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BEEF'S COW CALF WEEKLY    November 14, 2008  |  A PENTON MEDIA PUBLICATION
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    Table Of Contents
> Speculation On New USDA Secretary Abounds
> Election Reflections From The BEEF Quality Summit
> Is The Sky Falling Or The Sun Rising?
> 2008 Election Results Continue
> 5th Annual Southwest Beef Symposium Is Jan. 13-14
> APHIS Releases Animal Health Report
> Animal Agriculture Must Unite To Survive Its Enemies
> Aussie Beef Hits It Big In South Korea In October
> China’s Trade Surplus Continues To Set Records
> Congress Should Examine High Food Prices
> Gasoline At $2.22; Diesel Averages Under $3
> Genetic Prediction Workshop Deadline Nearing
> Grazing Improvement Workshop Is Nov. 24 In Corning
> Growth Promotants Discussed By USTR & The EU
> Holiday Discount On “Breeds Of Cattle”
> Limited-Edition Art Prints Available For Christmas
> Livestock Provisions Of National Organic Program
> Livestock Trailer Hauls Dogies And Drug Dollars
> McDonald’s Performing Great In Tough Economy
> New York Retirement Fund Sues Brazilian Packer
> Now’s A Good Time To Plant Grasses & Legumes
> Reproductive Strategies Is Focus Of Dec. 2-3 Meeting
> Survey Shows Shoppers Loyal To Meat
> Transition For New Administration Begins
> U.S. Crops Outlook Shrinks Off Last Month’s Report
> What Does Weather Do To Corn Stalk Quality?

    Our Perspective
      Speculation On New USDA Secretary Abounds

It’s one of those pointless games, trying to guess who will be appointed to various jobs in a new government administration. But if one compares the leading candidates and who is selected for the various posts, it provides a good idea of the new administration’s general direction and focus.

Four candidates have been widely mentioned as possible candidates for the USDA Secretary’s job: Charles Stenholm, Tom Buis, Collin Peterson and Tom Vilsack. As President-elect Barack Obama has pledged not to use lobbyists in key posts, which would seemingly eliminate former Texas Rep. Stenholm from contention, as well as Tom Buis, president of the National Farmers Union.

Vilsack is a former two-term governor of Iowa and 2008 Democratic hopeful for president who endorsed Obama after he dropped out of the race. Plus, Iowa is one of the nation's most important ag states, and a state that came through for Obama in the Democratic primary season.

Meanwhile, Collin Peterson, if the rumor mill is correct, may be the odds-on favorite for the job. His selection also would signal the least amount of change from an ag-policy standpoint. But he indicated to Minnesota ag leaders in late October that he wasn’t interested in the job. (Instead, he listed his top choices as Buis, Stenholm, Sen. Ken Salazar (D-CO) and Rep. Stephanie Herseth (D-SD) .

We’ll have to see if Obama holds to his no-lobbyist pledge. It’s one of those promises that sound very good on the campaign trail, but ends up potentially eliminating a lot of good people.
-- Troy Marshall



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    Election Reflections From The BEEF Quality Summit

At last week’s BEEF Quality Summit, Burton Eller and Terry Stokes from the National Cattlemen’s Beef Association (NCBA) discussed the impacts of the election on issues relative to the beef industry. It was clear from an NCBA standpoint that the organization is making a very dedicated effort to be involved with the transition team, and ensuring cattlemen have a seat at the table.
-- Click on headline to read the rest of this story by Troy Marshall

    Is The Sky Falling Or The Sun Rising?

Some producers who sold their calves this summer or early fall are delivering calves right alongside salebarn calves for as much as a $200 difference! It’s an interesting time – sellers aren't willing to sell significant numbers at these reduced prices, and buyers haven't been overly aggressive buyers either.
-- Click on headline to read the rest of this story by Troy Marshall

   
      2008 Election Results Continue

Democrats so far have gained six U.S. Senate seats – Colorado, New Hampshire, New Mexico, North Carolina, Oregon and Virginia. There are still three Senate races that haven’t been decided, but it’s conceivable that Democrats could attain their goal of a 60-seat, filibuster-proof majority.
  • Georgia: Having failed to receive 50% of the vote, Sen. Saxby Chambliss (R-GA), ranking member of the Senate Ag Committee, is forced into a Dec. 2 runoff election under state law.

  • Minnesota: Sen. Norm Coleman (R-MN) is leading comedian Al Franken by about 200 votes. Minnesota will now conduct a mandatory recount.

  • Alaska: Votes are still being counted and as of Thursday, Anchorage Mayor Mark Begich was leading Sen. Ted Stevens (R-AK) by less than 1,000 votes.
The Democrats have picked up 22 seats in the House of Representatives, and six House races are still undecided.

The House and Senate caucuses will meet next week to choose their leaders for the 111th Congress.
-- P. Scott Shearer, Washington, D.C. correspondent



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      5th Annual Southwest Beef Symposium Is Jan. 13-14

Texas and New Mexico Extension will hold their fifth annual Southwest Beef Symposium, Jan. 13-14 at the Horseshoe complex in Midland, TX.

Consisting of three educational sessions and a trade show, sessions will target current world and national issues, feed costs at the ranch, and beef-system efficiency.

Highlighting the first day’s macroeconomic view will be Jason Henderson, U.S. Federal Reserve Bank executive vice president, who will discuss the world energy outlook. Other first-day topics will focus on the new Obama administration, the current grain and cattle outlooks, and animal welfare’s impact on ag.

The second day will focus on how input costs balance with herd performance. Other topics include how to value and best utilize range forage, ideas on minimizing both protein and mineral supplementation, and low-cost heifer development.

The final session deals with beef-system efficiency. Topics include the cost-benefit of purchased genetics, cow efficiency and environment, and a look at how lightweight vs. heavyweight feeder calves perform. A panel discussion of ranchers discussing the changes their operations have made to survive rising input costs will close out the program.

Registration is $50 and includes a prime rib dinner, lunch, refreshments and proceedings. Pre-registration by Jan. 3 is requested. For more info, call 432-336-8585, 505-646-8022 or visit cahe.nmsu.edu/ces/swbeef.
-- Southwest Beef Symposium release

      APHIS Releases Animal Health Report

USDA's Animal and Plant Health Inspection Service (APHIS) released the 2007 U.S. Animal Health Report, which provides a national overview of domestic animal health in the U.S.

The report addresses the many components of the U.S. animal health infrastructure; approaches to animal disease surveillance, control and eradication; animal population demographics and new initiatives. In addition, the report describes significant epidemiologic events that occurred in 2007.

The 2007 report includes a chapter devoted to a number of strategic areas specific to the veterinary services mission, including emergency planning and preparedness; avian influenza surveillance; aquatic health; national animal ID and comprehensive, integrated animal-health surveillance. New to the report this year is a chapter on animal health diagnostics and veterinary biologics. This chapter describes in detail the fundamental components of the veterinary services infrastructure and how they enhance animal health in the U.S.

The 2007 U.S. Animal Health Report is available at www.aphis.usda.gov/
-- APHIS release

      Animal Agriculture Must Unite To Survive Its Enemies

Animal agriculture faces a single, common enemy and if it is successful, livestock producers are, as Steve Kopperud bluntly put it, “screwed and tattooed.”

That enemy, says Kopperud, is the Humane Society of the U.S. It's big, with an annual budget of around $130 million, successful and patient. Plus, it's totally committed to putting you out of business.

“This isn’t just a beef issue,” Kopperud, with Policy Directions, a Washington D.C. lobbying firm, says of the threat that animal rights activists pose to agriculture. “This is an issue that affects all segments of animal agriculture. It’s time to put away our product differences. It’s time to put away our other issue differences. Because I assure you, if they take down the poultry industry, if they take down the pork industry, they will take down beef.”

Kopperud says complacency has no place in the issue. “Talk to your legislators. Everyone who has a freshman going into Congress, whether it’s a Senator or Representative, your first order of business is to call or make an appointment, somehow educate their field office that this is an issue for you and your family. We unite, we defend, we get proactive. It’s the only way we survive.”
-- Burt Rutherford



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      Aussie Beef Hits It Big In South Korea In October

Australian beef exports to South Korea in October increased by 41% over September, with 13,213 tons of Australian grain-fed beef moving into the Pacific Rim country for the month – 1,964 tons of chilled beef and 11,249 tons of frozen beef. The performance is particularly impressive given that U.S. beef is now back in the Korean market.

Meanwhile the Russia trade in export beef has come to a standstill. And it’s rumored that some Australian beef is, in fact, en-route back to Europe, as payment wasn’t secured in Russia.
-- Muriel Elizabeth Hayes, Argentina

      China’s Trade Surplus Continues To Set Records

China’s trade surplus rose to US$35 billion in October, hitting a record for the third month in a row. The surplus rose 20% from September to October, according to Beijing’s Customs Department. But despite the rise, there were signs that foreign demand for Chinese goods was beginning to slow amid the downturn.

The Central Bank of China expects growth to slow down to 8-9%, which is still amazing when compared to the rest of the world.

Separate data showed inflation fell to a 17-month low, increasing the chance of further interest-rate cuts, as China acts to boost the economy. China has set out a US$586 billion economic stimulus package to counter foreign demand by boosting domestic spending. The plan announced earlier this week is aimed at increasing domestic growth by cutting taxes and investing in infrastructure.

China is the world’s fourth-largest economy, driven by exports mainly to the U.S. and Europe. Exports have been growing at an annual rate of 20% in recent years.

China is said to be currently holding $2 trillion in international reserves, which could see them emerge from this crisis as the world’s leading economy.
-- Muriel Elizabeth Hayes, Argentina

      Congress Should Examine High Food Prices

The National Farmers Union (NFU) has called on Congress to hold hearings to re-examine the cause of high food prices. Congress held hearings this spring on high food prices and high commodity prices.

NFU said, “It’s clear that contrary to claims of food processors, retailers and others quick to criticize agriculture commodities, commodity prices have very little impact on the American consumers’ cost of food. It’s equally clear processors and retailers are pocketing the economic benefit of declining farm commodity prices and reduced energy costs without passing those savings on to the consumer.”

In a letter to the Congressional Joint Economic Committee and the House Small Business Committee, NFU reminded the committee leadership that some groups testified earlier this year that increased retail food prices were the result of the rising cost of ag commodities and renewable fuels. NFU said, “This portrayal of retail food prices is finally being proven inaccurate by recent market conditions.”
-- P. Scott Shearer, Washington, D.C. correspondent



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      Gasoline At $2.22; Diesel Averages Under $3

The U.S. average price for regular gasoline at retail tumbled another 17.6¢ to $2.224/gal., for the week ending Nov. 10, $1.89 off the all-time high set on July 7. Meanwhile, the U.S. average price for diesel fell below $3/gal. for the first time since Sept. 17, 2007, decreasing 14.4¢ to $2.944.

For gasoline, the East Coast slumped 17.7¢ for the week to $2.272, the Midwest 17.7¢ to $2.06, the Gulf Coast 13.2¢ to $2.096, the Rocky Mountains 22.5¢ to $2.257, and the West Coast 20.6¢ to $2.534. California fell 22.8¢ to settle at $2.555.

Diesel was down across the nation, with the East Coast shaving 15.9¢ to $3.06/gal., the Midwest 13¢ to $2.888, the Gulf Coast 13.8¢ to $2.895, the Rocky Mountains 19.3¢ to $2.964, and the West Coast 14.2¢ to $2.91. California fell 14.4¢ to $2.913/gal.
-- Energy Information Administration

      Genetic Prediction Workshop Deadline Nearing

The deadline for getting the reduced hotel room rate for the Ninth Genetic Prediction Workshop (GPW) is Nov. 16. GPW is set for Dec. 8-10 in the Kansas City Marriott Downtown.

The meeting will address current topics in the prediction of genetic merit of animals for selection, including economically relevant traits, estimation of molecular breeding values, and integration of molecular info with pedigree and performance data for prediction of EPDs. The workshop is sponsored by the Beef Improvement Federation (BIF) and the National Beef Cattle Evaluation Consortium.

Registration is $150 and includes two lunches, all breaks and meeting materials. BIF will provide financial assistance of $100 toward the registration fee for 20 graduate students (contact Susan Herbert at 607-255-4416 or shh4@cornell.edu).

Prior to the GPW meeting, the NCERA-199 (Implementation and Strategies for National Beef Cattle Genetic Evaluation) will hold its annual meeting (Dec. 8, 8-11:30 a.m.). Cost is $18/person and the meeting's focus will be on incorporating marker info into genetic evaluation.

To learn more, contact Susan H. Herbert at 607-255-4416 or shh4@cornell.edu; or visit www.nbcec.org/nbcec/.
-- Susan Herbert

      Grazing Improvement Workshop Is Nov. 24 In Corning

Cattlemen wanting to reduce their grazing expenses by extending their grazing season and reducing fertilizer costs should attend the Grazing Workshop in Corning, IA on Nov. 24. Set for 10:30 a.m. to 2 p.m. at the St. Patrick’s Parish Center, the workshop and lunch are free.

The featured speaker is Ron Morrow, Arkansas State Grassland Conservationist and co-founder of the Missouri Grazing School. Sponsored by the Southern Iowa Forage and Livestock Committee (SIFLC) with assistance from the Iowa Forage and Grassland Council, Iowa State University Extension, and USDA’s Natural Resource Conservation Service, an RSVP is not required but is requested for planning purposes. Contact Melissa Maynes at 641-322-3184.
-- SIFLC news release

      Growth Promotants Discussed By USTR & The EU

U.S. Trade Representative (USTR)Susan Schwab met in Brussels on Tuesday with European Union (EU) Trade Commissioner Catherine Ashton to discuss a number of bilateral trade issues. Among them were EU import restrictions relative to growth promotants in beef production and poultry treatments in the context of their role in successfully concluding world trade talks.

"With leadership and determination, a Doha deal is within our grasp as the details of a final agreement could be agreed within weeks," Ashton said in a statement issued by USTR. Schwab said, "At this critical time, it is all the more important that we not only avoid retrenchment in market opening, but move ahead with an ambitious and balanced Doha Round that creates new trade flows and generates economic opportunities worldwide."

Turning up the heat on the longstanding EU ban on beef from animals administered certain growth-promoting hormones, Schwab announced last week that USTR is considering modifying the list of European products subject to increased tariffs, as allowed by the World Trade Organization (WTO) settlement rulings in the EU beef hormones dispute. "We have been trying to resolve this dispute with the EU without changing the composition of tariffs," Schwab said at the time. "It’s now time to revisit those tariffs to see if modifications would be appropriate."
-- Ron Hays, Radio Oklahoma Network

      Holiday Discount On “Breeds Of Cattle”

"Breeds of Cattle," 2nd Edition, offers a unique look at the history of beef and dairy breeds throughout their development. This unique volume contains histories of 45 major breeds of beef and dairy cattle. And essays provide historic information on the origin and phenotype of each breed, as well as current statistics compiled from the breed registries of the nation's top cattle breeders' associations.

The 21st anniversary commemorative edition is hardcover with dimensions of 12 x 12 x 1.5 in., and 400 pages, with more than 400 images. It retails for $110. Free domestic shipping is being offered in November and December.

To learn more, visit www.breedsofcattle.net or call 1-888-530-3322, 417-768-0252.
-- Breeds Of Cattle release

      Limited-Edition Art Prints Available For Christmas

If you’re looking for a convenient Christmas gift, consider a limited-edition art print mailed directly to your door. BEEF magazine has a number of limited-edition art prints, signed and numbered by some of America’s top western artists, including Tim Cox, Mick Harrison, Jack Sorenson, Jim Rey, Bill Owens, Steve Devenyns, Craig Tennant, Harold Lyon and Jim Norton. Each print is available for $100 and is printed with high-quality inks on acid-free paper. Take a look at the offerings at: beefmagazine.com/images/Printad2pg1106.pdf.
-- BEEF magazine

      Livestock Provisions Of National Organic Program

USDA’s Agricultural Marketing Service (AMS) is proposing to amend the livestock provisions of the National Organic Program. The revisions are intended to provide greater detail for livestock regulations of pasture and ruminant animals.

According to the proposed rule, "By specifying in greater detail that producers are to provide ruminants with pasture, recognize pasture as a crop, and incorporate pasture into their organic system plan, producers will have better records and tools for managing pasture and demonstrating compliance with the livestock regulations. Certifying agents will have better tools for measuring compliance with the livestock regulations ... [The] proposed rule would also clarify the replacement animal provision for dairy animals ..."

Deadline for public comments on the proposed rule is Dec. 23.
-- P. Scott Shearer, Washington, D.C. correspondent

      Livestock Trailer Hauls Dogies And Drug Dollars

A massive federal takedown of a Mexican drug cartel resulted in 41 individuals being charged and hundreds of kilos of drugs being seized. Among the arrested was a livestock hauler who used a hidden compartment under the livestock and a pulley system to store more than $13 million in drug proceeds.

On Oct. 28, federal prosecutors in Atlanta charged 41 people with alleged ties to a large-scale drug distribution and money laundering scheme in Georgia and Texas. Among those tied to the organization were a Georgia sheriff’s deputy who tried to use his badge to get out of a traffic stop.

“During this long-term investigation, we took away from the organization about $22 million in drug money – a record amount for an Atlanta case – and hundreds of kilos of the organization’s cocaine and marijuana. We have now indicted dozens of its alleged members who face long sentences in federal prison,” says U.S. Attorney David Nahmias.
-- Charlie Morasch, landlinemag.com

      McDonald’s Performing Great In Tough Economy

While tough economic conditions are taking their toll on virtually every business sector, McDonald’s Corp. seems to be thriving. The firm reports sales rose 8.2% for the month of October, with U.S. sales increasing by 5.2%.

There was an exceptional strong growth in the UK, France and Russia. But Middle East, Asia and Australian operations also saw 12% growth for the month.

The firm is far outpacing analysts’ predictions by reducing the size of meals, rather than increasing the prices, in order to combat global price increases for raw materials.
-- Muriel Elizabeth Hayes, Argentina

      New York Retirement Fund Sues Brazilian Packer

A New York retirement fund, Westchester Putnam Counties Heavy and Highways Laborers Local 60 Benefit Funds (union pensions),has sued Sadia SA, the Brazilian pork and poultry giant, over shareholder losses. The class action was filed in the U.S. District Court of Manhattan.

The company announced in September it had lost more than US$350 million, in foreign currency exchanges. The losses caused the sacking of the financial director and resignation of the CEO of the Sadia group. Making matters worse was the fact that its competitor, JBS SA, made more than US$400 million profit during the same period on similar exchanges, which were obviously far better managed.

In essence the suit claims Sadia was speculating in the money market in the hope of making additional cash, which backfired causing the unnecessary losses.
-- Muriel Elizabeth Hayes, Argentina

    Now’s A Good Time To Plant Grasses & Legumes

Grasses and legumes are normally planted in early spring, but planting during the dormant season can be nearly as successful, says Bruce Anderson, University of Nebraska Extension forage specialist.
-- Click on headline to read the rest of this story by Bruce Anderson, University of Nebraska Extension Forage Specialist

      Reproductive Strategies Is Focus Of Dec. 2-3 Meeting

Applied Reproductive Strategies in Beef Cattle is the focus of the Robert E. Taylor Memorial Symposium 2008 set for Fort Collins, CO, Dec. 2-3. Staged in the Hilton Fort Collins, the symposium will focus on estrus synchronization, management and nutrition, fertility-related factors, and advances and health-related issues.

Sponsored by Colorado State University and the Beef Cattle Reproduction Task Force, registration before Nov. 17 is $150/head, and $75 for students. All registrations are $200/head after that date. For program details and registration, visit www.CSUBeef.com.
-- Joe Roybal

      Survey Shows Shoppers Loyal To Meat

According to the Unilever 2008 Winning Shoppers in Turbulent Times study, the economy is affecting many aspects of grocery store customers' lives. Fear and uncertainty about the economy are the current motivators behind customer shopping approaches.

More than 43% of U.S. primary shoppers say that they feel worse off economically than one year ago. In response, more than 30% are eating at home more and dining out less as one way to save money.

While an overwhelming 93% of consumers worry about rising food prices, the fresh meat and seafood category demonstrates a loyalty rate of more than 98%, indicating that customers won't stop purchasing fresh meat, even during tough times. More than 72% are ready to reduce spending, and while consumers agree that meat is one of the categories they may reduce spending in, it falls to the bottom of the list.

For more info, go to www.beefretail.org/.
-- Beef Checkoff Beef Briefs

      Transition For New Administration Begins

The Obama transition has begun with the selection of Rep. Rahm Emanuel (D-IL) to serve as President-elect Barack Obama’s chief of staff. Prior to being elected to Congress, Emanuel served in the Clinton White House where he was in charge of securing Congressional passage of the North American Free Trade Agreement.

Obama will soon be naming transition teams for each of the departments. USDA Secretary Ed Schafer said, “Over the past several months, federal departments, including USDA, began preparing for the Presidential transition. Earlier this year, President Bush charged members of his administration to commence the most comprehensive effort ever in transition preparation to ensure the President-elect has complete cooperation from the current Administration for a smooth, seamless transfer of authority.”
-- P. Scott Shearer, Washington, D.C. correspondent

      U.S. Crops Outlook Shrinks Off Last Month’s Report

Planting delays and other weather problems experienced in several major growing regions last spring may be impacting crop yields. According to USDA’s Nov. 10 crop production report, production declined slightly from last month’s outlook for every major U.S. crop.

Corn production is forecast at 12 billion bu., down slightly from the October forecast and 8% below 2007. Based on Nov. 1 conditions, yields are expected to average 153.8 bu./acre, down 0.1 bu. from October but 2.7 bu. above last year. If realized, this will be the second-highest yield (behind 2004), and production will be the second largest, behind last year.

Forecasted yields are higher than last year across the northern half of the Great Plains and northern and central Corn Belt. Yield prospects are lower than last year in the southern half of the Great Plains and Delta.

Meanwhile, soybean production is forecast at 2.92 billion bu., down less than 1% from the October forecast but up 9% from last year. If realized, this will be the fourth-largest production on record, with yields expected to average 39.3 bu./acre, down 0.2 bu. from Oct. 1, and down 2.4 bu. from 2007.

Compared with Oct. 1, soybean yields are forecast lower or unchanged across the Corn Belt and Great Plains, with the exception of Illinois, Indiana and Missouri. Yields increased from the Oct. 1 forecast in Alabama, Arkansas, Tennessee, New York and Virginia. Area for harvest in the U.S. is forecast at 74.4 million acres, unchanged from Oct. 1 but up 16% from 2007.

U.S. sorghum production for 2008-09 is forecast 7 million bu. lower this month than last.
-- Elton Robinson, Farm Press

      What Does Weather Do To Corn Stalk Quality?

Fall rainfall is good for the next growing season but it can take a toll on corn stalk quality by reducing its feed value in combined fields in several ways. Bruce Anderson, University of Nebraska Extension forage specialist, says the most easily noticed is how fast stalks get soiled or trampled into the ground when fields are muddy.

But less noticeable are nutritional changes. Heavy rain soaks into dry corn stalk residue and leaches out some soluble nutrients. Most serious is the loss of sugars and other energy-dense nutrients, which lowers the total digestible nutrients (TDN) or energy value of the stalks. These same nutrients also disappear if stalks begin to mold or rot in the field, or especially in the bale. Then palatability and intake also decline.

While there’s little you can do to prevent these losses, Anderson says graziers can begin to supplement a little earlier than usual. Since weathering by rain reduces TDN more than it reduces protein, consider the energy value of your supplements as well as protein content.

“Weathered corn stalks still are economical feeds. Just supplement them accordingly,” he says.
-- Bruce Anderson, University of Nebraska Extension Forage Specialist

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