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BEEF'S COW CALF WEEKLY    August 29, 2008  |  A PENTON MEDIA PUBLICATION
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    Table Of Contents
> Proposed Downer Rule Is All About Public Relations
> Are We Losing Control Of Our Business Decisions?
> Listening Can Prevent “If Only I’d Known!” Experiences
> Beef Checkoff Revamps, Relaunches BSE Website
> Both Party Conventions Fete Leaders Of American Ag
> Consider Early Weaning In Areas Experiencing Drought
> Consumer Use of Food Nutrition Labels Declines
> Cost Cutting: Five Places To Save, Five Places To Spend
> Don’t Sell Your Cattle, Market Your Beef
> Eliminate Freight Rail Antitrust Exemptions
> Finding And Keeping Good Employees
> Forum To Help Farmers Prepare For Emergency Situations
> Gasoline And Diesel Continue Downward Slide
> Learn Firsthand About Brazilian Beef Powerhouse
> Looking For Info On Manure Management?
> NCBA-PAC Seeks To Boost Pro-Cattle Candidates
> Public Meeting On Farm Bill Renewable Energy Provisions
> Rule Seeks Complete Ban On Downer Slaughter
> Russia Gaining As A Top Destination For U.S. Beef
> Some Cattle-Fax Cow-Calf And Stocker Survey Highlights
> U.S. Farmers Continue Adoption Of Biotech Crops
> Weekly Cattle Market Wrap-Up At beefmagazine.com

    Our Perspective
      Proposed Downer Rule Is All About Public Relations

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

    Are We Losing Control Of Our Business Decisions?

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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      Listening Can Prevent “If Only I’d Known!” Experiences

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

   
      Beef Checkoff Revamps, Relaunches BSE Website

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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      Both Party Conventions Fete Leaders Of American Ag

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

    Consider Early Weaning In Areas Experiencing Drought

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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      Consumer Use of Food Nutrition Labels Declines

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

    Cost Cutting: Five Places To Save, Five Places To Spend

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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      Don’t Sell Your Cattle, Market Your Beef

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

      Eliminate Freight Rail Antitrust Exemptions

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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    Finding And Keeping Good Employees

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

      Forum To Help Farmers Prepare For Emergency Situations

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

      Gasoline And Diesel Continue Downward Slide

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

      Learn Firsthand About Brazilian Beef Powerhouse

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

      Looking For Info On Manure Management?

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

      NCBA-PAC Seeks To Boost Pro-Cattle Candidates

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

      Public Meeting On Farm Bill Renewable Energy Provisions

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

      Rule Seeks Complete Ban On Downer Slaughter

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

      Russia Gaining As A Top Destination For U.S. Beef

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

      Some Cattle-Fax Cow-Calf And Stocker Survey Highlights

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

      U.S. Farmers Continue Adoption Of Biotech Crops

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

      Weekly Cattle Market Wrap-Up At beefmagazine.com

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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