Prairie City woman will attend Asian trade mission with Gov. Branstad

PRAIRIE CITY — A Prairie City resident will be accompanying Gov. Terry Branstad as part of delegation to China and Japan in November in a trade mission aimed at opening up the world’s second largest economy to Iowa beef exports.

Chris Freland, executive director of the Iowa Beef Industry Council, will be departing Nov. 12 for the eight-day mission with stops in Beijing and Hebei, China and Tokyo, Japan.

The mission is being coordinated by the Iowa Economic Development Authority in coordination with U.S. Meat Export Federation and will include Iowa Pork Producers Association President Al Wulfekuhle and representatives from the Iowa Corn Promotions Board and Iowa Soybean Association.

Chinese officials recently lifted a 13-year-old ban on U.S. beef imports dating back to 2003, when a case of bovine spongiform encephalopathy, also known as mad cow disease, was confirmed in Washington state.

An Oct. 3 press release from the governor’s office detailing the mission states the delegation will attend a reception at the U.S. Ambassador to Japan Caroline Kennedy’s residence, have meetings with investment and trade prospects and could attend high level meetings which include Chinese President Xi Jinping.

The Chinese president and Iowa governor have a relationship dating back to 1985, during Branstad’s first term when Xi visited as part of a sister-state exchange program.

China is home to a fifth of the world’s population with a rising middle class. Lifting the U.S. beef ban could open up a new and growing market for Iowa producers who are experiencing falling prices and volatility in existing markets.

According to U.S. Meat Export Federation data, China imported $2.3 billion worth of beef in 2015 and is projected to increase imports this year to $3 billion. Freland said Iowa’s beef industry “wants a piece of that pie.”

“We know the markets are volatile right now for the beef farmer,” she said. “This creates an opportunity for supply and demand to adjust so our farmers can enjoy profitability, marketability and continue to produce safe, wholesome and quality beef.”

Iowa is ranked fourth nationally for cattle on feed, with 3.9 million head. Currently, according to Freland, 13 to 14 percent of U.S. domestic beef product is exported. Opening up exports to China could increase that number.

She said opportunities in China include chuck rolls, short plate and short ribs. IBIC, the beef checkoff, is also looking at opportunities for variety meats such as tongue, liver, kidney and heart.

“These are things that have a small value on the domestic market but can be of value on the export market,” she said.

But requirements for U.S. beef by Chinese regulators are still unknown. Before Iowa beef can begin exporting to China, government officials need to ensure the product meets Chinese criteria for export.

“(U.S.) government officials and regulators have to find out what does the export certificate look like, what are the requirements and what are the demands of us to get the product moving,” Freland said.

Freland took over as executive director of the Iowa Beef Council last year, replacing the 40-year IBIC member and retiring 12-year director Nancy Degner. She has already represented the beef checkoff on two international trade missions — her first to China and Japan and her second to the ASEAN countries of Singapore and Malaysia.

Freland and other IBIC members will play the role of educator on the mission, providing information and research to government officials and will facilitate market opportunities. They do not sell product and are not allowed to talk policy according to federal rules.

Freland and Dean Black — U.S. Meat Export Federation representative, director on IBIC board at-large and Iowa beef farmer — who will also be on the mission, will be in China representing the Iowa farmer.

“When we talk about international trade it’s about how do we garner relationships, how do we give an overview of Iowa and the industry from an image standpoint, from a food safety standpoint,” Freland said. “Those are our big platforms to grow a global market.”

Freland said Iowa’s beef industry is “cautiously optimistic” that the November trade mission could lead to new overseas markets for local producers.

At his century farm south of Prairie City Monday, Jasper County Cattlemen and Iowa Cattlemen Association district 14 director — which includes Jasper, Polk, Marion, Warren and Poweshiek Counties — Brian Wilson said some of the recent price drops he’s seen in Iowa beef have been “astronomical.” But whether the opening of Chinese markets will make a difference, Wilson said that remains to be seen.

“This should help. As far as I know there has been no trading yet, but the door is open,” he said. “Whether anything goes in or out of that door is another question.”

Contact Mike Mendenhall at mmendenhall@myprairiecitynews.com