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Soybean checkoff rallies to protect number one customer
St. Louis, Missouri
January 27, 2004

At a time when livestock producers are facing a myriad of environmental challenges, soybean checkoff leaders put their heads together to strategize ways to support their partners in U.S. agriculture.

The United Soybean Board (USB) has created the Livestock Industry Initiative to forge a stronger alliance between livestock and soybean producers. Working with academic, agricultural and soybean industry representatives, soybean checkoff farmer-leaders will develop a strategic plan to ensure the long-term growth the domestic livestock industry.

U.S. livestock producers have faced increased regulation at home and competition abroad. At the same time, 97 percent of soybean meal goes to livestock feed. Soybean farmers cannot afford to be neutral toward the challenges that impact their number one customer. By doing their part to keep livestock production from going abroad, soybean producers, through their checkoff, are ensuring success for both domestic crop and livestock producers.

The U.S. poultry and livestock industries use more than half of the U.S. soybean crop. U.S. Department of Agriculture statistics show 51 percent of U.S.-produced soybean meal is consumed by poultry, 24 percent by swine and 19 percent by cattle. Other animal species and various other uses consume the remaining 6 percent.

The soybean checkoff already contributes more than $1.5 million a year to help build U.S. poultry, pork and beef exports. But USB Chairman Criss Davis, a soybean farmer from Shullsburg, Wis., believes the soybean checkoff, and the rest of the U.S. soybean industry, can do more.

 "The domestic poultry and livestock industries probably represent the most underappreciated economic sectors of rural America," says Davis. "Both are enormously important to us as soybean farmers. They are important to our rural towns and to Main Streets everywhere."

The success of the livestock industry is crucial to a large portion of our economy outside of just the producers. For example, a report released late last year by the Minnesota AgriGrowth Council shows the poultry and livestock industries account for more than $5.2 billion in economic activity and have a direct impact on 90,000 jobs in the state. That tops three of Minnesota's largest employers - Northwest Airlines, 3M and Medtronic - combined. The report also found the state lost over 166,000 dairy cows over the past 10 years and lost of $235 million in dairy revenues since 2000.

This example illustrates the ripple affect that our livestock industry has on the economy. If production were forced out of the United States, not only would soybean producers lose their number one customer, but all parts of the U.S. economy would suffer.

"The impact and importance of the poultry and livestock industries to our economy are now very clear," Davis said. "The closer chickens, turkeys, hogs and cattle are to the soybeans we produce, the better our profit opportunities will be."

The soybean checkoff has worked with soybean researchers and agricultural industry leaders to support the poultry and livestock industries through other projects, such as the Better Bean Initiative. This soybean production research initiative seeks to improve the composition of U.S. soybeans, such as improving soybean meal digestibility and reducing the phytate content in soybean meal to curb animal waste.

USB is made up of 62 farmer-directors who oversee the investments of the soybean checkoff on behalf of all U.S. soybean farmers. As stipulated in the Soybean Promotion, Research and Consumer Information Act, USDA's Agricultural Marketing Service has oversight responsibilities for USB and the soybean checkoff.

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