampert
There’s a lot happening in the news that has the ability to positively impact markets for cattle producers.
The Phase I trade deal with China calls for the removal of tariffs on Chinese goods in stages, and they will increase imports from the U.S. as part of the agreement. We are hopeful this could mean more U.S. beef imports into that country.
Meanwhile, we have a new trade deal with Japan. The U.S. Meat Export Federation says the U.S. is finally on a level playing field and expects U.S. beef and pork exports to Japan for 2020 to reach $2.3 billion for beef and $1.7 billion for pork. By 2025, that could reach the $5 billion level as consumption of U.S. red meat increases.
On Dec. 12, USDA’s Agricultural Marketing Service hosted a producer meeting to review the findings and recommendations from a recent study of mandatory price reporting.
Ted Schroeder and Glynn Tonsor, Kansas State University, and Lee Schulz, Iowa State University, looked at a couple of different options for updating the rule.
The study explored the feasibility of reporting negotiated slaughter cattle purchases in separate 0-14 and 15-30 day delivery windows. It also considered realignment of states in the five-area reporting region. But they would continue to maintain confidentiality.
Let’s not forget about the fact that the Tyson plant in Kansas expects to be 100 percent operational by the first of the year.
And, USDA predicts a record large drop in beef production from fourth quarter 2019 to first quarter 2020. Then, a record large increase into 2020’s second quarter.
I believe this is all favorable news for cattle producers as we head into the new year. Stay in touch with your local livestock marketing representative.