Washington Spring Conference 
MCA President David Houston and NCBA Representative Nate Jeager joined association leaders from across the country last week for the Cattle Industry Spring Legislative Conference. In addition to meetings with each of Mississippi's Congressional delegations, they attended meetings at USDA and heard reports on legislative issues.
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Juniors attend YBIC
Eight Mississippi Junior Cattlemen's Association directors attended the 2008 Youth Beef Industry Congress (YBIC), March 27-30 at the Purina Research and Conference Center in Gray Summit, Mo. The biennial event allowed 152 young men and women, who are the leaders of junior breed and state junior cattlemen associations, to interact with one another while exploring their futures through career building exploration. Sponsored by Purina Mills, the U.S. Beef Breeds Council and National Cattlemen's Beef Association (NCBA), the event strives to bring youth together working in the interest of the beef cattle industry and to provide them with further knowledge and understanding of all segments of the beef industry. |
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Beef Production Economics Workshop
An excellent meeting is planned for tonight and tomorrow night at EE Ranch in Winona.
Sponsored by the MSU Extension Service, this workshop is designed to improve producers' skills when keeping financial records as well as risk management. Topics ranging from cost budgeting to tax planning will provide cattlemen with management tools to help make better business decisions.
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Beef Agribition 
A large crowd was on hand for the Mississippi Beef Agribition in Verona. Registered females averaged $1448 while bulls averaged $1390. Fifty-six commercial heifers sold for an average of $1091. | |
| Report Says Pharmaceuticals Safe and Effective
Things aren't always as they seem. Take, for instance, the perception among some consumers that modern agriculture is bad for the planet. And, more specifically, the perceptions that modern beef production contributes to global warming and that pharmaceutical technologies utilized by beef producers threaten the long-term health of consumers. Those myths have been refuted in a new report that describes how the use of pharmaceutical technologies by beef producers over the past 50 years has proven beneficial not only to beef producers, but to consumers and the environment.
Alex Avery, director of research at the Hudson Institute's Center for Global Food Issues, and co-author and co-researcher Dennis Avery released a report that shows, pound for pound, beef produced in a conventional feeding system with grains and growth promoters produces 40 percent less greenhouse gas emissions and uses two-thirds less land than organic grass-fed beef. from Drovers |
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Farmers Plan to Plant Fewer Corn Acres
The USDA's Prospective Plantings Report, released March 31, indicates that U.S. farmers intend to plant 86 million acres of corn this spring, down 8 percent from last year's exceptionally high acreage.
The agency cites high prices for other crops, high input costs for corn and crop rotation considerations as reasons for the decline. Projected soybean acreage is up 18 percent, and wheat acreage will increase 6 percent, according to the report. Corn acreage will remain at historically high levels, but a decrease in plantings creates concern that corn prices will continue to rise. from Drovers |
Cattlemen in Washington
About 250 cattlemen from across the United States were in the nation's capital last week for NCBA's Spring Legislative Conference. The week's activities kicked off on Monday, March 31, with a meeting of the Public Lands Council, which consists of ranchers who graze livestock on public lands. On Tuesday, cattlemen were presented with a "state-of-the-industry" report and forecast featuring market analysis from Cattle-Fax, as well as research on current economic issues and consumer trends affecting the beef industry.
On Wednesday, cattlemen were addressed by Douglas Ross, Special Counsel for Agriculture in the Antitrust Division of the Department of Justice. Ross explained the issues and factors that will shape the Department's examination of the proposed acquisitions of Smithfield Beef, National Beef and Five Rivers Ranch Cattle Feeding, LLC by JBS Swift.
Also on Wednesday, the conference regulatory briefing was dedicated to a series of presentations by USDA officials, including an address by Agriculture Secretary Ed Schafer.
Schafer expressed optimism for enhancing beef exports, noting that Russia has become a prime target for U.S. beef and that he has high hopes for re-entry into South Korea in the near future. Pending free trade agreements with Colombia and Panama would also enhance export opportunities, he said. "Demand for U.S. agriculture exports has never been higher," Schafer said. "All you need is a fair framework of trade rules and the confidence of buyers overseas."
In addition to Schafer, conference attendees heard from the following USDA policymakers:
- Bruce Knight, Under Secretary, Marketing and Regulatory Programs
- Glen Keppy, Associate Administrator, Farm Service Agency
- John Johnson, Deputy Administrator for Farm Programs, Farm Service Agency
- Dr. Richard Raymond, Under Secretary, Food Safety and Inspection Service
- Arlen Lancaster, Chief, Natural Resources Conservation Service
Cattlemen also participated in face-to-face meetings with officials at several agencies including: USDA's Agricultural Marketing Service, USDA's Animal and Plant Health Inspection Service, USDA's Foreign Agriculture Service, Office of U.S. Trade Representative, U.S. Forest Service, Department of Homeland Security, Bureau of Land Management, Food and Drug Administration, U.S. Fish and Wildlife Service, and the Environmental Protection Agency.
The NCBA Spring Legislative Conference concluded on Thursday, when cattlemen broke into state delegations to meet with their members of Congress on Capitol Hill.
"A lot of teamwork goes into these conferences," said Montana rancher Bill Donald, chairman of the NCBA Policy Division. "There's nothing like a bunch of cowboy hats walking around Washington, D.C., to get people's attention and to let them know there are real people being impacted by the policies and regulations they are implementing." |
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NCBA Files Petition to Protect "Prime" Label
NCBA filed a petition with the USDA's Food Safety and Inspection Service (FSIS) asking for a re-evaluation of labeling policy with regard to the use of terms reserved for grading beef products such as "Prime," "Choice" and "Select." NCBA also requested that labels allowing such use be rescinded.
The petition was written in reaction to the approval of the label and the increased advertisement of "prime" labeled fresh pork products. These products are not graded, but are allowed to trade on the name and identity of "prime", while beef products are required to meet grading standards in order to bear the "USDA Prime" label. In fact, some products undergo injections of intramuscular fat but are labeled "Prime" and compared to the highest quality beef. NCBA says by circumventing the grade labeling system, which only bans labeling that uses "US" or "USDA" in front of the grade term, or bans the term in a shield, these labels are communicating a relationship with USDA's grading seal.
Data from a Checkoff funded study from November 2007 shows that consumers are paying for the value of "Prime" beef and that they would feel mislead if the term was used to label products that were not prime or had been altered in some way. Products that use this label are confusing customers and devaluing graded product.
NCBA's petition concludes, "By granting firms the right to use meat grading terminology on fresh non-graded product, FSIS has made determinations that are inconsistent with its own directive and has allowed dilution of the value of these voluntary grading terms, misleading and confusing consumers in the market place."
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USDA Planting Report Forecasts Gloomy Future for Cattlemen
Last Monday's annual USDA Prospective Planting report provided the first look at 2008 crop acreage, and it wasn't good news for cattlemen. Although it is simply a survey of what farmers expect to plant, the report indicated that corn acreage is expected to decline eight percent from last year to 86 million acres; it also indicated soybean acreage will be up 18 percent to 75 million acres.
As has been the case since about 1980, 161 million acres held as the apparent cap on the level of U.S. acreage dedicated to corn and soybeans combined. For the grain markets, the acreage projections suggest a future supply and demand situation for corn that is definitely too close for comfort. The quick result this week was $6 per bushel corn futures as the market scrambled in an attempt to buy acreage back from soybeans.
"For the cattle industry, this could be a culmination of our worst fears," said NCBA Chief Economist Gregg Doud. "We saw this storm developing 18 months ago primarily because of rapid development of the ethanol industry. But, we still hoped that corn acreage would hold its own amid tremendous global oilseed demand and historic fertilizer prices."
Cattle feeders are reportedly seeing losses as high as $150-200 per head. With 525,000 head of steers and heifers going to market each week, that amounts to an average industry loss of approximately $79-105 million per week. "The $6 corn, a staggering amount of pork and poultry production, a lack of market access to our key Asian export markets, industry overcapacity and a struggling U.S. economy are all factors combining to create historic economic turmoil for U.S. cattle producers and cattle feeders," said Doud. | |
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Cattle Market Notes
Friday, April 4, 2008
Dr. John Anderson, Mississippi State University -
Last week, feeders threw in the towel relatively early, taking mostly $88 for fed cattle on Thursday, down about $2 and $3, from the prior week. This week started on a rather demoralizing note with the release of a startlingly bullish (bullish for corn, that is) Prospective Plantings report. By Wednesday, feedlots were taking $86 live and $138 to $140 dressed for this week's marketings - no doubt adding to last week's steep losses.
With corn futures surging after the Prospective Plantings report and fed cattle suffering as noted above, there wasn't much support for feeder markets this week. At Oklahoma City, prices on feeder steers were steady to $2 lower; prices on feeder heifers were $2 to $5 lower. Prices on stocker calves were steady to $3 lower.
At Mississippi auctions this week, feeder steer and heifer prices were $5 to $10 lower. Steer prices at Mississippi auctions this week were reported as follows: 200-300 pounds, $130-$140; 300-400 pounds, $110-$120; 400-500 pounds, $100-$110; 500-600 pounds, $90-$100; 600-700 pounds, $82-$90; 700-800 pounds, $78-$85. Slaughter cow prices were $1 lower this week.
Somewhat surprisingly, Live Cattle futures moved higher on Thursday and Friday following Wednesday's very disappointing cash business. Closing prices on Friday (with change from last Friday's close in parentheses) were as follows: April $87.90 (+0.25); June $89.20 (+1.33); August $94.77 (+2.10); October $100.25 (+1.73); December $102.00 (+0.80).
Feeder cattle futures suffered again this week from higher corn futures. Feeder Cattle futures closing prices on Friday (with change from last Friday's close in parentheses): April $98.60 (-1.82); May $101.10 (-1.17); August $105.57 (-1.10); September $106.75 (-0.60).
Corn futures jumped still higher this week on acreage projections in Monday's Prospective Plantings report. May corn futures closed on Friday at $5.98, up 37 ½ cents from last Friday's close. All contracts between July 2008 and July 2009 are well over the $6 mark now.
Dr. Anderson's complete report can be accessed from www.mscattlemen.org |
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Cattle Feeding Econonmics
Dr. John Anderson provided this illustration of a senario facing many feeders.
A feeder steer placed in the feedlot last October/November weighing 750 pounds at a delivered price of $110 with a total cost of gain (feed and non-feed costs) of $0.80 would break even at $98 (assuming a 1,250 pound sale weight). At $86, that animal loses $150/head. Viewed another way, that hypothetical feeder calf placed at 750 pounds for $110 and sold at 1,250 would have to have fed for a $0.50/lb total cost of gain in order to break even at $86. This is a grim situation for cattle feeders. It is hard to imagine anyone who has closed out fed cattle in the last couple of weeks having any enthusiasm for going back in. |
Calendar of Events
April
7, 8 Cattle Production Economics Workshop, Winona
10 Magnolia Beef & Poultry Expo
10 Lauderdale CCA
21 Pike CCA
26 Tanner Farms Sale
May
3 Gelbvieh Field Day, Grenada
3 Angus Assoc. Sale, Raymond
8, 9 NCBA Region II, Columbus, GA |
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Last Chance
The drawing closes this week for the the 2008 Dixie National grand champion steer.
Contributors to the association's steer project have the opportunity to win the steer, processed and freezer ready, if their name is drawn.
The steer was purchased by Blue Cross Blue Shield of Mississippi, Haley and Marsha Barbour, and Ergon and donated to MCA for this fundraiser. | |
