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TheBeefSite Newsletter - 18 September 2013

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TheBeefSite
Wednesday 18th September 2013.
Michael Priestley - Editor

Michael Priestley
Editor


Brazilian Beef Sector Reaches Peak

The Brazilian beef industry is currently at a peak and about to regress slightly over the coming year, market analysts say.

Currently, cattle output is breaking records. The Ministry of Trade reported a new August export record for Brazilian beef this month with shipments up a fifth on August 2012.

Processors have been the main benefactors, but researchers at Moody’s are forecasting a change in fortunes as margins deteriorate in relation to capacity expansion with no drop in prices forecast.

This summer, strong Russian demand and more buying from Paraguay and Australia have powered the Brazilian market.

Cattle slaughter in the Mato Grosso region boomed in July, recording the highest figures for the first seven months ever – up 10 per cent to 3.47 million head.

High output has coincided with lower cattle values. Figures from the region’s Institute of Agricultural Economics state that average per kilo prices for July averaged $3.04 kg/lwt.

A decline in the price of beef per ton of seven per cent on August 2012 was offset by favourable fiscal conditions, quantified as a 16.6 per cent rise in the dollar to the real.

Moody’s currently see the US picture as gloomier still due to its reliance on corn and soy, two volatile products.

They say Brazil’s pasture-based system offers ranchers more stability going forward through lower production costs. This cannot be said for the US, which is why experts see the 2013/14 year as the ‘worst in a decade’ for US beef processors.

Brian Weddington, Senior Vice Credit Officer at Moody’s says the reluctance of the sector to close plants temporarily means processors are unable to drastically raise the price of beef without affecting demand.

The report ties in with recent animal health reports claiming eight further Brazilian states to be foot and mouth disease (FMD) free. The proportion of the country now free of FMD now stands at 78 per cent.

The Ministry for Agriculture and Supply has spent $34.8 million reals in combating the disease, which now only persists in the less intensive northern regions.

Even in the Amazon region, health ministers are confident that areas will soon have their status changed from high risk to medium.

The outlook for Brazilian beef will seem more certain if the FMD free date of 2015 is achieved.

The World Organisation for Animal Health is expecting another round of requests pertaining to FMD status next month.


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This Week's Articles and Analysis

Effect of Weaning on Body Condition Recovery and Calf Performance in Previously Nutritionally Restricted Cow-Calf Pairs
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Controling Weeds in New Grass Leys
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Drought Raises Risk From Sulphates in Water
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Questioning Grassland Beef Production Costs
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Company News

MSD Extends IBR Control Options with Launch of Inactivated Marker Vaccine
UK - MSD Animal Health has launched an inactivated marker vaccine for use in the control of Infectious Bovine Rhinotracheitis (IBR). The new product, Bovilis® IBR Marker Inac, complements the company’s Bovilis IBR Marker Live.
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Market Reports

USDA Feed Outlook - September 2013
Irish Agricultural Price Indices - July 2013
USDA WASDE - September 2013
GB Animal Feed Statistical Notice - July 2013

Global Beef Industry News

   United States

CME: Futures Close Lower To October 2014, Tuesday
Campaign Group Blames Antibiotic Resistance on Farmers
CME: Declining Corn and Soybean Condition
Health Agency Addresses Antibiotic Resistance Issue
'Unfinished Business' with Corn, Soy Production
CME: Futures Close Down With October and December Up, Monday
JBS USA Announces Debt Refinancing
Kansas Professor Weighs up Pluses, Minuses of Country Labelling
CME Live Cattle, Lean Hog Futures Close Higher Monday
Wyckoff's Weekly Grain Forecast: Important Week for Soy
CME: Changes to Livestock Supply Estimates for Remainder of 2013 and 2014
CME: Cattle Closed Higher on Friday
Cattle Outlook: Retail Beef Demand Higher During July
COOL Appeal Another Attempt to Obstruct Consumers’ Right to Know
Avoid Overgrazing, Check Forage Inventories Now
New Act Aims to Modernise US Meat Safety Inspection
High-welfare Programme Now Covers One Billion Farm Animals
CME: Corn Yields Expected to be Lower
Cargill Elects New Chief Executive
US Court Throws Out Country of Origin Labelling Injunction
CME: Cattle Closed Lower on Thursday
Extension is Not the Answer to Stalled Farm Bill
Market Analyst: USDA Report Bearish for Corn, Slightly Bullish for Beans
CME: No Growth in Beef Exports Expected
CME: Futures Closed Mixed With April Lower, Wednesday
Growth Promoters to Remain Part of Key Three Tier System
Ohio Farmers Warned Against Cutting Hay too Late
NFU Uses Sustainability To Show Importance of Farm Bill
CME: Quiet Trading Day Pushes Futures Lower, Tuesday
Looking Ahead to the September 1 Corn Stocks Estimate
Animal Disease Traceability Forum White Paper Released

   Uruguay

Beef Consumption Falling, Pork Rising in Uruguay

   Sweden

Farm Biosecurity Threat Varies According to Animal Type and Herd Size

   United Kingdom

LMC: Cattle Supplies Tighten Across Northern Ireland
Vaccinating Cattle Could Save Human Lives
Technical Soil Conference Looks at 'Hidden' Asset
Vets Caught Routinely Prescribing Antibiotic in Calf Milk
Red Tractor Week Starts on 16 September
New Agricultural Policy Priorities Outlined to Lords’ Committee
Five-year Antimicrobial Resistance Strategy Published

   Global

Could Grass Roots Save us From Climate Change?
Food Waste Harms Climate, Water, Land and Biodiversity
Europe, Africa Study Roads to Sustainable Intensification

   Brazil

New Corporate Affairs Chief at BRF
Brazilian Steer Prices Improving

   Turkey

Antibiotic Residues Found in Half of Beef Sampled in Ankara

   Australia

Competition Impacting Aussie Beef Trade with Japan
High Slaughter Boosts July Beef Production
Moving Cattle Without a Permit is a Costly Mistake
MLA: Weekly Cattle Summary
Conference Explores Wagyu Feeder Steer Premium

   New Zealand

Effluent App Captures Value

   Chile

EU Market Opens to Beef from Chile
Beef Industry Sees Fat Cattle Prices Recover

   Ireland

Fodder Census Shows Adequate Fodder Stocks

   Canada

Protecting Livestock from Wildlife

   European Union

Maintain Family Farming for a Competitive and Sustainable Sector
EU Tackles Invasive Species Effecting Agriculture and Fisheries

   Spain

Madrid Beef Scheme Promotes Regional Beef and Good Genetics

   Paraguay

Paraguayans Urged to Take Note of Separate Breeds This Autumn
SENASCA Announces Sampling Exercise Completion

   Russian Federation

Foot and Mouth Disease in Trans Baikal

Events/Promotions

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