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PURE MICHIGAN,
AGRICULTURAL UPDATE
James E. Byrum
MiFOOD2015
Food Processing
& Agribusiness SummitDeVos Place, Grand Rapids, MI
May 7th, 2015
Agricultural Update
� 2014
� 2015
� Issues and Opportunities
� Future
Copyright Michigan Agri-Business Association
2014
� Cool summer
� Late spring
• Sugar beet planting 45 days later than in 2013oRecord Yields!
• Poor corn maturity
• Good to great fruit crop
Copyright Michigan Agri-Business Association
1970 vs. 2014
Corn Acres Yield Production1970 1,730,000 81 140,130,000
2014 2,190,000 167 365,730,000
Soybeans1970 515,000 26 13,390,000
2014 2,190,000 46 100,740,000
Wheat1970 495,000 39 19,305,000
2014 485,000 74 35,890,000
Totals1970 2,740,000 172,825,000
2014 4,865,000 502,360,000
Copyright Michigan Agri-Business Association
2014
� Yield
� Production
� Prices
� Feed Costs
• Great for dairy, pork and poultry
Copyright Michigan Agri-Business Association
2015
� Spring a bit late• Coolest April on record for many parts of Michigan
• Minimal fruit damage from the recent cool weather
� Planting progressing rapidly� But dry� Warming up pretty nicely at this
point…need rain
Copyright Michigan Agri-Business Association
Issues and Opportunities
� Global Demand
� Consumer Perception
� Customer Demands
� Climate Change
� Sustainability
� Resources
Copyright Michigan Agri-Business Association
Population
Source:United Nations
1950 2.5 Billion
2011 7.0 Billion
2050 9.2 Billion
WORLD POPULATION
Copyright Michigan Agri-Business Association
Middle Class
� 2020
• 350 million more middle class households worldwide
• 49% of developing nations’ population
Copyright Michigan Agri-Business Association
Feeding the world?
Charlie Arnot, CEO of Center for Food
Integrity, says:
“The ‘feeding the world’ message won’t generate public support for today’s agriculture technology. In fact the latest research from the CFI shows that only 25% of consumers believe the U.S. has a responsibility to provide food for the rest of the world. What consumers care about most is having access to healthy, affordable food.”
Copyright Michigan Agri-Business Association
Consumer Perception
Are Facebook and Twitter reality, and does science matter?
Copyright Michigan Agri-Business Association
Consumer Perception
� Vaccinations
� GMOs
� Pesticides
� Fertilizer\Animal Care practices
� Sustainable Production and Practices
� Butterflies and Bees!
Copyright Michigan Agri-Business Association
Customer Demand
� April 27, 2015 - Chipotle- GMOs (2015)
� January 3, 2014 - General Mills-Cheerios-GMOs (End of 2015)
� February 24, 2015 – Hershey- Milk Chocolate and Kisses-GMOs (2015)
� April 2012 - Burger King-cage free produced eggs (2017)
� April 2012 – Burger King-pork produced free of gestation stalls (2017)
� December 2014 – Starbucks-cage free produced eggs (2017)
Copyright Michigan Agri-Business Association
Customer Demand
� December 2014 – Starbucks-pork produced free of gestation stalls (2017)
� March 12, 2015 – Aramark-cage free produced eggs (2020)
� December 2014 – Starbucks-abandon artificial growth hormones and fast-growth practices for poultry, as well as
other animal-raising techniques considered by some consumers to be inhumane, such as dehorning, tail docking and castration
� April 2015 – Tyson- working to eliminate human antibiotics from its chickens over the next two years
Copyright Michigan Agri-Business Association
Climate Change
� Longer Growing Season
� Frequency and Severity of Extreme weather Events
� Micro Weather Bursts
Copyright Michigan Agri-Business Association
Climate Change
� Water
• California Drought
• Lake Michigan Up 36 inches since January 2013
o 21 inches in the past 18 months
o 790 billion gallons of water per inch!
o Iced Over, more rain and less evaporation
� Water quality
• Runoff
• Heat
Copyright Michigan Agri-Business Association
Opportunities
� Specialty Production and Processing
• These aren’t small supply issues
o If a McDonald’s makes a move, it is a tsunami
o Tyson antibiotic decision affects 1 of every 5 broiler chickens in the U.S.
o Tyson and Smithfield Pork Practices
o Aramark
Copyright Michigan Agri-Business Association
Opportunities
� The challenge is supply for a changing demand
� Herbruck’s buys 160% of the organic corn produced in Michigan
� One major canner cannot launch an organic line of canned beans
Copyright Michigan Agri-Business Association
Opportunities
� Non-GMO
• More acres of non-GMO and organic soybeans grown in Michigan annually than dry beans (+/- 250,000 acres)
� Zeeland
� Export Opportunities
Copyright Michigan Agri-Business Association
Opportunities
� Trends
• Dairy numberso Too much production for processing capacity
� “Finish” More Pork in Michigan
• Coldwater Processing Plant
� Additional Soybean Processing Capacity
• Hogs eat soybean meal
� Another Ethanol Plant?
• Dairy cattle like DDGs
• Rail rates from Michigan are increasing, and therefore the basis
Copyright Michigan Agri-Business Association
Opportunities
� Sustainability
• Environmental Benefits
o Reduce Greenhouse Gas Emissions
� Social Value
• Customer Acceptance
� Economic
• Most Sustainable Practices Save Money!
Copyright Michigan Agri-Business Association
Opportunities
� Sustainability
• Cost of Operation Reduced
• Corporate Goals
o Optics
o Access to Capital
� Challenges
• What is Sustainable
• How to Measure Results
• How to Communicate Results
Copyright Michigan Agri-Business Association
Resources
� Water!
� Growing Season
� Diversity of Cropping Systems
� Entrepreneurial Growers and Processors
Copyright Michigan Agri-Business Association
2025
Corn Acres Yield Production
1970 1,730,000 81 140,130,000
2025 2,662,000 250 666,500,000
Soybeans
1970 515,000 26 13,390,000
2025 2,282,500 65 148,362,500
Wheat
1970 495,000 39 19,305,000
2025 555,500 110 61,105,000
Total Bushels
1970 2,740,000 172,825,000
2025 5,500,000 874,967,500
Copyright Michigan Agri-Business Association
Future
� Limiting Factors
• People
• Infrastructure
o Transportation
o Utilities
o Broadband
� Willingness to Accept
Change and New
Copyright Michigan Agri-Business Association
FUTURE – GROW FOR THE MARKET
Copyright Michigan Agri-Business Association
Thank You!
James Byrum
Michigan Agri-Business Association
www.miagbiz.org
“STRIVE TO BE WHERE THE PUCK IS GOING TO BE,
NOT WHERE IT HAS BEEN!”Wayne Gretzky
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