Halstrom Expects Strong Second Half To 2020

2020 has been a challenging year for the agricultural world, but one commodity is looking forward to better days ahead. Dan Halstrom, President and CEO of the U.S. Meat Export Federation said despite a recent slump in exports due to production challenges, he anticipates a very strong second half to 2020, thanks, in part, to new trade agreements with Japan and China. He said this is welcomed news after significant headwinds in 2018 and 2019.

“There is no bigger deal that the U.S. Japan agricultural agreement implemented January 1, 2020, our largest export market with a value of almost $2 billion.  The key here was getting us on a level playing field with our international competition specifically Australia, but also Canada and Mexico.”

Halstrom noted in 2019, U.S. beef was facing a 13% duty disadvantage, but now that American producers are on a level playing field, Halstrom said they have regained some market share, specifically from Australia. And when it comes to the Phase One trade agreement with China, Halstrom said American ranchers have benefited in several ways.

“We had the removal of age restrictions for U.S. products, removal of traceability requirements for U.S. products.  China adopted the CODEX maximum residue levels for synthetic hormones, and of course China’s got this commitment for a large purchase over the next two years of U.S. agricultural products.”

Through May, American beef exports to China were up 66% in volume and 71% in value.

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