China a Big Win for US Beef Industry - But Derrell Peel Says It'll Take Time Before We See a PayoffFri, 16 Jun 2017 12:11:51 CDT
China may be in the spotlight right now, with its government and ours in the US having come to terms on the protocols that will allow our beef products access to their markets. But, currently, the US already has several major export markets already in place. Extension Livestock Market Economist Dr. Derrell Peel spoke recently with Radio Oklahoma Ag Network Farm Director Ron Hays, about how important international trade is for our beef industry.
“The fact is, in the US, we don’t utilize well, all of the products that come from the beef industry,” Peel said. “Some of them have lower demand and yet most beef products are perishable. So, when you have low valued products priced in a way to get them consumed, you’re detracting away from demand that would rather focus on higher valued products.”
On the other side of the world, however, products not suited for our domestic market, may actually be in higher demand and have a higher value in foreign markets. The ability to export these cuts, allows US beef producers to salvage the carcass value elsewhere, that might have been lost if it were sold domestically. This has been the case for the major markets we’re already exporting to, like China and South Korea. But it didn’t happen overnight says Peel.
“There’s a lot of potential in this market overtime. But, I think it will take some time,” Peel insisted referencing China. “That’s a process that will grow over time as you try to build market share.”
Listen to Dr. Peel and Hays discuss the importance of international trade for our beef industry, on today’s Beef Buzz.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
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