From the Michigan Corn Growers Assoc.
As corn production continues to increase across the state and the nation, so does the opportunity for new markets and additional uses. While we continue to explore these exciting opportunities, we never lose sight of how important it is for Michigan’s corn farmers to support one of our most traditional markets for corn, the livestock industry.
The Corn Marketing Program of Michigan (CMPM) and the Michigan Corn Growers Assoc. (MCGA) boards of directors understand that providing the livestock industry with a high-quality, nutritional and safe source of protein is paramount as we work together to feed the world.
While Michigan’s more than 12,000 corn farmers grew a record-breaking 335 million-bushel crop in 2011 to be used for feed, fuel, fiber and food, Michigan’s almost 22,000 dairy, beef, pork and poultry farmers are providing an abundant, low-cost and safe source of protein for the nation and world.
Michigan livestock producers provide us with a safe and plentiful food supply that contributes $3.5 billion to the state’s economy each year. To help make this supply possible, 21 percent of the corn grown in Michigan – approximately 76 million bushels per year – goes to feed livestock in-state. Forty percent of this total goes to the dairy industry, 22 percent to the swine industry, 20 percent to beef producers and 14 percent to the poultry industry, while 4 percent feeds other livestock.
In addition to the corn used in-state for livestock production, 162 million bushels are shipped out of Michigan, of which the majority is fed to livestock in the southeastern United States.
Along with the corn fed to livestock, many producers are using dried distillers grains (DDGs) as another valuable feedstuff. DDGs, a co-product of ethanol production, are high in protein and other nutrients, cost-effective and easily digestible.
In the 2011-12 marketing year, it is projected that 1.23 billion pounds of DDGs will be fed to the dairy, pork, beef and poultry sectors in Michigan. The consumption of DDGs displaces approximately 22 million bushels of corn annually, making total livestock usage nearly 100 million bushels.
The livestock industry is an extremely valuable partner to the corn industry and each year, in an effort to advance and protect their interests, the CMPM invests heavily in research and sponsorship of livestock-related projects. In the last six years alone, the CMPM has provided nearly $640,000 in total funding to livestock-related sponsorships and research.
A key CMPM partnership is with the U.S. Meat Export Federation (USMEF), which works to create new opportunities and develop existing international markets for U.S. red meat. The USMEF has played a major role in increasing total exports and the export value of beef and pork. In 2011, beef exports exceeded $5 billion in value and pork exports eclipsed $6 billion; both were firsts.
Last year, beef and pork both set new records for the volume exported and the value of those exports. The constant increase in exports of red meat truly benefits livestock producers across the country, as the additional demand helps keep them profitable in these challenging economic times.
Through our partnership with the USMEF and its export programs it has been able to affect, net revenue in the beef industry has increased by an average of $46.3 million annually, while the net revenue in the pork industry has increased by an average of $85.7 million annually. Each dollar the CMPM invests in the USMEF generates average net returns of $3.87 to the beef industry and $7.42 to the pork industry.
All of the return-on-investment data are according to an independent analysis of the USMEF’s export programs conducted by Dr. Harry Kaiser of Cornell University.
Another organization the CMPM partners with is the USA Poultry & Egg Export Council (USAPEEC), which is dedicated to increasing exports of U.S. poultry and egg products in all foreign markets. The USAPEEC has played a huge role in the continued expansion of foreign markets for U.S. poultry.
The livestock industry is truly important to Michigan’s corn farmers, and we will continue to support them by providing valuable feedstuffs, sponsoring events, partnering with organizations and funding research that is valuable to them. If there is anything we can do to help dairy, beef, pork or poultry producers, please call the Corn Office at 888-323-6601 or visit us online at www.micorn.org |