USMEF's Erin Borror Suspects Increased Herd Liquidation May Lead to Tighter Supplies in the Future
Oklahoma Farm Report
09 May 2022
Senior Farm and Ranch Broadcaster, Ron Hays is back with Erin Borror, Economist with the U.S. Meat Export Federation, talking about beef export markets.
“On variety meats, a big part of the constraint there has just been labor availability in our plants,” Borror said. “We know for both beef and pork that the variety meats demand in the international markets is there.”
Borror said a common complaint from staff around the world is that they cannot access as much product as they would prefer to. That situation continues, she added.
“The labor situation in plants has improved, but to be able to capture, package, and produce these variety meats for export does take additional labor,” Borror said. “I have heard from the exporters they are still leaving money on the table because they just don’t have the manpower to pack everything for export.”
Pet food demand, Borror said, has been strong in the U.S. market. For those who can send variety meat items into the pet food channel, that has been a high-value alternative, she added.
“Through all of this we have seen really strong prices for these variety meats,” Borror said. “That unit value, if you will, keeps increasing.”
For example, Borror said the March variety meat volume was down slightly year on year, but that value was sharply higher because they are still paying up to get what product they can.
“For March, the beef and variety meat export value per head of fed slaughter, so just on that steer and heifer slaughter, averaged $472.73 ahead,” Borror said. “That was up 36% or about $127 per head more than the year-ago comparison, and then to that first quarter, it averaged $474.10 up 41% or an increase of $138.65 cents per head.”
Borror said we are exporting a larger share of production...
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