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BEEF'S COW CALF WEEKLY    September 11, 2009  |  A PENTON MEDIA PUBLICATION
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    Table Of Contents
> 2009 BEEF Quality Summit Postponed
> Doom And Gloom, But Lots Of Opportunity
> Climate-Change Advocates Are Very Persistent
> Some Things You Can Be Sure Of In Uncertain Times
> 10th Annual KSU Beef Stocker Field Day Is Sept. 24
> Beef Network Awarded Grant
> Beef Study Tour Heads To South America In 2010
> Catch Amanda Nolz Live And In Person
> Chambliss Wants More Climate Change Hearings
> China Claims World’s Top Meat Producer Title
> Diesel, Regular Gasoline Prices Down For The Week
> First Woman Set To Chair Senate Ag Committee
> Glenn Beck Guest Discusses End Of The Cattle Business?
> Igenity® & Tri-Merit Team Up
> Listing of Companies that Buy "Natural" Cattle Available
> Minnesota Nutrition Conference is Sept. 15-16
> Ohio Animal Welfare Symposium Set
> Tri-State Cow/Calf Conference Is Sept. 22-23
> USDA Adjusts Livestock Indemnity Weight Category
> Wolves Killed In Oregon
> Would DOJ Bless A JBS-Pilgrims Pride Deal?

    To Our Readers
      2009 BEEF Quality Summit Postponed

Due to current economic conditions, BEEF staff has reluctantly decided to postpone the 2009 BEEF Quality Summit set for Nov. 10-11 in St. Joseph, MO. We thank you for your support of the BEEF Quality Summit over its successful three-year history, and also for your continued support of BEEF magazine.

With surveys indicating that 95% of past participants considered the BEEF Quality Summit content valuable and attendance worthwhile, BEEF staff is exploring alternative ways of delivering the BEEF Quality Summit content to our audience. So stay tuned!
-- Joe Roybal



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    Our Perspective
    Doom And Gloom, But Lots Of Opportunity

Warren Buffett is staying away from stocks. The Fed report shows scant signs of growth. Experts warn the foreclosure crisis is far from over. Unemployment approaches a 20-year high. The value of the dollar moves lower. The U.S. no longer has the most competitive economy, according to latest survey and economic data (replaced by Switzerland).
-- Click on headline to read the rest of this story by Troy Marshall

      Climate-Change Advocates Are Very Persistent

Despite the computer models seemingly being proven wrong at every conceivable turn, climate-change advocates are seemingly more convinced than ever that man and capitalism are plunging the world toward its demise. Now it appears that we’re approaching the grasping-at-straws stage.

The Arctic has been on a cooling trend for some 2,000 years, but this data was largely ignored when the greenhouse gas theories emerged because it didn't fit. However, in the last decade, the trend has reversed, and is approaching the temperature range where the cooling trend originated.

In the online version of the journal Science, a study was published that quoted this specific data to indicate that greenhouse gas emissions are overwhelming the system. The one thing about the study that probably is meaningful is that it does illustrate just how much the Earth's climate has changed over time. Whether the changes in the Arctic will reverse other trends and prove the greenhouse theory to be right all along will take some time to confirm.

With what’s been occurring on other political fronts – manufactured crises created to enact unwanted changes, and real issues and data being swept under the rug to avoid changes that politicians don't want to make – it’s good to remember that these aren't new strategies; they’re taken directly from the environmentalist extremist playbooks.

Seemingly, it's expected that we will forget that the last three predictions of demise didn't come to fruition, if the next crisis can be eloquently stated.
-- Troy Marshall



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    Some Things You Can Be Sure Of In Uncertain Times

Uncertainty seems to be the dominant theme of the day, but there are some things we can be pretty certain of.

Genetics matter. Genetics have become more and more important as our ability to make genetic improvement has increased. Today, DNA and holistic system approaches are refining our ability to make genetic improvement. Genetics play a big role in cost reduction, and in meeting marketing specifications. When it comes to lowering costs, gaining market access and realizing extra value, genetics are key. Numbers have been tight, but market differentiation has been growing; this trend will explode when buyers have sufficient numbers to really differentiate.
-- Click on headline to read the rest of this story by Troy Marshall

   
      10th Annual KSU Beef Stocker Field Day Is Sept. 24

The 10th Annual Kansas State University (KSU) Beef Stocker Field Day is set for Sept. 24 at the KSU Beef Stocker Unit in Manhattan, KS.

The program includes a mix of speakers from KSU Research and Extension, as well as beef producers, cattle feeders, ag lenders and beef processors. Among the topics are: buying and selling right; panel on partnering with feedlots – who brings what to the table; thinking outside the shots; panel on negotiating custom grazing arrangements; cattle financing in a tight credit market; producing value-added cattle; weed and woody plant control for pastures; and utilization of byproducts on pasture.

In addition, technological and scientific innovations and applications available from commercial vendors and the KSU Diagnostics Lab will be highlighted during the day, including cattle handling facilities, persistently infected (PI) bovine viral diarrhea virus, and record-keeping systems.

The field day includes a catered barbecue brisket lunch and to wrap up the day, Moly Manufacturing will sponsor the “Cutting Bull’s Lament” – a Prairie Oyster Fry, Pitchfork Fondue and Dutch Oven Desserts.

A pre-registration fee of $30 by Sept. 15 is requested for an accurate meal count. For more info or to register, go to www.asi.ksu.edu/ and click on “Beef.” Or, contact Lois Schreiner at 785-532-1267 or lschrein@ksu.edu.
-- KSU news release

      Beef Network Awarded Grant

The Kentucky Agricultural Development Board approved the Kentucky Beef Network LLC (KBN) for $862,634 in state Agricultural Development Funds to implement several production and marketing programs for cattle producers and to provide educational programs that enhance profitability.

“The Kentucky Beef Network continues to play a vital role in the growth and success of Kentucky’s multi-million dollar beef cattle industry,” says Gov. Steve Beshear. “Projects such as this one, supported by the Kentucky Agricultural Development Fund, provide opportunities for Kentucky’s farm families to increase net farm income.”

The primary objective of this project is to enhance net returns to cattle producers through increased marketing opportunities, data management, education and comprehensive farm management systems.

For more info on KBN, contact Becky Bennett at 859-278-0899 or bbennett@kycattle.org.
-- Kentucky Beef Network



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      Beef Study Tour Heads To South America In 2010

Want to learn firsthand about beef cattle production systems in Argentina and Brazil? Then sign up before Sept. 30 for the 2010 Beef Study Tour to South America. The Feb. 2-15 tour is sponsored by the Montana Beef Quality Assurance (MBQA) program and BEEF magazine.

Tour hosts are Clint Peck, MBQA director and Burt Rutherford, BEEF Senior Editor. Also traveling with the group will be travel coordinator Renata Stephens of Brazilian Liaison, a Brazil native with extensive experience in South American ag excursions.

Tour participants will visit a variety of cattle ranching and feeding operations in Brazil's west-central subtropical cattle farming regions and in Argentina's temperate climate. Highlights will include an Argentine cattle-feeding operation and a Brazilian meatpacking plant. Among the other stops will be a federal beef cattle research center and a high-tech cattle seedstock operation.

"The purpose is to learn about the challenges and opportunities facing South American ranchers as competitors in international markets," Peck says. "Participants will have a firsthand look at their strengths and weaknesses – as well as their lives and lifestyles."

Tour participants will visit world-class tourist sites in Buenos Aires, Argentina and Rio de Janeiro, Brazil.

Tour cost is estimated at $5,500/person (double occupancy and based on 25 participants), and includes all international airfare, in-country air and motor coach transportation, 12 nights of business-class lodging and most meals – along with local guides and translators.

For more info, contact Stephens at renata@brazilianliaison.com or call 763-972-8080. A tour itinerary is available at www.brazilianliaison.com.
-- Clint Peck, Montana Beef Quality Assurance

      Catch Amanda Nolz Live And In Person

It’s tough to think of a young person who has come on the U.S. livestock industry scene with such a splash as our own Amanda Nolz. Editor of BEEF magazine’s BEEF Daily electronic newsletter and BEEF Daily Blog, Amanda has quickly built a huge and loyal following of readers throughout the U.S.

In addition to her Monday through Thursday postings at beefmagazine.com, musings on Facebook and Twitter, duties on the family seedstock operation, and non-stop advocacy for U.S. beef producers, Amanda also takes her message directly to the public via numerous public appearances. The range of her remarks cover everything from opportunities and obstacles for youth in livestock production to taking on the detractors of the farming and ranching way of life.

You can sign up for her electronic posts at beefmagazine.com. But, if you have the opportunity to listen firsthand to this impressive young professional, here is a lineup of her upcoming appearances:

  • Sept. 11 – South Dakota CattleWomen’s Annual Convention, Pierre, SD; luncheon keynote, “Table Truths in a New York Minute – Telling the Agriculture Story Online.”

  • Sept. 16 – SDSU Beef Leadership Experience Opening Keynote, Brookings, SD; Address to SDSU animal science freshmen on the importance of getting involved. She will also be speaking to the Block and Bridle group that evening to expand upon the same topic.

  • Oct. 9-11 – 2010 National Beef Ambassador Contest, Fort Smith, AR; Amanda will present the inspirational keynote to the ambassador contestants, as well as present a workshop to the CattleWomen on online social networking.

  • Nov. 21 – Agriculture Banquet, SD Department of Ag, Pierre, SD; keynote address, “What Happened to the Next Generation of Agriculturalists?”

  • Jan. 30-31, 2010 – North Dakota Farm Bureau Young Farmers and Ranchers Conference, Minot, ND.

  • Feb. 12-13 – Great Lakes Regional Dairy Conference, Frankenmuth, MI.
-- Joe Roybal

      Chambliss Wants More Climate Change Hearings

Sen. Saxby Chambliss (R-GA), ranking minority member of the Senate Ag Committee, held hearings this week on the effect of global warming legislation on agriculture. A recent study performed at his request examined 98 representative farms and ranches to understand the farm-gate implications of the House-passed American Clean Energy and Security Act. That study revealed that 71 of the operations would be worse off under the bill.

Nearly all the 27 farming operations that realize benefits under the Waxman-Markey bill are located in the Midwest Corn Belt. The study indicates the benefits are predominantly the result of increased revenue from higher prices, a result of fewer acres planted to these crops, not from payments under an offset program. In other words, Chambliss says, geographic disparities would exist as a result of the Waxman-Markey bill.

Virtually all cotton and dairy operations would be worse off and no rice farms or cattle ranches would experience any benefit under the bill. Chambliss says this is in direct contrast to what USDA Secretary Tom Vilsack said while testifying before the Senate Ag Committee in July; he said all agriculture would benefit from this plan.

The study was conducted by The Agriculture & Food Policy Center at Texas A&M University. According to Chambliss, the data outlined in the study is troubling, particularly the cap and trade program which will undoubtedly raise production costs for farmers and ranchers. Perhaps most troubling to Chambliss is that the Waxman-Markey bill will result in more than 7 million acres shifting out of production in the first five years, with nearly 50 million acres by 2050.

To see the study, go to www.afpc.tamu.edu.
-- Ron Hays, Radio Oklahoma Network



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      China Claims World’s Top Meat Producer Title

A senior official at the China Meat Association says China has become the world's leading meat producer, with 29% of the global total output last year. Xinhua reports that China's meat production last year topped 72.69 million tons, up 6% from the previous year. Of the total, 63.5% was pork, which means nearly half of the world's pork last year was produced in China.

China is a major consumer of meat products, importing 1.84 million tons and exporting only 742,000 tons last year. China estimates that global meat consumption will expand by almost 2% annually from now to 2018 to more than 320 million tons. Of that, 37.5% is expected to be pork.

Meanwhile, China’s Ministry of Health continues to work with other government agencies to formulate a new system of food safety standards, as required by the country’s new food safety law that went into effect June 1. Vice Minister of Health Chen Xiaohong says the new system will integrate existing food safety standards, eliminate areas that overlap or contradict each other, and establish new standards for areas that previously lacked regulation.

"The amount of pathogenic microorganisms, pesticide residue, microorganism residue, heavy metals and pollutants in food products, as well as the use of food additives are the priority areas," Chen notes. "We are also building up an expert team on food safety standards."

He also promised transparency in the making of the new system, which “will also be subject to the opinions of international organizations and other countries, in line with a request from the World Trade Organization.”
-- chinadaily.com

      Diesel, Regular Gasoline Prices Down For The Week

The U.S. average price for regular gasoline at retail slipped for the fourth week in a row, dropping 2 ½¢ to $2.59/gal. for the week ending Sept. 7. That’s $1.06 below the year-ago price. And, diesel was down for the first time in seven weeks, shedding nearly 3¢ to $2.65, or $1.41 below last year, according to the U.S. Energy Information Administration (EIA).

Gasoline was down in all but the West Coast region. The East Coast dropped 2¢ to $2.58, the Midwest 6¢ to $2.46, the Gulf Coast 5¢ to $2.41, and the Rocky Mountains 2¢ to $2.60. The West Coast was up 5¢ for the week to $3, and California jumped 6¢ to $3.10.

Diesel was down in all regions. The East Coast dipped 3¢ to $2.66, the Midwest 2¢ to $2.63, the Gulf Coast 4¢ to $2.58, the Rocky Mountains 1¢ to $2.68, and the West Coast 2¢ to $2.79. California was down 3¢ to $2.87/gal.

Meanwhile, EIA expects the monthly average regular-grade gasoline retail price to fall from $2.62/gal. in August and September to an average of $2.56 over the fourth quarter of 2009.

“Higher crude oil prices next year contribute to an increase in the annual average gasoline retail price from $2.34/gal. in 2009 to $2.70 in 2010. Projected annual average diesel fuel retail prices are $2.47 and $2.88/gal. in 2009 and 2010, respectively,” EIA reports in its “Short-Term Energy Outlook” released Wednesday (see the report at www.eia.doe.gov/emeu/steo/pub/contents.html).
-- U.S. Energy Information Administration

    First Woman Set To Chair Senate Ag Committee

In a move sure to please Southern ag interests, Sen. Blanche Lincoln (D-AR) has been named chairman of the Senate Agriculture Committee. She is widely viewed as a friend to Southern agriculture. She will set precedent as the first woman and Arkansan to helm the 184-year-old committee.
-- Click on headline to read the rest of this story by David Bennett, Farm Press

      Glenn Beck Guest Discusses End Of The Cattle Business?

Last week, a guest on the Glenn Beck Program discussed his views on the planned demise of the U.S. beef industry. On Sept. 3, David Martosko, research director for the Center for Consumer Freedom (CCF), discussed how the number of animals and plants protected by the federal Endangered Species Act is about to increase dramatically.

“For Cass Sunstein, radical animal-rights activist and nominee for the Office of Information and Regulatory Affairs (OIRA) Administrator job (regulatory czar in the Obama administration), that means he will be better positioned than ever to make livestock farming a thing of the past,” CCF says. Read the article at: www.consumerfreedom.com

To view the interview on Glenn Beck, go to www.youtube.com.
-- Center for Consumer Freedom

      Igenity® & Tri-Merit Team Up

Igenity® and Global Animal Management (GAM) have joined forces to provide producers with the first-ever option to combine information from a comprehensive DNA profile with health, source and age records in one user-friendly package.

“Now, producers can merge the inside information from Igenity with calf health, source and age verification records all in one place,” says Stewart Bauck, Igenity executive director of research and development.

Tri-Merit® is a data management tool from GAM, a wholly-owned subsidiary of Intervet/Schering-Plough Animal Health, that can be used to certify traditional health processes as well as verify age, source and movement of individual cattle. By linking Tri-Merit with Igenity, producers can now store a wealth of information about their cattle in one system. IGENITY, a division of Merial, offers DNA analyses for more than 15 economically important traits, a diagnostic test for persistent infections (PI) of the bovine viral diarrhea (BVD) virus and more.

Jim Heinle, GAM president, says this partnership joins two groups with a shared vision to provide cattle producers with the most innovative technologies available.

For more info on Igenity, call 1-877-IGENITY or visit www.igenity.com/beef. For more info on GAM or Tri-Merit, call 1-800-235-9824 or visit www.tri-merit.com.
-- IGENITY news release

      Listing of Companies that Buy "Natural" Cattle Available

With an increasing number of cattle producers expressing an interest in natural cattle, the Noble Foundation, Ardmore, OK, has developed a listing of companies that purchase naturally produced beef. According to Job Springer with the Noble Foundation, the list differentiates between companies that purchase feeder cattle and those that purchase finished cattle, and provides contact information.

For more info, go to: www.noble.org/Ag/Economics.
-- Noble Foundation

      Minnesota Nutrition Conference is Sept. 15-16

The 70th University of Minnesota Nutrition Conference is set for Sept. 15-16 at the Holiday Inn in Owatonna, MN.

The ruminant session is set for the morning of Sept. 16 and begins with 8 a.m. registration followed by presentations on poisonous plants in livestock feeding, nutrition and management of feedlot heifers, the effects of source and particle size of fiber on feedlot performance and carcass characteristics, and the implications of cow size on formulating beef cow rations. For more detail or to see the entire program, go to:
www.ansci.umn.edu/mn_nutrition.pdf
-- University of Minnesota

      Ohio Animal Welfare Symposium Set

The Ohio State University College of Veterinary Medicine and Department of Animal Science will host an animal welfare symposium Oct. 16 at the Nationwide and Ohio Farm Bureau 4-H Center in Columbus.

The goal of the symposium is to build partnerships to proactively address animal welfare issues in Ohio and beyond. Speakers will offer an examination of current research on animal welfare and discuss the implications for livestock production.

For more info, go to www.vet.ohio-state.edu.
-- Ohio State University

      Tri-State Cow/Calf Conference Is Sept. 22-23

The Tri-State Cow/Calf Conference is set for Sept. 22-23 at the Appalachian Fairgrounds in Gray, TN.

The conference begins Sept. 22 with an optional tour of three Tennessee cow-calf operations that leaves from the fairgrounds at 1 p.m. Following the tour, a light meal will be served and the trade show will open.

The Sept. 23 program begins at 8:30 a.m. Program topics and speakers include: beef cattle outlook and industry changes, managing genetic defects and enhancing end product, weaning healthy calves, utilization of by-product feed in beef cattle diets, calf-crop marketing strategies, and what to expect from a feedlot when retaining ownership.

Registration is $10 before Sept. 16 and $15 after. Go to www.tnbeefcattleinitiative.org for more info.
-- Abingdon Feeder Cattle Association

      USDA Adjusts Livestock Indemnity Weight Category

USDA’s Farm Service Agency (FSA) has added an additional weight category to its Livestock Indemnity Program (LIP) for non-adult beef cattle, non-adult dairy cattle and non-adult buffalo/beefalo. The over-400 lbs. category has been split into 400-799 lbs. and 800 lbs. or more. The change aims to ensure that assigned market values for non-adult livestock over 400 lbs. reflect the statutory requirement for the payment to be 75% of the market value for the livestock.

FSA state offices also will establish new normal mortality rates for each of the new weight categories covered under LIP, while FSA national headquarters will establish average fair market prices for each category.

For more on LIP and other FSA disaster assistance programs, visit your FSA county office or www.fsa.usda.gov.
-- USDA news release

      Wolves Killed In Oregon

USDA officials shot and killed two wolves Saturday that were linked to five attacks on livestock in the Keating Valley area of Baker County, OR.

The wolves were shot after nonlethal efforts failed to keep them from killing livestock again. The Oregon Department of Fish and Wildlife then authorized USDA’s Wildlife Services to kill the animals, one of which was wearing a tracking collar, from a fixed-wing aircraft.

"It's unfortunate that we got to this step," Russ Morgan, wolf coordinator for Fish and Wildlife, said in a news release, "but these wolves continued to kill livestock despite our many efforts to keep them out of trouble. We cannot allow chronic losses to continue."

Officials linked the male and female wolves to the loss of 29 domestic animals in five separate incidents between April 9 and Aug. 27. Four of the five incidents occurred on one ranch, and the fifth occurred at an adjacent ranch.

The two wolves killed in Baker County were yearling animals and never bred. Their genetics link them to Idaho wolves, but it’s unclear if they were born in Oregon or came to Oregon from Idaho.

For unknown reasons, the wolves were on their own at a young age, which could have contributed to their inability to survive on wild animals rather than livestock.

The wolf pair was linked to the losses through evidence including bite marks and other wounds on the livestock, track sizes, the wolves' historic use of the area and the style of the killings.

After the first incident, Oregon Fish and Wildlife, U.S. Fish and Wildlife Service, Defenders of Wildlife and the landowners worked together to try nonlethal measures to keep the wolves from killing livestock again. Those measures included placing a radio collar on one of the wolves so it could be monitored, installing fladry (flagged fencing that can be a wolf deterrent), using a radio-activated-guard box that makes noise when a radio collar approaches, double-penning livestock, keeping livestock near homes at night, burying carcass piles and using guard dogs.

Also, Fish and Wildlife hazed the wolves out of the Keating Valley area multiple times with an airplane or helicopter and used noise-making cracker shells to discourage them from remaining in the Keating Valley area around livestock operations.
-- The (Portland) Oregonian www.oregonlive.com

      Would DOJ Bless A JBS-Pilgrims Pride Deal?

Last week, the Wall Street Journal (WSJ) reported that Brazilian meatpacking giant JBS would soon announce a bid to purchase Pilgrim's Pride, which controls about 22% of the U.S. poultry market. If so, the bid would come less than a year after the U.S. Department of Justice (DOJ) filed suit to block JBS's purchase of National Beef.

Writing in In The Cattle Markets, John D. Anderson and John Michael Riley, Mississippi State University ag economists, say that if JBS does make a formal bid for Pilgrim's Pride, DOJ will be faced with an interesting decision on how to evaluate the deal.

“Under the Obama administration, DOJ has signaled their intention to bring a renewed focus to competition issues in the agricultural sector… The potential acquisition of one meat industry behemoth by another will certainly generate competition concerns, both among industry participants and government regulators,” the authors say.

Even so, it may be difficult for DOJ to find sufficient objective grounds to oppose the acquisition. For one thing, the acquisition will have no effect on industry concentration within the poultry sector because JBS currently has no stake in the poultry industry, Anderson and Riley say. But, DOJ may decide to define the market more broadly to include the entire meat industry rather than just the poultry industry, they speculate.

A more expansive definition would make the acquisition a big deal, but aggregate industry concentration isn’t nearly as pronounced as within any individual sector, weakening any case that DOJ might desire to make in opposition to the acquisition, the duo says.

“Finally, and probably most importantly, DOJ – consistent with regulatory guidelines – has typically been fairly lenient in evaluating mergers and acquisitions which involve the takeover of a firm that would very likely fail anyway.” Pilgrim's Pride has been operating under bankruptcy protection since last year, and its prospects for survival as a stand-alone firm are dim.

“Having Pilgrim's taken over by a firm with no current stake in the poultry industry is likely to be more palatable to DOJ than having it taken over by one of its current competitors. If JBS really wants to make a serious push to acquire Pilgrims, this argument will probably carry the day. Still, after making noise about taking a new harder line on agricultural competition issues, DOJ will surely not relish the thought of giving the go-ahead to a deal that will create a global, horizontally-integrated firm rivaling the scale of Tyson Foods. This will be interesting to watch.”
-- John Anderson, John Riley, Mississippi State University

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