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In my industry and marketing talks, I refer to the trap of commodity
marketing as one of the drivers behind many of the changes we’ve seen
in our industry. By definition, in a commodity market, prices over time
will hover in and around breakeven. And unless you’re a low-cost
producer with a business model that eliminates any significant risk,
that is not an appealing proposition.
-- Click on headline to read the rest of this
story by Troy Marshall
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I’ll admit I was one of those who felt a certain pride back in the
late ’90s when a group of Texas cattlemen sued Oprah Winfrey for food
libel after she disparaged beef on her program. The issue, however,
didn’t prevail in court, and it proved to be a media circus that did
little to bolster our case. And perhaps we should have thought twice
about taking on one of the most influential influencers (Winfrey) of the
primary influencer of our product (homemakers).
-- Click on headline to read the rest of this
story by Troy Marshall
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BEEF magazine is again teaming up with the Montana State
University Beef Quality Assurance Program to provide another BEEF
Study Tour of Brazil. The tour is set for Jan. 15-26, 2009, departing
the U.S. from Miami, FL.
To view a downloadable tour itinerary, go to: beefmagazine.com/south-america-tour/schedule/.
All tour scheduled events and activities are subject to change.
"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.”
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. A visa is also
required for Brazil entry, which is an estimated $165 for visa and
visa-service fees.
To reserve your seat, a deposit of $1,000/person is due at the time of
booking – deadline to sign up is Nov. 3, 2008 – with the balance of
the tour price payable on or before Nov. 15.
Tour participants will experience a variety of cattle ranching and
feeding operations in Brazil’s west-central 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.
Send your registration to: Brazilian Liaison, P.O. Box 243, Long Lake,
MN 55356-9444. For more info, contact Clint Peck at 406-896-9068,
cpeck@montana.edu; Joe Roybal at jroybal@beef-mag.com or 952-851-4669;
or Renata Stephens at 763-972-8080.
-- Joe Roybal
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“Meeting the Risk Management Challenges of a New Farm Bill and New
Price Relationships" is the focus of workshops planned for Nov. 4 in
Brush, CO; Nov. 5 in Grand Island, NE; and Nov. 6 in Salina, KS.
Designed for anyone who wants to enhance their knowledge of risk
management and their ability to design an appropriate risk management
plan for their farm or ranch, the workshops are sponsored by Extension
programs at the University of Nebraska, Kansas State University and
Colorado State University Extension.
Among the presentation topics are:- The New Farm Bill: New
Decisions for Producers,
- Grain Outlook - Can We Feed the World and Produce Bio-fuels,
- Using ACRE in a Risk Management Plan,
- Crop Insurance Program Update,
- Pasture, Range and Forage Policy Update, and
- Optimum Level of Crop Insurance Combined with the New SURE (Standing
Disaster Aid) Program.
To learn more or to register, go to: cropinsure.unl.edu (click on
Workshop Registration). Or call 1-800-535-3456.
-- Southwest Farm Press
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Both gasoline and diesel prices dramatically fell for the week
ending Oct. 13. The average price for a retail gallon of regular
gasoline in the U.S. was down by 33.3¢ to $3.15/gal., and diesel 21.6¢
to $3.659.
The average price of gasoline has dropped by 68¢/gal. in the past four
weeks but is still 38.9¢ above a year ago. For the week, the East Coast
was down 32.1¢ to $3.223, the Midwest 40.1¢ to $2.992, the Gulf Coast
44.6¢ to $2.99, the Rocky Mountains 22.8¢ to $3.268, and the West
Coast 14.7¢ to $3.421. California shed 13.1¢ to hit $3.47/gal.
Meanwhile, the U.S. average diesel price was at its lowest since March
3, after experiencing its largest weekly decline since Oct. 31, 2005,
when prices fell 28¢. For the week diesel slid 21.9¢ on the East Coast
to $3.709, 21.7¢ to $3.641 in the Midwest, 21.2¢ to $3.631 on the Gulf
Coast, and 18.9¢ in the Rocky Mountains ($3.697). The West Coast
tumbled 22.5¢ to $3.622, and California shaved 21.3¢ to hit
$3.656/gal.
-- U.S. Energy Information Administration
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Biosecurity, biocontainment, biological risk management. To the beef
producer, these new buzzwords essentially mean the same thing —
addressing the possibility of a disease organism or disease complex
entering or spreading within a beef cattle operation.
beefmagazine.com/beef-quality/1001-biosecurity-basics/
-- Clint Peck
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As economic woes wrap the nation, food retailers say shopping
behaviors are shifting as customers look to save money in the face of
inflating food and energy prices, and flat incomes. The dark side is
that marketers say they’re also seeing more theft.
A quick poll by the Food Marketing Institute of 156 food industry loss
prevention executives at retailer, wholesaler and vendor companies found
75% saying theft-related loss has increased over the past 3-6 months.
The September poll found the other 25% of respondents say they haven’t
seen any changes in theft-related shrink.
Of the three groups, food retailers are the most likely to have noted
rising theft levels at 80%, whereas wholesalers are faring slightly
better with only 40% reporting increases since the beginning of this
year. Nearly all executives (95%) believe the economy is either somewhat
or a major factor in the reported change.
-- Lempert Report/Consumer Insight, Inc.
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The Physicians Committee for Responsible Medicine’s “Cancer
Project” has submitted a petition with USDA to ban processed meats in
the school lunch program. According to the Cancer Project, this is a
first step toward the elimination of processed meat from the diet of all
consumers.
The American Meat Industry Foundation noted that the U.S. Dietary
Guidelines and groups like the American Dietetic Association have
affirmed that “processed meats do play a role in a healthy, balanced
diet, providing protein and essential vitamins and minerals.”
-- P. Scott Shearer, Washington, D.C.
correspondent
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The Montana Department of Livestock is extending the public comment
period on its draft Brucellosis Action Plan through Nov. 1. The draft
plan, which is required by USDA’s Animal & Plant Health Inspection
Service for reinstatement of brucellosis-free status, defines three
different management areas for the state and outlines strategies for
each based on the level of risk. The draft plan, along with maps and
FAQs, are available at liv.mt.gov.
-- Montana Department of Livestock release
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The Oregon Department of Agriculture (ODA) has approved two entities
to sell camelina meal in Oregon for beef and swine feed. The meal may
only be fed to feedlot cattle or growing swine and must make up no more
than 2% of the ration.
Camelina has been grown in the Northwest as a biodiesel crop, and is a
potential protein source for livestock. However, concerns about
glucosinolates and their potential negative effect on livestock have
prompted FDA to exercise enforcement discretion allowing the sale of the
meal until it reviews results of additional testing.
“Glucosinolates are present in a variety of plant materials,” says
ODA Feed Specialist Richard Ten Eyck. “Some have no effects, while
others may have detrimental effects such as preventing weight gain. FDA
is confident camelina meal is safe at a 2% level for beef and growing
swine, but they want to evaluate it before approving it at higher levels
and for other species to make sure there are no negative effects on
livestock.”
-- Hillsboro, Ore. Argus
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Guys who love beef and spending time in the shop should love outer
space. NASA experts yesterday said the universe has the aroma of fried
steak, hot metal and motorbike welding, the UK’s Sun newspaper
reports.
Those are the scents astronauts have reported on their protective suits
after returning from space walks. And NASA has commissioned Steven
Pearce of British fragrance firm Omega Ingredients to recreate the
smells to help train spacemen. Pearce says his firm has already produced
the smell of fried steak, but hot metal is more difficult.
Meanwhile, astronomer Sir Patrick Moore explains that the surprising
scents may have come from the astronauts’ suits or spacecraft, as the
vacuum of space is unlikely to have its own scent. “It’s more likely
to be reacting to manmade equipment,” the article says. “There is
nothingness in space and nothingness can’t really have a smell.”
-- Joe Roybal
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The fiscal year 2008 federal deficit reached a record high of $454.8
billion. The administration cited the slowing economy and the cost of
the economic stimulus package as reasons for the record deficit. The
previous record was $412 billion for fiscal year 2004.
Some analysts are estimating the federal deficit for FY 2009 could reach
$700 billion to $1 trillion. This will have a major impact on the new
administration’s spending priorities.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Having completed their inspections of U.S. beef plants last Friday,
South Korean officials have approved 18 of the 24 inspected plants for
resumption of beef exports to South Korea. That brings to 48 the number
of U.S. plants eligible to export to Korea, as of Oct. 13.
Meanwhile, South Korean President Lee Myung-bok was to meet with Simon
Crean, the Trade Minister of Australia , in Seoul this week to resume
talks on a free-trade agreement between the two countries. Australia has
had the Korean beef market to itself since 2003, when U.S. beef was
banned over BSE concerns. The U.S. is now working to reestablish its
market share but an ongoing series of product shipping errors have
served to minimize the amount of U.S. product entering South Korea and
bolstered anti-U.S. beef fervor among consumer groups.
-- Muriel Elizabeth Hayes, Argentina
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A recent study suggests both good and bad elements of the Brazil JBS
S.A. acquisition of U.S. packing and feeding interests now undergoing
U.S. Department of Justice review.
-- Click on headline to read the rest of this
story by Texas Tech University
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With less than three weeks until the election, a number of Senate
seats are in play, including three members of the Senate Ag Committee
– Saxby Chambliss (R-GA), Norm Coleman (R-MN), and Mitch McConnell
(R-KY). The Democrats are expected to pick up a number of Senate seats.
The question remains how many.
The following Senate races are being carefully watched by both sides:
Alaska, Colorado, Georgia, Kentucky, Minnesota, New Hampshire, New
Mexico, North Carolina, Oregon and Virginia. Other members of the Senate
Ag Committee who are up for reelection include Max Baucus (D-MT),
Lindsey Graham (R-SC), Tom Harkin (D-IA), and Pat Roberts (R-KS).
-- P. Scott Shearer, Washington, D.C.
correspondent
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With high feed, seed, fuel and fertilizer costs, beef producers need
to consider alternative approaches to feeding and managing their herds,
says a Purdue University expert.
-- Click on headline to read the rest of this
Purdue University release
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Texas has joined at least five other states this year in reporting
cases of Eastern Equine Encephalitis (EEE) infection in horses. EEE,
which can be transmitted to humans by infected mosquitoes, also has been
reported this year in horses in Georgia, Florida, Maine, Tennessee, and
New Hampshire - and in Ontario, Canada.
"Infected horses are a 'sentinel' or warning that infected mosquitoes
are in the area, and measures should be taken to protect humans against
exposure to the dangerous pests," says Andy Schwartz, Texas Animal
Health Commission (TAHC) state epidemiologist. "Protect yourself and
your horses with a mosquito spray containing DEET, get rid of stagnant
water, and avoid being outside at night, when mosquitoes are more
active.
"Horses with mosquito-borne encephalitic viruses, such as EEE, Western
Equine Encephalitis (WEE) or West Nile Virus (WNV), may stagger, appear
confused and act erratically. Owners should contact their veterinarian
immediately, if their equine animals exhibit clinical signs of these
diseases. About half of infected animals may be saved, with the
appropriate supportive care," Schwartz says
-- Texas Animal Health Commission
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Tyson Foods, the largest beef producer and second-largest pork
producer in the U.S., has entered into a $138 million biochemical plant
deal with Syntroleum Corporation. To be built in Louisiana, the plant
will generate 75 million gals. of fuel annually from a mixture of animal
fat and waste products from meat plants, as well as soy. The plant is
expected to employ 250 workers.
The benefits of this type of plant are said to be twofold; one is that
animal oils are far cheaper to produce than vegetable oils, and the
system removes the pollution elements associated with meat plant
byproducts.
-- Muriel Elizabeth Hayes, Argentina
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In letters this week to beef and hog producers, as well as to
customers of their products, Tyson Fresh Meats said it plans to change
its approach to complying with mandatory country of origin labeling
(mCOOL) requirements.
-- Click on headline to read the rest of this
story by Burt Rutherford
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USDA Secretary Ed Schafer says USDA will fully implement an
administration directive to offer incentives to farmers and ranchers for
opening up their Conservation Reserve Program (CRP) land to the public
for hunting, fishing, bird watching and other recreational activities.
Schafer says the goal is to double public access by providing up to 7
million acres of CRP land for public access in the next five years in
participating states.
The CRP public access incentive will be limited to CRP participants in
the 21 states that already have public access programs. These 21 states
are: Arizona, California, Colorado, Idaho, Kansas, Kentucky, Michigan,
Montana, Nebraska, New Mexico, New York, North Dakota, Oklahoma, Oregon,
Pennsylvania, South Dakota, Texas, Utah, Vermont, Washington and
Wyoming.
The public access incentive will pay $3/acre/year for the life of the
CRP contract, provided the contract acres remain enrolled in the state
public access program, and will be available to CRP participants with
new or existing CRP contracts. This public access incentive is available
to CRP participants who voluntarily agree to open CRP land to public
hunting, recreation, wildlife viewing and other recreational activities.
After environmental compliance requirements are complete, USDA will
announce a sign up date when farmers and ranchers can begin to enroll at
their local county FSA office.
-- Southeast
Farm Press
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USDA this week gave an update on the agency’s efforts to enact the
2008 farm bill. According to USDA:
Farm Programs:
1.725 million Direct and Counter-Cyclical Payments (DCP) contracts
enrolled to date. Anticipating a total of 1.775 million contracts for
the 2008 crop year when all data is collated.
$750 million in advance DCP payments to producers who requested the
advance funds.
During the week of Oct. 5, 2008, the balance of $4.3 billion in DCP
payments were issued.
For 2009, USDA anticipates beginning the issuance of over $1.1
billion in advance DCP payments in December 2008. However, the bulk of
that funding will go out in calendar year 2009 as most producers do not
sign up until after the first of the year.
Conservation Programs:
Conservation Program Funding Available in 2008 includes an
additional $200 million for Environmental Quality Incentives Program to
help farmers and ranchers nationwide solve natural resource problems;
$150 million Wetlands Reserve Program, and $7.5 million for Agricultural
Management Assistance.
For fiscal year 2009, USDA will distribute $1.8 billion in
Conservation Reserve Program rental payments to participants across the
country.
Commodity Programs:
Announced payment limitation and payment eligibility provisions
applicable to commodity and conservation programs for the 2008 crop,
fiscal or program year.
Announced provisions of the 2008 Farm Bill regarding marketing
assistance loans and loan deficiency payments for 2008 crop cotton and
peanuts.
Announced initial parameters for the fiscal year 2009 sugar
program. Established the Fiscal Year 2009 overall allotment quantity at
8,925,000 short tons, raw value, which is 85% of the estimated FY 2009
domestic human sugar consumption.
Announced provisions of the 2008 Farm Bill regarding 2008-crop loan
rates, schedules of premiums and discounts, and other related
activities.
Training has been conducted for state and county officials about
the new farm bill provisions.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Bowie, TX, stockman Bud Williams says he hopes to live long enough
to see his animal-handling brainstorm put to use in every U.S. feedlot
and ranch. At 76 years of age, Williams probably won't see his dreams of
a “Bud Box” in every set of working pens, but plenty of folks are
becoming converts.
Link to the story at: beefmagazine.com/beef-quality/cattle-handling/1001-crowd-pen-stockmanship/.
-- Alaina Burt
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As producers, we may lay awake at night worrying about the markets
or the weather or maybe even whether the neighbors peaked-rumped bull
will jump the fence and get in with our heifers. But perhaps what we
should be worrying about is what we will do if consumers decide to
listen to the well-funded vocal minority and cut meat out of their
diets. Now that’s something worth considering and, even more
importantly, something worth taking action on.
For the past 20 years, representatives of the National Beef Ambassador
Program (NBAP) have worked in urban areas and convinced literally
millions of soccer moms and college coeds that beef is a vital and
important part of a healthy diet. The teams have gone to places we would
just as soon steer clear of just to get out the good word about beef and
to help us sell our product. For whether you believe that you raise beef
or you raise cattle, without a market for beef we would all be in
trouble.
In the past, the NBAP has been funded by checkoff dollars and run by the
American National CattleWomen (ANCW). In the 2007/08 fiscal year,
working on a barebones budget of just over $100,000, this program made
over 115,000 direct consumer contacts, 24,000 student interactions and
over 20 million media impressions using print, television and web-based
communications. Despite the success and longevity of the program, ANCW
was denied the use of checkoff funds for the 2009 fiscal year.
In light of this development, ANCW is reaching out to U.S. beef
producers, a group that benefits most from the work of this energetic
and enthusiastic bunch of beef lovers. If every beef producer in this
country were to donate just $1, the program would be adequately funded
for the next five years. You already send your dollars, one per head, to
the Cattlemen's Beef Board every time you sell an animal. We’re
requesting just $1 be sent to the ANCW Foundation, PO Box 3881,
Englewood, CO 80155. Or you can donate on the web at www.ancw.org. Of course, larger
(tax-deductible) donations will not be turned away!
After seeing these passionate young leaders in action, I personally
guarantee this donation will be a wise investment for the future of our
industry and you will certainly get the most bang for your buck that
you’ve ever gotten in regard to the promotion of beef!
Kelli Loos
Litchfield, NE
tkloos@gwtc.net
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