The E-Drover

International Texas Longhorn Association Newsletter

Opportunity for your Longhorn Beef Business?

Beef prices reach highest level since 1987

April 12, 2014 Associated Press

 

A dwindling number of cattle and growing export demand from countries such as China and Japan have caused the average retail cost of fresh beef to climb to $5.28 a pound in February, up almost a quarter from January and the highest price since 1987.

"I quit buying steaks a while ago when the price went up," said 59-year-old Lubbock resident Len Markham, who works at Texas Tech. She says she limits red meat purchases to hamburger, opting for chicken, pork and fish instead.

Fellow Lubbock resident Terry Olson says she buys chicken and eggs now.

"I don't buy (red) meat, period," the 67-year-old said, admitting there's an occasional hamburger purchase. "Not like I used to because of the price."

Restaurant owners, too, must deal with the high prices. Mark Hutchens, owner of the 50 Yard Line Steakhouse in Lubbock, raised his menu prices for beef items by about 5 percent in November. Since then, the owner of the eatery has tried to make cuts elsewhere to avoid passing it on to customers.

"It really squeezes the small guys more," he said of non-chain restaurants. "You just can't keep going up on people forever. I just think you have to stay competitive and keep your costs low."

White-tablecloth restaurants have adjusted the size of their steaks, making them thinner to offset the price increases, says Jim Robb, director of the Colorado-based Livestock Marketing Information Center. Some places now serve a 6-ounce sirloin, compared to 8- or 10-ounce portions offered years ago, he said.

And fast-food restaurants are trimming costs by reducing the number of menu items and are offering other meat options, including turkey burgers, Robb said. Chain restaurants also try to buy in volume as much as they can, which essentially gives them a discount, Iowa State University assistant economics professor Lee Schulz said.

"That can help them when they're seeing these higher prices," he said. "They can't do anything with the high prices."

The high prices are welcome news for at least one group: ranchers, especially those in Texas who for years have struggled amid drought and high feed prices. Despite the most recent numbers that show the fewest head of cattle in the U.S. since 1951, prices for beef haven't declined along with the herd size as demand has remained strong.

But even as ranchers breathe a sigh of relief, some worry lasting high prices will prompt consumers to permanently change their buying habits -- switching to chicken or pork. Pete Bonds, a 62-year-old Texas rancher and president of the Texas and Southwestern Cattle Raisers Association, said that's a big concern, especially as younger consumers start to establish themselves.

But such fears may be unfounded, Robb said. Three years ago, economists thought consumers would start finding substitutions for beef as the drought spread. "We're surprised we haven't seen more of that," he said.

South Dakota rancher Chuck O'Connor is optimistic that consumers won't abandon beef for good.

"I'm sure some are maybe going to cut back some, but to say that people aren't going to buy it anymore, I don't think that's going to happen," he said, adding, "I hope not."

Beef isn't the only meat with higher price tags. The price of pork also has climbed, largely due to a virus that has killed millions of young pigs. And composite retail prices for chicken in February were $1.95 per pound, the highest since October.

"I think these higher food prices are here to stay, including beef," said Dale Spencer, a rancher in central Nebraska and the former president of the Nebraska Cattle Association. "As we grow the herd, we'll have more supplies and prices should drop some at the market. I would not say a drastic drop."

The long-term trend, Good said, is that more shoppers will choose cheaper hamburger over higher-priced steaks and roasts.

"There's concern for the future but what's the consumer to do?" he said. "Pay the price or do without."  

Jim & Jodi Small  765-793-0266   longhorncattle.tripod.com   hdwe@hotmail.com 

Start Raising Green Longhorns? 

Cow Gas can Power a Car Engine...

ARGENTINA-

(note: this article was translated and is excerpted, below, with some grammatical challenges) 

INTA researchers managed to collect, purify and compress the gases emitted by cattle for use as an energy source. Light, heat, refrigerators and even a car can run on biofuel. 

Can you imagine a functioning methane generated in the rumen of cows vehicle? Besides being a source of food, these animals emit gases that can provide alternative energy for home use. INTA technicians showed that it is possible to capture methane from cattle, into a biofuel and use it to generate electricity, heat, and power a refrigerator to a car engine. "As cattle release greenhouse gases (GHGs) into the atmosphere, we propose a practical and economical way to sequester these emissions and energy use as a substitute," said the coordinator of Animal Physiology INTA Castelar, Buenos Aires , Guillermo Berra. 

Oil reserves are expected to decrease and increase the need to find alternative and renewable sources of energy. Given this scenario, the use of compressed natural gas could be supplied to address this. The energy obtained from cows could serve, "in places where there is no conventional producers have an alternative for cooking, lighting their homes and even drive their cars," said the researcher. 

They would think the cow as a "digester with legs." According to one of the technicians involved in the project, Ricardo Bualo , purified and compressed biomethane can be used to generate heat, light and motive power. "A cow emits about 300 liters of methane per day, which can be used to operate a fridge capacity of 100 liters at a temperature of between two and six degrees for a full day," said Bualo. For the researcher, it is now necessary to transfer this knowledge to the farmers. 

From burps to the other extreme, Cows are all four legged producers of natural energy.  The backpack pictured above is for collecting their 'end to end' output of  methane.

Collecting Samples

To capture the gas, INTA technicians used a system directly connected to the cannulas into the rumen containing methane to fill a plastic bag, as a backpack, is located in the back of the animal.  

According to the project coordinator said, "the amount of collected gases varies by ingested food and the size of the specimen: an adult cow emits about 1,200 liters per day, of which 250 to 300 are methane".  

Because the animal generates different gases, the initiative proposes the use of an industrial compound as monoethanolamine (MEA), by 25 percent for removing carbon dioxide and hydrogen sulfide and purify to obtain a concentration of about 95 percent methane.  

According Bualo explained, so that the action of the MEA is more efficient, a method similar bubbling to those used in aquariums, because "the bubble more area of gas that is exposed to the compound is used and purify.  The filtered gas which is enriched in methane, is stored in another container and, in case it is necessary to increase their concentration, the process repeats ", as to be used for energy purposes is required that its concentration is greater than 60 percent.  

Then it undergoes a simple compression method to be included in carafes. According to the responsible of this process, Diego Mena, "a bike-pump is used, an exercise bike with a built mobilizes piston and compress the gas."   

Thus, this "digester fours" could offer both: generate energy efficiently and sustainably and prevent the accumulation of greenhouse gases in the atmosphere. (continued) Read more at: http://intainforma.inta.gov.ar/?p=19084#sthash.tjJ5z0Wz.dpuf  

 Gary Don & Joanna Taylor   9314 220th St NE  Okarche, OK 73762    405-919-5210    

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