The National Corn Growers Association (NCGA) partnered with the U.S. Meat Export Federation to update a study on the value of red meat exports to domestic U.S. corn growers. The original study was conducted in 2015. In 2018, the study showed beef and pork exports used 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.
Study Highlights for Kentucky:
U.S. red meat exports generated a market value of $24 million to Kentucky corn and $680 thousand to Kentucky DDGS in 2018 (corn/DDGS consumed by meat exports * annual average corn/DDG price)
U.S. red meat exports are expected to generate a market value of $287 million to Kentucky corn and $7 million to Kentucky DDGS from 2019 – 2028
Without red meat exports, Kentucky corn farmers would have lost $84 million in corn revenue in 2018 (state corn production * $0.39/bushel)
Other highlights from the updated study:
Since 2015, one in every four 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 the annual average price of $3.53 per bushel).
There would be a loss of $5.7 billion in corn value without red meat exports.
“It’s important to continue to foster these types of relationships to continue to grow demand for red meat worldwide,” said Dan Wesely, Chairman of the Feed, Food, and Industrial Action Team. “The animal ag industry is the largest user of U.S. corn and utilizing studies that show what that impact is to the corn producer is extremely beneficial as we continue to help these markets expand.”
World Perspectives, Inc. (WPI), conducted the study.