INDUSTRY OFFICIAL SAYS INTERNATIONAL TRADE RELATIONSHIPS CRUCIAL TO U.S. CATTLE PRODUCERS

DENVER, Colo. (November 13, 2001) – Increasing feeder cattle exports to Canada are helping dramatically improve cow/calf options in northern U.S. states, according to the president of the National Cattlemen's Beef Association (NCBA).

During October, exports of U.S. feeder cattle to Canada increased by 64 percent over the same period in 1999, and by nearly 5 percent over 2000. Overall, last year feeder cattle exports increased by 13 percent over the previous shipping year.

"We're working diligently to see that interests of U.S. cattle producers are protected in the international market," said Lynn Cornwell, a cattle producer from Glasgow, Mont., and NCBA president. "As more and more states are authorized to ship feeder cattle north, and greater and greater equilibrium is achieved, the better it will be for those of us who raise cattle in the U.S."

This year, South Dakota was approved as a shipping state to Canada. And the U.S. continues to push for increased access to the Canadian market for its cattle.

Cattle aren't the only export of the U.S. cattle industry. Beef is a product enjoying increased acceptance worldwide. Developing U.S. beef exports throughout the world has helped enhance beef producer profitability by widening the customer base for the end product.

In 2000, for instance, world meat demand grew by more than 3 billion pounds -- and less than one percent of the growth was in the U.S. In 15 years, U.S. beef exports have increased 325 percent in volume and 393 percent in value, according to the U.S. Meat Export Federation.

Through NCBA trade policy efforts, the U.S. cattle industry is helping support expansion of beef exports. For instance, NCBA supported the acceptance of China into the World Trade Organization (WTO). The WTO officially accepted China as a member on Nov. 10, and Taiwan on Nov. 11. China’s membership in the WTO gives America’s cattle ranchers access to new wholesale and retail market channels, as tariffs on beef will decline from 45 percent to 12 percent by 2005. U.S. farmers and ranchers will benefit through increased exports to a country of 1.3 billion people.

"With the varying strength of the U.S. dollar and other issues outside of producer control, the level of success in exports will vary from year to year," Cornwell said. "But about 96% of the world’s consumers live outside the United States, and for this reason the U.S. needs to be aggressive in the international market."

According to Cornwell, the U.S. cattle industry agenda in the international market was part of World Trade Organization trade talks last week. U.S. leaders at the WTO Ministerial Conference in Doha, Qatar, pursued many objectives NCBA is seeking.

Cornwell noted that a level playing field is important to U.S. cattle producers when it comes to international trade, but that isolationist policies in agriculture would only serve to hurt cattle producers. "Closing our borders is not an option in today's marketplace," Cornwell said. "While we must assure that all countries are playing by the same scientific and economic rules, we must also work to be able to compete on the world stage."

Cornwell pointed out that international trade will happen with or without the U.S., and closing the borders could result in widespread retaliation not just on the cattle industry front, but on many agricultural and non-agricultural fronts.

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Producer-directed and consumer-focused, the National Cattlemen's Beef Association is the trade association of America’s cattle farmers and ranchers, and the marketing organization for the largest segment of the nation’s food and fiber industry.