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BEEF'S COW CALF WEEKLY    July 11, 2008  |  A PENTON MEDIA PUBLICATION
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    Table Of Contents
> Is Global Warming Building Steam Or Cooling Off?
> While We Debate ID, The Consumer Speaks Clearly
> 2008 Across-Breed EPD Table Released
> Alabama Cattlemen To Vote On State Checkoff
> BIF Presents Honors In Calgary
> Bill Bowman Named Angus COO
> Bill Mies Looks At The Industry’s Next 12-18 Months
> CRP Haying And Grazing Is On Hold
> Eller Named Head Of NCBA Washington Office
> Fever Ticks Spreading In Texas
> Forage Prices Haven’t Yet Caught Up With Corn Prices
> Gasoline, Diesel Prices Climb To New Record Highs
> Groups Ask For ‘Clean’ ADUFA Reauthorization
> Guard Against Nitrates By Testing Forage Pre-Harvest
> High Expenses Are Focus Of Beef Cattle Short Course
> Massive U.S. Beef Promotions Kick Start Korean Sales
> See July BEEF Issue Content At beefmagazine.com.
> Suspension Of Ethanol Import Tariff Urged
> The New Story Of “Story” Beef
> USDA Issues Advance Direct Payments
> USDA Releases CRP Land In Flood Regions For Grazing
> Webcast Set On Feedyard Air Quality Regs

    Our Perspective
    Is Global Warming Building Steam Or Cooling Off?

Perhaps more than any other scientific issue, global warming has been difficult to assess, primarily because it so quickly became politicized in academia and public discourse. And it quickly evolved into a movement, attracting anti-capitalists, environmentalists and seemingly unrelated activist groups like the anti-trade crowd en route.
-- Click on headline to read the rest of this story by Troy Marshall



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      While We Debate ID, The Consumer Speaks Clearly

The National Animal Identification System (NAIS) has never had either the support, or the detractors, that a lot of issues in our industry seem to attract. But in some circles, NAIS is seen as a rampant intrusion of government into private lives, and a slippery slope to losing every freedom and right we now enjoy.

There’s been a litany of problems with NAIS and its implementation; perhaps none is more pronounced than having 29 different specie groups trying to devise their own means of implementing a program that remains voluntary. While there are a lot of legitimate concerns about NAIS, ranging from cost to the right technology, farm-to-fork traceability is quickly becoming the standard in the global marketplace. It’s also increasingly being demanded by consumers.

What’s most striking, and problematic for the industry, is that consumers already assume the industry has such a traceback capability. As they become more aware of our lack of traceability, we can expect them to become increasingly vocal.
-- Troy Marshall

   
    2008 Across-Breed EPD Table Released

The table of adjustment factors to be used to estimate across-breed expected progeny differences (AB-EPDs) for 16 breeds was presented at the Beef Improvement Federation Annual Meeting in Calgary, Alberta last week (see attached table).
-- Click on headline to read the rest of this story by Larry Kuehn, USMARC research geneticist



Click to view table.




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      Alabama Cattlemen To Vote On State Checkoff

Cattle owners in Alabama will vote July 29 to continue a voluntary, statewide beef checkoff program. Voting will take place from 8:30 a.m.-4 p.m. at county Extension offices in the state.

The Alabama beef checkoff is a voluntary 50¢/head assessment made in addition to the $1 national beef checkoff. Alabama cattlemen vote every five years whether to continue the program. The money is used in the state for various programs and funds have been sent to the U.S. Meat Export Federation to increase international sales of U.S. beef, according to the Alabama Cattlemen’s Association (ACA).

For more on the state checkoff, including the marketing plan, go to www.bamabeef.org or call ACA at 334-265-1867.
-- Burt Rutherford

      BIF Presents Honors In Calgary

Celebrating its 40th anniversary, the Beef Improvement Federation (BIF) honored a number of industry contributors during its annual meeting in Calgary, Alberta last week.
  • Kniebel Farms & Cattle Co., a 130-year-old diversified family operation in White City, KS, was presented the Commercial Producer of the Year Award.
  • TC Ranch, a 58-year-old, family-oriented purebred Angus operation located in the Republican Valley of south-central Nebraska, was presented the Seedstock Producer of the Year Award.
  • Robert Church, internationally known expert in the transfer of genetics, biotechnology and molecular biology to the food and fiber industries, was presented the Pioneer Award. The award recognizes individuals who have made lasting contributions to the improvement of beef cattle and who have had a major role in the acceptance performance reporting and documentation as the primary means to make genetic change in beef cattle populations.
  • Don Vaniman, the first executive secretary of the American Simmental Association, was presented a Pioneer Award.
  • Harry Haney, considered instrumental in the development of the artificial-insemination industry in Canada, was presented a Pioneer Award.
  • Louis Taylor Latimer, former Shorthorn and current Hereford and Angus breeder, was presented a Pioneer Award.
  • Dale Kelly, vice-president of the Ag, Biotechnology and Food Division of Saskatchewan Research Council, was presented a Continuing Service Award. It recognizes individuals who have made a major contribution to BIF.
  • Doug Fee, CEO of the Canadian Aberdeen Angus Association, was presented a Continuing Service Award.
  • Duncan J. Porteous, longtime Canadian Hereford Association contributor, was presented with a Continuing Service Award.
  • Canadian Cattlemen magazine, and principals Gren Winslow and Larry Thomas, were presented the Ambassador Award. It’s given annually to media representatives who have made a major contribution to beef improvement and/or BIF.
For more coverage on these award winners and BIF presentations, visit: www.bifconference.com.
-- BIF news releases



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      Bill Bowman Named Angus COO

Bill Bowman has been named the American Angus Association (AAA) chief operating officer, effective immediately. Bowman is a 16-year AAA veteran, and also serves in other leadership roles such as vice president of information and data programs, director of performance programs and president of Angus Genetics Inc., a subsidiary of the association. As COO, Bowman will oversee the daily operations of the association. He is a graduate of the University of Missouri-Columbia.
-- AAA News Release

    Bill Mies Looks At The Industry’s Next 12-18 Months

It doesn't take Bill Mies long to roll out his best-case scenario for the next 18 months. That's because the beef management consultant, and former feedyard manager and Texas A&M University academic, has always been a realist – and the reality is that change is in the offing.
-- Click on headline to read the rest of this story by Burt Rutherford



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      CRP Haying And Grazing Is On Hold

USDA’s May announcement that it would allow for the haying and grazing on Conservation Reserve Program (CRP) acres after nesting season is now on hold. The National Wildlife Federation was able to obtain a temporary restraining order from U.S. District Court in Seattle for USDA’s failure to do an environmental impact statement prior to the May announcement. A hearing on this issue is scheduled for next week.
-- P. Scott Shearer, Washington, D.C. correspondent

      Eller Named Head Of NCBA Washington Office

J. Burton Eller has been named head of the National Cattlemen’s Beef Association’s (NCBA) Washington, D.C. office, replacing Jay Truitt, who left in a major staff shakeup earlier this year. Eller currently serves as USDA under secretary of ag for marketing and regulatory affairs. Earlier in his career, he was senior vice president of government affairs for the former National Cattlemen’s Association (NCA) and also served as executive vice president of NCA.
-- P. Scott Shearer, Washington, D.C. correspondent

      Fever Ticks Spreading In Texas

The Texas Animal Health Commission (TAHC) marked an ominous anniversary last week when it expanded, once again, the preventive fever tick quarantine area in South Texas.

“In July 2007, the first preventive quarantine was established – 39,325 acres in Starr county – to enable USDA’s Tick Force and the TAHC to inspect and treat livestock moved from the area, get ahead of the fever tick and push it back across the quarantine line,” says Bob Hillman, Texas state veterinarian. Now, just a year later, he says Texas has more than a million acres under preventive quarantines, in addition to the half-million acres in the permanent quarantine zone that runs along the Rio Grande.

As USDA and state animal health officials find more and more tick incursions outside the permanent quarantine zone, already scarce resources are stretched even farther, Hillman says. “This is no longer a ‘border war’ against the fever tick,” he says. “The fever tick has gained a substantial foothold on Texas soil, and without adequate resources to fight this pest, it will spread.”

For more on the federal-state effort, go to www.tahc.state.tx.us and beefmagazine.com/health/long_thin_line/index.html.
-- TAHC release



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    Forage Prices Haven’t Yet Caught Up With Corn Prices

To help put the change in feed costs the last couple of years into perspective, James Mintert, Kansas State University economist, says it’s useful to look back at the prices over time to see how much things have changed.
-- Click on headline to read the rest of this story by James Mintert, Livestock Marketing Info Service

      Gasoline, Diesel Prices Climb To New Record Highs

The U.S. average retail price for regular gasoline once again climbed into record territory, increasing 1.9¢ to $4.114/gal., for the week ending July 7. Meanwhile, diesel reversed its drops of recent weeks, shooting up by 8.2¢ to an all-time high of $4.727/gal.

Gasoline hit record highs in all regions but the West Coast. The East Coast was up 2.2¢ to $4.079, the Midwest 2.8¢ to $4.059, the Gulf Coast 3¢ to $3.958, and the Rocky Mountains 3.1¢ to $4.065. The West Coast shaved 1.6¢ ($4.44), and California was down 2.3¢ to $4.55.

Diesel was up in all regions. The East Coast jumped 8.5¢ to $4.789, the Midwest increased 8.3¢ to $4.654, and the Gulf Coast rose 9.3¢ to $4.697. The Rocky Mountains gained 3.4¢ to $4.672, the West Coast added 6.9¢ ($4.886), and California moved up by 7.3¢ to $5.001/gal.
-- Energy Information Administration

      Groups Ask For ‘Clean’ ADUFA Reauthorization

A coalition of livestock organizations is urging Congress to pass a “clean” reauthorization of the Animal Drug User Fee Act (ADUFA) this year. In a letter to Congress, the coalition said, ADUFA authorizes the Food & Drug Administration (FDA) to collect fees to be “used to review certain animal drug applications. These fees allow FDA to supplement its rigorous and robust review of animal drugs by providing additional resources for timely reviews of new animal drug applications. More timely reviews ensure that livestock, dairy and poultry producers and their veterinarians have expedited access to new and innovative products for livestock and poultry without compromising the quality and integrity of the federal review process, thus ensuring public and animal health.”

The coalition also informed Congress it opposes legislative proposals to ban the use of certain antibiotics for livestock. Some proposals would only allow the use of antibiotics when an animal is sick.

The coalition said, “Eliminating a producer’s and veterinarian’s ability to prevent disease with antibiotics actually would result in sick and suffering animals and would not improve public health or address the real concern of antimicrobial resistance in humans. Compliance with producer and veterinarian responsible-use programs will accomplish the goal of protecting public health and animal health and well-being.”

Organizations signing the letter include: American Farm Bureau Federation, American Sheep Industry Association, National Cattlemen’s Beef Association, National Chicken Council, National Milk Producers Federation, National Pork Producers Council, National Turkey Federation, and United Egg Producers.
-- P. Scott Shearer, Washington, D.C. correspondent

    Guard Against Nitrates By Testing Forage Pre-Harvest

Hot, dry summer weather brings about heat and drought stress on summer forage crops. Stressed plants such as the forage sorghums can occasionally accumulate dangerous concentrations of nitrates, says Glenn Selk, Oklahoma State University Extension animal scientist. These high-nitrate plants, either standing in the field or fed as hay, can cause abortion in cattle or death if consumed in great enough quantities.
-- Click on headline to read the rest of this story by Ron Hays, Radio Oklahoma Network

      High Expenses Are Focus Of Beef Cattle Short Course

“The New Era of High Input Costs” is the theme for the Texas A&M Beef Cattle Short Course, Aug. 4-6, at Texas A&M University in College Station.

Coordinated by the Texas AgriLife Extension Service, the general session will focus on the future of the beef industry and what producers can do to maintain profitability. Other topics include discussions on the domestic and global factors that are causing sharp increases in production costs; advanced production practices that cattle producers can implement to improve operation efficiency; and future global demand for beef and commodities, and the future of the beef export market. Also featured are 20 other specialized workshops that are part of the cattleman’s college sessions.

Registration is $140 before July 28, and includes admission to the 2½-day conference, the cattleman’s college, a 300-page proceedings, trade show, prime-rib dinner, breakfasts and noon meals, and morning and afternoon refreshment breaks. Go to beef.tamu.edu to register, or call 979-845-6931 for more info.
-- Texas A&M University release

      Massive U.S. Beef Promotions Kick Start Korean Sales

Korean importers of U.S beef are conducting large-scale sales promotions aiming at selling thousands of tons of U.S. beef stored in cold warehouses across the country, the Korea Times reports.

The article says 85 tons of beef out of 5,300 tons in frozen storage already in Korea will be available on the market once it’s passed through quarantine check-up processes, according to the Ministry of Ag, Forestry and Fisheries and the National Vet Research Quarantine Service.

On June 30, the Korean Import Beef Association said it wanted to have about 200 affiliated members join a massive discount sale until the end of July. Importers have explained that their biggest concern is to dispose of the stock while it’s still good. About 1,000 tons of the whole storage was imported as chilled meat but kept frozen because of the import suspension, according to the New Queensland Register.

Meanwhile, tens of thousand of Koreans protested against the beef over the weekend. The protests drew the attention of UN Secretary General Ban Ki-moon, who told the Wall Street Journal: “It’s important for the government to be responsible for protecting public welfare and health. At the same time, it is also very important for the people to trust the government, to support the government policies and to support the government’s desire to keep international standards and agreements.”

U.S. senators have also written to the Korean and U.S. presidents to ask for a resolution to the beef issue.
-- National Meat Association “Lean Trimmings”

      See July BEEF Issue Content At beefmagazine.com.

The content of the July issue of BEEF magazine is now available at beefmagazine.com. Read articles on fenceline weaning (“The Nose Knows”), a discussion on the pros and cons of rotational grazing (“Is Rotational Better”), a roundup of the changing supply and demand factors on the global beef market (“Global Beef Wrap”), and practical advice on disposal of needles (“A Sticking Point”). In addition, you’ll find the latest advice from “Market Advisor” Harlan Hughes on designing the “Optimal production/marketing system,” and much more. It’s all at beefmagazine.com.
-- Joe Roybal

      Suspension Of Ethanol Import Tariff Urged

A total of 35 companies and organizations are urging President George W. Bush to suspend the duties and quotas on imported ethanol used for motor fuel.

The letter to the President said, “The suspension of the 54¢/gal. duty on ethanol will benefit Americans by introducing market competition for a product that is mandated and by fostering downward pressure for ethanol and its feedstock.” It also said, “The introduction of market competition will alleviate a portion of the unnecessary feed and food price inflationary pressures that are adversely affecting our economic well-being and American consumers.”

Those signing the letter included: American Bakers Association, American Beverage Association, American Meat Institute, Dean Foods Company, Grocery Manufacturers Association, National Cattlemen’s Beef Association, National Chicken Council, National Milk Producers Federation, National Pork Producers Council, National Turkey Federation, and The Snack Food Association.
-- P. Scott Shearer, Washington, D.C. correspondent

      The New Story Of “Story” Beef

There are some new elements in the story of “story” beef, says Gary Smith with Colorado State University, and all cattlemen will ultimately be affected with how the tale ends.

Smith described the narrative used in selling “story” beef as, “I’m going to tell you a story about my beef. My story consists of a number of ‘value propositions’ (i.e., elements I think are important to you). Because I do some special things, I must recover special costs of production.”

Story beef can be successful, he says, because consumers who purchase and eat natural, grass-fed or organic beef want to feel connected to the source of that beef and want to believe that someone – some specific farmer or rancher – personally, watched over and provided oversight of the raising system.

However, there are some new elements of “story” beef, he says. These new elements are embodied in the questions, “Did the people who grew the cattle live nearby? Properly care for the animals? Treat farm/ranch workers fairly? Practice environmental stewardship? Operate sustainably? Receive a fair price?

“Of the new elements of ‘story’ beef, proper care and handling of animals that produced the food is of greatest importance to the future of the beef industry.” Smith says. “Consumers care about animal care, and there’s an activist agenda designed to make people feel guilty about eating meat.” He says the beef industry’s strongest arguments in favor of its efforts in animal welfare are the Beef Quality Assurance program’s “Code of Ethics” regarding animal welfare and the National Cattlemen’s Beef Association’s “Guidelines for the Care & Handling of Cattle.”
-- Burt Rutherford

      USDA Issues Advance Direct Payments

USDA has begun distributing Direct and Counter-cyclical Program (DCP) payments to producers who elected to receive a 22% advance payment when they enrolled in DCP. The direct payment for covered commodities for 2008 equals 85% of the farm's base acreage for the crop, times the direct payment yield for that crop, times the direct payment rate for that crop.

According to USDA, commodities with base acres eligible for direct payments and their 2008 rates are: barley, 24¢/bu.; corn, 28¢/bu.; grain sorghum, 35¢/bu.; oats, .024¢/bu.; soybeans, .44¢/bu.; other oilseeds (canola, crambe, flaxseed, mustard seed, rapeseed, safflower, sesame seed, sunflower seed), 80¢/cwt.; peanuts, $36/ton; long grain and medium grain rice, $2.35/cwt.; upland cotton, .0667¢/lb.; and wheat, 52¢/bu. Final direct payments will be issued after Oct. 1.
-- P. Scott Shearer, Washington, D.C. correspondent

      USDA Releases CRP Land In Flood Regions For Grazing

USDA has released Conservation Reserve Program (CRP) acres for livestock grazing in counties recently designated as Presidential Disaster Areas because of flooding. The release permits grazing only in counties designated as primary and contiguous disaster areas and only because of flooding.

The states with counties that will permit livestock grazing include: Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Minnesota, Missouri, Nebraska, Ohio, Pennsylvania, South Dakota, Virginia, West Virginia and Wisconsin. For a county listing, go to: www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?contentidonly=true&contentid=2008/07/0179.xml.

To be approved, CRP participants must write their county FSA office, obtain a modified conservation plan and receive county office approval before beginning to graze. Participants will experience a 25% reduction in their CRP rental payments.
-- USDA news release

      Webcast Set On Feedyard Air Quality Regs

Managers and owners of animal-feeding operations can get an update on federal air quality regulations during a July 18 webcast. The webcast, scheduled to begin at 1:30 CDT, features an update on reporting requirements, application of the Clean Air Act for animal operations and recent developments in national ambient air quality standards, among other topics.

The virtual meeting room opens 15 minutes before the start time. Go to www.extension.org/pages/Live_Webcast_Information
-- University of Nebraska release

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