A World of Profitability

Thriving international animal ag sector leads to record soy exports.

Your biggest customers are truly a bunch of animals. Here at home, the poultry and livestock sector represents your biggest customer, and outside of the United States it’s no different. The growth in international poultry and livestock production goes hand in hand with the growth in U.S. soy exports, and both directly impact you and your fellow U.S. soybean farmers.

The growth of the poultry and livestock sectors across the U.S. and overseas provides all U.S. soybean farmers with increased demand for their product for use in feed rations. But watch out: Some of the biggest growth in poultry, pork, beef and fish production takes place outside of the United States, using U.S. soy. Here are some examples and other highlights of international poultry and livestock production:

• According to the U.S. Department of Agriculture’s Foreign Agricultural Service (USDA-FAS), Brazilian cattle farmers are the largest producers of beef and veal outside the United States, with nearly 10 million tons produced. Forecasts for 2011 indicate that Brazilian beef and veal production could exceed 10.3 million tons.
• China leads the world in poultry and pork production, with nearly 14 million tons of broiler meat produced and more than 56 million tons of pork produced in 2010. China’s broiler production could exceed 14.5 million tons in 2011, according to USDA-FAS data.
• Aquaculture is one of the fastest-growing sectors of animal agriculture. The U.N. Food and Agriculture Organization points out that world aquaculture production, excluding aquatic plants, surpassed 55 million tons in 2009, up from just under 42 million tons in 2004. Vietnam has the greatest growth rate among the top 15 aquaculture-producing countries. It experienced a 22 percent increase in fish production from 2000-2008. By comparison, U.S. production grew 1.2 percent over that same time.

 

Over the last four years, U.S. soy exports have hit record levels. In 2010, the United States exported 1.9 billion bushels of soy to customers around the globe, many of whom are poultry and livestock farmers. The result: increased export demand that leads to increased profit potential for every U.S.
soybean farmer.

No matter where you deliver your soybeans, it’s important to know that the delivery point is not where your real customer resides. Beyond your biggest customer here at home, your real customers can also be found on animal operations around the world.