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If you aren't at least a little afraid about the general state of
our economy, and the global economy for that matter, you haven't been
listening to the news. Ultimately, we rely on other people's spending
habits and budgets to pay our own bills, and that understandably makes
one nervous when input prices have been rising at an unprecedented rate
as they have been.
-- Click on headline to read the rest of this
story by Troy Marshall
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Beef producers can’t be everywhere…
While you’re busy at home, your beef checkoff dollars are helping
build beef demand throughout the world. Chefs from Mexico to Moscow are
learning more about U.S. beef through checkoff-supported training.
It’s one reason why exports are up 39 percent. Check out your checkoff
— and learn more about seminars for Russian chefs.
www.beefboard.org/foreign/checforeignmarketing.asp
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The biggest difference between “bailout” and “financial
relief” is mostly semantics. But with the U.S. government coming to
the rescue of insurance companies, the sub-prime market, financial
markets and the auto industry, it may be time for a whole new discussion
on the political front for this country.
-- Click on headline to read the rest of this
story by Troy Marshall
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The U.S. International Trade Commission (ITC) recently estimated
that trade restrictions that were the direct result of BSE cost the U.S.
cattle industry just over $11 billion from 2004 to 2007. The ITC also
estimated that other tariff and tariff-rate quota restrictions cost the
industry approximately $6.3 billion from 2004 to 2007. Without those
losses, cattlemen’s income would have increased by roughly 8.5%!
-- Click on headline to read the rest of this
story by Troy Marshall
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The collapse of confidence across the entire spectrum of the global
economy has cut out the underpinnings from the commodity market rally.
Corn prices have been plummeting as rapidly as cattle prices.
Despite what appears to be one of the largest corn crops ever, initial
yield estimates indicate the actual harvest is more likely to be below
projections. Ending stocks may be slightly higher than a year ago, but
with the increasing demand fueled by ethanol mandates, the key figure
stocks-to-usage ratio will be historically low. That means we’ll be
heading into a very similar position as we have the last several years,
where commodities are in a fierce battle for acreage.
A strengthening dollar and a weak economy should help to temper demand,
but supply and demand concerns aren’t expected to go away. We simply
have no buffer in the system. $80-$90/barrel oil, and $4 something corn,
are better than most would have anticipated a few months ago, but at
today's levels would you be a buyer or seller?
The challenge in strategic planning as it relates to marketing and
managing input costs is that the marketplace has become so intertwined.
A cow-calf producer used to be able to largely ignore how his calves
performed once they went beyond the ranch gate; today, that’s a
prescription for disaster.
Ag used to focus on internal dynamics when making these assumptions, but
now that approach can lead to some grievous mistakes. The lines between
the global highway, Wall Street, Main Street, and the dusty roads of
rural America are becoming fuzzier. -- Troy
Marshall
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RTE, Ireland’s national radio and television station, reported two
suspected cases of BSE last Friday night. One of the cases in Ireland
involves a five-year-old cow in County Meath, while the other is an
11-year-old dairy cow in County Cork. Both cases are in dairy cattle.
Ireland’s Department of Agriculture, Fisheries and Food (IDAFF)
reports that, if confirmed, the two latest cases would bring to 17 the
number of confirmed in Ireland in 2008. The total number of confirmed
cases in 2007 was 25, with 41 cases in 2006, 69 cases in 2005, 126 cases
in 2004, 182 cases in 2003 and 333 cases in 2002.
“The underlying trend remains positive and the increasing age profile
of animals confirmed with the disease indicates that the enhanced
controls introduced in 1996 and early 1997 are proving effective,”
IDAFF says.
Since January 2001, Ireland has BSE-tested all cattle over 30 months of
age destined for human consumption and all casualty animals, as well as
all fallen cattle since July 2001.
-- Muriel Elizabeth Hayes
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Wesley Batista says his family's JBS SA wants to work with producers
to build the beef industry and create new markets.
-- Click on headline to read the rest of this
story by Steve Kay
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Sign-up is progressing for the Beef Study Tour to Brazil set for
Jan.15-26, 2009. The tour sponsored by Montana Beef Quality Assurance
and BEEF magazine will focus on beef cattle production systems in
west-central Brazil.
“In today’s global marketplace cattlemen need to know what the
competition is up to and how they’re doing it,” says Clint Peck,
Billings, MT, director of Montana’s Beef Quality Assurance program.
“We’ve developed an itinerary that’ll give beef producers around
the U.S. the best possible look at Brazil’s beef systems and assess
their strengths and weaknesses as competitors in international
markets.”
Peck and Joe Roybal, Editor of BEEF, will lead the tour along
with travel coordinator Renata Stephens of Brazilian Liaison. Stephens
is a Brazilian native who has extensive experience in ag tours and South
American excursions. Peck has participated in several beef study tours
to South America.
Tour participants will experience a variety of cattle ranching and
feeding operations in Brazil’s west-central Brazil’s subtropical
cattle farming regions. Highlights include a two-night stay at a working
family ranching operation that caters to guests and tour groups. Among
the other stops will be a federal beef cattle research center and a
high-tech cattle seedstock operation.
“Beyond learning about the challenges and opportunities facing
Brasilian ranchers, we’ll interact with local farming families,
experiencing their day-to-day lifestyles,” Peck adds. “South
Americans are very gracious hosts and fully enjoy their American
guests.”
Mixed with the ag setting are world-class tourist sites like the
Brazilian Pantanal and Bonito Springs – and two nights in Rio de
Janiero.
The tour package price of $4,995/person (double occupancy and based on
25 participants) includes international airfare to and from Brazil,
in-country air and motor coach transportation, eight nights of
business-class lodging and most meals – along with local guides and
translators. Deadline for registration is Nov. 3, 2008.
For more info, contact Peck at cpeck@montana.edu or
406-896-9068; Joe Roybal at joe.roybal@penton.com or
952-851-4669; or Renata Stephens, BrazilianLiasion, at renatas@BrazilianLiasion.com
or 763-972-8080. A tour itinerary can be viewed on the Montana BQA
website: www.mtbqa.org or
www.beef-mag.com.
-- Clint Peck
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The American Antitrust Institute (AAI) released a report
recommending legislative and enforcement priorities for the next
administration. The major ag recommendations are entitled “Fighting
Food Inflation through Competition,” and include increased antitrust
enforcement of merger and conduct rules including. Among them
are:- Applying stricter standards to mergers in input markets.
- Challenging anticompetitive, post-sale restraints in the sales of
seed.
- Developing ag market guidelines for assessing buyer mergers.
- Challenging buyer mergers whenever they are likely to result in the
exercise of buyer power.
- Challenging collusive conduct by buyers that affects public market
prices.
The report also asks the administration to employ and
augment USDA authority to regulate market conduct to facilitate fair,
efficient, and open competition by:- Adopting regulations under
the Packers and Stockyards Act (PSA) to control abusive buying
practices.
- Adopting regulations under the Ag Marketing Agreement Act of 1937 to
control abuse of market orders.
- Seeking expansion of the PSA to cover all agricultural commodities
and clarify its standards.
-- P. Scott
Shearer, Washington, D.C. correspondent
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Pendergrass Cattle Co., Charleston, AR, was named winner of the
Backgrounding Division en route to claiming the 2008 National Stocker
Award presented annually by BEEF magazine and sponsored by Elanco
Animal Health. As winners, Pendergrass Cattle Co. receives $10,000 in
cash from Elanco, as well as expense-paid trips to BEEF
magazine’s BEEF Quality Summit (beefconference.com/) in
November, and the annual National Cattlemen’s Beef Association meeting
in January.
In addition, two other semi-finalists for the 2008 National Stocker
Award will receive $2,500 each from Elanco. They are Howard Ranches of
Waurika, OK; and S&M Cattle Co. of Ordway, CO.
You can read the complete Pendergrass
story in the October issue of BEEF. Read more complete articles
on Howard
Ranches; and on S&M
Cattle Co by clicking on the lines.
-- Joe Roybal
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The U.S. average price for regular gasoline plunged 14.8¢ (for the
week ending Oct. 6) to slip below $3.50/gal. for the first time since
April 14. Meanwhile, the U.S. average diesel price dropped 8.4¢ to
$3.875.
Gasoline prices have now fallen for three weeks in a row, bringing the
average to $3.484, but 71.4¢ above a year ago. The East Coast was down
12¢ to $3.544, the Midwest 21.6¢ to $3.393, the Gulf Coast 16.4¢ to
$3.436, the Rocky Mountains 10.4¢ to $3.496, and the West Coast 7.4¢
to $3.568. California dropped 6.9¢ to $3.601.
Meanwhile, diesel was below $4 in all major regions for the first time
since March 10. The East Coast fell 9.2¢ to $3.928/gal. (89.7¢ higher
than last year), the Midwest 7.8¢ to $3.858, the Gulf Coast 8.6¢ to
$3.843, the Rocky Mountains 5.8¢ to $3.886, and the West Coast 9.4¢ to
$3.847. California moved 9.4¢ lower to $3.869/gal.
-- U.S. Energy Information Administration
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The International Trade Commission (ITC) estimates in a report that
trade restrictions linked to BSE cost U.S. producers and industry nearly
$11 billion in lost beef exports between 2004 and 2007. Japan and Korea
account for nearly $9.5 billion in lost exports.
Sen. Max Baucus (D-MT), chairman of the Senate Finance Committee, who
requested the report said, “It’s clear USDA and USTR must redouble
their efforts to fully open markets in Japan, China and the rest of the
world to safe, delicious U.S. beef. Removing these barriers must be a
top priority.”
-- P. Scott Shearer, Washington, D.C.
correspondent
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National authorities on global climate change will be at Kansas
State University (KSU) Oct. 21, leading the first open-to-the-public
session ever offered as part of a KSU Research and Extension Annual
Conference.
A special 1:30-5:30 p.m. program in the KSU Union´s main auditorium
includes:- "Climate change impacts: Global, national and regional"
- Johannes Feddema, Kansas professor of geography.
- "Adaptation to climate change" - Jerry Hatfield, lead scientist and
director of the National Soil Tilth Lab, Ames, IA.
- "Mitigation of climate change: Agricultural sequestration" - Charles
Rice, KSU professor of soil microbiology and specialist in carbon
sequestration.
- "Climate change policy and economics" - Susan Capalbo, Oregon State
University Department of Agricultural and Resource Economics.
- Steve Swaffer, Kansas Farm Bureau director of natural resources,
will describe how farmers can earn soil carbon credits that can provide
access to revenue-making opportunities on the U.S. carbon
market.
For more on the half-day workshop, contact Chuck Rice at
785-521-6094 or cwrice@ksu.edu, or visit www.oznet.ksu.edu/annconf.
-- Kansas State University release
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JBS Swift managers are very good operators in all that they do, not
just killing cattle and selling meat. For instance, the company made
US$400 million in recent weeks on currency exchange, it picked up beef
plants for tax debts, and on one occasion purchased a plant that was
financed for it by the previous owner over the next 10 years.
This comes in stark contrast to Brazil’s second-largest meat company
Sadia SA. It lost US$430 million during the same period on currency
exchange, causing the chairman and CEO to step down and the accounts
director to be sacked.
JBS has made US$175 million additional profit on the US$1.5 billion set
aside for the purchase of Smithfield and National beef. This money was
in U.S. dollars, which have gained in value in the last few weeks while
the Brazilan Real has lost 17%.
The U.S. Department of Justice (DOJ) is expected to make its decision
shortly on the JBS-SA acquisition of Smithfield Beef Group, National
Beef Packing Co and Five Rivers Ranch cattle feedlots for $1.535
billion. The general feeling is that DOJ will force JBS divestiture of
one of the Smithfield plants and one of the National plants in the
Southwest for reasons of fair competition.
-- Muriel Elizabeth Hayes, Argentina
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The continuing resolution that funds most federal agencies until
March 6 extends the E-Verify program until March 6. This voluntary
program is used by the meat industry to verify the legality of
employees.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Japan’s National Institute of Animal Health (NIAH) claims to have
developed a method of using cows' brain waves as a determinant of BSE
infection. NIAH senior researcher Shozo Arai says the method could
evolve into “devices small enough to be portable to help detect the
disease at farms," according to Mainichi Daily News.
An NIAH team transplanted part of the brains of cows infected with BSE
into the brains of 11 healthy cows and examined their brain waves and
other conditions. Infected cows began to show typical symptoms of BSE,
such as shaking legs and the inability to stand 22 to 24 months after
the transplantation.
Moreover, about 22 months after the transplants, the cows' reactions to
sounds in their brain waves began to slow down. Abnormalities were
detected in the brain waves of all 11 cows involved in the experiment.
See the article at mainichi.jp/mdnnews/news.
-- U.S. Animal Health Association
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Officials believe two horses that entered Florida from Mexico are
behind the state's piroplasmosis outbreak, reports Horsetalk. It’s the
first time the blood-borne parastic disease has occurred in the U.S. in
20 years.
At its height, 25 properties were under quarantine and 200 horses were
undergoing testing. At one stage, seven properties had horses testing
positive for the disease. There are now 13 premises under state
quarantine, with only one farm still having positive horses on the
premises.
The disease can be spread by ticks but no evidence of the presence of
the types of exotic tick that carry the disease has been found. Rather,
evidence indicates that transmission of the disease has been by
management practices, possibly the use of needles.
See the article at www.horsetalk.co.nz/.
-- Horsetalk
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Three years after detecting bovine tuberculosis (TB) in northwest
Minnesota, USDA has approved Minnesota’s Split State Status effective
today, Oct. 10.
With the approval of Split State Status, a large part of the state will
upgrade its classification to Modified Accredited Advanced, and a
smaller section of northwestern Minnesota will remain at Modified
Accredited (MA). This status will help the state target its resources
where they are most needed, while also saving producers outside the
affected area from additional testing requirements that accompany MA
status, says State Veterinarian Bill Hartmann.
To learn more, or to view a map or review the testing and shipping
requirements, visit the state’s bovine TB website at www.mntbfree.com
www.mntbfree.com.
-- Joe Roybal
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USDA Secretary Ed Schafer and Secretary of Energy Sam Bodman
released the National Biofuels Action Plan (NBAP), an interagency plan
detailing the efforts of federal agencies to accelerate the development
of a sustainable biofuels industry.
Schafer said, “This National Biofuels Action Plan supports the drive
for biofuels growth to supply energy that is clean and affordable, and
always renewable.”
The NBAP outlines interagency actions and accelerated federally
supported research efforts in seven areas including: sustainability,
feedstock production, feedstock logistics, conversion science and
technology, distribution infrastructure, blending, environment, and
health and safety.
-- P. Scott Shearer, Washington, D.C.
correspondent
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A new method to capture and detect foodborne illness-causing
bacteria such as E. coli promises to be quicker and less
expensive than current conventional technology. Inside Indiana
Business reports the technology is based on discoveries by a
research group led by Bruce M. Applegate, Purdue University food
sciences associate professor.
Intelliphage, founded in 2008 by Applegate and Lynda Perry, a research
associate in his group, has modified a virus that can infect a specific
E. coli bacterium. It identifies the bacterium's presence in food
by attaching itself to the bacteria, turning it red or making it
luminescent, allowing easy detection by food companies. Applegate's
virus is grown in a non-pathogenic lab strain of E. coli.
"Other companies say they can identify a bacterium within an hour, but
it takes more than 24 hours to grow the bacterium before they can
identify it. That’s because they need to grow 100 million cells of a
bacterium before they are able to detect them,” Applegate says. "We
can locate one bacterium cell in just 25 grams of food, and that means
we can detect the bacterium earlier."
See the full text at
www.insideindianabusiness.com/.
-- U.S. Animal Health
Association
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President George W. Bush signed into law a continuing resolution
that will fund USDA and most federal agencies until March 6, 2009. Early
next year, Congress will consider either funding the appropriation bills
for each department for the remainder of the fiscal year or pass another
continuing resolution.
-- P. Scott Shearer, Washington, D.C.
correspondent
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The U.S. Chamber of Commerce released a new report, “Blueprint for
Securing America’s Energy Future,” which calls for “free-flowing
trade” for renewable fuels and says the import tariff on ethanol is an
impediment. The report says, “Eventually, free trade of biofuels
should be the goal, and we should be prepared to reconsider the tariff
on imported ethanol as global demand and markets progress.” The report
also criticizes the blender’s tax credit for ethanol.
-- P. Scott Shearer, Washington, D.C.
correspondent
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The $700-billion bailout package, “Emergency Stabilization Act of
2008,” includes a number of renewable fuels provisions. These include
extending the production tax credit for wind energy for one year,
through Dec. 31, 2009. The biodiesel tax credit is extended through 2009
and the alternative fueling credit for ethanol blended gasoline (E-85)
infrastructure is extended through 2010.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Regarding Troy Marshall’s Oct. 3 item, “Manadatory COOL & The
Checkoff Marry Up” (beefmagazine.com/cowcalfweekly/1003-mandatory-cool-checkoff-marry/),
I was hoping people would embrace Sen. Jon Tester’s interest in
enhancing the beef checkoff instead of feeling threatened by the idea.
Marshall is just plain wrong about some things.
-- Click on headline to read the rest of this
story by Danni Beer,
Beer Ranch,
Keldron; SD
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