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This week, I received a phone call from a bright young lady
preparing a speech for an upcoming national heifer show and competition.
Her speech centered on the impacts of rising energy and corn prices. One
of the questions she asked me was, with there being no indication of any
reprieve on the corn- or energy-price fronts, is what should a cow-calf
producer do in the short term to deal with this negative business
environment?
-- Click on headline to read the rest of this
story by Troy Marshall
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China is committed to building a large, educated middle class and a
modern nation, and is advancing toward these goals at a monumental rate.
Its mission is to join the U.S. as the world's next super power, and its
mega consumer market alone means China inevitably will pass the U.S. as
the driver of the world economy.
The fact that China's world view differs from that of Europe and North
America has raised concerns, but the shift of economic wealth that’s
occurred in the last 18 months from the industrialized world to the
energy-reserve countries in the Middle East and former Soviet Union, as
well as countries like Venezuela, is far more discomforting than China's
rise. In China's case, the end result isn't a zero-sum game as is the
case when wealth shifts away from democracies to autocratic oil regimes.
This certainly is to the West’s disadvantage both in the short and
long term.
On a per-capita basis, the leading regions of beef consumption globally
are Argentina, U.S., Brazil, Australia, New Zealand, Canada, Mexico,
Russia and the European Union. Countries with significant opportunities
for growth are Japan, Pakistan, India and China, which all consume less
than 10 kg of beef on a per-capita basis. Overall, however, China is
already the number-two country in the world for beef consumption,
trailing only the U.S.
The U.S. will remain the world's largest market for beef for quite some
time, but if China were to reach the consumption levels of a country
like Japan, they would be much larger than the U.S. market. It’s tough
to project global market conditions for the next five years, but if
current trends continue, the U.S. could be producing as much or more
beef for the Asian markets as we are our own. China's role in the future
of the beef industry is at its infancy but poised to grow dramatically.
-- Troy Marshall
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Few foresaw that the reopening of the South Korean beef market would
turn into an opportunity for the opposition party to damage the standing
government. In fact, the Korean president’s approval rating has
plummeted to just 15% and prompted his entire cabinet to offer their
resignations. Nor, who would have thought that Internet rumors based on
wholly inaccurate info would sweep through Korea leading to massive
demonstrations against U.S. product. Yet, that’s exactly what
happened.
The Korean president even apologized twice on national TV to the Korean
people over the negotiated and agreed-on U.S. beef deal. What’s more
amazing is that this has all occurred in a modern, educated country with
a strong scientific base of knowledge and a free media.
Regardless, this is the reality that the U.S. beef industry must deal
with. Both sides are now in a bind. The U.S. knows its product is safe,
and South Korea had agreed that it is; so it’s understandable that
there’s strong resistance to any modification of an agreement so
painstakingly negotiated over such an extended period of time.
The Korean government considers the Korea-U.S. Free Trade Agreement to
be critical to its national economic prospects; they don’t want to
jeopardize that pact by backpedaling on a done deal. They also know U.S.
product is safe, but they have a real political mess on their hands to
which they must appear responsive.
The U.S. beef industry is facing a similar dilemma – what good is
market access if there is a widespread belief that U.S. product
doesn’t have sufficient health safeguards? Thus far, the industry has
already voluntarily moved to reassure Koreans by labeling and ensuring
that all products will be under 30 months of age.
I’ve been at a complete loss for a long time to understand the current
administration's negotiating tactics. At first they seemed unwilling to
exercise any power to speed the reopening of the Korean market; now they
seem totally resolved against accepting the under 30-month provision.
In both cases, the American cattle producer is stuck on the sidelines,
as potential beef sales are lost forever. Pragmatic or dogmatic, I wish
they would make up their mind, or if they are going to vacillate one
would hope they would do a much better job of assessing which battles to
fight and when to fight them.
-- Troy Marshall
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Droughts, floods, seemingly uncontrollable market factors – I'll
be the first to admit it’s easy to get pessimistic from time to time.
But the trouble with pessimism is it works. The law of the
self-fulfilling prophecy is a universal constant that’s too powerful
to ignore.
-- Click on headline to read the rest of this
story by Troy Marshall
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I feel a little like a tabloid journalist in reporting on this, but
given the number of emails I received this week regarding singer Jessica
Simpson’s T-shirt, it’s certainly one of the bigger stories of the
week.
Many of you may know that Simpson has been dating Dallas Cowboys
quarterback Tony Romo. But prior to that, Romo had been dating country
music star Carrie Underwood, whose avowed vegetarianism has made her a
darling of People for the Ethical Treatment of Animals (PETA). In fact,
PETA has twice named Underwood as the "World's Sexiest Vegetarian."
Well, the paparazzi snapped pictures of Simpson out and about sporting a
T-shirt with the saying "Real girls eat meat" emblazoned across the
front, apparently a dig against Underwood the vegetarian.
While perhaps not the most subtle attempt at taking a shot at an
ex-girlfriend, if the marketers are right that all publicity is a good
thing, then the meat industry garnered a tremendous amount of publicity.
Already there are numerous websites selling tight-fitting T-shirts with
the "Real girls eat meat" slogan.
It was amazing to see the anger in various posts by the pro-vegetarian
crowd. I did have to laugh at one that said the only thing more wrong
would be if Jessica Simpson had won an Academy Award for her portrayal
of Daisy in the Dukes of Hazzard.
-- Troy Marshall
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Anyone who’s turned on a TV or radio recently has witnessed the
massive flooding that has caused widespread damage in the Midwest. From
a big-picture standpoint, the damage to this year's corn crop is largely
irreparable, as it will take considerable time for fields to dry enough
to rework. By then, the planting windows for corn and soybeans are
likely to have passed.
Some analysts say we’ll lose 5-10% of this year's potential crop.
Considering the already historically low carryover going into the year,
the curtailed corn demand due to higher prices isn’t expected to be
enough to offset the smaller crop.
Prior to the Midwest flooding, the corn situation was in a very
precarious position; we needed a very large corn harvest once again,
simply to meet expected demand. Going into 2008, everyone was expecting
record high prices, but the hope was another record crop would provide
some price stability.
The worst-case scenario for the spring planting season has seemingly
occurred, and any additional weather concerns throughout the growing
season could create a situation where today's prices are looked back on
nostalgically as a real bargain.
-- Troy Marshall
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Studying cow pies can be a window into your pasture quality, says
University of Nebraska Extension forage agronomist Bruce Anderson. When
walking your pastures to check the condition of your grasses, legumes,
forbs, and weeds, take a look at cow patties, as well, he suggests.
It’s an easy technique to learn about the diet quality of grazing
cattle.
Examine the cow pies for consistency, color and composition.
“Loose and flowing cow pies, kind of like a sheet cake, indicate the
animal has been grazing a high-quality, protein-rich diet. Forage is
digesting quickly and moving through the animal rapidly. It's the kind
of diet we want for dairy cows and for stockers,” he says.
Meanwhile, a little firmer patty that’s still soft and spreads easily
suggests a bit more fiber in the diet but still enough quality to
produce good stocker gains. As nutrient concentration in the diet gets
less and less, the pies will get firmer and firmer, he says. Green color
also indicates high quality coming from young pasture plants when
compared to cow pies that are olive or brown in color due to cows eating
older growth.
“Look closely at a fresh pie spread out by a boot and you often see
undigested fiber particles. This fiber becomes more numerous and longer
as grazing periods lengthen on individual paddocks. This happens because
cattle get lower quality feed each day they are on a paddock, causing
rumen microbes to constantly adjust digestion processes, thus reducing
utilization,” he says.
-- Bruce Anderson, University of Nebraska
Extension forage specialist
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A number of ag groups have called on Congress to investigate “all
the reasons for rising food prices," saying that critics have wrongly
blamed record-high food prices on farmers and biofuels. The letter said,
“Lately, a series of reports in various media have attributed higher
commodity prices paid to farmers as the cause of the higher costs passed
on to consumers. Such a perspective is a great disservice to the general
public because it ignores the facts behind higher prices.”
National Farmers Union President Tom Buis said, “With 80% of the
consumer retail food dollar occurring off the farm, I believe
congressional hearings will find rising food prices the result of
numerous factors. Food companies are trying to pass the blame on to
farmers while many are enjoying record profits.”
The letter was signed by the National Farmers Union, American Farm
Bureau Federation, National Corn Growers Association, American Soybean
Association, National Sorghum Growers Association, and National
Association of Wheat Growers.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Based on results from the Wyoming State Veterinary Laboratory, two
cows from a herd near Daniel, WY, were diagnosed with brucellosis,
according to the Wyoming Livestock Board. While official confirmation is
pending from the National Veterinary Services Laboratory in Ames, IA,
the Wyoming state vet and officials with USDA’s Animal and Plant
Health Inspection Service began testing the remainder of the herd this
week. Once that’s complete, they’ll test neighboring cattle herds in
an attempt to discover the source of the infection and determine if it
has spread.
According to Walter Cook, Wyoming state vet, the state won’t lose its
brucellosis-free status unless a second case is found.
-- Burt Rutherford
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Burger King wins the most expensive burger war. Launched on
Wednesday, “The Burger” sells for $200 and includes Wagyu beef,
white truffles, Pata Negra ham slices, Cristal onion straws, Modena
balsamic vinegar, lambs lettuce, pink Himalayan rock salt, organic white
wine and shallot infused mayonnaise in an Iranian saffron and white
truffle dusted bun, reports Sky News. By lunchtime on the first
day of its availability, eight had been sold.
Done in the name of charity, the sandwich is available in just one
restaurant – once a week – in West London, England, but plans are to
eventually make it available via a hotline. With cost of the ingredients
totaling $80 for each sandwich, the other $120 in proceeds will go to
the Help A London Child charity, which assists young people experiencing
abuse, homelessness, disability, poverty and illness.
-- Sky News
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With the growing concerns of crop conditions, high commodity prices,
and flooding in the Midwest, more voices are asking for the
administration to allow for producers to be able to opt out of their
Conservation Reserve Program (CRP) contracts early without penalty.
Sen. Chuck Grassley (R-IA) asked USDA to allow for early release of CRP
acres. In a letter to USDA Secretary Ed Schafer, Grassley said, “I
respectively ask that USDA do so, penalty free, so that these acres can
be planted to milo, grain sorghum, soybeans, or hay. We continue to have
growing global demands for feedstocks, and current flooding issues make
it a certainty that Iowa will not meet the production goals set forth
earlier this year.”
Grassley also asked that USDA protect the most environmentally sensitive
lands.
-- P. Scott Shearer, Washington, D.C.
correspondent
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While U.S. beef producers are worried in the short term, they're
mostly optimistic in the long-term about the future of the industry. The
majority also feel federal subsidies of grain-based ethanol production
are responsible for rising grain costs, and government subsidies and
mandates on ethanol production should be eliminated.
-- Click on headline to read the rest of this
story by Joe Roybal
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USDA says it’s implementing marketing assistance loan and loan
deficiency payment (LDP) provisions of the 2008 farm bill. With
enactment of the Food, Conservation and Energy Act of 2008, (the 2008
farm bill) national loan rates for the 2008 crops of wheat, feed grains,
oilseeds, rice, and pulses are at the following levels:
| National Loan Rates for 2008 |
| Wheat | $2.75
| per bushel |
| Corn | $1.95
| per bushel |
| Grain Sorghum | $1.95 | per bushel |
| Barley | $1.85
| per bushel |
| Oats | $1.33
| per bushel |
| Soybeans | $5.00 | per bushel |
| Other Oilseeds | $9.30 | per hundredweight for each
"other" oilseed |
| Rice, long grain | $6.50 | per hundredweight
|
| Rice, medium grain | $6.50 | per hundredweight
|
| Small chickpeas | $7.43 | per hundredweight
|
| Dry peas | $6.22 | per hundredweight
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| Lentils | $11.72 | per hundredweight
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-- P. Scott Shearer, Washington, D.C.
correspondent
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University of Nebraska-Lincoln Extension has designed a spreadsheet
to help producers better calculate the costs of storing wet distillers
grains (WDG) or other co-products on site.
Prices of ethanol co-products, such as WDG, seasonally are at their
lowest during summer months. Co-Product STORE (Storage To Optimize
Ration Expenses) allows producers to analyze and evaluate specific
storage scenarios to take advantage of seasonal price lows. Producers
then can store the co-product and feed it at a later date.
Co-product STORE is available at the UNL Beef website at beef.unl.edu. In addition, check out
a manual also available on the UNL Beef website called "Storage of Wet
Corn Co-Products."
The spreadsheet is organized into four, user-friendly steps that allow
producers to define costs and include parameters that represent their
own operations. Producers input several parameters unique to their
situation in the spreadsheet to calculate their costs, including
co-product material and transportation quantities and prices, storage
and feeding dates, estimated shrink, and equipment, labor and interest
costs.
For more on this topic, read “The Ins & Outs Of Storing Distillers
Grains” (beefmagazine.com/markets/feed/0501-storing-wet-distillers-grains/).
-- University of Nebraska release
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Researchers at Australia’s Commonwealth Scientific and Industrial
Research Organization’s (CSIRO) animal health lab have developed a new
test for foot-and-mouth disease (FMD) that involves no infectious viral
material and can differentiate between infected and vaccinated animals,
reports ScienceAlert.com. It’s said the test could transform
how FMD is controlled in the future, because of its low cost and the
fact it doesn’t require infectious virus to produce the reagents.
The British government decided against using vaccines to control a major
outbreak in 2001, because the tests available to them could not
distinguish between infected and vaccinated animals. So, vaccinated
animals would look like they were infected and would have to be treated
in the same way. The outbreak was finally contained only after the
slaughter of more than six million animals. Most were not infected.
"Our test is the first in the world to be built entirely from non-living
materials produced in the laboratory," says Janine Muller, who developed
the test with CSIRO colleagues.
-- ScienceAlert.com
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The House of Representatives and the Senate on Wednesday easily
overrode President George W. Bush’s veto of the second farm bill. The
House voted 317-109 and the Senate voted 80-14. The second farm bill was
necessary because of the clerical error of dropping the trade title from
the original bill.
Rep. Collin Peterson (D-MN), chairman of the House Ag Committee, said,
“Today’s vote will ensure that all parts of the Food, Conservation
and Energy Act are enacted into law. Particularly considering the
serious concerns about rising food prices and severe flooding affecting
crops in the Midwest, the farm bill provides a critical safety net for
families and farmers.”
In vetoing the bill, President Bush said, “In passing H.R. 6124, the
Congress had an opportunity to improve on H.R. 2419 by modifying certain
objectionable, onerous, and fiscally imprudent provisions.
Unfortunately, the Congress chose to send me the same unacceptable farm
bill by adding the trade title.”
-- P. Scott Shearer, Washington, D.C.
correspondent
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The U.S. average retail price for regular gasoline hit another high,
climbing to $4.082/gal. for the week ending June 16, an 82.3¢ surge
since March 24. Meanwhile, the national average price of diesel remained
flat at $4.692/gal.
For gasoline, the average East Coast price was $4.052, while the Midwest
hit $3.997, and the Gulf Coast price was at $3.937. The Rocky Mountain
region recorded $3.994, while the West Coast rose sharply higher by
surging 12.7¢ to $4.452. California soared 15.5¢ to $4.588/gal.
Diesel prices were mixed, with the East Coast and Midwest up at $4.752
and $4.618, respectively. The Gulf Coast, Rocky Mountains and West Coast
fell to $4.656, $4.685, $4.852, respectively, while California dropped
2.3¢ to $4.969/gal.
-- Energy Information
Administration
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Environmental groups have filed a lawsuit alleging that the Forest
Service violated the categorical exclusion (CE) provisions of the 2005
Consolidated Appropriations Act and the Appeals Reform Act.
The environmental groups originally challenged 25 CE decisions involving
nine forests in California, where the Forest Service reauthorized
grazing on 46 allotments. The complaints were expanded this month, and
now allege 138 CE violations affecting 386 allotments in 25 forests.
Affected states include Arizona, Idaho, Oregon, Utah, Washington and
Wyoming, in addition to California. This complaint is similar to a
lawsuit currently in progress in New Mexico.
The complaints present a broad challenge to public-land grazing in the
eight affected states. Should the environmental groups win, thousands of
acres of grazing land could be taken out of production until the Forest
Service remedies the identified defects in the authorization decisions,
the National Cattlemen’s Beef Association says.
-- Cattlemen’s Capitol Concerns
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Federal Judge Emmit Sullivan, with the Federal District Court in
Washington, D.C., ruled last week that USDA can’t use Privacy Act
safeguards to protect the information it has collected under the
National Animal Identification System (NAIS).
The ruling came in a suit filed by Mary Zanoni, executive director of
Farm for Life, an organization representing small farmers. Zanoni sued
to stop USDA from converting its NAIS database to a system of records
under the Privacy Act, which it had planned to do on June 9.
However, NAIS remains up and running, officials say. The ruling merely
enjoins USDA from using the U.S. Privacy Act to protect NAIS records
until the judge can have a hearing on the lawsuit.
-- Burt Rutherford
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Cost control and risk planning is the focus of a June series of
North Dakota State University Extension workshops for livestock
producers.
Among the discussion topics are: general economic conditions and energy
market impacts on commodity markets; forage management strategies and
farm level economic impacts; feed cost increases that impact the cattle
industry; and pasture, rangeland and forage rainfall index insurance.
Workshops dates and contacts are: - June 24 – Hettinger Research
Extension Center; Dan Nudel, 701-567-4323.
- June 25 – New Salem, Morton County Fairgrounds; Jackie Buckley,
701-667-3340.
- June 26 – Killdeer Buckskin Meeting Room; David Twist,
701-764-5593.
- June 27 – Minot, North Central Research Extension Center; Mike
Rose, 701-857-6444.
Pre-registration for the 9 a.m. to 12:30 p.m. workshops is requested.
The Hettinger meeting includes a 5:30 p.m. dinner with the workshop
beginning at 6 p.m.
Other workshop sponsors are National Crop Insurance Services and USDA's
Risk Management Agency.
-- NDSU Ag Communications
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Eight years after a toddler died from complications resulting from
E coli, the family has reached a $13.5-million settlement with
the restaurant chain’s meat suppliers and others, court records show.
The settlement is among the largest in the U.S. involving a food-borne
illness, lawyers for the family say.
The toddler and her family ate at a Sizzler restaurant in South
Milwaukee in July, 2000. Although the toddler didn’t eat any meat,
lawyers successfully argued that she ate watermelon that was
cross-contaminated. An additional 140 people became ill in the outbreak
involving two Sizzler restaurants.
The settlement includes $8.5 million from Excel, the packer that
supplied the meat, and $2 million from E&B Management, the Sizzler
franchise holder for the two restaurants that have since closed. The
case, however, is not over. The national Sizzler chain, its local
franchise and an insurance company are suing Excel. That case is
scheduled to be heard July 7.
--Southwest Meat Association
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Above-average moisture and lingering cool temps have hindered corn
planting and emergence in parts of the Plains this spring, but the
upside is the extra growth in cool-season grasses. In his June 12 “Hay
& Forage Minutes,” University of Nebraska Extension forage agronomist
Bruce Anderson says he’s trying to forego the work and expense of
haying by using a grazing technique called “swath grazing,” which is
usually reserved for winter use.
Also called windrow grazing, swath grazing is a hybrid between grazing
and making hay (for more detail on swath grazing, read: beefmagazine.com/cowcalfweekly/swath-grazing-extend/index.html).
Anderson plans to cut and windrow as much of his
bromegrass/bluegrass/alfalfa mix as he estimates he’ll need to feed
his cows for about one week, then utilize electric cross-fence to give
them just a day or two supply at a time.
“When they’ve nearly finished all the swaths, I’ll cut another
week’s worth until it’s all gone,” he says.
Anderson says he tried this technique last year with great success.
“By giving the cows just a small area at a time they cleaned it up
almost completely,” he adds.
Swath grazing probably at least doubles the number of days of grazing
per acre by eliminating much of the trampling waste that would occur if
cows were just turned into an overgrown pasture. Intensive strip-grazing
also might do the same thing but would require moving fence several
times a day, he points out.
An added bonus is the extra time the other pastures will have to regrow,
which should provide even more grazing later on.
-- Bruce Anderson, University of
Nebraska
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The U.S. Supreme Court on Monday refused to hear an appeal by Cavel
International, a horse slaughter plant at DeKalb, IL, effectively
eliminating horse slaughter in the U.S.
A state law advanced by animal rights activists forced the plant to
close last year. Cavel, a Belgium company that processed from 40,000 to
60,000 horses annually for consumption in Europe and Japan, fought the
law, but lost on appeal in September.
For an in-depth review of the situation by Utah State University, titled
“The State of the Horse Industry Since The Closing Of The Horse
Harvesting Facilities,” go to: extension.usu.edu/equine/files/uploads/horse%20harvesting%20paperno%20ext.doc.
-- Burt Rutherford
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With commercial fertilizers at record prices this year, one
alternative to dry fertilizer on grass pastures might be liquid swine
manure. That’s the focus of a demonstration study and field day June
30 at the CRP Research and Demonstration Farm north of Corning, IA,
where both cattle and hog producers can see the application of liquid
swine waste into pasture, and view test plots that have had the liquid
hog manure applied on May 27.
The swine manure discussion and demonstration follows a free light
supper starting at 6:45 p.m., while a 5-6:45 p.m. pasture walk will show
the results of two other grazing experiments ongoing at the
farm.- The first is a 2007 fescue pasture renovation program
(Spray-Smother-Spray) in which the pasture was killed in early 2007 and
a corn crop planted. That corn was later subdivided by electric fencing
and grazed before maturity as a forage crop. In 2008, that field is
being reseeded into reed Canarygrass with a pearl millet cover.
- The other is a five-year, “Patch Burn” experiment on controlled
burning of sections of a pasture to improve quality and production on
both warm- and cool-season grasses in one open continuously grazed
pasture.
For more on the CRP Farm Summer Field Day, call
641-322-3184 or email John.Klein@ia.usda.gov.
-- USDA release
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Let's face it — for the last decade it's been pretty fun to be in
the cow-calf business, says Tom Field, Colorado State University
professor of beef cattle systems. Despite rising input costs,
competition for resources and tenuous government policy, Field isn't
ready to wave the flag of defeat.
-- Click on headline to read the rest of this
story by Alaina Burt
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Wyoming and South Dakota researchers, along with ranchers in the two
states who have seeded yellow-flowering alfalfa, are confident the plant
will boost forage quality and quantity on native dry lands in the
northern mixed-grass prairies of Wyoming, Nebraska, Montana, Colorado
and the Dakotas.
And yellow-flowering alfalfa’s ability to increase forage production
and quality of native plants, as well as its role in sequestering carbon
in rangelands, is the focus of a June 26 field day. Set for 9 a.m. to 3
p.m. on the Bud Smith ranch in Perkins County, SD, the South Dakota
Cooperative Extension Service (CES) program will look at this subspecies
of alfalfa, also known as falcata.
Like other legumes, falcata releases nitrogen into the soil, and
nitrogen is one of the most limited nutrients in native rangelands.
Speakers include soil scientists and ranchers who have successfully
seeded falcata into native rangeland vegetation.
For more info, contact South Dakota CES agronomy educator Bob Drown at
605-244-5622 or robert.drown@sdstate.edu.
You can also learn more on yellow-flowering alfalfa at uwadmnweb.uwyo.edu/UWag/news/Yellow-Alfalfa.asp.
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Harry Hull, MD, said it very clearly in his letter, “Beef
Irradiation’s Time Is Now” (June 13 BEEF Cow-Calf Weekly).
The National Cattlemen’s Beef Association needs to educate itself, the
packing industry and the public on the merits of this technology.
Rod Preston
Bellingham, WA
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