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The last couple of weeks have been a lot of fun. I’ve attended
several cow-calf symposia and sat down with a wide spectrum of
producers. Certainly everyone is talking about the market, rising input
costs, and the need to be more effective marketers.
I could have written something similar for a few years now; it isn't
anything new. But I sense there’s a difference in attitudes today; the
financial crisis that bled over into the commodity markets has made
everyone a little nervous and set off warning bells. It illustrates not
only how responsive we have to be to change but also that the margin for
error seems to shrinking, as well.
I guess what struck me through these conversations is the level of
sophistication with which people are tackling the issues of the day –
whether it be selecting the best genetics, designing the most
cost-effective mineral program, or designing a marketing program. While
nobody is an expert in seven different fields or areas, managers today
understand their weaknesses and strengths and are actively seeking
people out with expertise in areas in which they’re deficient.
Sure there are those who just turn out a bull, or who run their cows and
market their calves the exact same way they always have – with little
planning or thought. But those types of operations are the exception
today, not the rule.
-- Troy Marshall
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The end of last week saw the futures market rally and everyone came
into the week priced higher and feeling pretty good about the prospects
of pushing the market still higher. Then came Wednesday and another
hearty selloff on the board, which erased the gains of the week
before.
As this was being written, we were in another good, old-fashioned
standoff, with feeders priced higher and packers bidding lower. Everyone
is scrambling to get a feel for this market, but that’s a difficult
task in a psychology-driven market where confidence levels are pretty
fragile.
Supply wise, total cattle-on-feed numbers are manageable. But with
current demand levels (which are sufficient) and disappointing price
levels, the tendency is to back cattle up and increase weights.
Make no mistake about it, beef demand and psychology are the drivers in
the market.
-- Troy Marshall
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According to the Animal Agriculture Alliance (AAA), donations to
animal rights groups rose 11% in 2007. Donations to People for the
Ethical Treatment of Animals (PETA) were up 11% , while the Humane
Society of the U.S. (HSUS), which has probably replaced PETA on the list
of the most worrisome animal rights organizations, stayed even.
However, considering the successful efforts of HSUS with Proposition 2
in California, and the publicity generated by the recent rash of
undercover videos, it’s expected that HSUS will show some increase in
revenue in 2008, despite the downturn in the economy.
In fact, total donations to animal-rights groups in 2007 reached $330
million. The AAA report also highlighted how this movement is not just a
North American phenomenon. Even smaller groups like Physicians Committee
for Responsible Medicine and Farm Sanctuary have larger budgets than the
cattle industry to use in these areas.
-- Troy Marshall
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 It’s a New Day in the Sun! Join your fellow cattle
producers in Phoenix, AZ for the 2009 Cattle Industry Annual Convention
& NCBA Trade Show. January 28th -31st. If you’re in the cattle
business you don’t want to miss the largest, most important meeting of
the year. For more information or to register visit www.beefusa.org or call 303-694-0305.
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University of Nebraska professor Ivan Rush has announced his
retirement after a 35-year career. He’s been an institution in the
beef industry in the West, playing a major role in the Integrated
Resource Management (IRM) movement in Nebraska and on a national scale,
and other initiatives.
He was recently cited in a tribute on page 3 of Nebraska’s “2009
Beef Cattle Report” (view the entire report at: beef.unl.edu/beefreports/200900.shtml).
It’s impossible to accurately describe Rush’s contribution to the
industry in a short paragraph, but few people have been more impactful
on individual operations and people than this professor of animal
science at the Panhandle Research & Extension Center in Scottsbluff. He
is both a cattleman and educator, as well as a devoted advocate for the
industry and of a science/factual-based approach to beef
production.
Personally, he’s had a great influence on my thinking, and I’d love
to know how many people feel personally indebted to him for all he’s
done.
Good luck in your future endeavors, Dr. Rush, and on behalf of so many
of my fellow cattlemen and women – thanks.
-- Troy Marshall
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The 111th Congress convened on Tuesday with a larger Democratic
majority and a full agenda. The Congressional leadership indicates that
the first item to be dealt with will be the stimulus package.
President-elect Barack Obama met with the House and Senate leadership
this week to discuss the importance of moving the stimulus package
early. The concerns over jobs and the economy are increasing.
The cost of the package could reach over $1 trillion over two years. The
focus will be on infrastructure investment, tax breaks and direct aid to
states. Efforts will be made to have the final package on the
President’s desk in early February.
-- P. Scott Shearer, Washington, D.C.
correspondent
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 Feeling good about beef
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The Agriculture Council of America is calling on seventh to 12th
graders to submit an original essay of 450 words about the importance of
ag. This year’s theme is “Agriculture – Every Day in Every
Way.”
Deadline to submit essays is Feb. 9. The national winner receives a
$1,000 prize and a round-trip ticket to Washington, D.C. to be
recognized during the March 12 Celebration of Ag Dinner at the Whitten
Patio. Statewide winners receive a $100 prize. For info, go to www.hpj.com/agdayessay.
-- Agriculture Council of America release
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Americans have a bit more confidence in 2009 than in the year just
passed, but 50% of adults believe the country will still be in a
recession this time next year, according to a Rasmussen Reports national
survey released Jan. 2.
Twenty-seven percent say 2008 was a good or excellent year, and 3% say
it was the best year ever; 38% rate 2008 as poor. And 32% expect 2009 to
be good or excellent, with 5% more predicting it will be the best ever;
23% say it’s going to be a poor year.
By comparison, this time last year, 54% of Americans said 2007 was
either good, excellent or one of the best years ever for them
personally. Only 20% gave it poor marks. Sixty-eight percent (68%)
expected 2008 to be excellent, good or the best ever for them, with just
7% predicting poor.
Only 17% now say the country will not be in recession at the end of this
year, with 33% unsure.
Meanwhile, 53% of investors believe the U.S. still will be in a
recession, compared to 49% of non-investors. However, only 21% of
investors think 2009 will be a poor year vs. 24% of those who don’t
invest.
Just 17% of voters believe the U.S. is moving in the right direction,
while 77% say it is heading down the wrong track. And men and women over
the age of 40 are more pessimistic about the economy than those younger
than them.
Meanwhile, a majority of Americans expect the value of their homes to go
up over the next five years, but only 17% say their house will be worth
more within the next 12 months.
-- Rasmussen Reports (www.rasmussenreports.com)
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Angus. The real pasture to plate story. 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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The top groups in the 2008 AngusSource® Carcass Challenge (ASCC)
“blew the doors off” average quality grades, says program director
Sara Snider.
Three feedlots won more than $1,000 in cash and prizes for first-
through fifth-place finishes during the inaugural year of the contest.
Entries consisted of at least 38 head of age-, source- and
genetic-verified calves fed through the network of Certified Angus Beef
LLC (CAB)-licensed partners.
“Our goal was to illustrate the value of those calves in the feedyard
and recognize those procuring AngusSource calves and targeting the
brand,” Snider says.
- Beller Feedlot, Lindsay, NE, received $500 for the winning
group that went 80.7% Certified Angus Beef (CAB) and Prime. That’s
more than four times the national average. The 62 steers were purchased
from longtime Montana customers Mike Green, Dennis Green and Scott and
Traci Glasscock.
- The third-place entry, at 68.2% CAB and Prime, also belonged
to Beller Feedlot. That earned them an additional $100.
- Neighboring feedyard, Beller Corporation, scored second and fifth
place in the ASCC. The cattle purchased from Gray’s Angus Ranch, near
Harrison, NE, went 69.1% CAB and Prime. Their number-five group went
67.4%.
“There’s a big advantage to buying from the same source: You know
what you’ve got,” Doug Beller says. He, along with brothers Dennis
and Duane, collected $350 in prize money.
- Cattleman’s Choice Feedyard, Gage, OK, and Jimmy Taylor, Elk City,
OK, split the $100 prize for their fourth-place entry. Taylor’s first
time retaining ownership showed 66 steers going 67.7% CAB and
Prime.
Snider says the American Angus Association is looking forward to this
year’s contest, which will continue to name quarterly winners in each
region before bestowing a national title at the end of the year.
“We’d really like to see the contest grow,” she says. “If
you’re feeding at or selling to a CAB-licensed feedyard, just make
sure they know you are interested in the ASCC. There’s no cost to
enter and the paperwork is minimal.”
In addition to the 38-head minimum, cattle must be harvested in one lot.
They can be steers, heifers or mixed-sex groups and can come from
multiple operations, if all are AngusSource enrolled.
To learn more, visit www.AngusSource.com
-- AngusSource release
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Dick Bond, president and CEO of Tyson Foods Inc., for the past three
years, announced his retirement this week, effective immediately. Leland
Tollett, Tyson’s CEO from 1991-1998, was to serve as interim CEO until
a permanent successor is named to head the world’s largest meat
processor.
“After seven years of helping lead or leading the world’s largest
meat company, I have decided it is in both my best interest personally,
and the best interest of the company for me to move on and pursue other
interests,” Bond said in a statement. “I have a lot of both my time
and personal finances invested in Tyson Foods, so I wish the company all
the best for future success.”
The Wall Street Journal reports the move follows months of
increased involvement in daily affairs by Don Tyson, the founder's son
who controls nearly 70% of the voting shares in the nation's largest
meat company. Buffeted by a combination of weaker demand, oversupply and
high commodity prices, Tyson Foods’ stock price dropped 42% in 2008.
Tyson Foods' archrival in the chicken business, Pilgrim's Pride Corp.,
filed for bankruptcy a month ago.
-- Joe Roybal
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USDA’s Grain Inspection, Packers and Stockyards Administration
(GIPSA) is proposing to amend the regulations under the Packers and
Stockyards Act regarding the registration of market agencies and
dealers.
Under current regulations, there is no expiration date or renewal
process for the registration of a market agency or dealer. The proposed
amendment would establish a five-year term for registrations and renewal
procedures.
In 2007, 6,931 entities were registered with GIPSA as market agencies
and/or dealers. Most of these entities, around 5,400, have been
registered more than five years.
GIPSA is accepting public comments received by Feb. 17, 2009. Additional
info is available in GIPSA's Federal Register notice at archive.gipsa.usda.gov/rulemaking/fr08/12-16-08.pdf
-- GIPSA release
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For the first time since Sept. 15, 2008, the national average price
for regular gasoline increased for the week ending Jan. 5, jumping 7.1¢
to $1.684/gal. Meanwhile, diesel continues to slide, dropping for the
14th straight week, shaving 3.6¢ to $2.291/gal.
Despite the week’s increase, the national average gasoline price is
$1.425 lower than a year ago. Prices for the week were up in all regions
but the Rocky Mountains, where it slipped 1.1¢ to $1.49.5/gal.
Otherwise, the East Coast rose 1.2¢ to $1.642, the Midwest 16.6¢ to
$1.733, the Gulf Coast 4.9¢ to $1.547, and the West Coast 5.6¢ to
$1.846. California jumped 6.4¢ to $1.874/gal.
Diesel is $1.085/gal. below the price a year ago and the lowest since
June 13, 2005. For the week, prices were up only in the West Coast
region, which saw a very slight increase – 0.2¢ to $2.275. Otherwise,
the East Coast shaved 4.3¢ to $2.38, the Midwest 4.2¢ to $2.272, the
Gulf Coast 3.6¢ to $2.228, and the Rocky Mountains 3.5¢ to $2.215.
California dipped 0.2¢ to $2.239/gal.
-- Energy Information Administration
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As if the past year hasn’t been challenging enough for cow-calf
producers and cattle feeders, 2009 will remain tough because of the
global economic crisis.
-- Click on headline to read the rest of this
story by Steve Kay, “Meat Matters," BEEF magazine
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The 111th Congress has a larger Democratic majority. The Democrats
gained eight Senate seats and 21 House seats.
In the U.S. Senate, there will be 57 Democrats, 41 Republicans and two
Independents who caucus with the Democrats. The Democrats picked up
seats in Alaska, Colorado, Minnesota, New Hampshire, New Mexico, North
Carolina, Oregon and Virginia. Even though comedian Al Franken was
declared the winner in Minnesota, incumbent Sen. Norm Coleman is
appealing the decision. The final outcome is expected to be decided by
the courts.
Meanwhile in the U.S. House, there are 256 Democrats, 178 Republicans,
and one vacancy.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Forrest L. Roberts is the new CEO of the National Cattlemen’s Beef
Association, effective Jan. 20. Roberts, 42, grew up on a family-owned,
diversified livestock operation in Uvalde, TX. Most recently he has
served as marketing manager for Elanco’s Beef Business Unit. Roberts
replaces Terry Stokes, who has served nearly seven years in the role.
“Forrest’s agriculture background, business experience and his
passion for the industry clearly made him the candidate we wanted to
lead our association into the future,” says Andy Groseta, NCBA
president and Arizona producer. “Forrest is a goal-oriented and
dynamic leader, who will take NCBA to the next level to better serve the
cattlemen of this country. We fully expect him to meet the challenges of
our industry head-on with innovative solutions that will help producers
succeed in the global marketplace.”
Roberts holds a bachelor's degree in animal science from Texas A&M
University and a master's of business administration from the University
of North Carolina. In addition to Elanco, where he’s served since
2004, Roberts also served tenures with Upjohn Animal Health, which
morphed by mergers into Pharmacia Animal Health and later Pfizer Animal
Health.
His NCBA volunteer activities include being a member of NCBA’s
Executive Committee, board of directors, Allied Industry Council,
Long-Range Planning Committee and the National Cattlemen’s Foundation
Board of Trustees.
“My roots, my education, my passion, my career – they’re all
linked to the cattle industry. I can think of no greater honor than to
be CEO of NCBA,” Roberts says. “I look forward to working with
NCBA’s staff, members, leaders, state and industry partners to ensure
the future strength and sustainability of the U.S. cattle industry.”
-- NCBA news release
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The House Democratic leadership named three new members to the House
Agriculture Committee. Those named are Rep. Kathleen Dahlkemper (D-PA),
Rep. Debbie Halvorson (D-IL), and Rep. Kurt Schrader (D-OR). Additional
Democratic members will be named to the committee next week.
-- P. Scott Shearer, Washington, D.C.
correspondent
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Eldon Cole, University of Missouri Extension livestock specialist,
offers these ideas for New Year resolutions for cattle producers:
-- Click on headline to read the rest of this
story by Eldon Cole, University of Missouri Extension livestock
specialist
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The Philippines’ Department of Agriculture has applied to the
World Organization for Animal Health to have its state of Luzon
certified free of foot-and-mouth disease (FMD). Such a designation would
mean the entire country would be declared free of FMD.
The Philippine government has introduced extraordinary measures on farms
and in slaughterhouses that require regular testing and sanitary
precautions to prevent any further outbreaks, along with boosting the
infrastructure to cope with any potential future outbreaks.
-- Muriel Elizabeth Hayes, Argentina
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Agriculture’s financial margin of error for the immediate future
is pretty slim. Survival will require self-discipline, which is the
ultimate key to achieving any goal. To quote William Ward, “The price
of excellence is discipline. The cost of mediocrity is
disappointment.” Here are a few areas of self-discipline and
techniques that could be incorporated into the management of your
operation.
-- Click on headline to read the rest of this
story by Ron Torell, University of Nevada Extension livestock specialist
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As calving season draws near, there is a myriad of situations
ranchers find themselves in. Ron Skinner, DVM and seedstock breeder from
Hall, MT, gives his advice for cattlemen during delivery.
-- Click on headline to read the rest of this
story by Heather Thomas, rancher and freelance writer
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Wet weather last summer in some locales caused much hay to be baled
too wet, says Bruce Anderson, University of Nebraska Extension forage
specialist. Now that hay has heated and turned brown. Are there special
considerations to bear in mind with this feed?
-- Click on headline to read the rest of this
story by Bruce Anderson, University of Nebraska
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Twenty-seven states are tracing and testing horses potentially
exposed to contagious equine metritis (CEM), a highly contagious
venereal disease that can be transmitted during breeding or artificial
insemination and cause temporary infertility. It is not spread by casual
contact or shared boarding facilities The disease, not known to affect
humans, was first detected in the U.S. in 1978, then again in l979. In
both instances, the infection was eradicated.
In mid-December 2008, a CEM-infected Quarter Horse stallion was detected
in Kentucky during routine testing for international semen shipment.
USDA and Kentucky animal health authorities quickly initiated an
epidemiological investigation, leading to the testing of more horses. To
date, seven infected stallions have been detected: four in Kentucky, and
three in Indiana. The Indiana stallions had spent part of the 2008
breeding season on the Kentucky premises where the initial CEM case was
detected.
As of Jan. 2, 78 potentially exposed horses (nine stallions and 69
mares) in 27 states have been identified, located and placed under hold
order or quarantine by state animal health authorities, pending test
results. As the epidemiological investigation widens, at least 250
additional horses are being traced in more than 25 states.
CEM-infected horses must be quarantined and treated with disinfectants
and antibiotics over a period of several weeks. Following a course of
successful treatment and reevaluation, the animals may be certified
CEM-negative and released from quarantine.
-- Texas Animal Health Commission release
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USDA’s Agriculture Marketing Service has informed Congress it will
transfer $3.18 million out of its Specialty Crop Block Grant budget to
help pay for the implementation of country of origin labeling (COOL).
Meanwhile, the National Meat Association reports: “the interchange of
funds will allow the program to conduct a retailer survey, accelerate
and expand training for state employees so that retail surveillance
reviews and suppliers audits can occur during the second half of the
fiscal year, initiate development of an audit tracking system, conduct
outreach and educational activities for affected parties, and hire 10
temporary employees for program administration.”
-- P. Scott Shearer, Washington, D.C.
correspondent
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The Senate Agriculture Committee will hold a hearing on former Iowa
Gov. Tom Vilsack’s nomination for USDA Secretary on Jan. 14. The
nomination is expected to be considered by the full Senate in time for
Vilsack to take the reins at USDA on Jan. 20.
Meanwhile, the Senate began confirmation hearings this week for
President-elect Barack Obama’s other cabinet nominees. The Senate
Health, Education, Labor and Pensions Committee held a hearing on former
Sen. Tom Daschle’s (D-SD) nomination to be Secretary of Health and
Human Services, as was Rep. Hilda Solis’s confirmation hearing for
Secretary of Labor.
Additional confirmation hearings will be held next week. The Senate
leadership would like to have all of the confirmations completed by Jan.
20.
-- P. Scott Shearer, Washington, D.C.
correspondent
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