and steer and heifer slaughter continues its gradual decline of about one percent per year. “Despite tighter numbers, average carcass weights are up,” Good explained. “Four steers produce as much beef today as five did 25 years ago.” Those increasing weights have offset 75 percent of the impact of a declining cow herd during the last 20 years. Global cattle slaughter is steadily growing after declining from 2008 to 2010, with India seeing the most growth, primarily water buffalo raised for dairy (India consumes the most dairy in the world, according to Good). India is now the fifth largest beef producer in the world, China is the largest beef importer, and the United States produces 20 to 22 percent of the world’s beef with just nine percent of the cows. “That’s efficiency,” Good declared. On hogs, lower corn and meal prices will encourage a nearly three percent expansion in production for 2014. Young broiler production is also expected to expand into next year, growing from just over 8.4 billion birds in 2012 to nearly 8.8 billion in 2014. Global pork production in 2013 is forecasted to be 1.8 percent higher than last year while poultry is expected to be 2.2 percent higher. China is the leader in hog production while the United States is the top poultry producer. As for grains, Good shared that about 45 percent of this year’s US corn crop is harvested and on track to be a record year, primarily fueled by the demand in ethanol, although production has plateaued to meet the Renewable Fuel Standard (RFS) mandate. Soybean production is growing in South America and although US production has been dropping, the country is still a big player. “The world is awash in soybean oil,” Good stated. As for tallow and hide, tallow prices correlate with the price of crude oil, which is holding steady, and a rise in global car sales has translated to an increased demand for hides. The role renderers play in the biodiesel industry was addressed by Donnell Rehage, National Biodiesel Board (NBB). He noted that 25 million gallons of biodiesel was produced 10 years ago, while this year’s figure is over one billion gallons. “We are a feedstock-neutral organization; it’s necessary for the industry to grow,” Rehage commented. He estimated that 28 percent of biodiesel production this year used rendered fats as feedstock and encouraged renderers to join NBB’s advocacy for a multi-year extension of the tax credit that expires at the end of this year. Rehage also asked renderers to connect with the Environmental Protection Agency (EPA) and Congress to ensure RFS annual volumes are not reduced as rumor has indicted. “No tax credit for 2014, along with a drop in RFS requirements EPA is considering, will cause a drop in biodiesel production,” he warned. Taking Care of Business NRA committees met during the convention to address future needs, beginning with the Animal Protein Producers Industry (APPI), where it was announced that AFIA will change its Safe Feed/Safe Food program once FSMA rules are out. Previously, AFIA recognized APPI’s Code of Practice audits as part of its program, but now renderers will need to tell the auditor to certify a plant under both programs to prevent a second costly audit. Dr. David Meeker, NRA Scientific Services, revealed that the association has joined the Food Safety Control Alliance that was set up by FDA to assist in writing industry guidance under FSMA. He anticipates renderers will need to comply with new feed rules sometime in 2015. Due to the impending feed rules, NRA renamed its Transmissible Spongiform Encephalopathy Committee the Feed Ingredient Regulatory Committee. Carlos Gonzalez, Novus, provided an update on the company’s petition to FDA to expand the use of ethoxyquin in rendered products. Most pieces are falling into place after FDA acknowledged the importance of this issue, and is on track to be resolved within the next few months. Everything environmental was presented by Committee Chairman Robert Vogler, Valley Proteins, who announced that Continued on page 12 Dr. Lowell Catlett entertained while informing renderers about world and business issues. New NRA President Nancy Foster speaks at her first board of directors meeting. www.rendermagazine.com Render December 2013 11
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