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BEEF'S COW CALF WEEKLY    January 25, 2008  |  A PENTON MEDIA PUBLICATION
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MOST READ IN 2007!

1. State Fair Fiasco Story Just Keeps Giving & Giving
2. What Will R-CALF's Implosion Bring?
3. Some Facts & Myths Regarding Higher Corn Prices
4. R-CALF Schism Spawns New Cattlemen's Group
5. 2007 Fencing Guide
6. 2007 Feed Composition Tables
7. Unwanted Horses Being Abandoned In Kentucky
8. Is The Optimal Beef Cow Fact Or Fiction?
9. Pastureland Survey Shows Lease Rates Still Climbing

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    Table Of Contents
> Consumer Confidence, Economy & Beef Demand
> APHIS Amends Import Regulations From BSE Regions
> Another Congressional Retirement
> Beef Export Markets Expand
> Beef Industry Loses A Legend
> Beef Study Tour Participants Arrive In South America
> Certified Hereford Beef Re-Launches Website
> Congressional Priorities
> ESAP Nominations Due
> Farm Bill Plods Along
> Label Cloned Food
> NAFTA Discussion
> New Mexico Closes In On TB
> One Million CREP Acres
> Retail Meat Study Shows Trends
> South Korea Inches Closer To Opening
> TB Found In Ninth Minnesota Herd
> Biofuels Conference Slated
> Rural Development Is Forum Topic
> Weekly Mailbag

    Our Perspective
    Consumer Confidence, Economy & Beef Demand

It's absolutely striking to see how poorly the economy performs in an election year, especially if there is not an incumbent running. Some economists argue that this is nothing more than the business cycle and that the cycle has more effect on elections than elections have on the cycle. I don't attempt to argue that point, but I believe that the economy, like everything else in life, is largely determined by our attitudes.
-- Click on headline to read the rest of this story by Troy Marshall



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    APHIS Amends Import Regulations From BSE Regions

Animal & Plant Health Inspection Service (APHIS) has amended regulations regarding the importation of animals and animal products from regions that present a minimal risk of introducing bovine spongiform encephalopathy (BSE) into the U.S. Ten comments from the August 2006 published rule are reflected in the amendments, published in the Federal Register, Jan. 18, 2008. The following changes go into effect Feb. 19, 2008.
-- Click on headline to read the rest of this story by Alaina Burt

      Another Congressional Retirement

Congressman Jim Walsh (R-NY) announced he will retire from the House of Representatives at the end of the year. Walsh makes the 21st House Republican to announce he will not be running for re-election. Only five Democrats have announced they are retiring from the House.
-- P. Scott Shearer, Washington, D.C. correspondent



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      Beef Export Markets Expand

USDA this week announced that Indonesia and Barbados have fully reopened to U.S. beef. "Indonesia is setting the standard for other Asian nations by agreeing to import U.S. beef and beef products consistent with World Organization for Animal Health (OIE) guidelines," said acting Ag Secretary Chuck Conner.

Conner said USDA is equally optimistic about what the agreement with Barbados means for U.S. beef exports to the Caribbean. "Barbados possesses one of the strongest economies in the entire Caribbean and enjoys some of the largest per-capita incomes," he said, in addition to being a tourist destination.

U.S. beef exports to Indonesia reached a high of $17 million in 2005 with partial market access, Conner said, and USDA estimates the agreement could cause beef exports to double in 2008 and 2009. In 2007, Barbados imported U.S. beef worth $2.7 million.
-- USDA release

    Beef Industry Loses A Legend

The beef industry lost one of its visionary leaders on Sunday, Jan. 20 with the passing of Roy Wallace, long-time sire selection specialist for Select Sires. Wallace began his career with Select Sires in 1967, and he once told me, "It's the only job I've ever had."
-- Click on headline to read the rest of this story by Kindra Gordon, for American Cowman
(www.americancowman.com)



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    Beef Study Tour Participants Arrive In South America

After an overnight flight from Miami, the 2008 Beef Study Tour of South America landed in Argentina at 6 a.m. on Sunday, Jan. 20, and were greeted by a beautiful summer morning in the low 80s (see the list of participants at the end of this article).

Designed to provide participants with a first-hand, in-depth look at the makeup and competitive positions of the Brazil and Argentina beef cattle industries, the group will spend five days in Argentina and five days in Brazil. During that time, we are meeting with beef producers, researchers and government officials from both countries, as well as touring cow-calf, stocker, feedlot and processing operations. Also on the agenda is touring some of South America's most stunning tourist destinations.
-- Click on headline to read the rest of this story by Joe Roybal

      Certified Hereford Beef Re-Launches Website

Certified Hereford Beef (CHB) has re-launched its website, www.herefordbeef.net, to make it more user-friendly for CHB's three publics: consumers, customers (retail/foodservice) and producers. Visitors to the site can locate grocery stores and restaurants selling CHB, or distributors in their region.

The website also shares information on the CHB producer, including their stewardship of the land and care given to animals. In the future, the site will contain information geared specifically towards chefs and cattlemen.
-- CHB news release



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      Congressional Priorities

The Senate returned this week with Senate Majority Leader Harry Reid (D-NV) outlining priorities for the next few weeks. They include a stimulus package, children's health care, global warming, patent reform, and the 2008 Defense Authorization bill. Next Monday, President George W. Bush will present his State of the Union address in which he will report to the nation and outline his goals for this year and the future. On Feb. 4th, the White House will release its budget for Fiscal Year (FY) 2009. This will outline the administration's priorities for FY '09.
-- P. Scott Shearer, Washington, D.C. correspondent

      ESAP Nominations Due

Even as the industry gets ready to honor the 2007 winners in the Environmental Stewardship Awards Program (ESAP), the call has gone out for 2008 nominations.

Nominations can be submitted by any organization, group or individual on behalf of a U.S. cattle producer. Seven regional winners and one national winner are selected each year by a committee of representatives from universities, conservation organizations and federal and state agencies. The deadline to submit nominations is March 14. For info, go to www.beefusa.org/esap or call 202-347-0228 to request a copy of the application.
-- NCBA release

      Farm Bill Plods Along

House and Senate Agriculture Committee staffs continue to meet on the farm bill. However, until an agreement is reached between the administration and Congress on how to fund the farm bill, little progress will be made. Key issues will be the cost of the farm bill and how it is funded and commodity payments to producers.
-- P. Scott Shearer, Washington, D.C. correspondent



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      Label Cloned Food

With the recent Food and Drug Administration's (FDA) announcement on meat and milk from cloned animals, Sen. Barbara Mikulski (D-MD) is urging the Senate to pass S. 414, the "Cloned Food Labeling Act." The bill would require the FDA and USDA to mandate that all food that comes from cloned animals be labeled: "THIS PRODUCT IS FROM A CLONED ANIMAL OR ITS PROGENY." Mikulski said, "Labeling does two things. It gives consumers the right to know, and allows scientists to monitor. My bill allows the American public to make an informed decision." A companion bill has been introduced in the House of Representatives by Congresswoman Rosa DeLauro (D-CT).
-- P. Scott Shearer, Washington, D.C. correspondent

      NAFTA Discussion

USDA and Mexican officials met to discuss the North American Free Trade Agreement (NAFTA) now that it has been fully implemented on Jan. 1, 2008. Mark Keenum, USDA under secretary of agriculture for farm and foreign agriculture, said, "NAFTA has been a positive force for our respective agricultural sectors, creating not only dramatic growth in two-way agricultural trade, but providing our farmers, ranchers, and processors with the potential to take advantage of new export opportunities, while providing a clear and certain path to enhance trade." With full implementation, all duties for U.S. agricultural products have been removed. Canada and Mexico are now the number 1 and 2 export markets for U.S. agriculture.
-- P. Scott Shearer, Washington, D.C. correspondent

      New Mexico Closes In On TB

With the exception of parts of two eastern New Mexico counties, the state is TB free, and officials are closing in on the disease in the region of the counties designated as a TB Modified Accredited Advanced Zone.

All the operations that had an association with an infected herd in Curry county have been tested and no positive cows were found, said Tim Hanosh, deputy state veterinarian. Additionally, all but one of the dairies in the TB zone that require annual testing have been tested.

Depopulation of the infected Curry county herd has been completed with approximately 11,500 cows depopulated. Five more positive cows were discovered at slaughter from this herd. The cows all tested negative in June 2007, Hanosh says, demonstrating the elusive nature of bovine tuberculosis.

Monitoring continues on the herd in Eddy county that produced a positive cow discovered at slaughter in February 2007. The herd underwent testing last spring with no positives found and was tested again in December. Results of that test are pending.

"There are seven cattle herds in New Mexico that have been designated as potential high-risk TB herds," Hanosh said. "Three of seven have been TB tested with no positive cattle diagnosed. The four remaining potential high-risk herds will be tested in the near future."

In association with surrounding states, New Mexico has tightened its regulations regarding TB. Effective Jan. 1, all intact diary cattle four months of age and older are required to have a negative TB test prior to receiving a New Mexico entry permit. All beef bulls over 12 months of age are required to have a negative TB test prior to receiving an entry permit and all breeding cattle entering the state must be individually identified on the Certificate of Veterinary Inspection with a USDA-approved form of identification.
-- New Mexico Livestock Board

      One Million CREP Acres

USDA announced that the one-millionth acre has been enrolled in the Conservation Reserve Enhancement Program (CREP). Acting Secretary of Agriculture Chuck Conner said, "Enrolling the one millionth acre is an important milestone in the history of USDA's Conservation Reserve Enhancement Program. By collaborating with agricultural producers, state agencies and many other partners through this highly effective program, USDA is improving water quality, wildlife habitat, soil productivity and air quality throughout the country today and for the next generations." CREP is a voluntary land retirement program that helps agricultural producers protect environmentally sensitive land, decrease erosion, restore wildlife habitat and safeguard ground and surface water. The contracts for this program are 10 to 15 years. Participants convert the enrolled land to grass, trees, wetlands, wildlife cover and other conservation uses.
-- P. Scott Shearer, Washington, D.C. correspondent

      Retail Meat Study Shows Trends

Is the beef industry responding to consumer desires, or are those desires driving what's in the meat case? The conclusion, according to the 2007 National Meat Case Study, is both.

More than 120 retail supermarkets and 10 club stores in 48 cities across the country were audited by the checkoff-funded study. Detailed info on more than 157,000 packages (beef plus its competing meats) representing more than 281,000 lbs. of meat was captured. The results were benchmarked against similar studies in 2004 and 2002.

Among the findings, the study showed that fresh meat's share of the retail case increased. In particular, growth in branded programs increased while store brands gained. The presence of supplier brands was similar to 2004, but store brands grew after a significant loss in 2004. This came at the expense of generic or no-branded meat.

In 2007, the majority (51%) of beef was branded. Beef saw the largest shift toward store branding with whole muscle cuts up 16% to 31% of the packages in 2007. Ground beef packages with a store brand were up 14% to 21% in 2007.

For more info, log on to www.beefitswhatsfordinner.com.
-- Burt Rutherford

      South Korea Inches Closer To Opening

In what some have termed a "standard negotiating strategy," South Korea has hinted it may gradually lift all restrictions on U.S. beef imports. The U.S. government has consistently said it won't accept a gradual reopening of the Korean market, insisting instead on complete market access for all U.S. beef.

The move is aimed at winning approval from Congress on the U.S.-South Korea Free Trade Agreement. Incoming president Lee Myung-bak, who takes office Feb. 25, supports the deal, according to the Korea Herald. The first phase of the gradual reopening, the paper said, would be to allow bone-in beef from cattle under 30 months of age.
-- Korea Herald

      TB Found In Ninth Minnesota Herd

Earlier this week a beef herd in Minnesota tested positive for bovine tuberculosis (TB). The herd tested negative for TB in 2005 and 2006, but during a third follow-up round of testing in November, one animal tested suspect for bovine TB. Tissue samples were collected and submitted to the National Veterinary Services Laboratory (NVSL) in Ames, IA where the diagnosis of bovine TB was confirmed late last week.

USDA has begun the indemnification process, which consists of appraising the herd so that it can be purchased from the producers and put down.

At this time, Minnesota's Modified Accredited Advanced TB status will remain unchanged. The discovery of additional infected herds could result in the downgrading of Minnesota's status.

Minnesota's eradication effort includes the following components:
  • Area testing: Cattle herds located within 10 miles of a previously infected farm,
  • Disease investigation: herds that have had contact with one of the previously infected farms, and
  • Statewide surveillance: a sampling of 1,550 cattle herds across Minnesota, all of which tested negative for bovine TB.
In all, approximately 347,000 TB tests have been performed since the disease was discovered in Minnesota, July 2005. The Minnesota Department of Natural Resources (DNR) conducted TB surveillance of hunter-harvested white-tailed deer in the affected area of northwest Minnesota. Over 3,000 deer have been tested in this area since 2005, with 13 deer testing positive, and an additional four testing presumptive positive for the disease this past fall.

For more info, visit www.bah.state.mn.us and click on "Bovine Tuberculosis" under the Hot Topics menu.
-- Minnesota Board of Animal Health

    Industry Events
      Biofuels Conference Slated

The continuing growth of the biofuels industry is fueling a transition with significant implications not only for U.S. agriculture, but the food system and rural communities. Those issues are the subject of a conference, "Transition to a Bioeconomy; Integration of Agricultural and Energy Systems," Feb. 12-13 in Atlanta, GA.

The conference will explore farming systems, markets for co-products, potential impacts on animal agriculture, energy efficiency and biotechnology. Cost is $200 until Jan. 28, $230 thereafter. For info, log on to www.farmfoundation.org.
-- Farm Foundation

      Rural Development Is Forum Topic

Economics, water, transportation, technology and a host of other factors that affect Colorado agriculture will be on the table at the 17th annual Governor's Forum on Colorado Agriculture, Feb. 28 at the Double Tree Hotel in Denver.

Registration is $100/person and $45 for students until Feb. 8; $120 and $50 after. For info, go to www.colorado.gov/ag and click on "Governor's Forum on Colorado Agriculture."
-- Colorado State University

    Cow-Calf Weekly Mailbag
      Weekly Mailbag

In response to Troy Marshall's article on accepting ethanol (Jan. 11, "Should We Just Accept And Adapt To Ethanol?"), I absolutely agree. While I know I'm preaching to the choir, having an extra direct subsidy for ethanol benefits one crop (which happens to be the largest acreage in the country). The benefits have good intentions but the effect on many other areas is devastating. Byproducts are a wonderful option for feed, but will be priced as close to corn as the market can bear.

When the entire industry seems to be based on corn, the ethanol subsidy could be considered a cattleman's tax. Recent talk about a shifting in the industry to forage based programs is excellent... until you consider the price of land. Land that brought $2,000/acre just a few years ago has blown right past $5,000/acre. Where does that leave us? Extremely high overhead cost, extremely high inputs, and shrinking margins.

The cattle industry has prided itself for years on its independence and a review of farm bill proposals and mandates seemingly covers every single industry but cattle. Do we want government intervention? Absolutely not. Do we need some fairness in agriculture? Yes. The cattle industry is not going to just survive, it is going to thrive.

As markets reopen, the cowherd shrinks and cattle continue to convert forage, byproducts, and industry leftovers to the best tasting and healthy eating experience the world population wants and needs, we will move forward. It is clear, however, that the cattle industry has no voice and power.
Kris Folland
Halma, MN



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