U.S. Cattle Producers from All 50 States Urge CAFTA Passage

‘Our Distinctive U.S. Steaks Deserve Export Opportunities’

Washington, D.C. (July 26, 2005) – U.S. cattle producers reside in all 50 states, and their economic impact contributes to nearly every county in the nation, making them a significant economic driver in rural communities. The U.S. beef industry is made up of more than one million businesses, farms and ranches operating in all 50 states. (Cattle-Fax, March 2005)

“We represent the heartland of America, and we need the Central American Free Trade Agreement to open doors for our beloved U.S. beef products,” says Texas cattle producer and NCBA President Jim McAdams.  “After generations of perfecting cattle genetics, breeding, feeding, and animal care practices on the farm, U.S. steaks are the best in the world. Our efforts have created a niche export market opportunity for the United States, and we need passage of the Central American Free Trade Agreement (CAFTA) to open the door for these exceptional U.S. beef products.” 

As of January 2005, there were 95.8 million cattle in the United States. Beef and beef variety meat exports were worth approximately $3.8 billion during 2003. Trade disruption since December 2003 has cost U.S. beef cattle producers more than $175 per head and has exceeded $4.5 billion in cumulative income losses.

“We need to break down barriers to U.S. beef exports, and CAFTA does exactly that,” says Michelle Reinke, NCBA associate director of legislative affairs. “CAFTA countries already have essentially duty-free access to our market, yet they have not filled their quotas for fresh/chilled or frozen beef. In fact, U.S. data recorded back to 1995 says there have been no live cattle imports from these nations aside from one bovine animal in 2002. Fundamentally, this agreement is about eliminating barriers for U.S. products going south, and that’s why cattle producers strongly support its passage.”

Cattle producers see these six countries as growth market opportunities that cannot be ignored, Reinke says.

“Opening export opportunities is how we build future markets,” explains NCBA Chief Economist Gregg Doud. “Trade experts agree this region is a growth market for high quality grain-fed beef that only the United States can provide to hotels and upscale restaurants. The Dominican Republic is a middle-income country whose most important sector is tourism, accounting for nearly $1.5 billion a year.  Those on vacation would love to enjoy U.S. steaks, but right now tariffs are too high for us to export there.  It is to the tourism industries in these countries which U.S. product will be targeted immediately following the implementation of this agreement.”

A U.S. Meat Export Federation regional market analyses states that the Central and South American region is “currently a market for both muscle meat and variety meat products, and is a developing market for U.S. beef exports with potential for growth.”

“This agreement is a well thought-out deal for U.S. cattle producers, offering immediate market access for our products,” says McAdams. “Therefore, cattle producers across the U.S. will continue to counter bogus CAFTA claims and will fight for passage in the House this week.”

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