Competing in the Global Marketplace
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Visitors from he 100th anniversary of the National “We know that we produce commodities,” TWestern Stock Show (NWSS) in Denver, Fioretti explained. In terms of trade, he said, Argentina and Uruguay Colo., was a hub of international activity. more beef is consumed in other countries According to stock show organizers, anywhere than the country in which it was produced, demonstrate a growing from 500-900 international visitors from 38- which opens up more and more 40 countries annually attend the NWSS and opportunities for marketing every day. South American register with the National Western Of the global beef market, he said,“We’re International Agri-Business Center. having more domination of the industry by a focus on beef. On Jan. 10, cattle producers and interested few gene pools.”Producers are rapidly agriculturalists gathered to listen to a accepting the new technology necessary to Story & photos by Brooke Byrd roundtable discussion sponsored by the center. genetically improve their cattle. Several ranch and packing plant owners from “Competition is helping, too,”he noted. Argentina and Uruguay were invited to the Even average cattle in a population can catch roundtable; several panelists spoke about up quickly with artificial insemination (AI) global competition within the cattle industry and embryo transfer (ET). and what the next century holds. The environment also plays, and will Skylar Houston, chair of the National continue to play, a huge role in Argentina’s ag Western International Agri-Business Center industries. With 65% of the world’s cattle Committee, introduced speakers Lloyd Day, located in tropical and subtropical regions, administrator of the U.S. Department of Fioretti noted that Argentina uses five main Agriculture (USDA) Agricultural Marketing breeds based on climate. According to the Service (AMS); Claudio Fioretti, director of Food and Agriculture Organization (FAO) of genetics and senior director of Estancias y the United Nations (UN), Fioretti said Cabaña Las Lilas S.A., Buenos Aires, Argentina has one of the lowest rates of Argentina; Alvaro Martinicorena, La Media chemical and pesticide use in agriculture — Surete Ranch, Uruguay; and Santiago meaning quality food is produced naturally. Fernández, Frigorifico Carrasco Ranch and Argentina equals grasslands, he explained, Packing Plant, Uruguay. which means cattle are grazing, moving and “Today we are in a global marketplace,” walking constantly throughout their lives. Houston said.“Things in our part of the However, as a result of water demand,“We world can affect what happens in South were forced to increase efficiency in direct America or the Americas.” grazing,”Fioretti said. Cattle are being moved to areas where growing crops is not possible, @Claudio Fioretti says the environment and Producing commodities soil conditions in his native Argentina allow since crop production increasingly usurps the for high-quality pastures — necessary for beef Fioretti is a veterinarian and native best land. production — to develop. Argentine who received his master’s degree Because of where it’s raised, Fioretti touted and doctorate the health benefits of Argentine beef and through Kansas State emphasized that such benefits will increase in University. He then importance. He noted that Argentine beef studied at Colorado has a higher content of omega-3 fatty acids, State University. Las as well as a high concentration of conjugated Lilas Ranch manages linoleic acid (CLA). Cattle direct-grazed, he approximately 26,000 said, have a better balance between omega-6 cows, with 375,000 and omega-3 fatty acids than grain-fed cattle. genetic records, and “Production and beef trade will increase sells 3,200 bulls each substantially with world economic growth,” year. The goal of Las he noted. While risk will not disappear, Lilas, Fioretti noted, Fioretti said,“Climate and production is to produce models will be much improved, and we can outstanding beef predict and manage the business with more genetics while accuracy.” maintaining a commitment to Small and green supply high-quality “A very good definition of our country is products to to say it’s small and green,”joked @Alvaro Martinicorena (left) and Santiago Fernández ex- plain that Uruguay has one of the highest cattle-to-peo- international and domestic Martinicorena, a fourth-generation ple ratios in the world at 3.8 head of cattle per person. markets. Uruguayan rancher who has a 25,000-head 244 ■ ANGUSJournal ■ March 2006 cow herd. A country that is two-thirds the of beef [valued at size of the state of Colorado, Uruguay could $758 million (U.S.)], be called “a country of cattle farms,” and increased meat Martinicorena said. production 39% during the last six years. “Beef represents 8% of the Uruguayan With broad access to 85 export markets, gross domestic product (GDP),”he noted. It Martinicorena says Uruguay’s safe, natural The protocol portion requires producers also represents 25% of global Uruguayan and high-quality product stands ready to to follow specific guidelines about animal exports. With 75% of the country’s beef grow even further. ID, animal husbandry, environmental and production exported, cattle farms spread sanitary management, feedstuffs and across 87% of the country’s surface. Fulfilling desires feeding, facilities, medicines and veterinary “Uruguay is the seventh-largest beef As a result of consumer demands, treatment, livestock handling and transport, exporter and the third-largest sheep meat Fernández said, Uruguay is developing a and harvest and packing, he explained. exporter of the world,”Martinicorena said. variety of specialized meat programs, Participants are certified by independent With 12.2 million head of cattle (mostly including Certified Natural Beef and firms, and the program is certified by the Angus and Hereford), it may seem Certified Uruguayan Angus Beef.“The USDA as a Process Verified Program (PVP). surprising that Uruguay ranks third out of Certified Natural Beef Program is based on The program’s logo,“From nature to 146 countries in Yale University’s four pillars,”he says, including traceability, consumer,”uses the image of waving grass Environmental Sustainability Index. protocol, certification bodies and country melded into a barcode — combining the Martinicorena says his country is tailor- brand. country’s outstanding natural element with made for sustainable beef production. For Traceability is provided by Uruguay’s its final product. each grazing animal, there is an area of 3.3 national traceback program, Fernández “Certified Natural Meat of Uruguay is acres (approximately the area of two soccer noted. Involving 100% of cattle, the system adequate to consumers’ natural-meat- fields). The production system is grass-fed consists of a tag with a unique printed desired attributes,”Fernández said.“Grass- and free range, with only 16% cultivated number, a radio frequency ID (RFID) fed is a new trend [with] U.S. top chefs pasture — the remaining 84% is all native device on the tag and a reading device, he because of nutritional and healthy attributes pasture. explained. The Uruguayan system is to consumers.” Martinicorena emphasized Uruguay’s unique, he noted, because “the livestock successful food safety record.“Anabolics and carriers are responsible to record the cattle Reaching opportunities growth hormones are banned by law,”he movements” — not the sender or receiver Day concluded the panel by discussing said. The use of animal protein in feed of animals.“Every time there is a cattle marketing opportunities for the future, as intended for ruminant animals is also movement, [the carriers] are involved,”he well as what must be done to reach them. banned, and the country has a unique said. Risk mitigation measures allow for trade animal identification (ID) program. There Each premises has a magnetic ID card resumption, he said. However, he noted,“If have been no cases of E. coli O157:H7; the that identifies its name, ID number and we want the rest of the world to trade with country is considered free of foot-and- location, which are then read by the carrier us … we have to lead.” mouth disease (FMD); and Uruguay is and connected to the animals moved to or He discussed some of the key objectives considered free from bovine spongiform from that premises.“All the information and essential components of the United encephalopathy (BSE) by the World collected is received by wireless technology States’ National Animal Identification Organization for Animal Health (OIE). at the operation center office for processing,” System (NAIS), and noted that all 50 states In 2005, Uruguay exported 474,308 tons Fernández noted. CONTINUED ON PAGE 246 @ Panelists at the NWSS International Center roundtable, including (from left) Skylar Houston, Martinicorena, Fernández and Fioretti, listen to AMS Administrator Lloyd Day discuss international marketing opportunities and regulatory programs. March 2006 ■ ANGUSJournal ■ 245 Competing in the Global Marketplace CONTINUED FROM PAGE 245 and five tribes are operational on a a PVP for hormone-free beef for that very only resulted in changing their harvesting premises ID system. However, he said, for reason, Day noted. capacity — resulting in a loss of our own. international trade to be successful,“we all Other opportunities come directly from To continue to grow and prevent have to be on the same page.” trading partners, he explained.“Central making further mistakes, he said,“We need Day also brought up the growing and South America are becoming to lead by example.” interest in USDA PVPs as “internationally important partners for us,”he explained. recognized supplier marketing tools.”The “There are a lot of import opportunities in European Union (EU), he said, has great Argentina and Uruguay.”He noted that Editor’s Note: For news, events and other interest in quality U.S. beef, but its Mexico proved itself as a true partner Angus Journal stories about the international hormone restrictions have caused during the BSE border struggle, but said Angus, beef and ag industries, visit problems. USDA is working on developing the closure of the Canadian-U.S.