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Catch a roundup of each week’s cattle-market activity every Friday
afternoon at beefmagazine.com. Steve Kay,
editor and publisher of Cattle Buyers Weekly, the number one
marketing and business newsletter for the North American meat and
livestock industry, will provide the week-ending summary. Beginning
today, you can find it under “Steve Kay’s Friday Market Update” on
the opening page of www.beefmagazine.com.
For more info on Kay’s Cattle Buyers Weekly subscription
newsletter, visit www.cattlebuyersweekly.com,
phone 707-765-1725, or email info@cattlebuyersweekly.com.
-- Joe Roybal
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Herefords - The Efficiency Experts
Adding Hereford genetics to your herd makes perfect business sense in a
cost-driven economy. Excellent conversion, hardiness, fertility,
longevity and even disposition can help reduce input costs. These
Hereford efficiencies are ideal for your herd, your business and your
plans for the future. Low-maintenance cattle, long-term profit. Now
that’s power.
www.hereford.org
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Tentatively set for Jan. 16-25, 2009, BEEF magazine is headed
again to South America. Our eighth producer tour, conducted in
conjunction with Montana State University, will concentrate on Brazil.
Cost of the trip is around $4,500, predicated on a 20-traveler minimum.
The fee covers passage from Miami, FL, to Brazil and back, as well
accommodations, in-country travel, translators, tour guides and most
meals.
Serving as guides are Joe Roybal, editor of BEEF magazine, and
Clint Peck, director of Montana Beef Quality Assurance and an authority
on world beef competitiveness. To reserve your spot, contact Roybal at
952-851-4669 or jroybal@beef-mag.com; or Peck
at 406-896-9068 or cpeck@montana.edu.
-- Joe Roybal
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Before leaving town for the August recess, the Senate joined the
House of Representatives in passing H.R. 6432, the “Animal Drug User
Fee Act” (ADUFA) and the “Animal Generic Drug User Fee Act”
(AGDUFA). This legislation allows the Food and Drug Administration (FDA)
to collect fees from the animal-health industry for the review and
approval of animal-health products.
Under this legislation, animal-health companies will be required to
report to FDA certain data related to the distribution and export of
animal-health products. Individual company information will be kept
confidential. Some members had proposed restricting the use of
antibiotics for animals but weren’t successful. The legislation now
goes to President George W. Bush for his signature.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Adding sizzle to grilling
This summer, new checkoff-funded promotions encourage consumers to
choose beef for grilling. From co-marketing partnerships with Kraft
A.1.® Steak Sauce and Sutter Home, to grocery-store promotions and
radio advertising, your checkoff reminds people to add sizzle to
grilling with beef. Get to know your checkoff: www.MyBeefCheckoff.com or
(303) 220-9890. 
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Warm sea-surface temperatures and low sea-level pressures over the
tropical Atlantic in June and July, coupled with an active early season
in the deep tropics, has caused forecasters to predict an active
hurricane season.
Researchers Philip Klotzbach and William Gray at Colorado State
University (CSU) are calling for 17 named storms for the hurricane
season, with nine becoming hurricanes and five becoming intense
hurricanes with sustained winds of 111 mph or greater. Five named storms
have cropped up so far this season.
The CSU forecast team continues to warn of the considerably
higher-than-average probability of at least one intense hurricane making
landfall in the U.S. for the remainder of this year’s hurricane
season.
They say there’s a 67% chance of an intense hurricane hitting
somewhere along the U.S. coastline (long-term average is 52%).
For the East Coast, including the Florida peninsula, the probability
of an intense hurricane making landfall is 43% (long-term average 31%).
For the Gulf Coast from the Florida Panhandle west to Brownsville,
TX, the probability is 42% (long-term average is 30%).
The forecast also calls for above-average major hurricane landfall
risk in the Caribbean.
“We are in a cycle in the Atlantic Basin that is expected to last
another 15-20 years,” Gray says. “We believe this is part of a
natural ocean cycle and is not the result of human-induced increases in
atmospheric carbon dioxide.”
Visit hurricane.atmos.colostate.edu
for the complete forecast. Find info on landfall probabilities www.e-transmit.org/hurricane.
-- Colorado State University release
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Ag consistently is among the most hazardous U.S. occupations. Now, a
new organization, the Agricultural Safety and Health Council of America,
has been formed to work toward making farming safer.
Dennis Murphy, Penn State distinguished professor of ag safety and
health, a founding board member of the new council, says 516 workers
annually die doing farmwork, while 243 suffer lost-time injuries daily.
The new council, driven by farmer/rancher and agribusiness leaders, is
the first of its kind to pursue a national strategy to reduce disease,
injuries and fatalities in American ag. The group will attempt to
influence research priorities to rapidly identify best-management
practices for worker safety and health that maximize cost efficiency and
sustainability.
"The council will pursue national strategies to reduce ag injuries and
fatalities, based on reliable data and emerging issues," Murphy says.
"The group will guide the development of effective delivery systems for
safety and health through communications involving leaders representing
producers, agribusinesses, insurance companies, safety associations and
others."
A variety of membership packages are available for individuals and
organizations. For more info, contact the Agricultural Safety and Health
Council of America at 715-221-7270 or visit www.ashca.org.
-- Penn State University
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All MFA Health Track calves are weaned at least 45 days,
on standardized nutrition, double vaccinated, dewormed and deliced,
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Everyone benefits from cattle that stay healthy and perform, for more
information contact MFA Health Track today.
Phone: 888-514-2333
Email: healthtrack@mfa-inc.com
Web: www.mfa-inc.com/web/guest/livestock/healthtrack
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Alabama’s 10th beef checkoff referendum since 1962 easily passed
last week as the state’s cattlemen approved renewing the program by an
87% margin.
“We’re all glad to see our state checkoff continue,” says Orland
Britnell, Alabama Cattlemen’s Association president. “It’s a
self-help program we use to hold producer meetings, publish educational
material, train young people and, of course, promote beef.”
The 50¢/head state checkoff program was last voted on five years ago.
Checkoff funds are used to develop new programs and aid national
promotion efforts.
-- Alabama Farmers Federation release
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According to Virginia health officials, an E. coli O157:H7
outbreak that hit a Boy Scout camp in Goshen may be linked to
contaminated ground beef. A total of 73 camp attendees have reported
illness, 21 children have been lab-confirmed with E. coli
O157:H7, and eight Virginia scouts have required hospitalization.
Virginia health officials reportedly confirmed on Monday that beef taken
from the Boy Scout camp tested positive for the E. coli O157:H7
bacteria, though the investigation is continuing into other potential
sources of infection. On Wednesday, USDA announced a recall of 153,630
lbs. of frozen ground beef products produced by S&S Foods LLC, an Azusa,
CA firm, due to possible contamination with E. coli O157:H7.
Meanwhile, in Massachusetts this week, health officials announced at
least six people were sickened by E.coli O157:H7, with beef also
the suspected source. State officials say the source of the illness
hasn’t been identified but the cluster of illnesses, with the victims
ranging in age from three to 60 years of age, appear to be caused by the
same strain of the bacteria found in patients from several other states.
It’s another black eye for the industry, already stung by a
5.3-million-lb. recall in June of beef products potentially contaminated
with E. coli O157:H7 and produced by Omaha-based Nebraska Beef
Ltd.
Consumers could add that to this spring's 134-million-lb. recall from
the Hallmark fiasco in Chino, CA. Or the other little recalls without
the scale sufficient to capture national attention that have permeated
our industry this year.
Year 2007 was bad enough — more than 20 recalls tallied to more than
30 million lbs. of beef products. The largest was the Topps incident (22
million lbs.), but the list included plenty of other well-known names
— American Food Group with 95,000 lbs.; Cargill Meat Solutions Corp.,
845,000 lbs.; United Food Group, 5.7 million lbs.; PM Beef Holdings,
17,500 lbs. See the list at: www.fsis.usda.gov/fsis_recalls/Recall_Case_Archive_2007/index.asp.
The Food Marketing Institute's “U.S. Grocery Shopper Trends 2008”
survey found that in 2007, 66% of shoppers – down from 82% the year
before – were confident that the food they buy at the grocery store is
safe. This figure fluctuates with what's in the news, of course, but the
survey illuminates a growing uncertainty among consumers about food
safety that, like nervous cattle, can blow into a stampede with just the
right spark.
The survey also points out that 53% of consumers think food-safety
problems are most likely to occur at food processing and manufacturing
plants. That figure was 30% in 2005, and 45% in 2007.
Food-borne illness is an issue the U.S. beef industry has wrestled with
for way too long, and with considerable damage to our reputation. While
the industry continues to pile more – and increasingly elusive –
research dollars into developing incremental remedies for the nightmare
of E.coli O157:H7 contamination of ground beef, the silver bullet
for the problem – irradiation – basically just sits on the shelf.
And all the while, the industry admits all its work is unlikely to ever
add up to the kill step that irradiation provides.
Cattlemen's organizations and processors all say they're behind
irradiation – with policies of support on their books that they trot
out when queried – but they continue to hide behind the skirt that
consumers won't accept irradiation. A wealth of research, however, shows
that – with education – 85% of consumers will embrace the
technology. Still, the industry dithers, hems and haws over the other
15% – many of them likely non-meat eaters.
Meanwhile, the most vulnerable among us – our kids, the aged and the
sick – continue to be unnecessarily placed at risk. It's time the
industry did the right thing and seriously pushed for irradiation of the
nation’s ground-beef supply. And it's up to producers to exert the
pressure when they can in pushing that cause.
-- Joe Roybal
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Vira Shield is a registered trademark of Novartis AG.
Vira Shield logo and wordmark and Control Without Complication are
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Congress is now in recess until Sept. 8. When Congress returns, a
number of issues will be on the table for consideration. These include
fiscal year 2009 appropriations, Department of Defense reauthorization,
energy, stimulus package, and tax extenders. Congress is expected to
recess the end of September for the fall election.
Recent polling data indicates Americans’ approval rating of the job
Congress is doing is in the single digits, falling below even President
Bush.
-- P. Scott Shearer, Washington, D.C.
correspondent
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“How many of you knowingly or intentionally waste money?” asks
Ron Gill, Texas AgriLife Extension beef specialist from Stephenville.
The answer, of course, is not many. But simply cutting costs in an
effort to deal with the threats of high fuel, feed and fertilizer prices
may backfire.
“Develop a systematic, planned approach to controlling cost,” he
says. “Don’t start cutting costs first, then start thinking about
what the ramifications will be.”
Few folks appreciate somebody telling them their faults, but he suggests
inviting someone to look at your operation. “Get somebody to look at
what you’re doing and think outside the box. You may discover you
don’t know enough to start cutting costs.”
-- Texas AgriLife Extension release
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“It's not as easy as finding a niche market and sticking with
it,” explains Mary Forman, who co-founded Country Natural Beef (CNB)
with her husband, Lowell.
-- Click on headline to read the rest of this
story by Wes Ishmael Contributing Editor
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Rely on the power of Angus data, industry leading technology,
continuing research and unmatched value-added marketing opportunities.
Angus, the power of people and progress.
www.angus.org
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Though housing values continue to tank in the U.S., farmland values
continue to set record highs, Bloomberg reports. Driven by
skyrocketing crop prices, the average farm real estate value was
$2,350/acre at the start of 2008, up 8.8% over a year earlier, USDA
says. It was $1,030/acre in 1999.
The Northern Plains, which includes Kansas, Nebraska, North Dakota and
South Dakota, recorded the biggest bump in the country, at 15.5% for the
year, USDA says. Meanwhile, the most expensive farmland in the U.S. was
in Massachusetts at $12,200/acre, followed by Rhode Island and
Connecticut. The least expensive was in New Mexico at $630.
Northeast states were the most expensive of the 10 regions in the lower
48 states tracked by the USDA, with an average price of $5,080 an acre.
The least-expensive area remained the Northern Plains, at $1,110 an
acre. Values grew fastest in South Dakota, where prices jumped 21% to
$990/acre.
To view a USDA graph on average farm real estate value by year
(1999-2008), click
here:
To view a USDA graph on farm real estate value by state, click
here:
To view a USDA graph on average pasture rent by year (1999-2008),
click
here:.
To view a USDA graph on average pasture rent by state, click
here:.
To view a USDA graph on average pasture value by year (1999-2008),
click
here:.
To view a map of pasture value by state, click
here:
-- Bloomberg and Joe Roybal
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Trying to decide whether or not to spend the money to precondition
your calves, given the profound incentive that cow-calf producers have
to cut costs, may seem like an easy decision. After all, low cost wins
when selling cattle in a commodity market.
-- Click on headline to read the rest of this
story by Burt Rutherford
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The House of Representatives has passed legislation to reauthorize
the E-Verify program. This voluntary program, also known as Basic Pilot
Program, allows employers to verify I-9 data to check the employment
eligibility of workers. The Senate is expected to consider the
legislation in September. This program expires this year and is very
important to the meatpacking industry.
-- P. Scott Shearer, Washington, D.C.
correspondent
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The U.S. average retail price for regular gasoline fell for the
fourth week in a row (week ending Aug. 4), losing another 7.5¢ to
$3.88/gal., and 23.4¢ off the all-time high of July 7. Meanwhile, the
average U.S. retail diesel price fell a third straight week, losing
10.1¢ to $4.502/gal., a 26¢ drop from the July 14 all-time high but
still $1.604 higher than a year ago.
Gasoline was down in all regions. The East Coast shaved 7.2¢ to $3.888,
the Midwest 5.5¢ to $3.772, the Gulf Coast 9.1¢ to $3.766, and the
Rocky Mountain region 5.4¢ to $4.006. The West Coast retreated 10.5¢
to $4.14, while California was down by 11.2¢ to $4.205/gal.
Diesel was similarly down across the board. The East Coast fell by
10.1¢ to $4.563/gal., the Midwest 9.9¢ to $4.419, the Gulf Coast 12¢
to $4.45, the Rocky Mountains 5.2¢ to $4.605, and the West Coast 10.2¢
to $4.664. California price was down 8.8¢ to $4.781/gal.
-- Energy Information Administration
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Sen. Dianne Feinstein (D-CA) has introduced S. 3080, the “Imported
Ethanol Parity Act.” The purpose of the legislation is to provide
parity between the tariff on imported ethanol and the blender’s tax
credit. The 2008 farm bill renewed the import tariff (54¢/gal.) for two
years and lowered the blender’s tax credit to 45¢/gal.
In a letter of support to Senator Feinstein, a number of ag groups said,
“Your measure paves the way to introduce ethanol produced from highly
productive non-feed grain inputs, thereby easing domestic feed- and
food-price inflation concerns.” The groups also said, “By reducing
or eliminating the tax on imported ethanol, this legislation could ease
the economic strain that is heavily impacting the agriculture, food and
beverage industries. At a time when animal ag is facing pressures on
many fronts, this slight modification could produce positive relief on
record corn prices.”
Those signing the letter included the American Meat Institute,
International Dairy Foods Association, National Cattlemen’s Beef
Association, National Chicken Council, National Meat Association,
National Milk Producers Association, National Pork Producers Council,
National Turkey Federation, and United Egg Producers.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Canola as a grazing resource for cattle is among the topics of
discussion on Aug. 21 during a field day at Fletchall Ranch, a cow-calf,
backgrounding and farming business near Beloit, KS. This is the second
of three ranch-management field days presented this year by the Kansas
Livestock Association (KLA) and Kansas State University (KSU).
Marty Fletchall and John Griffin of Nickerson currently utilize canola
as an alternate feeding source. The two will discuss their experiences
and answer questions regarding planting rates, expected costs and cattle
performance. Other topics include:- KSU animal nutritionist KC
Olson will provide suggestions on reducing input costs, including
stretching the grazing season and matching calving dates with available
grazing resources.
- KSU beef cattle specialist Dale Blasi and KSU Extension livestock
specialist Karl Harborth will advise on opportunities and challenges of
using grain processing by-products.
Registration is at 3:30 p.m.;
the meeting concludes with a free beef dinner at 6:45 p.m. Other
ranch-management field days are set for Aug. 19 at ML Ranch near Peru,
and Sept. 26 at Gant-Larson Ranch near Medicine Lodge. For more info,
visit www.kla.org or call
785-273-5115
-- KLA release
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The Oklahoma Conservation Commission has initiated a Carbon
Sequestration Certification Program, the first of its kind in the
nation. The program is designed to assist Oklahoma landowners and
companies to take advantage of opportunities created by recently
established national and global carbon markets, according to Ron Hays
with Radio Oklahoma News. The Conservation Commission will
certify and verify emission offsets in an effort to protect buyers and
sellers.
"What the Conservation Commission has done is create an added layer of
assurance that buyers of CO² offsets are getting what they pay for and
offset providers are selling a high quality product that did not harm
water, soil, or air quality," says Stacy Hansen, director of the carbon
program. "We also want the public to understand that the state is not
buying or selling carbon offsets. We have merely set standards and
protocols to assure a quality product for those who are."
Any offset that goes through the voluntary program and meets criteria is
eligible to become a State Verified Offset and may then be marketed as
such. Carbon offsets that meet quality standards and carry the state's
certification are expected to be valued more highly and, as a result,
may be worth more money when sold. The Conservation Commission expects
to begin accepting applications for the program in the fall.
-- Ron Hays, Radio Oklahoma Network
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Environmental Protection Agency (EPA) Administrator Stephen Johnson
announced that the request by Texas Gov. Rick Perry for a waiver of 50%
of the Renewable Fuel Standard (RFS) in 2008 was denied. Johnson said,
“After reviewing the facts, it was clear this request did not meet the
criteria of the law. The RFS remains an important tool in our ongoing
efforts to reduce America’s greenhouse gas emissions and lessen our
dependence on foreign oil, in aggressive yet practical ways.”
EPA recognized that high commodity prices were having economic impacts,
but its extensive analysis of the Texas request found “no compelling
evidence that the RFS mandate is causing severe economic harm during the
time period specified by Texas.” With this decision the RFS mandate
will remain at 9 billion gals. in 2008, and 11.1 billion gals. in 2009.
Arizona cattleman Andy Groseta, National Cattlemen’s Beef Association
(NCBA) president, expressed disappointment at the EPA decision.
“Our industry has suffered a record of nearly $1.5 billion in cattle
feeding losses between January and June of 2008, which we believe
constitutes the severe economic impact necessary to prompt a waiver from
the RFS mandate. With the ethanol mandate increasing from 9 billion
gallons in 2008 to 11.1 billion gallons in 2009, this situation will
only worsen,” Groseta says.
He adds that while NCBA supports biofuels and places a high priority on
energy independence for the U.S., “open competition on the free market
is the best vehicle for innovation and development of renewable
energy.”
-- P. Scott Shearer, Washington, D.C.
correspondent
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Ranchers in Montana, Wyoming and North and South Dakota are getting
hot under the collar over the proposed expansion of the Powder River
Complex (PRC) U.S. Air Force (USAF) training base.
The excitement began with a May 29 notice of intent to prepare an
Environmental Impact Statement the Federal Register. A USAF press
release dated June 3 sought public comments on through Aug. 4, and held
15 local meetings during June and July.
The proposed plan calls for restructuring and reconfiguring the existing
PRC Military Operations Area for training of B-1 and B-52 aircrews
flying from Ellsworth AFB (South Dakota) and Minot AFB (North Dakota).
Changes include creating new airspace with a floor of 500 ft. above
ground level (AGL), eliminating some existing airspace, authorizing use
of training chaff, and flares and permitting supersonic flight above
10,000 ft. AGL throughout the special use airspace.
According to R-CALF USA, the proposed changes would affect 30 counties
and 11,054 cattle operations totaling 32,423,578 acres of pastureland,
home to approximately 1,831,100 cattle and calves. Earlier this week,
R-CALF USA submitted comments requesting the USAF scientifically and
quantitatively evaluate several potential risks that could affect cattle
production in the region, including the risk to livestock health from
sonic shock bursts; the risk to livestock productivity from increased
stress; the risk to livestock fences, facilities and livestock handlers
from agitated livestock; and the risk of fires caused by the deployment
of flares.
The following locations have the potential of being affected by the
proposed changes (click here to view a detailed map www.ellsworth.af.mil/shared/media/document/AFD-080602-064.bmp):- Montana
– Crow and Northern Cheyenne Reservations, and the counties of Big
Horn, Carter, Custer, Fallon, Powder River, Rosebud, Treasure and
Yellowstone;
- North Dakota – Standing Rock Reservation and Adams, Billings,
Bowman, Golden Valley, Grant, Hettinger, Morton, Sious, Slope and Start
counties;
- South Dakota – Standing Rock and Cheyenne River Reservations, and
Butte, Corson, Harding, Lawrence, Meade, Perkins and Ziebeck counties;
and
- Wyoming – Campbell, Crook, Sheridan and Weston counties.
To
learn more, visit: www.ellsworth.af.mil/prtc.asp.
-- Alaina Burt
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Bales and stacks of hay left in the middle of fields have to be
removed sometime. After the final cutting for the year, it may not
matter too much if they set there for a while. But when more harvests
are expected from that field, delaying removal can be harmful, points
out Bruce Anderson, University of Nebraska Extension forage specialist.
Writing in this week’s “Hay & Forage Minutes,” Anderson says one
problem is directly under the bale or stack. Plants underneath often are
killed if covered for more than a week or two. This may not hurt yield
too much, but it makes for a great place for weeds to get started.
“Most of the damage, though, is due to wheel traffic on the regrowth.
Studies have shown that when fields are dry, plants driven on before
regrowth occurs will yield about 5-7% less at next cutting,” he says.
Even worse is waiting to remove bales. Just seven days after cutting,
when regrowth shoots have started to grow, yield is reduced over 25% and
survival of these plants also is less.
Still worse is removing bales when fields are wet, a time when wheel
traffic causes much more compaction. When this happens, yield loss
typically exceeds 30%.
Anderson says these studies emphasize the benefits of baling and
removing bales from hay fields as quickly as possible after cutting, as
well as minimizing driving on wet soils. They also suggest that
following the same trail when removing bales or stacks from fields can
reduce losses from wheel tracks by limiting the total area damaged.
“Hay fields must be driven on, of course, to remove bales after
harvest. But you can lessen damage by controlling where, when and how
often you drive,” Anderson says.
-- Bruce Anderson, University of Nebraska-Lincoln
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