IMDC MeetingOctober 26, 2017Santa Barbara, California

Kent Swisher, Vice President, International Programs

• International Update – Staff, USDA• Major Initiatives/Updates• Statistics

Staff

• German Davalos, Director Latin America, 14 years with NRA – Lucy Cano 14 years

• Peng Li, Director Asia, over 10 years– Teresa Hon – over 28 years

• Bruce Ross, Brussels, 10 years

Consultants:• Chile, China, Indonesia, Vietnam

Strategic Intention - Global

• Domestic and international markets – Promote the demand and market access for rendered products to domestic and international customers. Secure adequate resources from key strategic partnerships (members, federal government and strategic allies).

USDA News

• New Positions at USDA - Deputy Secretary and Under Secretary for Trade and Foreign Agricultural Affairs

• October 3, 2017 Steve Censky and Ted McKinney confirmed

• 2018 Farm Bill underway

HPAI - 2015

• 2015 – 211 Commercial Flocks, 21 Backyard Flocks

• 2016 – 1 Commercial Flock – H7N8

• 2017 - 0

RTFO - UK

NRA Funded 2 Studies

NAFTA

• NRA – Meetings with USTR• NRA – Meetings with USDA/FAS • June 12, 2017 NRA submitted comments

regarding the USTR Federal Register Notice requesting comments on negotiating objectives

• June 27, 2017 – NRA testified at the NAFTA Modernization Hearing

• October 12, 2017 – NRA met with US grain exporters and the CAN (Mexico agriculture producers) to release a joint statement in support of North American trade

NAFTA – NRA Comments

• Do no harm!• Maintain 0 tariffs on rendered products• Market access for US ruminant MBM to Mexico• Market access for mixed specie YG/UCO and

tallow from Canada to the US

NAFTA Issues

• 5 year sunset provision• Seasonality

Trade Statistics

US Red Meat and Poultry Production

0

5

10

15

20

25

30

35

40

45

1990 1995 2000 2005 2010 2015 2020 2026

Billion pounds

Broilers

Beef

Pork

Source: USDA/ERS

Disappearance

Exports

Exports

Product/Country 2010 2011 2012 2013 2014 2015 2016 2016/2015Yellow Grease (includes UCO) EU28 120,982 222,722 154,095 147,289 153,813 128,128 184,984 44.37%

Mexico 161,305 131,831 113,534 95,892 95,574 72,564 50,014 -31.08%

Canada 15,392 26,547 15,604 11,533 10,604 11,716 11,045 -5.73%

Dominican Republic 39,945 30,460 17,629 18,082 15,518 9,585 10,639 11.00%

Honduras 5,989 7,236 6,920 3,605 5,890 7,057 9,071 28.54%

Guatemala 19,023 10,224 7,611 3,799 7,125 6,066 6,939 14.39%

Total All

Countries 549,053 566,246 452,067 361,031 333,133 252,959 286,189 13.14%

U.S. Export Customers by Product (in metric tons), 2010-2016

Exports

Markets

Markets

Markets

Markets

Singapore - Tallow

Singapore - YTD

YTD Exports

U.S. Exports of Animal Protein Meals in MT (YTD Jan-Jun)2015 2016 2017 17/16

Indonesia 111,521 140,601 181,297 29%

China 33,519 64,689 84,262 30%

Mexico 48,089 45,631 69,772 53%

Canada 24,884 31,731 31,904 1%

Vietnam 5,838 14,161 14,246 1%

Chile 27,837 14,352 12,670 -12%

Malaysia 2,341 1,175 9,469 706%

Ecuador 6,403 4,941 9,343 89%

Thailand 3,743 2,391 7,092 197%

Germany - 2,500 3,945 58%

Peru 655 577 3,108 439%

Cambodia - - 2,356

Honduras 956 5,156 2,336 -55%Myanmar - 120 1,716

TOTAL 283,909 345,607 438,768 27%

YTD Exports

YTD Exports