American Meat Institute AMERICAN MEAT INSTITUTE PRESENTATION AT

American Meat Institute

AMERICAN MEAT INSTITUTE PRESENTATION AT Agro. Balt 2014 “U. S. Meat and Poultry Market—Opportunities and Challenges” Kaunas, Lithuania April 3, 2014 AMERICAN MEAT INSTITUTE

American Meat Institute • Who Is AMI? • Examples of AMI’s Programs: – – – – AMI and International Affairs Activities AMI and Food Safety and Inspection AMI and Worker Safety Animal Handling and Welfare Customer Outreach and the Glass Walls Project Meat Myth Crushers 2015 IPPE in Atlanta AMERICAN MEAT INSTITUTE

AMI • Represent 95% of red meat and 70% of turkey processing companies in the U. S • Monitor Legislation, Regulations and Media Activity that impacts our industry • Consumer Information/Outreach, Worker Safety, Animal Handling, Inspection, International Trade. • IPPE in Atlanta January 27 -29, 2015 • Staffed by 28 professionals. • Merger with NAMA in 2015. AMERICAN MEAT INSTITUTE

“International Meat Association”? • We support and promote trade in meat and poultry products. • Membership: U. S. , Canada, Mexico, Brazil, Japan, Denmark, Italy…. and China (Shuanghui/Smithfield) • Shelf-stable Food Processors Association (the “Canners”) • U. S. Hide, Skin and Leather Association • National Hot Dog and Sausage Council AMERICAN MEAT INSTITUTE

AMI and International Trade Initiatives

Global Outlook on Meat Industry • World meat production is not keeping up with consumer demand • Consumption is decreasing in the U. S. , but demand is increasing rapidly in developing economies • Supplies of some meats, especially beef and, now, pork, will be severely constrained over the short term • International trade is essential to the industry AMERICAN MEAT INSTITUTE

Source: CME AMERICAN MEAT INSTITUTE

U. S. Cattle Inventory Declining 2013 = 89. 3 2014 = 88. 3 Source: CME AMERICAN MEAT INSTITUTE

U. S. Beef PSD (million MT) • 2009 2010 2011 2012 2013 2014 11. 9 12. 1 12. 0 11. 9 11. 7 11. 0 Imp 1. 2 1. 0 0. 9 1. 0 Exp (. 9) (1. 0) (1. 3) (1. 1) (1. 0) Con 12. 2 12. 1 11. 6 11. 8 11. 6 11. 0 Prod AMERICAN MEAT INSTITUTE

US Pork PSD (million MT) • 2009 2010 2011 2012 2013 2014 Prod 10. 4 10. 2 10. 3 10. 6 10. 5 10. 8 Imp . 4 . 4 . 4 Exp 1. 9 2. 4 2. 3 2. 4 Con 8. 9 8. 7 8. 3 8. 6 8. 8 AMERICAN MEAT INSTITUTE

U. S. Import Situation • Beef – Subject to a import quota. Country specific + 64, 805 MT (all sources); 8 -10% of consumption imported. – The BSE comprehensive rule. Veal from the EU. • Pork - FMD and other health restrictions. Impact of Porcine Epidemic Diarrhea Virus (PEDv). • Poultry – Strict import requirements; Relatively few countries qualify to export poultry to the U. S. • Lamb/sheep meat – Relatively open market. AMERICAN MEAT INSTITUTE

U. S. - Beef Import Quota (MT) • • Canada No limit Mexico No limit Australia 378, 214 New Zealand 213, 402 Japan 200 Argentina 20, 000 Uruguay 20, 000 Other countries or areas - 64, 805 • The aggregate quantity of beef, entered under subheadings 0201. 10, 0201. 20. 30, 0201. 20. 50, 0201. 30. 10, 0201. 30, 0201. 30. 50, 0202. 10, 0202. 20. 30, 0202. 20. 50, 0202. 30. 10, 0202. 30 and 0202. 30. 50 in any calendar year shall not exceed the quantities specified in this note. AMERICAN MEAT INSTITUTE

Import Profiles 2013 • Beef (boneless + bone-in, FR/CH/FZ): • $3. 43 billion – Australia (29. 8%); Canada (23%); N. Z. (22. 6%); Mexico (15. 8%); Uruguay (2. 6%) • Beef (prepared; cooked): • $325. 6 million – Brazil (70%); N. Z. (13. 1%); Uruguay (9. 7%); Australia (2. 2%) • Must meet APHIS (animal health) and FSIS (meat processing) requirements. AMERICAN MEAT INSTITUTE

Import Profiles 2013 • Pork (FR/CH/FZ): – $1. 13 billion – Canada (80%); Denmark (11%); Mexico (2%); Poland (1. 6%); Ireland (1. 5%); U. K. (1. 5%) – Hams (FR/FZ): • $173. 4 million – Canada (>94%); Chile, Poland • Hams/Shoulders (Prepared): – $142. 3 million – Canada (40%); Poland (27. 4%); Italy (15. 1%); Denmark (13. 8%); Mexico (2. 7%). – USDA/APHIS and FSIS requirements. AMERICAN MEAT INSTITUTE

Importance of International Trade for U. S. Companies • Beef (~13% of production) – The U. S. exported $6. 16 Billion in 2013; 1. 17 Million MT – Top markets: Japan, Canada, Mexico, South Korea, China/HK • Pork (~28% of production) – Exports topped $6. 05 Billion in 2013; 2. 14 Million MT – Top markets: Japan, Mexico, China/HK, Canada, South Korea • Poultry (~20% of production) – Exported over $5. 62 Billion in 2013; 4. 13 Million MT – Top Markets: Mexico, China/HK, Canada, Russia, Angola AMERICAN MEAT INSTITUTE

U. S. Market Opportunities • Processed beef and veal. Organic/grass-fed. • Processed pork products in targeted markets. – Hams and canned products – Chicago and NYC In general, imported meats have held up well during the recession. Fancy Food Show: NYC. June 29 – July 1, 2014 http: //www. specialtyfood. com/fancy-food-show/summer-fancy -food-show/ AMERICAN MEAT INSTITUTE

TTIP Negotiations U. S. Food and Agriculture Dialogue on Trade Agreements (>100 ag companies + associations) Negotiating Principles: 1. Cover all elements of trade and investment. 2. No product or sector exclusions. 3. Phase out of all tariffs/quotas/market access barriers. 4. Risk-based, scientific decision making; equivalence, and regulatory convergence. 5. Enforcement Provisions (Rapid Response Mechanism) 6. Single undertaking. AMERICAN MEAT INSTITUTE

U. S. – EU Transatlantic Trade & Investment Issues - Tariffs and quotas (pork, beef, poultry) - Pork: *Beta-agonists banned; *Chilling rule(trichinae); no comingling; heart incision rule; PRTs not approved - Beef (non-hormone quota; lactic acid) - Poultry (hyper-chlorinated H 2 O+3) -Geographic indications x BOLOGNE, BLACK FOREST HAM AMERICAN MEAT INSTITUTE

Regulatory Cooperation Initiative • Building on the NAFTA experience, encourage U. S. and European health and regulatory authorities to work together to: • Reduce Unnecessary, Redundant and Expensive Regulatory Burdens and facilitate meat trade. • Strive for regulatory convergence/harmonization. AMERICAN MEAT INSTITUTE

Regulatory Cooperation Initiative • Initiative Currently Focused on Three Main Areas: – Reducing Border Inspection Delays – Reducing Microbial Testing at the Border – Implementing an E-Documentation System for Export Certificates/Shipping Documents AMERICAN MEAT INSTITUTE

China Driving Demand AMERICAN MEAT INSTITUTE

AMI Foundation and Scientific Affairs

AMI Foundation • The American Meat Institute Foundation (AMIF) is a non-profit research, education and information foundation established by the American Meat Institute. • AMIF seeks to identify technologies and practices that enable meat and poultry companies to produce safer and more nutritious meat and poultry products. • The Foundation also provides resources to consumers to empower them with information to select and prepare safe and nutritious meat and poultry products for their families. AMERICAN MEAT INSTITUTE

AMI and Food Safety and Inspection

AMI Education Conferences • AMI and the AMI Foundation sponsor annual education conferences, topical workshops, award programs, committee meetings and an annual trade show. Every event is an opportunity for industry processors, suppliers and press to learn, network and take back valuable solutions. AMERICAN MEAT INSTITUTE

AMERICAN MEAT INSTITUTE

AMI & Worker Safety

Employment/Wages • In 2011 there were over 500, 000 workers directly employed in the U. S. meat and poultry packing and processing industries. • Their combined salaries totaled more than $19 billion. • The meat and poultry industry impacts firms in all 509 sectors of the U. S. economy, in every state and congressional district in the country. • Industry’s economic “ripple effect” generates $832. 4 billion annually to the U. S. economy or roughly 6% of the entire GDP. AMERICAN MEAT INSTITUTE

OSHA • Occupational Safety and Health Act of 1970 developed to ensure safe working conditions for all employees in all industries • Because the meat and poultry industry is labor intensive and because meat processing requires sharp tools and repetitive motion, selecting proper equipment for the job is critical and required by OSHA standards. AMERICAN MEAT INSTITUTE

AMERICAN MEAT INSTITUTE

AMERICAN MEAT INSTITUTE

Occupational Injury and Illness Rates AMERICAN MEAT INSTITUTE

Animal Handling & Welfare

Animal Handling • AMI works closely with Dr. Temple Grandin • Developed the “AMI Audit. ” Criteria includes: – – Livestock vocalizations that may indicate stress Slips and falls that can cause injury The accuracy of stunning The effectiveness of stunning techniques in animals that are insensitive to pain – The use of electric prods • Animal Care and Handling Annual Conference • AMI members share information on how to enhance animal welfare • Website: www. animalhandling. org AMERICAN MEAT INSTITUTE

AMERICAN MEAT INSTITUTE

Customer Outreach

Customer Outreach • Examples of AMI’s Customer Outreach Efforts Include: – – – Meat & Poultry Facts Booklet Meat. Matters. Info. org Safe. Food. Inc. com Sustainable. Meat. Industry. org Cornfor. Foodnot. Fuel. com – Glass Walls Project with Temple Grandin AMERICAN MEAT INSTITUTE

Customer Outreach AMERICAN MEAT INSTITUTE

Meat Myth Crushers

Meat Myth. Crushers • Fewer than five percent of Americans live on farms. The majority are separated from farming by multiple generations. • Americans are vulnerable to media myths and misinformation. • Meat Myth. Crushers goal is to crush the myths and provide referenced facts to make informed choices that are right for the consumer. AMERICAN MEAT INSTITUTE

WWW. IPPEXPO. COM Join Us! Jan. 27 -29, 2015 Atlanta, GA AMERICAN MEAT INSTITUTE

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