Friday February 09 Ag News

U.S. Pork Export Value Sets Annual Record; Strong Finish for Beef Exports

Led by a record-shattering performance in Mexico and broad-based growth in other markets, U.S. pork exports set a value record in 2023, according to year-end data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). While 2023 beef exports were below the record totals posted the previous year, December exports were the largest since August and December export value increased 10% year-over-year.

2023 pork highlights included record exports to Mexico, Central America, DR
December pork exports climbed nearly 10% from a year ago to 268,399 metric tons (mt), the largest since May 2021 and the eighth largest on record. Export value increased 11% to $765.8 million, also the highest since May 2021 and the third highest on record. While December exports trended higher in many key markets, Mexico was once again the star performer, setting records for both volume (105,451 mt) and value ($233.8 million).

The strong December results pushed 2023 export value to a record $8.16 billion, up 6% from 2022. Export value per head slaughtered also set an annual record of nearly $64, with more than $11 per head attributed to variety meat exports. Export volume was 2.91 million mt, up 8% year-over-year and the third largest on record.

Pork exports set annual volume and value records in Mexico, the Dominican Republic and Malaysia, as well as value records in Central America and Colombia. Exports to South Korea were the third largest on record and second highest in value, while shipments to Oceania were the largest since 2020.

“2023 saw tremendous growth in global demand for U.S. pork, and it came at a time when the U.S. industry needed it most,” said USMEF President and CEO Dan Halstrom. “The expansion of U.S. pork’s presence in Mexico has been remarkable but the great news certainly doesn’t end there. We are very encouraged by the robust demand we’ve seen throughout the Western Hemisphere and in a number of Asia-Pacific markets as well.”

Beef exports closed 2023 on encouraging note as per-head value exceeded $430
December exports of U.S. beef totaled 108,497 mt, down 4% year-over-year but the largest since August. Export value was also the highest since August and climbed 10% year-over-year to $860.8 million.

2023 beef exports totaled 1.29 million mt, down 12% from the 2022 record. While export value fell 15% to just under $10 billion, this was still the third highest annual value for beef exports.

Mexico’s demand for U.S. beef continued to strengthen in December, pushing 2023 exports to the largest volume since 2019 and export value to $1.19 billion, the second highest on record. Beef exports to Central America and the Dominican Republic were record-large in 2023, while shipments also trended higher to Hong Kong, Africa and Peru. While December exports to leading market South Korea remained lower than a year ago in volume, export value ($220.6 million) was the highest in 18 months. This helped push December export value per head of fed slaughter to $431.50, the highest since April. For the year, per-head export value averaged $397.04.

“There is no question that 2023 was a challenging year for U.S. beef exports, especially in our largest Asian markets where economic conditions have weighed on foodservice demand,” Halstrom said. “Of course, we were also challenged on the supply side, with less product available for export. But nevertheless, U.S. beef achieved excellent growth in Mexico, Central America and the Caribbean, and we are encouraged by the December uptick in demand in South Korea and China. It was also great to see such strong per-head export value in December, topping $430.”

Lamb exports declined in 2023, but December shipments edged higher
Led by growth in Mexico, the Bahamas and the Netherlands Antilles, December exports of U.S. lamb totaled 186 mt, up 13% year-over-year, while export value climbed 16% to $1.1 million. For 2023, exports declined 16% to 2,355 mt, while value fell 15% to $12.6 million. Full-year exports increased to Central America, the Netherlands Antilles and the Bahamas, but declined to Mexico and Canada.



Boosting bottom lines - cow nutrition webinars

This March, Nebraska Extension is rolling out a must-attend webinar series for cow-calf producers keen on mastering cow nutrition and its impact on their operations' financial health. Scheduled for Monday and Thursday evenings—March 11, 14, 18, and 21—from 7:30 to 8:45 p.m. CT, this series promises a wealth of knowledge on optimizing feed costs and nutritional strategies.

Participants will gain insights into how a cow's nutritional needs shift throughout the year and how to interpret feed test analyses and tags. The series will also tackle comparing feed options for the best value and crafting a comprehensive year-round feeding plan.

The $50 course fee includes a valuable notebook filled with Nebraska Extension resources, ensuring participants have ongoing access to critical information. Spots are limited to 35 eager learners, so early registration by March 4 at https://go.unl.edu/feedingthecow is recommended to secure your place and webinar materials.

For any queries or further information, Aaron Berger from Nebraska Extension is available at 308-235-3122, ready to assist. Don't miss this opportunity to refine your feeding strategy and push your cow-calf operation towards greater profitability.



I-29 Moo University webinar to review research on heat stress in dairy calves on Feb. 21

The I-29 Moo University 2024 Dairy Webinar Series continues Wednesday, Feb. 21 from 12 noon to 1 p.m. CDT. The webinar will feature a review of research on heat stress in dairy calves with Dr. Jimena Laporta from the University of Wisconsin–Madison.

Dr. Laporta is originally from Uruguay, where she received a B.S. degree in Biology and a M.S. degree in Animal Science. She holds a Ph.D. in Dairy Science from UW-Madison (2014) and was a faculty member at the University of Florida for five years. She joined the Department of Animal and Dairy Sciences at UW-Madison in fall 2020 as an Assistant Professor in lactation physiology.

Laporta’s research integrates mammary gland physiology with advances in management and nutrition to overcome challenges dairy cattle face across their lifetime, including increased susceptibility to the environment, metabolic disorders, and immune suppression. She incorporates state-of-the-art molecular techniques to investigate how autocrine, systemic, and environmental factors affect the regulation of mammary gland development and function, as well as milk synthesis and composition. She also investigates the underlying molecular mechanisms by which prenatal and postnatal stressors contribute to the programming of offspring’s future potential.

By targeting these early life developmental windows, Dr. Laporta aims to develop management practices and therapeutic interventions to improve future health and productivity outcomes. Her outreach goal is to generate knowledge that can be translated into practical improvements while training future scientists and educating the community on the importance of the efficient production of sustainable dairy products.

There is no fee to participate in the webinar; however, registration is required at least one hour before the webinar. Register online at https://go.iastate.edu/HEATSTRESS24.

For more information, contact: in Iowa, Fred M. Hall, 712-737-4230; in Minnesota, Jim Salfer, 320-203-6093; or in South Dakota, Patricia Villamediana, 605-688-4116.



Iowa Farmer and NCGA Board Member Bob Hemesath Tapped to Serve as President of Trade

National Corn Growers Association board member and Iowa corn grower Bob Hemesath was recently elected to serve as president of the international agricultural advocacy group Farmers for Free Trade.

“I am honored to assume this leadership role at an organization that has been so effective in advocating on behalf of farmers and their trade priorities,” Hemesath said. “I look forward to leading the organization in a direction that will allow us to build on our successes and further advance the trade goals of America’s farmers.”

The U.S. exported 1.8 billion bushels of corn in 2023 valued at $13.1 billion, according to the latest data by the U.S. Census Bureau. Additionally, exports of ethanol and its co-products were exported that year at a value of $7.1 billion.

Corn is also exported in the form of animal protein when corn-fed, U.S.-raised beef, pork and poultry is shipped overseas. Shipments of these products resulted in $23.6 billion in export value in 2023.

With export opportunities being a crucial market for U.S. corn farmers, NCGA and its partners regularly advocate for free trade and market-building opportunities around the globe.

NCGA President Harold Wolle believes Hemesath will provide strong leadership for Farmers for Free Trade.

“Bob is an incredible farmer and advocate, and he will no doubt provide exemplary leadership in this new role,” said Wolle. “Bob knows well the trade issues crucial to corn growers and will be in position to elevate our voices, which makes his appointment particularly important and meaningful to NCGA.”

Farmers for Free Trade mobilizes farmers and the public to advocate for free trade initiatives. It is considered the preeminent advocacy group on the topic.

Hemesath has served on the NCGA board for the last three years and has played a crucial role in the organization’s advocacy efforts in Washington. He raises corn and soybeans and runs a head hog wean-to-finish and feeder-to-finish hog operation in Decorah, Iowa.



Dicamba Court Order Puts Farmers in Immediate, Costly Bind

The American Soybean Association—the national advocacy organization for the industry—and 26 soy state affiliates have sent a letter to the Environmental Protection Agency asking the administration for help following a dicamba ruling in a federal district court in Arizona. The court ruled EPA made a procedural error in issuing 2020 dicamba registrations for over-the-top (OTT) use on dicamba-tolerant soybeans and cotton. Because EPA did not offer a public notice and comment period before issuing the registrations, the court ruled the agency was in violation of the Federal Insecticide, Fungicide, and Rodenticide Act and vacated 2020 registrations for XtendiMax, Enginia, and Tavium.

The ruling appears to affect every state in which the products are registered and thus could impact more than 50 million acres of dicamba-tolerant soybeans and cotton—an area larger than the state of Nebraska.

Josh Gackle, ASA president and soybean farmer from North Dakota, said, “We are clearly disappointed with the court’s dicamba ruling, but more pressing, soybean and other farmers are exceptionally concerned about what this means as we approach 2024 planting season. If the administration does not issue an existing stocks order so we can use the millions of dollars of product already ordered for spring planting, we are in a world of hurt. Not only is there immediate financial loss from not being able to use the product we’ve ordered, but the decision puts tremendous weight on this season’s yield capabilities. If we cannot quickly access dicamba or acquire viable alternatives, we’ll likely have lower production this year from uncontrolled weeds—and that means even greater revenue loss.”

It is unclear whether the ruling will take effect immediately. Most farmers have already placed orders for herbicide and herbicide-tolerant seed. And, there are few alternative products available to cover the capacity of a nationwide switch.

FIFRA gives EPA the authority to issue existing stocks orders for products that are cancelled, which is now a major priority for the soybean industry. ASA also asks for the administration’s support of an appeal of the ruling and help in seeking to stay the ruling from taking effect pending appeal.

In 2023, ASA, its 26 state soy affiliates, and several cotton associations submitted an amicus brief to the District Court of Arizona in this case urging the judge to avoid vacatur. Neither ASA nor the other grower groups are parties to the Arizona case, however.

 

Farmers Need Access to Important Crop Protection Tools

American Farm Bureau Federation President Zippy Duvall today sent a letter to the Environmental Protection Agency asking EPA to allow farmers to use existing stocks of dicamba for the upcoming planting season. Earlier this week, a federal court in Arizona vacated the registration of three dicamba products, which are critically important tools for farmers in fighting resistant weeds.

“Many farmers have already made planting decisions to use dicamba-tolerant crop systems and have planned to use dicamba products in the very near future,” wrote President Duvall. “These farmers invested substantial sums in the dicamba-resistant seeds in reliance on EPA’s prior approval of dicamba on these crops. Without these products, not only are these substantial investments at risk, but farmers do not know how they will protect their crops.”

AFBF is asking EPA to issue an existing stock order to ensure dicamba remains available to farmers throughout the growing season. Farmers should be allowed to continue the use of the product in accordance with current labels.

“Our farmer and rancher members are committed to the safe use of all crop protection tools,” the letter continues. “However, responsible farmers that have invested in – and often taken loans out to purchase – dicamba-resistant products for the current growing season should not bear the financial burden caused by this legal dispute.”



RFA Releases 2023 Ethanol and Distillers Grains Export Reports

According to new statistical reports released today by the Renewable Fuels Association, the value of the U.S. ethanol industry’s exports soared to a record level of just over $7.1 billion in 2023. Ethanol export volumes strengthened to 1.43 billion gallons in 2023, the third-highest level on record. Meanwhile, distillers grains shipments registered at 10.8 million metric tons, slightly down from 2022.

For more than a decade, RFA’s annual trade summaries have provided industry advocates, policymakers, news media, and the public with the latest data and analysis, demonstrating the importance of U.S. ethanol and distillers grains to the world market.

“Exports represent a crucially important value-added market opportunity for U.S. ethanol producers and the farmers who supply feedstock to our industry,” said RFA President and CEO Geoff Cooper. “We exported one out of every 10 gallons of ethanol produced in the United States last year, along with one out of every three tons of distillers grains. The industry’s export sales made a remarkably positive contribution to the U.S. trade balance, while boosting farm incomes across rural America. As countries around the globe embrace ethanol as a low-cost solution for improving air quality and reducing carbon emissions, RFA will continue to pursue and protect free and fair trade opportunities.”

As detailed in the ethanol trade summary report, the 1.43 billion gallons exported in 2023 represented an increase of 9 percent over 2022 and the highest volume since 2019. The value of U.S. ethanol exports surged to $3.82 billion, a record high. Shipments to Canada set an annual record for a single destination, tallying almost 640 million gallons. The United Kingdom, European Union, South Korea, India and Colombia also were sizable markets.

U.S. imports of fuel ethanol plunged to 21 million gallons in 2023, the lowest level in more than a decade. The U.S. remained a net exporter for the 14th consecutive year, as imports accounted for only 0.1 percent of domestic consumption. Net exports of 1.41 billion gallons were the second-highest ever, trailing 1.60 billion gallons in 2018.
    
The second trade summary report released today covers co-product exports, including distillers grains, a high-protein feed ingredient for livestock and poultry. Distillers grains exports totaled 10.81 million metric tons in 2023, representing 30 percent of domestic production. Export volumes were slightly lower than 2022, as was their value, at $3.3 billion.

The U.S. supplied distillers grains to more than 50 countries via 26 domestic ports and exit points. Mexico remained the top export market with a 20 percent share, followed by South Korea and Vietnam and Indonesia. Turkey and Morocco were the largest growth markets in 2023, with increases of 48 percent and 39 percent, respectively, compared to 2022.



Clean Energy’s Renewable Natural Gas Digester at Tri-Cross Dairy Begins Production

Clean Energy Fuels Corp. announced the successful completion and operational launch of its latest renewable natural gas (RNG) production facility at Tri-Cross Dairy in Viborg, South Dakota.

The new RNG facility sits on a 5,000-cow dairy farm and is forecasted to produce 1 million gallons annually of negative carbon-intensity RNG. The project represents a significant milestone in Clean Energy’s ongoing leadership in providing the cleanest fuel for the transportation market at the company’s network of fueling stations across North America.

The construction costs of the RNG production facility, which includes the build of digesters and processing plant, totaled $34 million and was completed in December 2023. The injecting of pipeline quality RNG began shortly after completion. Clean Energy is in process of filing the necessary applications to generate federal and state environmental credits.

“We anticipate 2024 to be a pivotal year in the demand for RNG fuel in the transportation market with the introduction of Cummins’ X15N natural gas engine for heavy-duty trucks. Clean Energy’s fueling infrastructure is expanding to meet that demand and we’ll need a constant source of additional low-carbon RNG to supply those stations. The new production facilities at Tri-Cross Dairy and the other farms in the Midwest that are now producing RNG is a critical component to our strategy,” said Clay Corbus, senior vice president for renewables.

Financing for the Tri-Cross Dairy project is backed by one of Clean Energy’s RNG production joint ventures and developed by Dynamic Renewables. The facility is one in a series of projects in the Midwest for which the companies have partnered together.

Agriculture accounts for nearly 10 percent of U.S. greenhouse gas (GHG) emissions, according to the U.S. Environmental Protection Agency. Capturing methane from farm waste can lower these emissions. RNG is a transportation fuel made entirely from organic waste and drastically reduces GHG emissions by an average of 300% versus diesel. It is so clean that the California Air Resources Board gives RNG from dairy farms an average carbon-intensity score of -330, which is substantially lower than electric vehicles charging with electricity on today’s grid.



Retallick-Riley talks Bovine Congestive Heart Failure at 2024 CattleCon

Cattle feeders who lose livestock to Bovine Congestive Heart Failure (BCHF) know the impact of the disease firsthand. Ready to hear about the latest research on BCHF, feeders and others industry professionals attended a Cattlemen’s College session presented by Kelli Retallick-Riley, president of Angus Genetics Inc. (AGI®). The session took place February 1 at the 2024 National Cattlemen’s Beef Association’s annual convention and trade show in Orlando, Florida.

While not a veterinarian, Retallick-Riley excels in the field of quantitative genetics and is interested in finding ways to combat BCHF from a genetic perspective. She said research, so far, shows heart health (based on heart scores) is heritable, giving her and her team hope that genetic tools can be developed to reduce risk of the disease in cattle.

Retallick-Riley said she also knows there are other elements outside of genetics, like management practices and the health of other organs, to be considered.

“Because of its low incidence rate, only evaluating cattle dying from the disease is too limiting,” she said.

Recent research has focused on identifying animals more prone to BCHF. At the same time, the frequency of the disease has been increasing. She said this increase could mean either there really are more cases of BCHF occurring, the industry is getting better at diagnosing it, or a combination of the two factors. Ultimately, the direct cause or causes of BCHF are not yet understood.

Besides the obvious loss of life, what is particularly painful about BCHF is the cattle dying of it inflict a larger economic impact than those lost at earlier stages in life. According to the feedlot studies referenced by Retallick-Riley, affected cattle were dying of BCHF at an average of 110 days on feed with individual deaths taking place at points across a large swath of the feeding phase.

She shared a few other known pieces to the disease’s puzzle, including a connection to respiratory health.

“When animals were culled and treated for [acute interstitial pneumonia (AIP)], they had a higher probability or a higher rate of succumbing to bovine congestive heart failure,” she said.

Researchers have also studied cattle in the complex disease category, meaning they have been treated for at least one other disease. Retallick-Riley said of these cattle, “they also had a higher probability or a higher rate of being called a heart disease death.”

Without complete information on animals’ health, it is difficult to know if some of these were misdiagnosed and treated for AIP or complex disease without any advantage.

When looking at beef-type cattle, beef x dairy type, versus dairy-type cattle and their crosses, she said there are similar ratios for instance of disease. Across the board, she and research partners are seeing high to modest genetic correlations between heart scores and performance traits including hot carcass weight, with little to no correlation to marbling score in a study presented by Colorado State University.

Looking more at the prevalence of BCHF, from 2017-2019 “less than 1% of cattle placed on feed were dying of this disease,” Retallick-Riley said, and the call to research the disease came about as a grassroots effort among producers.

A consistent theme since that time, as with most research efforts, is the need for quality data.

Relying on records from producers and researchers alike – heart scores, genetic testing and phenotypic data – all continue to be important for better understanding BCHF.

“Animals that are dying of congestive heart failure deaths, those are the ones that never make it to the processing plant,” Retallick-Riley said. “That also means that good data recording in the field is crucial as well.”

When looking at heart scores in particular, preliminary results of current research efforts show a 23% incidence rate of BCHF when hearts score as a 3 or 4. As a reminder, there are no 5s at the packer in the recent data collected by AGI, because those hearts have already given out under the pressure of the disease.

When studying this disease, Retallick-Riley said she tries to think of the whole animal as a system rather than just focusing on the heart.

“Heart score genetic tools could potentially help us reduce the caseload, but I doubt that it’s going to eliminate the disease entirely,” Retallick-Riley said. “Colorado State’s research has preliminary heritability estimates of about 0.28. What about the other 72%?”

She said, “If we put direct selection process on heart score alone, we could create cattle with less heart remodeling. We may also decrease the carcass weight on these cattle based on initial reports.”

Retallick-Riley said her team at AGI® and partners on the project have thought about developing some type of multi-trait index, but more research is needed to identify the best tools for widespread use.

“One of the things that we need to continue to think about is how we’re going to use this at the end of the road, how we’re going to use this to impact production and selection decisions,” she said.



Horizon II Seeks 39,000 Acres in Northern Missouri and Southern Iowa for Turnkey Prairie-to-Energy Initiative

The first 1,000 acres of the Horizon II pilot project are being converted to native prairie near Princeton, Missouri, showcasing a new way for landowners to earn income while improving the environment.

The project has funding available for another 39,000 acres of highly erodible land in Northern Missouri and Southern Iowa to compensate landowners. Horizon II seeks to build wildlife habitat, help the environment, and use sustainably harvested native prairie feedstock to create Renewable Natural Gas (RNG). There is also funding available to incentivize planting 40,000 acres of winter-hardy cereal rye cover crops which will also be harvested for RNG production.

Significant Financial Incentives Now Available Owners of Marginal Farmland
Through an $80 million USDA Partnerships for Climate-Smart Commodities grant awarded to a partnership of 13 public and private entities led by Roeslein Alternative Energy (RAE), Horizon II will provide owners of highly erodible land significant income to care for that property in a new, and arguably better, way. The incentives include:
    Rent: $160 per acre per year for highly erodible land for the duration of the contract.
    Turnkey Approach: Horizon II pays all expenses for prairie seed, installation, maintenance for first two years.
    Renewable Energy Revenue: Beginning in year 3, receive $37 per ton of harvested prairie biomass delivered to the RAE anaerobic digester that will be located near Albany, Missouri.
        Or: The landowner receives $1 per ton if RAE handles harvest and delivery.
    Potential Environmental Credit Compensation: Additional income from carbon sequestration and other ecological services (landowner receives 75%).

Planting Process – Emulating Mother Nature
Members of the media are invited to cover the first 1,000 acres of prairie being planted near Princeton, Missouri.
    Dormant Seeding (or Frost Seeding)
        Native Prairie seeds perform best when planted during the cold of winter.
            Seeds are broadcast over-ground beginning in late January.
            During frost-heaving cycles, the seeds work their way to the proper soil depth.
            After a couple of cold months in the ground, the seeds are ready for optimal germination in the spring.
    Locally Sourced Seed Mix: Diverse mix of forbs and grasses native to northern Missouri and southern Iowa, ensuring success in the region.

Beyond Biogas: Ecological Services, Wildlife Habitat
While Horizon II produces renewable natural gas (RNG) from prairie biomass, the project also offers significant environmental benefits:
    Wildlife Habitat: Creates valuable habitat for native species.
    Ecological Services: Improves water infiltration, soil health, carbon sequestration, and prevents soil erosion.

Join the Horizon II Movement
Landowners, the future of sustainable agriculture is here. Join Horizon II and earn income while making a positive impact on the environment! The project will create a greener future for your land and your community! Join us!
    39,000 acres still needed: Landowners in the Grand River Basin (northern MO, southern IA) are encouraged to participate.
    Focus area: Smithfield Foods Ruckman Farm near Albany, MO, will be the site of the next Horizon II RNG facility.

Information Session
March 1, 2024 (10:30 AM) with a catered lunch at noon. Please RSVP by contacting Steve Mowry, Director of Land Development and Prairie Establishment at smowry@roesleinae.com or by calling 816-830-6900.