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USDA’s cattle-inventory report showed the lowest cattle inventory
since 1959. The U.S. cowherd has declined in 11 of the last 14 years,
making this one of the longest single periods of liquidation in history.
-- Click on headline to read the rest of this
story by Troy Marshall
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The Humane Society of the U.S. (HSUS) has become such a powerful
player in the attack on animal agriculture that one feels obligated to
give the group its own column heading. This group has the budget and
apparently still enjoys tremendous credibility despite pursuing an
agenda that in some instances is even more extreme than that of People
for the Ethical Treatment of Animals. Recently, HSUS announced it had
“persuaded” the Sonic chain to begin using range chicken eggs, and
crate-free pork. And, now it turned its sights on the really big boys,
like McDonalds. Additionally, HSUS appears headed toward putting its own
initiative on the ballot in Ohio, which aims to make the animal-care
board created last year by popular vote in the state of Ohio adopt HSUS
standards.
-- Troy Marshall
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By now everyone’s heard about the gas-pedal and braking problems
in Toyota vehicles that have forced the recall of about 1 million
vehicles and significantly impacted Toyota sales as the Japanese
automaker has stopped merchandising eight car models due to the
problems. Of course, the short-term damage to Toyota is significant but
it pales in comparison to the erosion of Toyota’s perception of
quality. It’s no overstatement to say that Toyota’s future literally
rests on how it handles these recalls and rebuilds its brand equity.
The beef industry faces similar situations with its E-coli
recalls, animal welfare anomalies and events like BSE. Our response to
such events is critical. The international brand for U.S. beef has been
severely damaged by BSE and our reluctance to deal proactively with
traceback.
If Toyota doesn’t act aggressively to reassure consumers, its loss in
market share will be permanent or at least a long time in recovering.
Similarly, the message we send in the near future will affect beef
demand for a long time to come.
-- Troy Marshall
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 Two Age- and Source-verification
Options: One great program. The American Angus Association® is proud
to offer two of the most cost-competitive source- and age-verification
programs in the business today.
Option 1 — AngusSource® not only lets you verify the source and
age of your calves, but also that they’re sired by registered Angus
bulls. Option 2 — Gateway lets your farm or ranch reap the benefits of
source and age verification without the genetic component.
Either way, you’ll be creating marketing opportunities for your calves
— and paving the way to premium prices. That’s the power of
verifiable quality. That’s the power of Angus. www.angus.org. 816-383-5100.
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Kiefer Sutherland, who plays Jack Bauer on the hit TV series "24,"
is among the victims of a cattle scam that cost him $869,000, reports
recordnet.com. According to a
news release from the San Joaquin (CA) County District Attorney's
Office, the actor was allegedly swindled by Michael Wayne Carr, a
competitive steer roping promoter and cattle manager from Linden, CA.
Carr is to be arraigned on Feb. 8 on 12 felony charges that could net
him 18 years in a state prison.
According to the District Attorney's office, Carr took the money from
Sutherland on an agreement that he would buy steers in Mexico with that
money and sell them at a "huge" profit to prearranged buyers in the U.S.
But prosecutors have found no evidence that Carr ever bought or sold the
steers Sutherland supposedly financed.
For more on this story, go to www.recordnet.com/
--recordnet.com
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USDA has allocated $234.5 million to 70 U.S. trade organizations to
help promote U.S. food and agricultural products overseas. Among them is
a total of almost $17.5 million to the U.S. Meat Export Federation.
"In today's highly competitive international markets, we must provide
our exporters with the resources they need to compete overseas during
the 21st century," says USDA Secretary Tom Vilsack. "When you consider
the current global financial crisis, increasing production in key
competitor countries and aggressive use of export promotion tools by our
competitors, USDA's market development programs are more important than
ever."
The funding was allocated under the Market Access Program (MAP) and the
Foreign Market Development (FMD) Cooperator Program, both administered
by USDA's Foreign Agricultural Service (FAS). Listings of FY 2010 MAP
and FMD program allocations are available at www.usda.gov/wps/portal/.
Funding priority is given to organizations that represent an entire
industry or are nationwide in membership and scope. Program activities
focus on reducing market impediments, improving the processing
capabilities of importers, modifying restrictive regulatory codes and
standards in foreign markets, and identifying new markets or uses for
U.S. products.
For more info on FAS market development programs, visit www.fas.usda.gov/mos/marketdev.asp.
-- USDA news release
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 SEEDSTOCK NEWSLETTER BARN –
29 Genetic Newsletters – Under One Roof.
The Seedstock Barn is a multi-breed collection of breeder and
association newsletters assembled in one convenient location.
Newsletters provide valuable information into personal producer
philosophy and herd management tips. Producer and association
newsletters foster the sharing of educational and best practice
information vital to improving our most important product, BEEF, in an
effort to keep our most important customer, the CONSUMER.
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The cattle industry should be on the mend in 2010, says Purdue
University Extension economist Chris Hurt, as available supplies of beef
drop in the U.S. and exports increase.
Hurt says the national herd continues to shrink; beef-cow numbers on
Jan. 1 were estimated at 31.4 million head, down another 1% from last
year, and down 5% over the past four years. Meanwhile dairy-cow numbers
were down 3% in 2009 as a result of large financial losses in the dairy
sector.
Beef-heifer retention is also down 2%, indicating beef-cow numbers will
continue to decline in 2010. Meanwhile, dairy replacements were up 2%,
most likely due to the dairy industry’s higher replacement rate, Hurt
says.
Hurt says beef production and the amount of beef available per person in
the U.S. will decline in 2010. With smaller cow numbers, the 2010 calf
crop is estimated to be down 1-2% and will be the foundation for smaller
production.
USDA currently expects beef exports to rebound by 10% in 2010. If so,
this will mean beef exports at 2.0 billion lbs. will have reached 81% of
the pre-BSE record set in 2003.
Trade improvement and U.S. population growth mean per-capita
availability of beef will be down 3% in 2010, while pork is expected to
be down 4%. When chicken and turkey are included, there will be about 1%
less meat and poultry per person in the U.S.
"The degree to which demand improves this year depends on the extent of
the 2010 U.S. and world economic recovery. The U.S. economy has been in
modest recovery since the summer of 2009. The expectation for 2010 is
for the slow recovery to continue, but with unemployment continuing to
remain high. Given that the weak economy had such negative impacts on
cattle prices in 2009, it may be possible for even modest economic
recovery, in the range of 3%, to have a surprisingly strong impact on
rebounding cattle prices," Hurt says.
Hurt projects finished steers to average closer to $90/cwt. in 2010,
reaching the low $90s by early spring and the high $80s to low $90s in
the summer. Assuming continued improvement in the economy, prices in the
fall could be in the very low $90s, he says.
Meanwhile, strengthening fed-cattle prices and moderation in feed prices
should push calf prices to the $115-$120 range in the second-half of
2010.
"This year is expected to be one of healing for a battered beef industry
as smaller supplies and recovering incomes swing cattle prices upward.
As the headlines indicate, a slow economic recovery is probable, but not
yet assured. Thus, most cattle producers will approach this year both
with optimism, but also with caution. It is also clear that their
bankers feel the same way," Hurt said.
-- LeAnn Ormsby, Purdue University
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Argentina’s meat processing group Quickfood, part of the Brazilian
corporation Marfrig, has purchased 150 hectares in the Argentina
province of Cordoba to establish one of the largest feedlots in the
country.
The $20-million (US) project will have a feeding capacity of 22,000
cattle and is part of the Brazilian corporation’s expansion in
Argentina. A second feedlot complex is planned for the province of
Buenos Aires.
“This is good for cattle ranching; the feedlot is scheduled to begin
to operate this year and together with the planned feedlot in Buenos
Aires is expected to cover 15% of the Argentine annual demand for
cattle,” says Miguel Gorelik, Quickfood spokesman.
Argentina is historically one of the world’s leading exporters of beef
but the government has restricted exports to ensure the domestic market
supply. Argentines are the world’s top per-capita consumers of beef.
Quickfood’s operation comes at a crossroads in Argentine cattle
farming where intense drought and better profit opportunities in
agriculture have considerably reduced Argentina’s cattle herd and the
land dedicated to livestock.
Argentina’s herd traditionally has ranged from 55-58 million head but
is now below 50 million. Plus, slaughter statistics show an abnormal
percentage of cows, which means fewer calves in the coming years.
Marfrig believes that having its own feedlots will ensure its future
activities in Argentina with a steady year-long supply of cattle. In
Uruguay, Marfrig in the last few years purchased the leading abattoirs,
all of them certified to export to U.S., the European Union and the Far
East.
-- MercoPress
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 Social Networking For Beef Industry
Professionals
BEEF content is available on Facebook, a social networking tool
increasingly used by beef industry professionals. Interact with readers
and editors, participate in discussions and keep up-to-date with
industry happenings. Become a
fan of BEEF!
BEEF is also on Twitter, a micro-blogging site that provides
brief status updates on people, groups or organizations. Users can
"follow" people or groups, including news organizations that they want
to keep up-to-date with. Follow BEEF on
Twitter!!
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Leavitt Lake Ranches of Vina, CA, was named the 2009 National
Environmental Stewardship Award winner last week during the 2010 Cattle
Industry Annual Convention in San Antonio. Leavitt Lake Ranches is owned
and operated by Darrell Wood, wife Callie, son Ramsey and daughter
Dallice, and has family ranching ties dating back to the 1860s.
-- Click on headline to read the rest of this
release by National Cattlemen’s Foundation
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Cattle supplies in 2010 should decline another 1-1.5%, and beef
demand will continue to be impacted by a weak economy and high
unemployment. Still, 2010 overall “should be a better year for the
beef industry.”
That's the word from Randy Blach, Cattle-Fax CEO, to attendees of the
2010 Cattle Industry Convention in San Antonio last week.
Blach says demand remains the biggest challenge for the beef industry in
2010. “Though the supply situation is very bullish, demand must
stabilize in order for prices to turn significantly higher.”
Fed-cattle slaughter totals are expected to be down 2% in 2010, and
cow-slaughter totals should decline by nearly 9%. Average carcass
weights are forecast to increase slightly and beef production is
projected to be down 2.8%. Per capita net beef supplies are expected to
be down 4% due to an expected increase in beef exports and smaller beef
production.
In 2010, U.S. beef exports are forecast to increase to South Korea, and
to a lesser extent Japan and Vietnam. U.S. beef exports in 2010 are
expected to rise by about 8% over 2009.
In terms of feedgrains, total U.S. corn production could decrease, as
U.S. corn supplies are record large at an estimated 14.83 billion bu.
for the 2009/10 marketing year. U.S. soybean supplies are up over 10%
compared to last year – the second highest level on record – while
soybean acreage is expected to be near 79 million acres.
Spot corn futures prices are forecast to average near $3.75/bu. in 2010,
near steady with 2009, and the combination of bumper corn and soybean
crops, as well as the sharp decline in winter wheat acreage, has
lessened the need for an acreage battle this spring.
Cattle-Fax is a
Denver-based market analysis and info organization.
-- Cattle-Fax release
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 Profitability in a Turn-Around Economy – February
10, 2010 at the World Ag Expo in Tulare, CA.
BEEF magazine has put together a lineup of speakers, that will help
cattlemen not only understand the challenges facing cattle producers in
2010 and beyond, but plan to succeed in a business faced with new and
different challenges. The BEEF Seminars are sponsored by Avitrol, Allflex USA and Kooima Company
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The federal grazing fee for 2010 will be $1.35/animal unit month
(AUM) for public lands administered by the Bureau of Land Management
(BLM) and $1.35/head month (HM) for lands managed by the Forest Service.
The grazing fee for 2010 is the same as it was in 2009.
An AUM or HM – treated as equivalent measures for fee purposes – is
the occupancy and use of public lands by one cow and her calf, one
horse, or five sheep or goats for a month. The newly calculated grazing
fee, determined by a congressional formula and effective on March 1,
applies to nearly 18,000 grazing permits and leases administered by the
BLM and more than 8,000 permits administered by the Forest Service.
The formula used for calculating the grazing fee was established by
Congress in the 1978 Public Rangelands Improvement Act and has continued
under a presidential Executive Order issued in 1986. Under that order,
the grazing fee cannot fall below $1.35/AUM, and any increase or
decrease can't exceed 25% of the previous year's level.
The annually determined grazing fee is computed by using a 1966 base
value of $1.23/AUM or HM for livestock grazing on public lands in
Western states. The figure is then calculated according to three factors
– current private grazing land lease rates, beef cattle prices, and
the cost of livestock production. In effect, the fee rises, falls, or
stays the same based on market conditions, with livestock operators
paying more when conditions are better and less when conditions have
declined.
The $1.35/AUM/HM grazing fee applies to 16 Western states on public
lands administered by the BLM and the Forest Service. This includes:
Arizona, California, Colorado, Idaho, Kansas, Montana, Nebraska, Nevada,
New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah,
Washington and Wyoming. The Forest Service applies different grazing
fees to national grasslands and to lands under its management in the
Eastern and Midwestern states and parts of Texas.
Learn more at www.fs.fed.us/news/2010/.
Meanwhile, the Center
for Biological Diversity criticized retention of the 2009 rate,
saying "the fee remains far below what the agencies spend to administer
grazing permits, it remains far below market rates, and it remains far
short of providing revenue needed to correct the severe ecological
damage caused by livestock grazing."
-- Forest Service and CBD releases
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For the third week in a row (week ending Feb. 1), the U.S. average
price for regular gasoline at a retail declined, dropping 4¢ to
$2.66/gal. Meanwhile, diesel was down for a third straight week,
shedding 5¢ to $2.78.
While the retail gasoline price remains 77¢ above last year, the weekly
average lost 4¢ on the East Coast ($2.69), the Midwest was down 6¢ to
$2.56, the Gulf Coast was down 5¢ to $2.54, and the Rocky Mountains
region was flat at $2.62. The West Coast and California each shaved 3¢
to $2.91 and $2.98, respectively.
At 54¢ above the year-ago price, diesel was down in all regions for the
week. The East Coast shed 5¢ to $2.83/gal., while the Midwest and the
Gulf Coast dropped 6¢ to $2.73 and $2.74, respectively, and the Rocky
Mountains slipped 2¢ to $2.80. The West Coast and California fell 4¢
to $2.88 and $2.95, respectively.
-- U.S. Energy Information Administration
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If you're in the Tulare, CA, area next week, stop by and take in the
one-day program of presentations that BEEF magazine will host
during the World Ag Expo at the International Agri-Center.
BEEF is the official publication of the World Ag Expo, and on
Feb. 10, BEEF editorial staff will host a lineup of speakers who
not only will help producers understand the challenges facing them in
2010 and beyond, but provide insight into how to succeed in a business
faced with those new and different challenges.
That 10 a.m. to 4 p.m., four-speaker program is free of charge and wraps
around a free lunch. Here's what the program will include:
- Steve Kay, editor and publisher of Cattle Buyer's Weekly
and monthly author of BEEF magazine's “Meat Matters” column,
will address the changing global beef industry.
- Next, Gary Smith, Colorado State University distinguished professor
and holder of the Ken and Myra Monfort endowed chair in meat science,
will help cattlemen understand how beef system traceability will affect
their business going forward.
- Then, BEEF magazine's monthly “Market Advisor”
columnist Harlan Hughes will dissect the biofuels economy and its effect
on ranch country. You can read some of the North Dakota State University
emeritus professor's thoughts on calf marketing in the coming decade.
- And, Jim Robb, director of the Livestock Marketing Information
Center in Denver, CO, will round out the four, one-hour presentations by
providing a situation report and analysis of cow-calf and cattle-feeding
economics.
While many of us will look back on 2009 as a year when just hanging on
could be considered a victory, there is reason for optimism in 2010.
Being positioned for that potential is important and that's what this
special Tulare program is aimed at helping provide our readers.
I hope you'll join BEEF Senior Editor Burt Rutherford for what
promises to be a greatly instructive program.
-- Joe Roybal
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Nine cows at a farm in Pocheon, north of Seoul, tested positive for
foot-and-mouth disease (FMD) last Saturday, South Korea Ag Ministry
official Kim Dae-gyun says. All 81 cows on the farm were slaughtered as
a precaution.
Quarantine workers were also slaughtering 77 cows and 13 deer on other
farms near the latest outbreak as a precaution, the ministry says. The
outbreak is about 2.4 miles from another farm in Pocheon where South
Korea's first outbreak of FMD in eight years was reported.
South Korea has slaughtered more than 3,500 animals since that outbreak
in an attempt to prevent the spread of the disease, Kim says. The
disease last hit South Korea in 2002 when 160,000 pigs either died of
the disease or were slaughtered to prevent its spread.
-- Taiwan News
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Temple Grandin, a two-hour biopic about the well-known animal
behaviorist and designer of animal handling facilities, debuts tomorrow
night at 8 p.m. (EST) on HBO. The high-budget production covers roughly
two decades of Grandin’s life, following her development as an
unresponsive autistic child through to her emergence as a leading
designer of animal-handling systems.
-- Click on headline to read the rest of this
story by Joe Roybal
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As financial markets recover, mergers and acquisitions (M&A) in U.S.
food and ag are likely to build in 2010, but antitrust issues are likely
to drive companies to look for opportunities in adjacent sectors, says a
new report from Rabobank.
In August, the Department of Justice (DOJ) and USDA announced a series
of public workshops to explore competition issues in the U.S. ag
industry. These workshops begin in March and aim to identify an
appropriate role for antitrust and the regulatory enforcement in U.S.
ag.
“The DOJ’s new stance is likely to see companies thinking twice
before launching proposals that could face resistance,” says Bill
Cordingley, managing director of Rabobank Food & Agribusiness Research
and Advisory (FAR). Instead, he says U.S. ag companies will look for
opportunities in adjacent sectors where DOJ is less likely to object
based on anti-competitive grounds. “In fact, it could accelerate the
trend toward industry convergence across sectors as corporations search
for new avenues of growth and profitability that avoid triggering
antitrust actions,” he says.
This involves U.S. ag firms looking for opportunities that unite their
operations in ways that haven’t previously been attempted. For
example:
- The multi-species, multi-origin animal protein model, which is
currently emerging, will be closely examined for high concentration in
the beef, hog and poultry sectors.
- Convergence is likely to continue between the grains, sugar and
energy sectors with the ethanol sector being the focal point.
- In the beverages sector, convergence between carbonated soft
drinks, dairy, beer and spirits will be further explored.
“Companies faced with the ever-increasing need to leverage fixed-cost
bases, drive for efficiencies and develop strategic competitive
advantages, will seek out these opportunities to grow as the interest in
M&A returns this year – despite a more aggressive approach by
competition agencies that will present additional obstacles,” says
Erin FitzPatrick, FAR assistant vice president.
-- Rabobank release
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USDA has killed its beleaguered National Animal Identification
System (NAIS) in favor of developing “a new, flexible framework for
animal disease traceability in the U.S.” The framework, USDA says,
“provides the basic tenets of an improved animal disease traceability
capability in the U.S.” and includes:
- The system will apply only to animals moved in interstate
commerce;
- It will be administered by the states and tribal nations to provide
more flexibility;
- It will encourage the use of lower-cost technology; and
- It will be implemented transparently through federal regulations
and the full rulemaking process.
In announcing the move yesterday, USDA Secretary Tom Vilsack lists a
main goal as building “a collaborative process for shaping and
implementing our framework for animal disease traceability.” He says
USDA is “committed to working in partnership with States, Tribal
Nations and industry in the coming months to address many of the details
of this framework, and giving ample opportunity for farmers and ranchers
and the public to provide us with continued input through this
process.”
One of first steps is to convene a forum with animal health leaders for
the States and Tribal Nations to initiate a dialogue about the possible
ways of achieving the flexible, coordinated approach to animal disease
traceability we envision, Vilsack says. Additionally, USDA will be
revamping the Secretary’s Advisory Committee on Animal Health to
address specific issues, such as confidentiality and liability.
See the full release at www.usda.gov/wps/portal/contentidonly.xml
Read more about this issue in the New York Times at www.nytimes.com/business/05livestock.html.
-- Joe Roybal
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Oklahoma State Extension reports on research that examined the
effect of winter temperatures on calf birth weights.
A three-year study was conducted by University of Nebraska scientists to
evaluate the effects of high and low air temperatures and wind chills
during winter months on subsequent calf birth weights and calving
difficulty of spring-born calves.
The greatest differences in monthly temperatures between years were
found during December, January and February. Average temperatures for
these three months increased 11° F. over the three years. Meanwhile,
average calf birth weights decreased 11 lbs. (81 lbs. to 70 lbs.). A 1:1
ratio was observed.
Results indicate that cold temperatures influenced calf birth weight.
Weather can’t be controlled; however, with below-average winter
temperatures, larger birth weight calves and more calving difficulty may
be expected in the spring.
Other data that may shed some light on this subject comes from Ohio
State University in 1990. Birth weights of 172 fall-born calves and 242
spring-born calves were compared. These calves were the result of
artificial-insemination matings using the same bulls and bred to similar
crossbred cows.
The fall-born calves averaged 4.5 lbs. lighter at birth than their
spring-born counterparts (77.7 lbs. vs. 82.2 lbs.). A possible
explanation for this phenomenon is the changing of blood-flow patterns
of cows gestating in hot weather vs. cold weather. In hot weather, blood
is shunted away from internal organs toward outer extremities to
dissipate heat, while the opposite is the case in very cold weather
where blood flow is directed toward internal organs in an effort to
conserve heat and maintain body temperature.
Researchers say this change in maternal blood flow may impact fetal
growth in a small way, but result in a measurable difference.
-- Ron Torell, University of Nevada Extension
livestock specialist
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Rangeland Management School 201, offered by the Wyoming section of
the Society for Range Management on Feb. 17 at the Dry Creek Hall in
Bill, will cover key aspects about rangeland monitoring. Instructors
will be University of Wyoming Cooperative Extension Service (UW CES)
educators and USDA Forest Service personnel.
The program is a follow-up to the 101 School and includes sessions on
how to develop monitoring objectives, tools and methods available,
application of the data and what ecological sites are and their
importance to monitoring and grazing management. There will also be
presentations on matching the animal to the resource and low-stress
animal handling and how to apply it to grazing management.
Registration is $20 and includes a proceedings, a copy of the Wyoming
Rangeland Monitoring Guide and lunch. For more info, contact Blaine
Horn at bhorn@uwyo.edu, or
Michelle Huntington at michelle.huntington@wy.nacdnet.net.
-- UW CES news release
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