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BEEF'S COW CALF WEEKLY    November 2, 2007  |  A PENTON MEDIA PUBLICATION
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    Table Of Contents
> Two Different Outcomes In U.S. Senate And House
> Packer-Ownership Ban Survives Senate Committee
> Health Issue Surfaces Again, With A Loud Voice
> BEEF, Universities Team Up On National Stocker Survey
> BEEF Quality Summit Is Next Week In Omaha
> E. coli Contamination Traced To Defunct Canadian Plant
> Ag Groups Support Peru Trade Agreement
> Angus Foundation Supports Learning Center
> Applebee's Teams Up With The Beef Checkoff
> Cancer Report Draws Industry Criticism
> Cattlemen Earned Advanced Degrees This Year
> Does the Optimal Beef Cow Exist?
> Enzi Looks To Restrict Use Of Marketing Contracts
> Gasoline Gains A Nickel; Diesel Price Ties Record High
> Illinois Fairs Adopt Premises ID Requirement
> Minnesota Finds TB
> NDSU Plans Intensive Seminar On Calving
> North Dakotan Nominated For USDA Secretary Post
> November BEEF Content Now Posted Online
> Senate To Consider Farm Bill Next Week
> Technology Use In the Meat Industry
> Winter Weather Is Coming

    Our Perspective
      Two Different Outcomes In U.S. Senate And House

As in the last farm bill, the U.S. House and Senate have put forth two distinctly different farm bills. As in the past, the House version very much aligns with the majority views and those of the major cattle and farm organizations. Meanwhile, the Senate version is much more populist and activist in its approach.

While nearly every state has a stake in livestock production at some level, it's no secret the livestock industry's voice has become divided. With partisanship in Congress devolving into ideological battles such as fair trade vs. no trade, free market vs. protectionism, heavy governmental marketplace oversight vs. limited government, and commodity vs. value-based marketing, the "livestock platform" isn't as clear as it used to be.

This division has created a sea change in political dynamics. The Democratic Party has seen this divide as a great political opportunity to gain some votes from a constituent base that hasn't traditionally tended to be Republican leaning. With a narrow political majority in the Senate and a lot of "livestock" states being so closely contested, these issues have moved into the realm of political football.

In the last farm bill, political gamesmanship ended in conference committee with everyone being allowed to make his or her point before arriving at a reasonable piece of legislation from an ag standpoint. That may not be the case this time around. With the Democrats now in the majority, they can't afford to offer up just a moral victory if they hope to widen their majorities. They must deliver.
-- Troy Marshall



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    Packer-Ownership Ban Survives Senate Committee

The Senate Ag Committee included language that would place a ban on packer ownership of livestock in the Senate version of the farm bill. While it still must be debated in the Senate, if passed it goes to conference (the House version didn't include a packer ban).
-- Click on headline to read the rest of this story by Troy Marshall

      Health Issue Surfaces Again, With A Loud Voice

One of this industry's greatest success stories is our accomplishment in changing the perception of the healthfulness of red meat after two decades of assault in the 1980s and '90s. But we know it was a temporary victory -- a battle that would be fought again and again -- because the anti-meat agenda isn't going away.

The big news this week was the release of the Institute for Cancer Research report that advised consumers to avoid meat consumption while recommending individuals limit red meat consumption to 18 oz./week (cooked), or about 2.6 oz./day. See "Cancer Report Draws Industry Criticism" in this issue.

With the 2004 Harvard study (the largest of its kind) and other recent studies finding no link between red meat and colon cancer, these recommendations appear more dogma than science. The industry's response has been extremely solid and effective in partially negating the impact of this report, but the bottom line is that to anyone concerned about health issues, it remains a fertile area to attack the livestock industry.

The myriad of scares and scientific studies relative to diet and health issues that have been debunked has made the consuming people more skeptical than ever, but fear is always a great motivator.

The fact is that our opposition is putting increasingly more resources into the fight, at the same time that our industry's economic commitment is diminishing with each year due to inflationary pressures. The time is now to address the diminishing power of our checkoff dollars and ensure that our ability to continue this fight is as strong in the future as it has been in the past.
-- Troy Marshall



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    BEEF, Universities Team Up On National Stocker Survey

"The stocker and backgrounding segments have always been critical to the overall success of the beef industry. The structural changes brought about by higher grain prices and input costs make these segments even more critical," says Dale Blasi, beef stocker specialist at Kansas State University (KSU).
-- Click on headline to read the rest of this story by Joe Roybal

    BEEF Quality Summit Is Next Week In Omaha

Wherever you are in the beef industry, the ethanol revolution is affecting your operation and the product you produce. Spurred by record crude oil prices and government mandates, increased production of fuel ethanol has changed the entire supply, demand and price picture for corn and other feedgrains. The ripple effect on the price of land is changing forage and pasture costs. And with this ethanol production comes an abundance of co-product feeds. How will you adjust your operation and production to these mega-changes affecting the beef industry?
-- Click on headline to read the rest of this story by Bill Zimmerman, BQS conference coordinator



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      E. coli Contamination Traced To Defunct Canadian Plant

A Canadian firm, Ranchers Beef, Ltd., is the likely source of the E. coli O157:H7 that's caused 100 reported illnesses in the U.S. and Canada and led to the closure of Topps Meat Company in the U.S. last month. That's according to a joint investigation between the Canadian Food Inspection Agency (CFIA) and the USDA's Food Safety and Inspection Service (FSIS).

CFIA provided FSIS with pulse field gel electrophoresis (PFGE) patterns, or DNA fingerprints, on Oct. 25, from tests of beef trim from the Balzac, Alberta firm, which provided product to Topps. Ranchers Beef ceased operations Aug. 15 but some product remained in storage and was collected and tested by CFIA as part of the joint investigation of the Topps recall and as part of CFIA's own investigation into 45 illnesses in Canada.

The next day, PulseNet provided verification to FSIS that the PFGE pattern matched those from patients and from positive tests conducted by the New York Department of Health on recalled product. PulseNet is the Centers for Disease Control and Prevention's searchable database of all PFGE patterns from patients and food products in the U.S.

FSIS delisted Ranchers Beef, Ltd., on Oct. 20, banning any product from that firm from coming into the U.S.
-- www.promedmail.org

      Ag Groups Support Peru Trade Agreement

Fifty ag organizations representing U.S. farmers, ranchers, processors, food producers and exporters sent a letter to all members of Congress urging passage of the U.S.-Peru Trade Promotion Agreement (PTPA).

The agreement provides immediate duty-free access to Peru's market for two-thirds of U.S. ag products, including high-quality beef, wheat, soybeans, whey, cotton, corn oil, corn gluten feed and meal, apples, pears, peaches, cherries, almonds, frozen French fries, cookies, distilled spirits and breakfast cereals. The remainder of U.S. ag products gains duty-free access over time. The American Farm Bureau Federation (AFBF) estimates the agreement will increase U.S. farm exports by $705 million.

Organizations signing the letter included AFBF, American Meat Institute, American Soybean Association, National Association of Wheat Growers, National Cattlemen's Beef Association, National Chicken Council, National Corn Growers Association, National Cotton Council, National Milk Producers Federation, National Oilseed Processors Association, National Pork Producers Council, National Turkey Federation, U.S Apple Association and USA Rice Federation.

The House is expected to vote on PTPA next week.
-- P. Scott Shearer, Washington, D.C. correspondent



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      Angus Foundation Supports Learning Center

The Angus Foundation has joined the National Cattlemen's Foundation (NCF), the National Cattlemen's Beef Association (NCBA) and Pfizer in sponsoring a web-based learning course in cattle reproduction through the Cattle Learning Center (CLC). The module, titled "Prevention Programs and Technologies to Improve Reproductive Performance," is the third in the beef cattle reproductive series offered through the CLC and is expected to be released in fall 2008.

The reproductive performance course is part of the Web-based curriculum developed by Pfizer, NCF and NCBA for the CLC. These modules provide in-depth learning tools for producers to learn at their own pace in their home or office. Producers who enroll in the courses get Web access to the curriculum and can request a CD version of the info to keep for reference. To learn more about the CLC curriculum, visit www.cattlelearningcenter.org.
-- American Angus Foundation release

      Applebee's Teams Up With The Beef Checkoff

Now through early January, in partnership with the beef checkoff, 1,900 Applebee's restaurants nationwide are offering several new cuts of savory beef. They include a 9-oz. sirloin, a 12-oz. New York Strip and 12-oz. ribeye.

The beef checkoff is investing $150,000 to help extend the reach to consumers nationwide. Beef checkoff identification will be included on all advertising, menus, national TV, radio, 1:1 consumer e-mail marketing, collateral materials and on the Web site.
-- Cattlemen's Beef Board release

    Cancer Report Draws Industry Criticism

While this week's release of the report "Food, Nutrition, Physical Activity and the Prevention of Cancer: A Global Perspective" drew praises from anti-beef activists, beef-industry leaders said the report should be taken with skepticism.
-- Click on headline to read the rest of this story by Burt Rutherford



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      Cattlemen Earned Advanced Degrees This Year

"We all went back to school this year," says Don McCasland of Clovis, NM, outgoing chairman of the Texas Cattle Feeders Association. "It feels like we received a Ph.D. in a new area -- food, fiber and fuel."

And if cattlemen learned anything in their graduate studies this year, they learned that feed has taken a back seat to fuel. "Corn prices nearly doubled, causing cost of gains to increase from 50¢ to 80¢/lb. Who would have thought that $1 fed cattle would lose money?"

But the schooling didn't stop with corn economics, he says.

Cattlemen also studied a second major, this one in export economics. While the lessons were hard learned, he is optimistic that export markets will continue to help pay the tuition. "We have restored about 65% of our export markets without Japan and Korea at their true potential." And with 96% of the world's population living outside the U.S., export growth seems almost unlimited, he says.
-- Burt Rutherford

      Does the Optimal Beef Cow Exist?

That's the question the Nick Petry Workshop, Nov. 30 at the National Western Stock Show stadium arena in Denver, will tackle. The daylong program will feature nationally known experts in beef cow production, as well as cover the beef industry internationally. Speakers include both experts from academia as well as cattle producers, including BEEF contributing editor Troy Marshall. Visit www.wcrim.colostate.edu for more info.
-- Colorado State University release

      Enzi Looks To Restrict Use Of Marketing Contracts

Sen. Mike Enzi (R-WY) plans to introduce an amendment to the farm bill that will restrict the use of contracts that producers have used and developed to market their livestock. The legislation would limit swine contracts to 30 head/contract and cattle contracts to 40 head. The amendment also would require the inclusion of fixed dollar amount base pricing and public bidding, prohibit formula pricing, and exclude from the definition of "formula price" futures-based prices and base adjustments resulting from factors outside packer control. The National Cattlemen's Beef Association and the National Pork Producers Council oppose this legislation.
-- P. Scott Shearer, Washington, D.C. correspondent

      Gasoline Gains A Nickel; Diesel Price Ties Record High

As of Oct. 29, the U.S. average retail price for regular gasoline added 4.9¢ for the week to end up at $2.872/gal., 65.4¢ higher than last year. Meanwhile, the average price for a gallon of diesel climbed 6.3¢ to $3.157/gal., which equals the record-high price of Oct. 24, 2005.

All regions reported gasoline increases, with the East Coast posting a 4.5¢ hike to $2.833, the Gulf Coast 3.2¢ to $2.735, and the Midwest soaring 7.6¢ to $2.864. The Rocky Mountain region added 2.8¢ to settle at $2.873, and the West Coast jumped 2.6¢ to $3.091 -- 67.7¢/gal. over last year. California posted a $3.159/gal. price, up 1.6¢ from last week and 72.5¢ over last year.

Diesel also posted increases in all regions, with the East Coast rising 7¢ to $3.148, the Midwest 5.5¢ to $3.12.2, the Gulf Coast 6.8¢ to $3.062, and the Rocky Mountain region gaining 5.2¢ to $3.281. The West Coast rose 7.1¢ to $3.394, while California was up 6.8¢ to $3.406, a record for that state.
-- Energy Information Administration

      Illinois Fairs Adopt Premises ID Requirement

Premises ID numbers will be required to exhibit livestock at Illinois state, county, 4-H and FFA fairs beginning in 2008, the Illinois Department of Ag announced this week.

"Premises registration is the first step toward the establishment of a National Animal Identification System (NAIS) and will greatly improve the ability of Illinois animal health professionals to contain disease outbreaks," a release says.

The application form is posted on the Illinois Department of Ag's Web site at www.agr.state.il.us/premiseid. The number must be obtained and included on entry forms before fairs will allow an animal to compete. The requirement also applies to horses.

Nearly 9,000 Illinois livestock operations already have enrolled in the NAIS, about 30% of the state's premises.
-- Illinois State Fair news release

      Minnesota Finds TB

The Minnesota Board of Animal Health (MBAH) this week announced that a heifer from a farm in Beltrami County tested positive for bovine tuberculosis (TB), making it the eighth beef herd in Roseau and Beltrami counties to test positive for the disease.

The herd was quarantined last year after the state's TB investigation revealed the owner had purchased animals from an infected herd. A whole-herd test at that time found no reactors, but a follow-up test this fall discovered the yearling beef heifer.

USDA is coordinating indemnification and depopulation details and state and federal officials have initiated an investigation to track animal movement into and out of the herd.

For more info, call MBAH's bovine TB hotline at 1-877-668-2372 or visit www.bah.state.mn.us.
-- Minnesota Board of Animal Health release

      NDSU Plans Intensive Seminar On Calving

North Dakota State University (NDSU) Extension is sponsoring an intensive cow-calf course that focuses on the 2008 calving season Dec. 3, 1:30 p.m., at the Gladstone Inn in Jamestown; and Dec. 5, at 10 a.m. in the Hettinger Research Extension Center. Themed: "Calving '08 -- Fast Out of the Gate," it's designed to educate cattle producers in three primary areas:
  • Preparing heifers and cows nutritionally for the calving and rebreeding seasons.
  • Recognizing dystocia (difficult calving) and determining if involving a veterinarian is necessary.
  • Understanding how trichomoniasis can affect herds in the upcoming breeding season.
Registration is $25/person before Nov. 26, and $40 per person after that date. To register, contact Holly Erdmann at 701-231-7513.

For more info on each session, contact: Jamestown -- Tom Olson, 701-252-9030; and Hettinger -- Julie Kramlich, 701-567-2735.
-- NDSU news release

      North Dakotan Nominated For USDA Secretary Post

President Bush has nominated former North Dakota Gov. Ed Schafer to be the next USDA Secretary. Having served as governor from 1992-2000, Schafer currently serves as CEO of Extend American, a wireless communications company.

In his nomination, Bush said, "Ed Schafer is the right choice to fill this post. He was a leader on agricultural issues during his eight years as the governor of North Dakota. He worked to open new markets for North Dakota farmers and ranchers by expanding trade with China. He oversaw the development of the state's agricultural biofuels industry. He helped families recover from natural disasters -- including drought, fires and floods. And he pioneered innovative programs to increase economic opportunity in rural communities."
-- P. Scott Shearer, Washington, D.C. correspondent

      November BEEF Content Now Posted Online

The centerpiece of the November issue of BEEF is the announcement of our 2007 Trailblazer Award winner, and you can read all about Carl Crabtree of Grangeville, ID at www.beefmagazine.com. But you'll also find advice from marketing guru Harlan Hughes on marketing 2007 calves, part two of Alaina Burt's three-part series on electronic recordkeeping, and a discussion on the effect of the ethanol surge on wheat acres and stocker growers. Plus, there's much more. Visit www.beefmagazine.com.
-- Joe Roybal

      Senate To Consider Farm Bill Next Week

The Senate plans to begin consideration of the 2007 farm bill next week, with the expectation that the debate may carry into the following week. There will be numerous amendments concerning commodities, conservation, food safety, agriculture structure, competition, etc.

Sen. Dick Lugar (R-IN) plans to offer an alternative to the farm bill. Called the "Farm, Ranch, Equity, Stewardship and Health Act," Lugar says the proposal would save $20 billion from farm programs to fund increases in nutrition, conservation, specialty crops and renewable energy.
-- P. Scott Shearer, Washington, D.C. correspondent

      Technology Use In the Meat Industry

Interested in new and emerging technologies in the meat industry, the House Ag Committee held a hearing concerning the development, implementation and regulation of new technologies to improve safety and quality.

Concerns about the use of low-oxygen (CO) packaging have been raised by Kalsec Inc., but Iowa State University's Joseph Sebranek said in his testimony, "This technology is establishing a track record that has been free of problems and has not been an issue with consumers. It seems to me that it is most appropriate to let the marketplace decide the ultimate success or failure of this technology."

Some members of Congress want the Food and Drug Administration to now allow CO packaging.
-- P. Scott Shearer, Washington, D.C. correspondent

    Winter Weather Is Coming

Last December's back-to-back blizzards left people in Colorado, New Mexico and Kansas stranded in their homes, unable to feed their cattle or reach emergency services.
-- Click on headline to read the rest of this Colorado Division of Emergency Management release




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