Special Call for Proposals: Spring 2016

Background:

A recent regression analysis showed that for every $1 million of muscle meat exported, live hog value increases by $0.05/CWT but for every $1 million of variety meat exported, live hog value increases by $0.20/CWT. The US pork industry produces more than five million metric tons of pork variety meats and pork by-products each year, yet it exports less than a half million metric tons of these products. This suggests that a significant portion of US pork carcasses are currently rendered to make blood meal, meat and bone meal, fat and grease. These rendered products are usually of lower value but are often highly valued in specific countries and in many cases sell for price premiums that are many multiples of the US price. Also, consumers in many target countries often lack adequate, high quality protein in their diets. The elimination of a price wedge between the US and international prices would allow these consumers to purchase products that are highly valued in local cuisine and, in so doing, increase the nutritional value of their diets. The removal of this price wedge would also increase the value of live hogs in the US and reduce the breakeven cost of producing muscle meats for the US consumer.