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There was a lot of media hype this week surrounding USDA's announced
recall of 143 million lbs. of raw and frozen beef products produced from
February 2006 to February 2008 by Westland/Hallmark Meat in Chino, CA.
The video from an undercover Humane Society operative was extremely
damaging.
The recall itself was based on the fact the plant wasn't handling downer
animals properly; the media hype was about animal abuse and the federal
school lunch program. The various industry organizations responded
quickly by both assuring the public that essentially all animals are
treated humanely, and by condemning the abuse that occurred.
The disturbing part of this incident isn't that it triggered the largest
recall in history, or that it provided plenty of justifiable ammunition
for the groups working to eliminate beef production. It isn't even the
images and negative publicity that are likely to affect beef demand for
some time.
The most disturbing part is that despite the fact that 99.99% of the
people involved this industry do things right, our industry's
credibility was harmed. The result is that when distorted or non-factual
claims about our industry are made in the future, they will resonate
more with the public than they otherwise would have.
As an industry we have to embrace the fact that we can't afford to have
any more of these types of mistakes. One or two rogue employees can
cause irreparable damage to this industry, and because we are a
low-margin industry that in part depends upon low wage-earning
employees, the responsibility to train and create the proper cultures
for those employees is critical.
-- Troy Marshall
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In the book, "The Big Moo," there's a line that states the time to
panic about your hardware business is not when Home Depot is advertising
its grand opening one block down the street. At that point, it's far too
late.
-- Click on headline to read the rest of this
story by Troy Marshall
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The House last week released a compromise 10-year farm bill that
would only increase spending by $6 billion over the current baseline.
The Bush Administration has indicated it's willing to accept this
version.
The Senate reportedly isn't comfortable with the reduced increase in
spending. But with farm income up 10%, and the timeline growing narrow
before the temporary extension runs out, it's likely a compromise will
be fashioned.
-- Troy Marshall
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In 2003, ethanol production was less than 3 billion gals.; last
year, it was 6 billion. Many predict we could exceed 12 billion gals. by
2010. That would mean that more than 1/3 of the corn crop will be used
to produce ethanol.
It takes some pretty sophisticated analysis to determine what all this
means from a price standpoint for the various grains and feedstuffs, but
USDA's projections say it equates to about a 5-lb. reduction in beef
consumption on a per-capita basis. While that equates to a loss of
nearly 8% in per-capita consumption, that doesn't necessarily mean
drastically reduced cattle numbers. Population growth, and return of our
export markets, will keep beef production relatively stable.
It's relatively easy to estimate corn cost and its effect on the market.
It's more difficult to assess its impact on other feed costs, the risk
associated with poor growing conditions, and perhaps most importantly
what shifts this will create in the marketing environment (Choice/Select
spread, days on feed, placement weights, etc). Some of the anticipated
changes, such as an increase in the Choice/Select spread, simply haven't
occurred at this point. The transition phase to higher corn prices and
the return to industry equilibrium after the transition may send
different pricing signals.
-- Troy Marshall
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Everyone knows that dam nutrition influences how a calf comes into
this world and survives early on. In fact, at least three decades ago,
research showed that underfeeding pregnant cows -- relative to their
energy requirements -- during the last trimester of gestation resulted
in calves with higher morbidity and mortality rates.
-- Click on headline to read the rest of this
story by Wes Ishmael
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We can breed cattle black or red, horned or polled. We can breed
them for growth, marbling, tenderness or milk production. But can we
breed cattle to resist common diseases, respond to vaccination protocols
and stay healthy?
-- Click on headline to read
the rest of this story by Bill Zimmerman, BEEF Quality Summit conference
coordinator
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The checkoff-funded Beef Innovations Group (BIG) has launched five
new beef cuts as a result of extensive chuck roll optimization efforts.
The cuts and their attributes include:
--
Click on headline to read the rest of this Cattlemen's Beef Board news
release
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© 2008 Novartis Animal Health US, Inc.
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Vira Shield is a registered trademark of Novartis AG. Vira Shield
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Soybeans reached an all-time high the night of Feb. 14 with July
2008 soybean futures selling for $14.08 on the Chicago Board of Trade's
(CBOT) electronic platform. Corn equaled its all-time price high,
hitting $5.45 for July 2009 futures.
CBOT reports May beans finished up 39½ at $13.86½,
½ off the high and 39¾ up from the low. November beans
closed up at 34½ at $13.0½ -- 32½ up from the low
and 2 off the high.
May corn finished up 13½ at $5.23¼, 1½ off the high
and 14¼ up from the low. December corn closed up 13 at
$5.32¼ -- up 13¼ from the low and 2¾ off the high.
Wheat also made large strides this past week, including a move up to
$18.53 -- up the 90¢ limit -- just after the Feb. 14 opening. This
posted a new all-time high for any wheat contract, CBOT says. Wheat
opened limit-up three times in the past week.
For more info on CBOT prices and daily market recaps, go to www.cbot.com.
-- corn&soybeandigest.com
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EPA Administrator Stephen Johnson announced the appointment of 30
individuals to the new Environmental Protection Agency (EPA) Farm, Ranch
and Rural Communities Advisory Committee. Johnson said, "Through
increased cooperation with our ag partners, EPA is planting the seeds to
reap both environmental and economic benefits for the American people."
The committee will be asked to focus initially on:- How EPA's
policies and regulations on climate change and renewable energy will
affect the ag community.
- An environmental strategy for managing waste from livestock
operations that considers regulatory and voluntary approaches, and
provides tools for producers to attain superior environmental
performance.
- Development of a constructive approach to advancing sustainable ag,
protecting the environment, and addressing communication between
environmental and ag interests.
Named to the committee were:
Teferi Tsegaye, AL; Clifford S. Snyder, AR; Martha Guzman Aceves, Robert
G. Flocchini, Ralph Grossi and Karri M. Hammerstrom, CA; James Andrew
and Dave Nelson, IA; Otto Doering and James R. Moseley, IN; Dawn R.
Riley, KY; Earl J. Garber, LA; Richard Bonanno, MA; Thomas M. Franklin
and William F. Willard, MD; Christine Chinn, MO; Garth Boyd, NC; Gary
Cooper, OH; Marion Long Bowlan and Michael Brubaker, PA; Jeffrey R. SD;
Tom McDonald, TX; Leonard Blackham, UT; Suzy Friedman, Dennis H. Treacy
and Jay Vroom, VA; Jeff Tee, Latah, WA; and Michele Laur and Martha L.
Noble, Washington, D.C.
-- P. Scott Shearer, Washington, D.C.
correspondent
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The tentacles of the largest beef recall in history -- 143,383,823
lbs. -- have reached all across the country. If the surreptitious video
of exhausted and disabled dairy cattle being tortured to take their last
few steps to the kill box of the Hallmark/Westland Meat Packing Co. in
Chino, CA weren't disturbing enough, local papers around the country
were brimming with coverage on school districts that utilized product
from the offending firm in their cafeterias.
beefmagazine.com/cowcalfweekly/hallmark-gives-industry-california-nightmare
-- Click on headline to read the rest of this
story by Joe Roybal
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USDA recalled 143 million lbs. of frozen beef from Westland/Hallmark
Meat Co., based in Chino, CA -- the largest meat recall in U.S. history.
USDA says the recall is the result of the company not preventing ailing
(downed) animals from entering the food supply.
The recall resulted from undercover filming by the Humane Society of the
U.S. of downer dairy cattle being mistreated by plant workers. USDA
Secretary Ed Schafer said, "Hallmark/Westland did not consistently
contact the Food Safety Inspection Service (FSIS) public health
veterinarian in situations in which cattle became non-ambulatory after
passing ante-mortem inspection, which is not compliant with FSIS
regulations. Because the cattle did not receive complete and proper
inspection FSIS has determined them to be unfit for human food and the
company is conducting a recall."
Caroline Smith DeWaal, Center for Science in the Public Interest, said,
"Consumers are losing confidence in USDA's ability to ensure the meat
they eat is safe. This recall is the result of a terrible failure of
USDA's mandate since 1906 to ensure that sick animals are not
slaughtered for human food. Once again, USDA is in reactive mode --
taking steps to protect the public long after a highly publicized animal
welfare scandal."
Congress is expected to hold hearings on this recall. Also, this will
add to Congressional efforts to pass food safety legislation this year.
-- P. Scott Shearer, Washington, D.C.
correspondent
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March 31 is the application deadline for $18.4 million in
Value-Added Producer Grants. USDA Rural Development is accepting
competitive applications to develop value-added, ag-business ventures
and alternative sources of renewable energy.
"Any producer needing planning or working capital funds to move their
value-added ideas forward should check out the Value-Added Producer
Grants program," says Mike Heavrin, Program Cooperative Development
Manager at the Center for Rural Affairs. For more info, contact Heavrin
at 402-687-2103, Ext. 1008; or visit www.rurdev.usda.gov/rbs/coops/vadg.htm.
The Value-Added Producer Grants Program awards grants to ag producers,
businesses owned by a majority of ag producers, and organizations
representing ag producers for business planning or working capital
expenses associated with marketing a value-added ag product. Ag
producers include farmers, ranchers, loggers, agricultural harvesters
and fishermen that engage in the production or harvesting of an ag
commodity.
-- Center for Rural Affairs
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A Beltrami County beef herd has tested positive for bovine
tuberculosis (TB) in Minnesota, the Minnesota Board of Animal Health
(MBAH) announced this week. Minnesota's fourth case since October 2007,
it will likely result in a downgrade of the state's bovine TB status
from Modified Accredited Advanced to Modified Accredited (MA), MBAH
says.
Since TB was discovered in a northwest Minnesota beef cattle herd in
July 2005, the disease investigation has found 11 infected beef cattle
herds, all in Roseau and Beltrami counties. USDA regulations prescribe a
downgrading in status when more than three herds are discovered within a
12-month period.
MA is the third of five status levels and two steps down from the
highest status level, which is TB-Free. When the downgrade becomes
official, state producers will have to adhere to stricter federal and
state testing requirements when shipping cattle or bison.
At a Feb. 13 meeting of MBAH, members approved a motion to proceed with
obtaining split-state status in order to allow the majority of the state
to upgrade its status, while the counties surrounding the core area
affected by TB would remain MA.
For more, visit www.bah.state.mn.us.
-- MBAH news release
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Twenty-nine producer and industry organizations sent a letter to
Congress opposing the administration's proposed $96 million in user fees
for meat and poultry food safety inspection.
The organizations stated, "These 'user fees' for government-mandated
food safety inspection programs represent an additional $96 million tax
on consumers, livestock and poultry producers and the meat, poultry and
egg processing industries." The letter went on to say, "...this proposal
to transform government-funded food safety inspection into an additional
fee system provides less accountability for the government to manage
program costs, results or efficiencies."
Congress was also reminded that this user fee would put meat and poultry
products at a competitive disadvantage in the domestic and international
markets compared to imported food products not subject to the user fees.
Signing organizations included: the American Meat Institute, American
Farm Bureau Federation, Food Marketing Institute, National Cattlemen's
Beef Association, National Chicken Council, National Grocers
Association, National Pork Producers Association, National Turkey
Federation, and United Egg Producers.
-- P. Scott Shearer, Washington, D.C.
correspondent
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A total of 150 cattlemen respondents to a survey sponsored by Global
Animal Management (GAM) said using age and source verification systems
earned them an average of $10/cwt. more than generic calves. The study
compared producers using Tri-Merit(R) age and source process verified
programs (PVP), producers implementing pre-vaccination programs, and
producers not using either method.
Of survey respondents, 51 sold without pre-vaccination programs or PVP
for a $98.19/cwt. price on 2007-sold calves; and 38 producers selling
calves with a pre-vaccination program returned $102.37/cwt., or a
$6.12/cwt. advantage over calves sold without pre-vaccinations. In
addition, 60 Tri-Merit users reported a $108.49/cwt. sale price of
2007-sold calves, for a $10.30/cwt. advantage over calves selling
without pre-vaccinations and PVP.
Representing herds ranging in size of 50 to 5,000 head, respondents were
polled in January about calves sold in 2007. More than 75% sold calves
through a sale barn, 6% sold calves direct to a feedlot, and 2% sold
direct to the packer.
The survey was conducted by a third-party and represents a 91%
confidence interval.
-- Alaina Burt
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Canadian biopharmaceutical company, Bioniche Life Sciences Inc., has
received USDA notice that the latest data for its E. coli O157:H7
cattle vaccine "meets the 'expectation of efficacy' standard" and is
eligible for a conditional license, providing the firm develops a plan
that would collect sufficient data to move the product to full
licensure.
Such a conditional license will give Bioniche full access to the U.S.
market with two restrictions: At least one step in the manufacturing
process must be performed in the U.S., and Bioniche won't be permitted
to use a trademark name for the vaccine.
The Bioniche vaccine is the first vaccine cleared for use as an on-farm
intervention to reduce E. coli O157:H7 shedding by cattle.
-- www.meatami.com
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AgInfoLink USA launches a public web-based Verified Cattle Listing
Service. The system will list animals for sale with verified attributes
including age and source PVP verification, country-of-origin compliance,
natural, non-hormone treated, and health or nutrition program. The
system will be available for all AgInfoLink customers utilizing
AgInfoLink Verified Services.
The listing service can be accessed at www.aginfolink.com/vcls.
No login is required to view the cattle listings. Producers can list
their animals by contacting AgInfoLink or one of AgInfoLink's
verification partners (www.aginfolink.com/partners.asp).
To learn more, call 800-287-8787, visit www.aginfolink.com or email
info@aginfolink.com.
-- AgInfoLink release
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Landowners and graziers eying the conversion of grassland to
row-crop production this planting year can attend a 10 a.m.-3 p.m., Feb.
25, workshop on that issue in Corning, IA. Set for St. Patrick's Church
Parish Center, there's no charge and includes a free lunch.
The same workshop will be offered in three other locations: Winterset on
Feb. 28, Chariton on March 4, and Pella on March 5. Sponsored by the
Southern Iowa Forage and Livestock Committee, Iowa Beef Center, Iowa
State University (ISU) Extension, USDA's Natural Resource Conservation
Service (NRCS), and the Cargill Company, additional info is available
from your local Extension or NRCS offices.
Many grazing livestock producers are facing the choice of converting
their pastureland, which is typically their poorest soils, to crop
production due to record market prices for grains. But with the demand
for beef calves looking good, a move out of the cattle business may be
ill timed, organizers say.
Among the presenters are ISU Extension specialists Tim Eggers and Joe
Sellers, and NRCS Grassland Conservationist Brian Peterson.
-- Iowa Beef Center release
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The Kansas State University (KSU) Cattlemen's Day is March 7 in
Weber Hall on the Manhattan campus. A trade show and educational
exhibits begin at 8 a.m., with the educational program at 10 a.m. Among
the highlights are:- Animal behaviorist Temple Grandin on "Animal
Welfare From the Consumer Perspective."
- "Beef and the Consumer: Past, Present, and the Future" -- Dell
Allen, Cargill Meat Solutions (retired).
Other topics include: "DNA
Marker-Assisted Selection," "Cashing in on Ethanol Co-Products for
Cow-Calf and Stocker Cattle Operations," "Pre-conditioning for Optimum
Cattle Performance and Carcass Value," "Fertility Assessment in Bulls
and Strategies for Improvement," "Controlling Brush and Sericea
Lespedeza in Native Pastures," "Value-Added Beef Processing
Technologies," and "Biofuels Expansion." The day will end with the 3:30
p.m. Legacy Bull Sale at the Purebred Beef Unit.
Registration is $15/person (includes refreshments and lunch) before Feb.
29, and $25 after that date. For more info, visit www.asi.ksu.edu or call
785-532-1281.
-- KSU news release
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