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USDA announced a proposed rule this week to completely ban the
slaughter of cattle that become non-ambulatory, even after the initial
inspection by the Food Safety Inspection Service. These animals would be
condemned and disposed of. (See “Rule Seeks Complete Ban On Downer
Slaughter” elsewhere in this newsletter.)
The number of cattle affected by this new rule is miniscule – .003% of
cattle slaughtered. So this isn’t a rule designed so much to bolster
food safety; nor is it expected to have much impact on producers’
bottom lines. The aim of this rule is to maintain consumer confidence in
beef.
All the negative publicity created by the Humane Society of the U.S.
over the downer cow issue has made it clear to producers that while the
issue is a minor one, it can have a big consumer effect. Every segment
of the industry has been solidly behind this new rule, because it’s in
their own economic best interests to send the proper message relative to
humane handling of animals.
It is, however, one of those precedents that has to be concerning for
the industry. This new rule has no basis in science; it’s a public
relations move. Ultimately, the industry must respond to consumer
wishes. But, at some point, the industry is going to have to trust
itself to actually respond to these desires or we will continue to see
the government becoming more and more involved with the marketing of our
product.
-- Troy Marshall
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Watching the Democratic National Convention this week, I began to
wonder if politics has become so much about the pursuit of power that it
has little time for anything else. Until hearing the Democratic
speeches, for instance, I didn’t realize to what abysmal Third-World
depths the American quality of life has descended, how much our economy
resembles the darkest times of the Great Depression (even though our
economy grew at a rather robust 3.3% rate in the second quarter), or how
loathed our beloved U.S. has become in the world.
-- Click on headline to read the rest of this
story by Troy Marshall
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If you’ve ever ridden a four-wheeler over a 10-ft. drop-off in the
pasture, or had one of those monumental wrecks that become family
folklore, then you certainly know the value of hindsight. This industry
has a way of punishing even the most well-intentioned of management
decisions, which isn’t all bad as it keeps us humble.
Still, it seems like after every major event, such as drought, a
graduation, a marketing season, and even breeding season, I look back
several years later and say to myself, “If only I’d known. If only I
would have moved the cows earlier, or if I would have taken those
internships, or used bull X or bull Y, etc.”
Experience can be an expensive way of gaining knowledge. It doesn’t
matter whether it’s selecting a marketing window or simply putting
one’s priorities first, it seems like we often ignore or forget the
wisdom gained by previous generations through much pain and
hardship.
Like so much in life, we often fail to take the time to ponder and
appreciate the experiences and the lessons of others. Our kids grow up
too fast, while those who have positively influenced our formation grow
old and pass away before you fully appreciate and adequately express the
gratitude you owe and feel for them.
Perhaps instead of admonishing ourselves with “If only I would have
known,” we should be asking ourselves, “How could I have known?”
Many times, the right answers are out there in front of us all along,
just waiting to be bestowed on us by those around us. We’re just too
busy to listen.
-- Troy Marshall
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In an effort to provide the latest facts about BSE, the beef
checkoff-funded website, BSEInfo.org, recently was overhauled
to include new and updated content and an easy-to-search web structure.
A highlight of the site is the Scientific Resource, which was reviewed
by nine leading international experts in BSE and related diseases. These
experts served as scientific reviewers for sections about prions, BSE,
Creutzfeldt-Jakob disease (CJD), variant CJD, scrapie and chronic
wasting disease.
Media partners worldwide covering BSE can locate the best resources,
determine whom to contact to arrange an interview and find the foremost
experts through this site. The revised website also provides updated BSE
basics, info about BSE in the news, beef industry statements, answers to
frequently asked questions and beef industry facts. BSEInfo.org also serves as a portal to
other government, international and industry websites, and interactive
maps highlight the geographic distribution of BSE cases.
Visit www.MyBeefCheckoff.com for
more on checkoff-funded programs.
-- Cattlemen’s Beef Board release
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Beef producers can't be everywhere...
While you're busy managing your operation, your beef checkoff dollars
are helping build beef demand - developing innovative new beef dishes,
providing education that helps youth become life-long beef eaters and
creating in-store promotions that help our non-farm neighbors remember
that beef is what's for dinner. Get to know your checkoff - check out
www.MyBeefCheckoff.com
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A reception honoring American ag was held at the Democratic National
Convention this week. Former USDA Secretary Dan Glickman, members of
Congress, numerous ag leaders, and producers were in attendance.
Next week, on Sept. 2, the Republican National Convention will host
“AgNite, A Celebration of America’s Food and Ag Industry.” The
event will be attended by thousands of convention delegates, VIPs,
members of Congress, news media and food/ag industry leaders.
-- P. Scott Shearer and Joe Roybal
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Ranchers experiencing significant reductions in forage production
because of dry weather conditions should consider early weaning as a
management tool, says a North Dakota State University (NDSU) cattle
expert.
-- Click on headline to read the rest of this
NDSU release
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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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USDA’s Economic Research Service (ERS) found that from 1995-1996
to 2005-2006, consumer use of nutrition labels when making food
purchased declined. According to the study, consumer use decreased for
most label components: it declined 3% for the Nutrition Facts panel, 11%
for the ingredient list, and 10% for the panel’s info about calories,
fat, cholesterol and sodium.
The only use of information that did not decline was info about fiber
and sugars. Fiber info increased by two percentage points and sugar held
steady.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Like never before, ranchers are faced with increasing costs of
production, and it’s causing many of them to rethink their production
strategies. But, while they may be pressured to slash costs randomly as
they look ahead to winter herd management, cutting costs just for
cost-cutting sake may not be the best approach.
-- Click on headline to read the rest of this
story by Clint Peck
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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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Current issues and trends affecting the evolving beef marketplace is
the focus of a series of Colorado cattle producer meetings. The Colorado
Beef Quality Assurance (BQA) Program and Colorado Beef Council will
present sessions:- Sept. 10 – Burlington, Burlington Community
Education Center, 4 p.m.
- Sept. 11 – Akron, Washington County Fairgrounds Event Center, 4
p.m.
- Sept. 13 – Alamosa, Jeff Martinez’s Ranch, 1 mile South of
Alamosa, 3 p.m.
- Sept. 23 – Durango, La Plata County Fairgrounds, Animas Room,
Durango, 4 p.m.
- Sept. 24 – Rocky Ford, Gobin Building, 4 p.m.
The program
includes:- How mandatory country-of-origin labeling will be
incorporated into livestock operations – reps of the Colorado
Cattlemen’s Association and Colorado Livestock Association.
- Animal health update and importance of traceability – Keith Rohr,
interim Colorado State Veterinarian.
- Options for a larger return on your 2008 and future calf crops –
IMI Global.
- Cull-cow management – Travis Hoffman, Colorado BQA
coordinator.
For more info or to RSVP, call 970-491-BEEF (2333) or
email Travis.Hoffman@colostate.edu.
RSVP at least two days prior to the meeting to confirm meal
reservations.
-- Colorado Cattlemen’s
Association
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Congress may consider legislation when it returns next month that
would make obsolete antitrust exemptions that protect freight railroads
from competition and therefore keep rail rates artificially and unfairly
high. The American Farm Bureau Federation (AFBF) has written members of
the House and Senate urging them to cosponsor the legislation.
AFBF said, “American ag depends on the railroad system, especially
given the high costs of shipping commodities via truck. Like those in
several other industries, ag producers are frequently captive rail
customers and experience both unreliable service and exorbitantly high
rates from the railroads.”
-- P. Scott Shearer, Washington, D.C.
correspondent
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The cost of replacing an employee averages about 150% of his salary,
something few businesses can afford. “We live in a time when business
owners can no longer wait for possible improvements to the economy. Gas
prices, the rising costs of health care and the current mortgage crisis
are adversely impacting small businesses,” says Laura Harris of Corpus
Christi, TX, author of the forthcoming book “Surrender to Win –
Regain Sanity by Strategically Relinquishing Control.” Here are a few
of her tips to help your business stay profitable.
-- Click on headline to read the rest of this
story by Laura Harris
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The annual ag safety and health forum will be held Sept. 10 at the
Indiana FFA Leadership Center in Trafalgar to draw attention to the
health and safety of Indiana's farming families. The event is an effort
of the Indiana Rural Safety and Health Council to reach out to the more
than 60,000 farm families in the state.
Emergency response and rescue in ag workplaces will be the focus of this
year's forum. Speakers will discuss topics such as bull attacks and
grain entrapment that require emergency response and ways to prepare for
these situations.
A new feature at this year's forum targets youth. An obstacle course
will be set up for youth to compete in a tractor-driving contest that
emphasizes safe driving techniques and tips to remember when operating
machinery.
There is no cost to attend the forum but pre-registration is required by
Aug. 29. Lunch is included. To register, contact Bill Field at
765-494-1191 or field@purdue.edu.
-- Purdue University release
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The average retail price for regular gasoline fell once again,
shaving 5.5¢ to $3.685/gal. for the week ending Aug. 25. Meanwhile, the
average U.S. retail diesel price dropped another 6.2¢ to $4.145.
Over the past seven weeks gasoline has fallen by 42.9¢ from the
all-time high of $4.114 reached July 7. For the week, the East Coast was
down 6.7¢ to $3.634, the Midwest 2.1¢ to $3.687, the Gulf Coast 8¢ to
$3.519, the Rocky Mountain region 5.4¢ to $3.834, and the West Coast
7.4¢ to $3.906. California shaved 8.2¢ to $3.955 to dip below $4 for
the first time since May 19.
Meanwhile, the average price of diesel has fallen in all regions in each
of the past six weeks, losing nearly 62¢ off its July 14 all-time high.
Still, the average price is $1.282/gal. more than a year ago. For the
week, the East Coast slid 6.4¢ to $4.199, the Midwest 5.7¢ to $4.073,
the Gulf Coast 5.8¢ to $4.098, the Rocky Mountains 9.2¢ to $4.227, and
the West Coast 7¢ to $4.286. California shed 6.3¢ to hit $4.359.
-- Energy Information Administration
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Brazil will strengthen its position as the world's leading beef
exporter over the next decade despite a substantial loss of pastureland,
according to Agra FNP, Brazil's leading agribusiness consultancy and
commodities analyst.
Agra FNP expects Brazilian exports to rise by 32% by 2017 to 2.9 million
tons. This at a time, Agra FNP says, when Brazil’s main competitors
– Australia, the U.S. and Argentina – “have little room for
expansion."
Agra FNP technical director José Vicente Ferraz predicts cattle numbers
to rise from 169.7 million head in 2008 to 183 million by 2017. This at
a time when Brazilian pastureland area is expected to fall by 17 million
hectares from the current 190 million hectares in use.
The gains in productivity are expected via improvements in feed
practices (fattening time will fall from 30 months to 26 months within
the next 4-5 years), by the expansion of feedlots – which will more
than double to 6 million animals by 2017 – and by genetic
improvements, Agra FNP says.
Readers can learn more firsthand about Brazilian beef production by
joining BEEF magazine’s eighth producer tour to South America
in early 2009. Tentatively set for Jan. 16-25, the 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 as accommodations,
in-country travel, translators, tour guides and most meals.
Serving as guides are myself and Clint Peck, director of Montana Beef
Quality Assurance and an authority on world beef competitiveness. To
reserve your spot, contact me at 952-851-4669 or jroybal@beef-mag.com; or
Clint at 406-896-9068 or cpeck@montana.edu.
-- Joe Roybal
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Then go to www.extension.org and click on
the Animal Manure Management tab, which connects you with experts from
land-grant colleges throughout the country.
“The most popular resources are the live and archived webcasts,”
says Jill Heemstra, manure management Extension educator in Nebraska and
national coordinator for the Livestock and Poultry Environmental
Learning Center. Live webcast presentations are available at 1:30 p.m.
CST on the third Friday of each month and about 20 archived webcasts are
accessible from the site. Archived topics include emerging contaminants
such as pathogens and antibiotics, manure treatment technology options,
options for increasing the value of manure and considerations for
nutrient planning.
-- Kansas State University release
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Election years give industry groups an opportunity to flex their
political muscle in campaigns and at Washington, D.C. fundraisers.
Cattlemen need to be engaged in Election 2008 as control of the White
House and Congress is up for grabs.
Funded solely by individual contributions, the National Cattlemen’s
Beef Association Political Action Committee (NCBA-PAC) is working to
make sure industry advocates can be in the right place at the right
time. With so many groups competing for legislators’ ears, NCBA-PAC is
one important way to make certain the cattle-industry voice is heard.
For more info, contact Quin Giambrone at qgiambrone@beef.org.
-- NCBA release
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USDA announced a public meeting to be held Sept. 4 on how to
implement the renewable-energy programs authorized under the new farm
bill. The meeting will be held from 8:30 a.m. to 4 p.m. (EDT) in the
Jefferson Auditorium in the South Building, USDA, 1400 Independence
Ave., S.W., Washington, D.C.
Tom Dorr, USDA under secretary for rural development, said: "Continuing
to develop renewable energy is a key component of President Bush's
strategy to reduce America's dependence on foreign oil. This meeting is
an opportunity for business owners, citizens and ag producers to discuss
the best ways to harness the untapped renewable energy resources in
rural areas."
-- P. Scott Shearer, Washington, D.C.
correspondent
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USDA announced a proposed rule this week to amend federal meat
inspection regulations to initiate a complete ban on the slaughter of
cattle that become non-ambulatory after initial inspection by Food
Safety and Inspection Service (FSIS) personnel.
The proposed rule follows the May 20 announcement by USDA Secretary Ed
Schafer to remove the provision that states the FSIS inspection program
will determine the disposition of cattle that become non-ambulatory
disabled after they’ve passed ante-mortem, before slaughter,
inspection on a case-by-case basis. Under the proposed rule, all cattle
that become non-ambulatory disabled at any time prior to slaughter will
be condemned and properly disposed of.
"To maintain consumer confidence in the food supply, eliminate further
misunderstanding of the rule and, ultimately, to make a positive impact
on the humane handling of cattle, I believe it is sound policy to
simplify this matter by initiating a complete ban on the slaughter of
downer cattle," Schafer says.
USDA says that of the nearly 34 million cattle slaughtered in 2007, less
than 1,000 that were re-inspected were actually approved by the
veterinarian for slaughter. This represents less than 0.003% cattle
slaughtered annually.
“The proposed rule banning non-ambulatory cattle from the food supply
will ensure long-term consumer confidence in the industry and our
products,” says J. Patrick Boyle, American Meat Institute (AMI)
president and CEO.
An advance copy of the proposed rule can be viewed at www.fsis.usda.gov/OPPDE/rdad/FRPubs/2008-0022.pdf.
-- USDA and AMI releases
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Export results for the first half of 2008 (24.7 million lbs.)
clearly indicate that Russia is emerging as a top destination for U.S.
beef. Closed to U.S. beef from late 2003 through almost all of 2007,
Russia is now the third-largest destination for U.S. beef variety meats
and the seventh-largest market for overall exports of U.S. beef,
according to the U.S. Meat Export Federation (USMEF).
Russia’s restaurant sector is experiencing particularly rapid growth,
surging demand for high-quality beef cuts. But Russia remains a critical
market for cuts underutilized in the U.S. domestic market. For instance,
once the top export market for U.S. beef liver, Russia is once again
making an impact on liver demand and, in turn, carcass value.
As Russian importers have begun bidding against their counterparts in
Egypt for a limited supply of U.S. beef livers, liver prices have more
than tripled when compared to last year. For U.S. cattle producers, this
has added roughly $7/head, USMEF says.
-- USMEF
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Cattle-Fax® recently published an overview of its annual cow-calf
and stocker survey conducted in January 2008. Here’s are a few data
points:- 32% of participants indicated they would expand their cow
numbers, 17% said they would downsize, and the remaining 50% said they
would remain the same.
- Marketing methods in 2007 were: auction, 40%; direct, 31%; video,
19%; alliance, 7%; internet, 2%; and other, 3%.
- 2008 expectations for when calves will be marketed were: at weaning,
43%; as feeders >700 lbs., 25%; as fed cattle, 13%; after
preconditioning, 12%; after backgrounding, 7%.
- Average cash costs among all regions came in at $391/head in 2007.
Of that $391, approximately 65% or $253 was attributed to feed, either
through pasture, hay or other feed/supplement expenses.
- Cash cost per pound of calf weaned (calf breakeven) by region were:
Southwest, 77¢; Northwest, Southern plains and Southeast were all at
84¢; and Midwest at 89¢. Overall U.S. average was 84¢.
- 96% of respondents said they vaccinated their calves prior to sale.
Of these, 64% said they are vaccinating more than just one time.
- About 15% of producers participated in natural, grass-fed,
certified-organic, and/or non-hormone treated beef programs in
2007.
-- Harlan Ritchie, Michigan State
University
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USDA’s Economic Research Service’s (ERS) latest report,
“Adoption of Genetically Engineered Crops in the U.S.,” finds that
farmers continue to adopt biotech crops since their introduction in
1996. The report finds that in 2008:- Adoption of genetically
engineered (GE) soybeans with HT (herbicide-tolerant) traits reached
92%.
- Adoption of all biotech corn was at 80%.
- Adoption of all GE cotton reached 86%.
According to the
Biotechnology Industry Organization (BIO), “In 2007, 282 million acres
of biotech crops were planted in 23 countries by 12 million farmers. We
expect this growing trend to continue, especially at a time when the
U.S. and the world are looking for science-based solutions to rising
food and fuel costs.”
-- P. Scott Shearer, Washington, D.C.
correspondent
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Catch a roundup of each week’s cattle-market activity every Friday
afternoon at beefmagazine.com/market-update/.
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 market summary.
As a new contributing editor to BEEF magazine, Kay will also be
providing a monthly column beginning with the September issue. Entitled
“Meat Matters,” the monthly column will deal with Kay’s insights
on meat-quality issues.
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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