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TheBeefSite Newsletter - 8 February 2012

Welcome to this week's newsletter

NCBA Overview: Great Time to be in the Cattle Business

Last week I attended the National Cattlemen's Beef Association (NCBA) Convention and Trade Show in Nashville, Tennessee.

The record turnout at the event, with over 6,000 visitors and 250 exhibitors, epitomises the overall optimism and enthusiasm in the industry.

Support for the beef checkoff programme was at an all time high, as 75 per cent of producers believe the checkoff contributes to the profitability of their operations.

Cattle Numbers

With the lowest cattle inventory since 1952, and the highest cattle slaughter since 1996, there is talk that the US cattle inventory could pick up in 2012.

Drought and high prices pushed more cattle to slaughter last year, liquidating the national herd.

CattleFax estimates that a total of 2.2 million less cattle will be slaughtered in 2012.

Prices

Prices are expected to remain high for all classes of cattle in the US in 2012, as supplies remain tight. At the Cattlefax Outlook, Kevin Good said that retail beef prices would increase to new record levels.

With regards to profitability, cow-calf producers are likely to be in the driving seat in 2012, and as we move up the supply chain margins tighten, with packers continuing to struggle. If slaughter is down as predicted, contraction could be likely in the packer industry.

Trade

In 2011, total US beef exports boomed, increasing 20 per cent in volume, with a value of over $5 billion.

2012 exports are likely to increase more, but not by as much, said the US Meat and Export Federation.

Three new free trade agreements (FTAs) will help the export markets grow, particularly the South Korea deal. The current duty on US beef imports into South Korea is 40 per cent. With a 2.7 per cent decrease a year, in around 15 years time import duties on US beef will be eradicated in South Korea.

Demand for beef products is growing in South Korea, which increased US beef import volumes by 38 per cent in 2011.

CAFO Concerns

Cattlemen voiced their concerns over the Environmental Protection Agency's (EPA) proposed Clean Water Act (CWA) Section 308 CAFO (Concentrated Animal Feeding Operations) Reporting Rule.

The rule requires cattle operations to report a long list of information about their operations to EPA, including latitude and longitude (or street address) of the production area, acres available for land application of manure, type and number of head and contact information for the owner or authorised representative. This information would then be made available to the public via the EPA's website.

The NCBA believes that providing this information could put the nation’s food system at risk of increased terrorist attacks. EPA Administrator Lisa Jackson said that the agency understands the cattle industry’s biosecurity and privacy concerns. The final rule will be released on July 13, 2012.

Bankrupt Brokers

After MF Global declared themselves bankrupt last year, the CME Group announced a $100 million fund to protect farmers and ranchers who use CME.

The fund will not help former MF Global customers, who have not received all their money as a result of the bankruptcy. There is an estimated $1.2 billion shortfall in customer segregated accounts.

Under the new fund, farmers and ranchers will be eligible to receive up to $25,000 per account if they lose money resulting from the bankruptcy of a clearing member.

Leading the way in 2012

Nebraska cattleman J.D. Alexander will take of the presidency of the NCBA for 2012. Addressing the General Session, Mr Alexander said that 2012 will go down as the best year to be a cattleman.

Charlotte Johnston

Cow Signals Training Books

* This Week's Feature Articles

We have 4 new features this week:

Australian Outlook: Global Beef Demand
One of the major negatives to loom over the Australian beef industry in 2012, if not the largest, is the continued economic malaise which has plagued advanced economies in recent years, writes Meat and Livestock Australia.
A Dose of Selenium that Goes a Long Way
In search of a more cost-effective and longer lasting supplement, scientists at the Agricultural Research Service’s U.S. Sheep Experiment Station (USSES) near Dubois, Idaho, and at North Dakota State University (NDSU), in Fargo, isolated a selenium-rich coproduct of milling highselenium wheat and studied its effects on ewes and lambs.
Where's the (not) Meat? - Byproducts from Beef and Pork
Animal byproducts contribute significantly to the US economy. This report by the USDA's Economic Research Service shows their importance and potential opportunities for the US industry.
It Takes a Satellite To Feed the World
It’s ironic that just when Earth-monitoring satellites are needed more than ever to address the food and freshwater demands of a burgeoning global human population, we face an impending gap in coverage by the Landsat program.
Animax Veterinary Health
* Company News

NCBA: Novus Introduces NEXT ENHANCE for Weight Gain
US - Novus International has announced the release of NEXT ENHANCE, a source of plant extracts that affects the rumen environment to consistently boost both efficiency and weight gain in beef cattle.
NCBA: DNA Test for Commercial Angus
US - Gene-Max, a new DNA test for commercial Angus producers has been launched by Certified Angus Beef (CAB), Angus Genetics Inc (AGI) and Pfizer Animal Health.
NCBA: Beef Up Knowledge at the Meat Case
US - The National Cattlemen's Beef Association (NCBA) and the Beef Checkoff Program partnered with Merck Animal Health to launch Better Beef Sales, a new web-based retail training programme to help boost knowledge about today’s beef and how it’s produced.
Need for Calf Rearers to Focus on Boosting Colostrum Quality
UK - Poor colostrum management and low vaccination rates are the two main reasons why so many UK dairy and beef units continue to struggle with costly and debilitating calf scour problems.
Pfizer Partners with Customers to Contribute to FFA and AABP, AAEP Foundations in 2012
US - Pfizer Animal Health announces the return of the FFA and American Association of Bovine Practitioners (AABP) Foundation Support Programme and the addition of the American Association of Equine Practitioners (AAEP) Foundation Support Programme. Since its inception in 2008, Pfizer and its customers have contributed more than $3.6 million to local FFA chapters and veterinary student scholarship funds.
ADVOCIN Offers Treatment for BVD
US - ADVOCIN™ (danofloxacin mesylate) is now available from Pfizer Animal Health — offering a cost-effective fluoroquinolone alternative for the treatment of bovine respiratory disease (BRD).
Consider M. bovis in Cattle Pneumonia
UK - Mycoplasma bovis (M.bovis) is identified in about 25 per cent of cattle pneumonia diagnoses, yet remains significantly under-recognised by cattle vets and farmers alike, according to Pfizer Animal Health vet Carolyn Hogan.
* Global Beef Cattle Industry News

   Russian Federation

 » BLUETONGUE: Antibodies Detected in German Imports
 » Russia Remains World's Largest Beef Importer
 » AgroFarm 2012: 270 Exhibitors from 23 Countries

   Namibia

 » FMD NEWS: Buffalo Sparks FMD Fears
 » Buffalo Sparks FMD Fears

   United States

 » NCBA: Cattle Industry Kicks Off Annual Convention
 » NCBA: Feed Efficiency more Important than Ever
 » NCBA: Excellent Time to Be in Beef Business
 » NCBA: EPD Uptake Low - Why?
 » NCBA: 2011 Successful Year for NCBA
 » NCBA: What Does the South Korea Trade Deal Mean for US Beef
 » NCBA Backs Reconsideration of Child Labour Regs
 » NCBA Cattlefax: Hope for Strong 2012 Corn Harvest
 » NCBA: 2012 Slaughter Down as Herds Rebuild
 » NCBA: 2012 Record High Prices but What About Profit?
 » 150,000 Breeding Cattle Left Texas due to Drought
 » In the Cattle Markets
 » CME: Consumer Demand for Healthier Products
 » Parental Exemption of Child Labour in Ag Rule
 » CME: What can the Prices of Beef & Pork Cuts Tell Us
 » US Ethanol and Feed Co-Product Agreement
 » Cattle Outlook: Lowest Cattle Inventory Since 1952
 » CME: Job Growth Has Returned
 » EPA Questioned by Cattlemen on CAFO
 » Corn Markets Remain Unsettled
 » $100 Million Fund Established to Protect Cattlemen
 » Producer Support of Beef Checkoff at High
 » Nebraska Cattleman Named New NCBA President
 » Tyson Shows Rise in Sales
 » CME: Forecasts Revised as Droughts Damage Crops
 » CME: Choice Beef Cutout up 9% From a Year Ago
Genus - Value through science and genomics
   General

 » Who Says Beef Production isn't Sustainable?
 » Joint FAO/OIE Global Conference on FMD Control
 » Russia Suspends Cattle Imports From the EU
 » Pressure on Brazilian Beef Exports
 » Aussie Beef Exports to Japan Underpinned by Brisket
 » Falling Production Sees Change in Global Beef Market

   United Kingdom

 » Positive Future for Livestock Farmers
 » Outlook Conference Date Set
 » Livestock 2012 Stand Space Schedule Now On-Line
 » LMC: English Prices Feel Pressure, NI More Resilient
 » BVD Call Out to All Beef and Dairy Farmers
 » Schmallenberg Detected in Cattle in UK

   France

 » New Decree on Ritual Slaughter in France
 » Schmallenberg Update in France

   Spain

 » Spanish Beef Producers Focus on Exports
 » Precautionary Measures for Schmallenberg Virus

   Australia

 » Weekly Cattle Summary
 » Floods Cause Major Damage to Farming & Grazing
 » Strong Future for Middle East Exports

   Malta

 » Malta's Cattle Population Growing

   European Union

 » EC: How EU can Produce More Sustainably?
 » Veterinary Bodies on Alert over New Virus
 » New Report Reveals Use Of Irradiation In EU Foods

   Brazil

 » NCBA: Brazil Exports Down, but Production Up

   Taiwan

 » FMD Cases Discovered in Pigs in Kinmen

   Tunisia

 » Tunisia Makes Progress on Feed Testing Laboratory

   Mexico

 » Livestock Death by Manure Poisoning says Sagarpa
 » Mexico Seeks Link Between Cattle Deaths & Poultry Litter

   Ireland

 » Advancing Beef Safety & Quality Through Research

   Viet Nam

 » Livestock Company Opens Feed Factory
Pfizer Animal Health
   China

 » Farm Produce Prices Fall on Waning Demand

   Denmark

 » Reducing Greenhouse Gases From Cattle

That's all for this week!

Ed.
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