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Economic turmoil has translated into more supplies and less demand
for livestock production. Gregg Doud, chief economist for the National
Cattlemen’s Beef Association, points out that exchange rates, interest
rates and the crude oil and stock markets are all negatively impacting
the livestock industry. He goes on to point out that this has been
especially problematic for cow-calf producers, who typically market the
majority of their calf crop in the fall, right when all of these factors
turned negative.
Wholesale beef demand has been affected by plummeting consumer
confidence, which has led to people eating out less. Plus, a
strengthening dollar has hurt beef exports, as well as pork exports to
China, which has led to the inauspicious convergence of decreasing
demand and increasing supplies.
Both domestically and internationally, our customers have seen their
purchasing power decrease. That alone is likely to override what
appeared to be essentially bullish factors not so long ago.
Troy Marshall
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Meat buyers pay a premium for Certified Angus Beef® brand
products and more than $200 million in grid premiums have been returned
to producers. Angus, the power of people and progress.
www.angus.org
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While it’s human nature to focus on returns of the presidential
and congressional elections, the factor that might be the most
concerning following the Nov. 4 balloting was California ballot
initiative Proposition 2. The proposition, which won’t become law
until 2015, requires that all farm animals, "for all or the majority of
any day,"not be confined or tethered in a manner that prevents an animal
from lying down, standing up, turning around or extending its limbs
without touching another animal or an enclosure such as a cage or stall.
-- Click on headline to read the rest of this
story by Troy Marshall
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The American people have spoken, and they’ve chosen change. I’ve
always had faith in the American people, so I’m looking forward to the
new Obama administration with hope rather than despair, anticipating
unity rather than division, and good change vs. the status quo.
-- Click on headline to read the rest of this
story by Troy Marshall
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Brazil’s Grupo Cabrera announced this week that Archer Daniels
Midland (ADM) is investing US$500 million into a joint ethanol venture
that will produce 70-90 million gals. of ethanol annually.
For ADM, a dominant players in the U.S. corn-based ethanol market of the
U.S., a movement into sugar-based ethanol is a natural extension. Plus,
the timing would appear to be perfect, given the current glut of sugar
in Brazil as a result of a downturn in exports caused by the global
financial crisis. Brazil is the world’s largest producer of
sugar.
-- Muriel Elizabeth Hayes
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Senate: At press time, all members of the Senate Ag Committee
were re-elected or leading. Sen. Norm Coleman (R-MN) was leading by less
than 500 votes, which becomes an automatic recount in Minnesota. Sen.
Saxby Chambliss (R-GA), ranking member of the Senate Ag Committee, was
leading and close to securing 50%. Under Georgia law, if he fails to
receive 50%, Chambliss will face a run-off election.
House: Seven members of the House Ag Committee were defeated:
Nancy Boyda (D-KS), Robin Hayes (R-NC), John Kuhl (R-NY), Nick Lampson
(D-TX), Tim Mahoney (D-FL), Marilyn Musgrave (R-CO), and Tim Walberg
(R-MI). Hayes served as ranking member of the House Ag Livestock
Subcommittee and was a good friend of the meat and livestock industries.
-- P. Scott Shearer, Washington, D.C.
correspondent
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The Environmental Protection Agency (EPA) announced final rules
concerning concentrated animal feeding operations (CAFO).
According to EPA, the “new regulation of animal feedlots sets a strong
national standard for pollution prevention and environmental protection,
while maintaining our country’s economic and agricultural
competitiveness. This clean water rule strengthens environmental
safeguards by embracing a zero discharge standard and requiring
site-specific management plans to prevent runoff of excess nutrients
into our nation’s waters.”
Under the new rule, a CAFO operator will be required to use a nutrient
management plan for manure and it must be submitted as part of a
CAFO’s Clean Water Act permit application.
The National Cattlemen’s Beef Association said the rule “contains
substantial improvements in water quality protection, and may improve
water quality as a result. We are encouraged that the rule includes a
number of incentives for livestock farms to operate at high levels of
environmental compliance. A positive aspect is that livestock farmers
will have flexibility to evaluate their farm and determine whether or
not to secure a permit.”
The National Pork Producers Council (NPPC) said the new CAFO regulation
is a “tough but fair rule and sets a standard that the U.S. pork
industry has been and will continue living up to. Pork producers are
ready to comply with the new regulations.”
-- P. Scott Shearer, Washington, D.C.
correspondent
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After a series of very successful talks this week between South
Korea’s Ministry of Food, Agriculture, Forestry and Fisheries, and the
government of Canada, South Korea has agreed to send inspectors to
Canada later this month to inspect the beef export plants. Exports will
then be allowed to resume to Korea, with beef from cattle aged 30 months
and younger. South Korea banned Canadian beef in 2003.
-- Muriel Elizabeth Hayes
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The Democrats increased their hold on Congress by picking up five
Senate seats and close to 20 House seats.
Senate: The Democrats gained five Senate seats by winning
Colorado, New Hampshire, North Carolina, New Mexico and Virginia. Three
races that may go to recounts include Alaska, Minnesota and Oregon. If
Sen. Ted Stevens (R-AK) survives the election, he’ll likely face a
vote to remove him from the Senate since he was found guilty in his
recent ethics trial.
House: The Democrats are expected to gain around 20 House seats.
With the Democrats gaining seats in the last two elections, there could
be challenges to the House Republican leadership. Already, Rep. Adam
Putnam (R-FL) has announced he will resign as chairman of the House
Republican conference.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Former U.S. Senators Bob Dole (R-KS) and George McGovern (D-SD) have
been named 2008 World Food Prize Laureates, cited for their work in
“reviving and strengthening global school feeding, nutrition and
education programs.”
The award, which carries a $250,000 prize, honors outstanding
individuals who have made vital contributions to improving the quality,
quantity or availability of food throughout the world. The award was
established by Norman Borlaug, winner of the 1970 Nobel Peace Prize.
Both McGovern and Dole ran unsuccessfully for U.S. president and are
better known for things besides launching a program that has provided
more than 22 million meals to children in 41 countries. Both highly
decorated combat veterans of World War II, the men were credited for the
bipartisan support needed to push their McGovern-Dole International Food
for Education and Nutrition Program through Congress in 2000.
During the World Food Prize ceremony at the Iowa State Capitol, Dole
ended his brief remarks by reciting the poem, “The Dash,” which
describes the importance of the years of a person’s life represented
by the dash between the dates of their birth and their death.
McGovern burst into a verse of "Jesus Loves the Little Children” with
many in the audience of more than 700 softly singing along.
“The beautiful thing about the hunger issue is that it is soluble,”
McGovern said. “I used to think that it didn’t matter how long a
person lived. Now that I've lived to be 86, I no longer agree with that.
But I hope to live long enough to see every schoolchild in the world
fed.”
The McGovern-Dole Program has spurred increased commitments from donor
countries for school feeding and has renewed support from development
leaders. The success of the program has led to dramatically increased
international support for the expansion of school-feeding operations in
developing countries around the world.
“Senators McGovern and Dole are tireless champions in the battle
against hunger, and are an enormous inspiration,” said Josette
Sheeran, executive director of the World Food Program. "They have given
millions of children a chance to dream – and to live healthy lives –
through school feeding.”
-- Forrest Laws, Farm Press
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Environmental Stewardship Award recipients were highlighted in an
article about sustainable farming in the Oct. 23 issue of USA
Today. The award is managed by the National Cattlemen's Foundation
and sponsored by Dow AgroSciences, the Natural Resources Conservation
Service and the U.S. Fish & Wildlife Service. It annually recognizes the
outstanding stewardship practices and conservation achievements of
cattle producers from across the U.S., awarding regional winners and one
national winner.
The USA Today article wrote about Eldora, IA cattleman Dave
Petty, whose Iowa River Ranch won the 2001 national award; Scott Stone,
who's family cattle ranch in Woodland, CA, won the 2007 national award;
and Lydia Yon, whose family farm in Ridge Spring, SC, won the 2008
Region II award. Lydia sums up her operation -- and the award -- when
she tells USA Today, “What’s good for us from a business
standpoint and at the same time is good for the environment is not
something we do because we have to, but because we want to.”
-- National Cattlemen’s Beef Association update
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Sponsored by John Deere, the BEEF Trailblazer Award is
bestowed annually by BEEF editors to an industry individual or
group whose volunteer contributions and farsighted leadership were
instrumental in pushing forward significant research, programs or
projects that benefited the industry and improved the production and
profit environment for U.S. beef producers. This is the award’s 15th
year.
This year’s honoree is Mike Milicevic, general manager of Lykes Bros.
Ranch in Okeechobee, FL. Milicevic was selected for his decade-long
leadership efforts in developing a “Water Quality Best Management
Practices Manual” for the state of Florida. The manual is a unique
consensus document between Florida cattle producers, state regulatory
agencies and academia. It outlines commonsense, economically and
technically feasible production and management practices that enhance
and protect Florida’s water resources.
To watch a short video on Milicevic and Lykes Bros. Ranch, go to: beefmagazine.com/beeftv/trailblazer08-mike-milicevic/.
To read the November issue cover story, go to: beefmagazine.com/people/award-winners/1101-milicevic-leads-regulations/.
-- Joe Roybal
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The U.S. average price for regular gasoline fell another 25.6¢ to
hit $2.40/gal. for the week ending Nov. 3. Meanwhile, the U.S. average
price for diesel dropped 20¢ to $3.088/gal., the lowest since Oct. 15,
2007.
Over the past seven weeks, the U.S. average price for regular gasoline
has plunged $1.435/gal., and $1.714 off the all-time high of July 7.
Prices for the week slumped 23.5¢ to $2.449 on the East Coast, while
the Midwest tumbled 26¢ to $2.237, the Gulf Coast 23.2¢ to $2.228, the
Rocky Mountains 28¢ to $2.482, and the West Coast 31¢ to $2.74.
California fell 34.7¢ to $2.783/gal.
Since diesel set its all-time high of $4.764/gal. on July 14, it’s
plunged a total of $1.676. The East Coast dropped 17.8¢ to $3.219,
while the Midwest fell 22.6¢ at $3.018. The Gulf Coast slipped 18.6¢
`to $3.033, the Rocky Mountains 21.8¢ to $3.157, and the West Coast
18.1¢ to $3.052. California was down 22.9¢ to $3.057/gal.
-- U.S. Energy Information Administration
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The largest country in South America, Brazil is an ag powerhouse. It
is the world's top exporter of beef, broilers, soybeans, coffee, orange
juice and sugar. And despite being locked out of more than half of the
world's beef-importing counties, including South Korea and Japan (due to
foot-and-mouth disease), Brazil still accounts for almost a third of the
world's beef exports.
Brazil boasts a national cattle herd of 183 million head and projections
indicate a herd of 230 million head by 2015. The cattle are
predominantly Nelore and Brahman with crossbreeding being encouraged
with Hereford, Angus and Simmental to improve meat quality and growth
rates.
Now, you can get a firsthand look at this agricultural dynamo that is
Brazil. BEEF magazine is again teaming up with the Montana State
University Beef Quality Assurance (BQA) Program to provide another
BEEF Study tour of Brazil. The tour is set for Jan. 15-26, 2009,
departing the U.S. from New York, NY.
“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, Montana BQA director and a tour escort. “We've developed
an itinerary that will 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.”
Tour participants will experience a variety of cattle ranching and
feeding operations in Brazil's west-central region, an area of
subtropical cattle farming. Highlights include a two-night stay at a
working family ranch 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
Brazilian 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 settings are world-class tourist sites like the
Brazilian Pantanal and Bonito Springs — and two nights in Rio de
Janiero.
To view an itinerary, go to: beefmagazine.com/south-america-tour/schedule/.
The estimated 20-person tour price is $4,995/person (double room). A
visa is also required for Brazil entry, estimated at $165 for visa and
visa-service fees. Deadline for bookings is next week.
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); or Renata
Stephens at 763-972-8080 (Renata@BrazilianLiaison.com).
-- Joe Roybal
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The third course in a series on cattle reproduction is available on
the Cattle Learning Center website, www.cattlelearningcenter.org,
or by calling 800-525-3085. The course is called Prevention Programs
and Technologies to Improve Reproductive Performance.
The session costs $15 for National Cattlemen’s Beef Association (NCBA)
members and $25 for non-members. CDs of the course are also available.
The first two courses in the series, How to Get Cows Pregnant and
Economics of Reproduction are available for $15 each, or get all three
for $30 for members ($45 for non-members). CDs are available.
-- NCBA release
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Sen. Barack Obama (D-IL) was elected the 44th President of the U.S.
in a decisive victory. Obama carried a number of key swing states
including Colorado, Florida, Indiana, Nevada, New Mexico, Ohio and
Virginia. This is the first time since 1964 that a Democratic candidate
for President has carried Indiana and Virginia.
Key voting blocks for Obama were voters between ages 18-29 (66%); blacks
(96%); Hispanics (65%); and single women. He also made inroads into
Catholic voters and male voters. Obama also made inroads into rural
areas either by carrying rural counties or narrowing the margin compared
to 2004.
We can expect that President-elect Obama will move quickly with his
transition, economic and national security teams.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Like the final scene from a Rocky movie where the two slogging
combatants stand battered and exhausted as one teeters toward the
canvas, the 2008 presidential election has finally and mercifully drawn
to a close. Congratulations are in order to Democrat Barack Obama for
his historic achievement.
-- Click on headline to read the rest of this
story by Joe Roybal
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It’s one of the basic, fundamental operatives in running a
business; always has been. But if you want to be successful in the meat
business, you have to listen to the consumer, says John Keating,
business unit leader for Cargill Beef North America.
Adds Wesley Batista, president and CEO of JBS-Swift and Co. and the
country’s newest cattle feeder, watch your spread and pay attention to
the margin, regardless of whether you’re feeding cattle or processing
them.
And looking down the road, Jim Lochner, senior group vice president with
Tyson Fresh Meats, says the industry has to get consumption up.
The three were on the hot seat this week at the annual convention of the
Texas Cattle Feeders Association, participating in a packer panel in
front of an audience that had intense interest in what they had to
say.
All three said keeping product moving through the pipeline is essential,
both domestically and internationally. Even short-term hiccups in
product movement, they said, can quickly turn into major heartburn.
According to Batista, branded programs will continue to be important to
cattle producers and processors alike, as will consumer convenience in
the products that are pushed out the back door. “That will be our
focus at Five Rivers (feedyards), to produce to the consumer.”
Lochner posed it this way: “Should we,” he asked cattle feeders,
“start to think about how we grow animals to target different market
segments?”
He thinks a good place to start is tightening the wide variation in
carcass weights that come down the line in a packing plant. “Having a
carcass weight of 825 lbs. doesn’t bother me. Having a standard
deviation of 150 lbs. does. If we can get that standard deviation down
to 50 lbs, it will help.”
-- Burt Rutherford
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Open the catalog from your favorite genetics supplier and what do
you see? Outside of the pretty pictures, you see numbers. Lots and lots
of numbers.
-- Click on headline to read the rest of this
story by Burt Rutherford
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Terry Van Doren has been named USDA Administrator of the Grain
Inspection, Packers and Stockyards Administration (GIPSA). Van Doren
currently serves as a senior advisor to Bruce Knight, USDA Under
Secretary for Marketing and Regulatory Programs. He earlier served as
the ag advisor to Senators Mitch McConnell (R-KY) and Peter Fitzgerald
(R-IL). Van Doren is a native of Illinois.
-- P. Scott Shearer, Washington, D.C.
correspondent
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California voters approved by more than 60% the referendum that
would ban modern confinement housing for egg-laying hens, sows and veal
calves by 2015. The measure passed despite editorial opposition from
major California daily newspapers and Gov. Arnold Schwarzenegger.
Arizona, Colorado, Florida and Oregon have passed similar legislation
for swine and veal. This vote will have a major influence on animal
welfare issues in the 111th Congress.
For reaction from the Animal Agriculture Alliance, click here:
-- P. Scott Shearer, Washington, D.C.
correspondent
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