National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.National Institu...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.Key TrendsVolati...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.GLOBAL FOOD PROD...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.world food flows...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.1 May 2013More p...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.The Effects of H...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.1 May 2013Biofue...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.Populations are ...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.Sustainability9
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.Cargill Supply C...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.11
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.12Cargill Suppy ...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.Cargill Supply C...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.Policy Opportuni...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.COMPARATIVE ADVA...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.16ComparativeAdv...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.17OpenMarkets, P...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.18Transportation...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.1 May 2013Geneti...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.20Biotechnology ...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.Export Disaster ...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.Export vs. Domes...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.23HarmonizationI...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.Property Rights24
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.The Values Quest...
National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.
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Mr. Bryan Dierlam - Policy That Will Meet the Needs of the Growing Food Supply

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Policy That Will Meet the Needs of the Growing Food Supply - Mr. Bryan Dierlam, Director, Government Affairs, Cargill, from the 2013 NIAA Merging Values and Technology conference, April 15-17, 2013, Louisville, KY, USA.

More presentations at http://www.trufflemedia.com/agmedia/conference/2013-niaa-merging-values-and-technology

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Mr. Bryan Dierlam - Policy That Will Meet the Needs of the Growing Food Supply

  1. 1. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.Policies to Meet the Food Needs of a Growing WorldBryan DierlamCargill, Director, Government AffairsApril 17, 2013Louisville, Kentucky1 May 2013
  2. 2. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.Key TrendsVolatilityTradeProteinConsumptionPopulationGrowthIncome GrowthBiofuelsHealth & NutritionSustainability2
  3. 3. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.GLOBAL FOOD PRODUCTION VS. PRICE(production of grain, rice, major oilseeds, PO, FSHM vs. corn/soybean/wheat futures price index)-30-20-10010203040506070197519801985199019952000200520101 May 2013Percentage change in productionPercentage change in priceSource: USDA
  4. 4. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.world food flows(grains, rice, oilseeds, meals, oils, feed equivalent of meat – net interregional in mmt)-200-150-100-50050100150200N Amer S Amer Australia E Eur/FSU C Amer W Euro Asia MidEaAfr1965 1970 1975 1980 1985 1990 1995 2000 2005 2010exporters: more landthan peopleimporters: morepeople than land
  5. 5. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.1 May 2013More people, more income, bigger appetites0500100015002000250030000 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30020406080100120140160000 USD income per capita – 1997$mil population (grey bars) kg / cap / year (lines)grainmeatsugar/sweetenersvegoil
  6. 6. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.The Effects of Higher Disposable IncomeExample - Chinese Meat Consumption grew 6-fold in 30 yearsMeat consumption – 1981(Pork, Broiler, Beef)China11%USA22%Rest oftheWorld67%Meat consumption – 2011(Pork, Broiler, beef)China29%USA14%Rest oftheWorld57%1 May 2013108 Mln Tons237 Mln TonsSource: USDA
  7. 7. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.1 May 2013Biofuels Volumes – a Major Shift• Grain to ethanol0204060801001201401601802001 2006 2011Million Metric Tons• Vegoil to biodiesel04812162024282001 2006 2011Million Metric Tons~9% of worldgrain market~14% of worldvegoil market
  8. 8. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.Populations are expanding where it ismost difficult to grow food8
  9. 9. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.Sustainability9
  10. 10. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.Cargill Supply Chains10
  11. 11. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.11
  12. 12. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.12Cargill Suppy Chains
  13. 13. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.Cargill Supply Chains13
  14. 14. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.Policy Opportunities and ChallengesHonor Comparative AdvantageEnable Open MarketsInvest in InfrastructureAgricultural ProductivityHarmonization of StandardsSupport Smallholder Farm/Property Rights14
  15. 15. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.COMPARATIVE ADVANTAGEDAVID RICARDOThe world will always raise the mostfood the most economically if everyfarmer plants the right crop for the soiland climate, and then trades withothers.
  16. 16. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.16ComparativeAdvantage& TradeReactionstoVolatilityExportBansStockpiling&HoardingConflatingSecuritywithSufficiencyPolicy Opportunities in GREENPolicy Challenges in RED
  17. 17. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.17OpenMarkets, PriceDiscovery, RiskManagementDisruptedMarketSignalsPolitical, Fiscal& MonetaryRisk FactorsRegulatoryBarriers
  18. 18. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.18TransportationGoods toMarketPort and RiverDredgingLocks andDamsCompetitors’InfrastructureFiscalConstraints
  19. 19. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.1 May 2013Genetic improvements and fertilizer intensification drive supply expansion thru yield --acreage has not been a significant supply drive until recently901001101201301401501601701801902002101975 1980 1985 1990 1995 2000 2005 2010ProductionYieldAreaKey driver of production growth: yield increaseIndex (1975=100)Source: USDA
  20. 20. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.20Biotechnology &InnovationAsynchronousApprovalsPositive Test atDestination forUnapprovedEventsField EscapesCommercializationbefore approval inmajor exportmarkets createsunacceptable risk
  21. 21. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.Export Disaster - Don’t Do This!Plants (LT30) (LT30) (Bovine EV) (LT30) (LT30) Open 7/10/08 (Bovine EV) (Bovine EV) (LT30) (LT30)Approved U.A.E. Chile Colombia Dominican El Salvador Hong Kong Japan Korea Lebanon Mexico Panama Peru Russia Singapore St. Lucia Taiwan Thailand Ukraine VietnamAs of 8/18/06 As of 4/30/10 10/1/2008Dodge City, 86K,Millard Dodge N Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y10/1/2008 Relisted 11/17/08Friona, 86E N Y Y Y Y N Y Y Y Y Y Y Y Y Y Y N Y YAs of 4/8/08 Relisted 7/12/07Ft. Morgan, 86R N Y N Y Y N Y Y Y Y N N Y N Y Y N Y YAs of 9/07Plainview, 86H N Y Y Y Y N Y Y Y Y Y Y N N Y Y N Y YRelisted 11/25/08Schuyler, 86M N Y Y Y Y N Y Y Y Y Y Y Y N Y Y Y Y YFresno, 354Wyalusing, 9400As of 7/12/07Allow Canadian YES NO-direct slau YES YES YES YES-AV YES YES YES YES NO-direct slau NO-direct slau NO YES YES YES YES YESCattle? NO-A40 100 Days in U.S. 100 days for bone-inAge Requirement <30 None <30 <30 <30 <21 <30 <30 <30 None None <30 <30 <30 <30 <30 <30 <30General Product Boneless >30, boneless Beef prods Boneless Boneless Boneless, Boneless Boneless Boneless, >30, boneless >30, boneless Boneless & Boneless Boneless Boneless, Boneless Boneless, Boneless,Requirements Beef Only FTB OK Offals Beef Only Beef Only Bone-in & Bone-in & Bone-in Bone-in & FTB OK FTB OK Bone-in Beef Only Beef Only Bone-in as Beef Only Bone-in Bone-inTongues (no Offals Offals (no of 11/2/09, Offals<30, boneless Hanging headmeat) No >30s intestines,) <30, boneless <30, boneless No GB must be <30& bone-in Tender is OK for the QSA No AMR & bone-in & bone-in CDN 100 daysU.S. Trim OK per the QSANo DiaphramSpecial Halal Tallow is not No AMR No Offals, No Mex 7/10/2008 Prod must be Boneless We are not We are not Cannot No Mex No Offals Effecitve No AMR No AMRConsiderations Slaughter part of the EV No AMR Cattle for Slau Date recd w/in 180 Beef from listed for >30s listed for >30s produce until cattle for 4/1/10 No OffalsOnly Maintain direct Slau of slaughter Canada is on-site audit direct slau certain offals after 7/15/10CMS not traceback of Mex cattle Must be on eligible OK to ship kill datelisted for >30s cattle to prod Begin w/ do not need vessel w/in 30 (No Cdn No ImportedNo Trim 7/27/06 Slau 100 days in US days of cert trim) Beef Mex 100 daysAllow GB? N Y Y Y N N N Y N Y Y N N Y N N Y YRequire SOV? Y Y N Y Y Y N Y N Y Y Y Y Y Y Y Y YSpecific Offals None Aorta None None None, incl Tongue-all Abomasum None Cheekmeat Aorta Heart None None Tendon None Aorta None(Eligible) Backstrap Diaphram & Abomasum Heart Backstrap Liver Tongue Backstrap as of 9/14/10Cheekmeat Outside Skirt 86R Only Kidney Cheekmeat Tongue CheekmeatHeart Livers, Liver Heart HeartKidney Tendons Omasum Kidney KidneyLiver 86K, M, R Oxlips Liver LiverOmasum Only Tongue Omasum OmasumOxlips Offals Tripe Oxlips OxlipsTendon be written in Trimmings Tendon TendonTongue the EV and Tongue TongueTripe approved by Tripe TripeAMS
  22. 22. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.Export vs. Domestic Market$60+ advantage/head on 7 productsProductValue in ExportMarket $ Value/# Lb/Hd $/HD/ExportValue inDomesticMarket $ Value #/hd $/HD/USShort Ribs Korea $3.00 10 $30.00 US/Canada $ 0.80 10 $ 8.00Navels Japan $1.60 20 $32.00 US/Canada $ 0.80 20 $ 16.00Finger Meat Korea $2.50 1 $2.50 US/Canada $ 0.80 1 $ 0.80Digital Muscle Taiwan $2.25 1 $2.25 US/Canada $ 1.50 1 $ 1.50Liver Russia/Egypt $0.60 13 $7.80 US/Canada $ 0.12 13 $ 1.56Oxliips Mexico $1.40 1.5 $2.10 US/Canada $ 0.15 1.5 $ 0.23Tongue Japan $5.00 3 $15.00 US/Canada $ 0.10 3 $ 0.30$91.65 $ 28.39
  23. 23. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.23HarmonizationInconsistencyTradeFrictionsDelaysCreateConsumerConfusion
  24. 24. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.Property Rights24
  25. 25. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.The Values Question• Values vs. Technology• Tin vs. Food• Managing the Dichotomy• Anonymity vs. “Story Food”• Knowing Your Farmer and Agricultural Values• Improve our Messaging—Who do we talk to?25
  26. 26. National Institute for Animal Agriculture 2013© Copyright Cargill, Incorporated 2012. All rights reserved.

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