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Study Quantifies Value to Corn through Red Meat Exports
USAgNet - 12/19/2018

The U.S. Meat Export Federation has received the results of an updated study aimed at quantifying the value delivered to U.S. corn producers through exports of red meat. The original 2016 study, as well as the 2018 follow-up, were conducted by World Perspectives, Inc., a leading agricultural consulting firm.

The original study, titled The Intersection of U.S. Meat Exports and Domestic Corn Use, concluded that in 2015 exports of U.S. red meat accounted for 11.7 million tons of combined corn and Dried Distillers Grains with Solubles (DDGS) use. In its update, WPI concluded that 2018 beef and pork exports will use a combined total of 14.9 million tons of corn and DDGS, which equates to an additional 459.7 million bushels of corn produced -- an increase of 29 percent over the 2015 projections.

Other highlights from the updated study:

- Since 2015, one in every five bushels of added feed demand for corn is due to beef and pork exports.

- About 11 percent of the price of corn this year will be derived from red meat exports.

- Red meat exports' impact on corn price is 39 cents per bushel (based on annual average price of $3.53 per bushel).

- There would be a loss of $5.7 billion in corn value without red meat exports.

"USMEF receives outstanding support from the feedgrain and oilseed industries, because these producers understand that red meat exports boost the profitability of their largest customer -- the U.S. livestock industry," said USMEF President and CEO Dan Halstrom, who noted the study was conducted through support from the National Corn Growers Association (NCGA). "It is important that we provide specific data on the return producers receive from their investment, and this study helps us meet that goal."

Beef and pork exports also have a direct impact on the utilization and value of DDGS, the updated WPI study notes. Overall, the value of DDGS sold for feed to livestock represents about 23 percent of the value of ethanol per bushel of corn.


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