New Angus, the inheritors of EB-5 boondoggle Northern Beef Packers here in Aberdeen, is counting on global demand for the kosher and halal DemKota-branded meats they are starting to produce.
New Angus may be swimming against the import-export flow. In a speech to beef producers Thursday in Huron, former legislator Frank Kloucek said U.S. beef producers are getting hammered by imports:
According to USDA FSIS reports year to date imports of meat were up 14 % from 27 countries while USA meat exports to those same countries were down 12%. For the year ending with the week 49 Nov 27th to Dec 5th 238,490 metric tons [2200 lbs equals a metric ton] or a whopping increase so far this year of 52,467,800 pounds [52 million 467 thousand 8 hundred pounds] INCREASE of imported meat from 27 foreign countries. This will probably shatter all meat import records and there are still four weeks to go until years end! [Frank Kloucek, press release, 2015.12.21]
The strong dollar is slowing exports of meat just like other products, and the dollar will likely stay strong through 2016 against the euro (making European pork cheaper) and the real (making Brazilian beef cheaper).
The Aberdeen Development Corporation had focus its foreign workforce recruitment on Muslims and Jews. We’re going to need someone to buy the surplus halal and kosher beef from New Angus.
This is one reason that the South Dakota Stockgrowers, R-CALF, and SD Farmers Union are against the Trans Pacific Partnership and that NCBA, Corn Growers Association, and Farm Bureau are for TPP.
If it stinks of big ag Farm Burro will support it regardless of the consequences for real family farmers.
Maybe the Aberdeen Development Corporation should have focused this plant on local workers and processing a product that local consumers were interested in buying. We ship thousands of cattle out of the state every day and turn around and ship processed beef back. It would seem that it would be cheaper to hire local workers and pay a competitive wage than shipping it both ways for the consumer.
Paul, TPP means more imports, lower prices, and more South Dakota producers going out of business, right?
Greg, the idea of a locally integrated production and consumption seems to escape our economic developers, especially in agriculture.
By the way, Frank Kloucek sends a list of things we could do to help domestic livestock growers:
Any more suggestions?
I like what Frank Kloucek stood for when he was in the legislature. We need him, and people like him, back in the legislature. Was he forced out by redistricting?
The Republicans tried to redistrict Frank Kloucek several times and were finally successful when they put him in a district that stretched north of I-90. They took his natural constituency, his neighbors, away from him.
Mr. Kloucek was the most ineffective in recorded history. I liked it when he was in the legislatures.
Grud at least he isn’t a crony like your buddies there.
@cah: From the Department of FWIW.
“The World Trade Organization ruled today[ 12/07/15 ] that the United States’ country-of-origin labeling (COOL) law for beef and pork was discriminatory and said Canada and Mexico could impose retaliatory tariffs of $1.1 billion (Canadian) and $227.8 million (US) respectively.”
And: “… the WTO didn’t say American meatpackers couldn’t put country-of-origin labels on their products; it said the U.S. government couldn’t require it.”
Read it all here: