USMEF Strategic Planning Conference Focused on Future of Meat Trade

While marking the 40th anniversary of the organization’s founding, the 2016 USMEF Strategic Planning Conference in Carlsbad, California, is decidedly focused on the future. This was a key point of emphasis in the address delivered Wednesday by Philip Seng, USMEF president and CEO.

Keynote speaker Scott Aughenbaugh of the Center for Strategic and International Studies addresses USMEF members

“This week there will be many remembrances of what we’ve accomplished in this organization over the past 40 years, and everyone here should take great pride in that,” Seng said. “But for most of you, it’s not the past that drove you to attend this meeting. It’s about what we’re going to do today, tomorrow and into the future.”

Seng said that with the recent increase in pork and beef production, the U.S. meat industry faces an urgent challenge of finding new opportunities in international markets. But larger supplies have also enhanced the competitiveness of U.S. red meat exports, which are well-positioned for a strong finish in 2016. He noted that beef and pork exports are gaining momentum despite growing anti-trade sentiment and a proliferation of barriers that are not conducive to trade.

“Trade is no longer rising around the world,” Seng explained. “This is actually the first time since World War II that global trade has declined during a period of economic growth. So what we are doing in the meat industry – the fact that we are increasing our exports – is really going against the grain because many industries are not enjoying robust growth in their export business.”

Seng’s remarks were followed by a thought-provoking presentation by keynote speaker Scott Aughenbaugh, deputy director of strategic futures at the Center for Strategic and International Studies, who challenged USMEF members to look decades into the future at how their businesses must adapt as the world’s population, food demands and resources change.

“By the year 2050, the world will need 60 percent more food than we are producing in 2016,” Aughenbaugh said. “How that food is produced – along with how and where it is traded – is something that needs to be thought about now.”

Aughenbaugh’s presentation titled “Seven Revolutions: Scanning the Horizon Out to the Year 2035 and Beyond” spotlighted several issues of particular concern to the meat industry, including:

• Science versus perception: “Science and data versus perception is a huge driving issue for GMOs, even though the National Academies of Sciences has come out and said they are safe, based on the evidence that we have today and very likely the evidence we are going to have going forward.”
• What happens if we have a global slowdown? “Over the past 40 years the world has grown at a rate of about 3.8 percent, and there are expectations that we might grow at about 2.1 percent for the next 40 years, with the U.S. falling in the middle of that average.”

• How to deal with a lack of enthusiasm for trade: “What happens if we stop being interested in trade? We need TPP (the Trans-Pacific Partnership), TTIP (the EU-U.S. Transatlantic Trade and Investment Partnership) and probably a few other trade agreements that would be out there over this time period.”
• Investing in cold chain infrastructure, especially in emerging markets: “You have to focus more efforts on cold chain storage and infrastructure, which is not being talked about enough in the United States. It’s going to be a huge issue in getting your product to market going forward.”
• Urbanization: Aughenbaugh noted that the number of “mega-cities” with 10 million or more people will nearly double by 2035. The good news is that many are located on coasts, which will make exporting product to them easier. The bad news is that many will not have the necessary infrastructure in place to handle trade.

Vice Chair Dennis Stiffler updates members on the USMEF Strategic Plan

Wednesday’s general session also featured opening remarks from USMEF Chair Roel Andriessen, senior vice president of international sales for Tyson Foods. Andriessen noted that while this is a volatile time for U.S. agriculture, it serves as a reminder of why so many sectors of the supply chain participate in USMEF – so they can work collaboratively to capitalize on new export opportunities.

Dr. Dennis Stiffler, USMEF vice chair, gave members an update on the new USMEF Strategic Plan for 2016-2020. Stiffler noted that the plan’s core objectives align with the stated strategic objectives of the U.S. beef, pork and lamb industries. By 2020:

• Grow the value of U.S. beef exports as a percentage of total beef value to at least 16 percent
• Increase the volume and value of pork exports equating to a 9 percent average annual increase in value and quantity compared to the benchmark
• Achieve a 5 percent annual increase in trading volume of lamb

The USMEF board of directors will vote on approval of the strategic plan at its Nov. 4 business session. More details on the plan are available online.

The USMEF Strategic Planning Conference continues Thursday with an address by James McKenna, president and CEO of the Pacific Maritime Association, who will discuss efforts to ensure the efficiency and competitiveness of U.S. West Coast ports, as well as key issues currently facing the shipping industry. USMEF’s standing committees – the Pork and Allied Industries Committee, Beef and Allied Industries Committee, Exporter Committee and Feedgrain and Oilseed Caucus will also meet on Thursday.