Welcome, new members! Whittemore Auction Services, Hopkinsville, Ky.; Barnesville Livestock, LLC, Barnesville, Ohio.

USDA Secretary Ed Schafer has not taken a position on the meat industry’s proposed ban on processing cattle that are ambulatory upon arrival at a plant, go down and then pass a re-inspection and go to slaughter. He earlier said he was opposed to this ban, but an agency spokesman this week said Schafer is waiting for the results of an investigation and audit that are not expected until later this year.

As Congressional work on the new farm bill grinds on, the level of income a farmer could have and still receive commodity program payments “will be the last thing worked out” in the conference committee, said Tom Buis, president of National Farmers Union. The final bill is likely to include mandatory country of origin labeling. A ban on packer ownership of livestock is considered less likely, say some Washington observers, although Buis Wednesday said he thought that issue may still be unresolved.

May 1, 2008
R-CALF, OCM want state attorneys general to probe proposed JBS mergers

If Brazilian meat packing giant JBS is allowed to purchase three U.S. beef entities, “only three people – the head buyers employed by JBS, Tyson Foods and Cargill Meat Solutions – will make price decisions on over 80 percent of the slaughter-ready cattle each day,” R-CALF USA said Wednesday.

That’s why R-CALF, along with the Organization for Competitive Markets, wrote attorneys general in 13 cattle-producing states, asking them to investigate the competitive effects of the proposed JBS acquisition of National Beef Packing Co., Smithfield Beef Group and Smithfield’s Five Rivers Ranch Cattle Feeding. Five Rivers is the largest feeding company in the world, R-CALF noted, with an estimated annual capacity of two million head.

The “primary focus of our concern,” the letters to the state officials say, is with the market for slaughter-ready cattle “sold in proximity to the major meatpackers, and the market for lighter-weight feeder cattle that are sold in relatively large quantities in every state of the Union.”

Reducing the number of major beef processors from five to three is likely to have adverse competitive effects on consumers as well, the letter says. It concludes, “We have witnessed packer merger approvals in the past and seen the destructive results on independent livestock producers, including the astounding 90 percent reduction in the number of U.S. hog producers.

“If no action is taken now to preserve competition in the cattle market, we will wish, in five years that our leaders had more forethought and vision. Competition is the best regulator and should be preserved.”

The Cattlemen’s Beef Board said Monday it will be asking more than 100 industry organizations for recommendations concerning the beef checkoff. Those recommendations will be included in the Board’s analysis of the checkoff, which has been requested by USDA. The CBB said it plans to complete its analysis and submit its report to USDA by Nov. 30. Chairman Dave Bateman emphasized that any recommendation to raise the $1/head checkoff would take both Congressional action and a producer referendum.

President Bush Tuesday sharply criticized the farm bill currently under consideration by Congress, calling it “massive” and “bloated,” adding it would do “little to solve the problem” of rising food prices. He also called for “reducing unnecessary subsidies,” saying the bill now before Congress will continue payments to millionaire farmers.

April 30, 2008
Report calls ‘factory farms’ a threat to humans, environment, animals

A 2 ½ year study into “industrial” farms, where large numbers of livestock are produced, says they pose a growing threat to humans, animals and the environment. The study was done by The Pew Charitable Trusts, a non-profit philanthropic organization, and the Johns Hopkins Bloomberg School of Public Health.

The study said the threat comes because of pollution these farms cause, and their potential to spread disease.

One industry editor noted the report has a “cover that includes a farm worker wearing a respirator (which) does not suggest unbiased objectivity.” And Garrett Hawkins, national affairs director for the Missouri Farm Bureau, probably spoke for others in agriculture when he said the report went too far and would drive livestock production overseas.

“It makes one question how can American family farmers and ranchers compete in that type of environment if those regulations that they call for go into effect,” he said.

LMA “is fighting for horse owners’ rights and the well-being of horses,” is how the May issue of Horse & Rider magazine introduces an interview with Vice President Nancy Robinson. The article, titled “Consequences of the Slaughter Ban,” covers LMA’s efforts opposing legislative and judicial efforts to end horse slaughter in the U.S. Robinson also discusses why a proposed USDA regulation covering transporting horses “would create a regulatory nightmare for buyers, sellers and transporters of horses.”

Texas Gov. Rick Perry has entered the national debate over energy policy, calling on the federal government to reduce, by half, the mandate for producing ethanol from grain. In a letter to federal regulators, Perry blamed the diversion of corn to ethanol production for contributing to higher food prices, and skyrocketing feed prices for livestock producers. Cattle and pork producers were quick to support Perry, while corn producers did not.

The head of Tyson Foods, Inc., Dick Bond Monday called for Congress to reduce or drop a federal tax subsidy for ethanol, and end import tariffs on ethanol. Tyson has been hit by higher feed prices for its poultry, pork and beef processing business. Diverting corn to make ethanol “doesn’t make sense,” he said.

Milwaukee Brewers’ baseball team slugger Prince Fielder last season hit 50 home runs. In the off-season, he decided to become a vegetarian, eliminating meat and fish from his diet. This year, through the Brewers’ first 20 games, he has hit just one homer. The fans, according to AgCenter.com, “are outraged and frequent calls from the bleachers chide him to ‘get a steak.’”

Congressional negotiators last Friday reached a tentative agreement on a $280 billion farm bill. A final version should be on the way to President Bush soon, lawmakers said. Two-thirds of the bill’s resources go to nutrition programs, including an $861 million increase, partially paid for by slashing crop subsidies by $400 million, and trimming a farm disaster aid program. Negotiators were still working on the details of how much to limit federal subsidies to so-called “wealthy” farmers.

A variety of livestock and poultry groups are working to persuade the federal government to waive some of the mandates regarding the renewable fuel standard (RFS) for ethanol produced from corn. The RFS, they say, is driving up corn prices, since corn is currently the main ingredient in ethanol. And rising corn prices are devastating their industries, the groups claim.
...LMA member Jim Schwertner, Schwertner, Texas, is leading a petition drive to get an RFS waiver. Schwertner is concerned, not just about rising industry feed prices, but the effect of rising food prices on consumers.

Last Monday, Japan found one box of beef from a U.S. plant, out of a shipment of 700, that contained banned spinal column material. On Friday, the government said it was considering whether its current inspection system of U.S. beef is sufficient. Japan has already increased sampling tests on imported U.S. beef from one to 10 percent in the wake of the Monday incident. However, officials said they would not implement a blanket ban on all U.S. beef, although they have suspended imports from the California plant that shipped the banned material.

Welcome, new members! Western Livestock Auction, LLC, Great Falls, Mont., and Lenny Bryson (dealer/broker), Polo, Illinois.

It’s the traditional gathering spot for America’s livestock marketers – LMA’s summer annual meeting, and the World Livestock Auctioneer Championship. This year those events will be held in Sioux Falls and nearby Worthing, S.D., respectively, from June 26-28. All members have been mailed program and registration information. Questions? Call LMA, 800-821-2048.

R-CALF USA this week said it has “empirical evidence” that the purpose of the National Animal Identification System (NAIS) is not to protect and advance animal health, but to “provide justification for USDA’s ongoing efforts to systematically lower longstanding import restrictions that have effectively protected the U.S. cattle herd from disease introduction and spread.” R-CALF, said CEO Bill Bullard, “strongly opposes USDA’s efforts to advance NAIS.”

The U.S. House and Senate Thursday passed a one-week extension of the current farm bill. There are reports that President Bush will sign the measure, although he has repeatedly said he wants a one-year extension, or longer. Negotiators say they are “close” to a deal.

Will consumers eat meat created in a laboratory? People for the Ethical Treatment of Animals (PETA) thinks so. The group said it is offering $1 million to the “first person to come up with a method to produce commercially viable quantities of (lab-produced) meat at competitive prices by 2012.” PETA founder Ingrid Newkirk acknowledged the decision to offer a prize caused “a near civil war in our office,” since so many PETA members don’t like the idea of eating animal tissue, even if no animals are killed to get it.

Would you like champagne with that? Burger King reportedly will sell a $170 hamburger in “affluent cities” in the United Kingdom, with profits going to charity. It will be made from Wagyu beef from Japanese Kobe cattle – and yes, customers will have the option of adding French fries and a soft drink to their order.

The American Meat Institute has launched the “Meat News Network” on YouTube, aimed at conveying “consumer-focused information about the meat industry in an accurate, visual way.” The network currently features videos on animal welfare, food packaging and safety, the World Cancer Research Fund Report, meat nutrition and environmental concerns. To view it, go to www.YouTube.com/meatnewsnetwork.

The Food and Drug Administration Wednesday published the final feed rule that expands the list of cattle materials prohibited in livestock feed. The banned materials are often associated with mad cow disease. They include, for example, the entire carcass of BSE-positive cattle, and the brains and spinal cords from cattle 30 months of age and older. Publishing the rule meets a condition set by South Korea in last week’s beef trade agreement, and Seoul will now agree to import bone-in and boneless beef from cattle older than 30 months. The initial agreement had South Korea agreeing to import those same beef products from cattle younger than 30 months.

One of 700 cartons of beef shipped to Japan recently from National Beef Packing, Brawley, Calif., contained materials prohibited by the current U.S. beef trade agreement with that country. Wednesday Japan said it was suspending imports from that plant until it is found how the error happened.

April 24, 2008
NPPC seeking USDA help for ‘industry crisis’

Citing rising feed costs, mounting producer losses and tightening credit markets, officials of the National Pork Producers Council Wednesday asked USDA Secretary Ed Schafer for a variety of aid.

The officials, including NPPC President Bryan Black, said over the past seven months, U.S. pork producers have lost more than $2.1 billion. Rising feed costs, they said, means that producers are now losing $30-$50 on each hog marketed.

This is “now a hog industry economic crisis, which likely will affect the broader U.S. economy,” they told Schafer.

They requested that USDA purchase an additional 51 million pounds of pork for various federal food programs. This, they said, would reduce the U.S. sow herd by nearly 164,000 animals. They also asked the secretary to implement emergency programs and loan guarantees to help producers buy feed, and to support pork exports through USDA’s Market Access Program and Foreign Market Development program.

Fed cattle prices will be under pressure for much of the summer, averaging in the lower $90s/cwt, veteran Purdue University Livestock Economist Chris Hurt said this week. Fall prices should move up into the $94-$98 range, he added. He paired his forecast of a 2-3 percent drop in beef production next year, with a forecast of rising prices in the first quarter of 2009. Fed prices in March and April could hit $105/cwt., Hurt said.

The American Meat Institute, National Milk Producers Federation and the National Meat Association have petitioned USDA to ban nonambulatory, disabled cattle from entering the meat supply under any circumstance. Specifically, the groups seek to end the provision that allows cattle that are ambulatory on arrival at a plant, and then go down, to be slaughtered after passing an additional inspection. AMI and NMA pledged to encourage companies to voluntarily stop processing such cattle, until a final rule is promulgated requiring the ban. There was no immediate reaction from USDA, but Secretary Ed Schafer earlier opposed the idea, saying it was economically unfair to producers.

Iowa State University climatologist Dr. Elwynn Taylor said the odds of significant drought in the Midwest this year are one-in-three, twice the normal risk. One of the factors affecting that assessment is that a major Midwestern drought hasn?t occurred in 20 years, while the average length of time between such droughts is 18.6 years, Taylor said.

South Korean President Lee Myung-bak's acceptance of that beef trade deal with the U.S. last weekend has brought him severe criticism back home. The main opposition party denounced him Monday for having described U.S. beef as high-quality and low-priced ? and for calling Korean beef the most expensive product in the world.

SPECIAL ALERT – REPORTS OF HORSE ACTIVISTS AT MARKETS
     LMA has begun to receive reports of animal activists at horse sales across the country. These activists may be buying horses to “rescue them,” as one group put it, from slaughter. Other activists may be at the sale to observe and often photograph the condition of the horses being sold, and/or how the horses are treated while at the market.
     In any event, members, especially those who sell horses, should be on the alert. Know who is at your sale. Continue your policy of not accepting downed or diseased animals, and make sure all employees know and practice proper handling methods. And remember, you always have the right to control where people attending your sales go on your property.
     Members who have questions, or who want to report this type of activity, should call LMA at 800-821-2048.

Friday’s cattle on feed report showed the total number on feed was up slightly from April 1, 2007, but one percent below 2006. This is the second highest April 1 inventory since monthly reports began in 1996. Placements in March totaled 1.74 million, 11 percent over last year, and fed cattle marketings in March totaled 1.84 million head, a little below 2007.

Analysts are going over the fine print of the agreement to allow U.S. beef back into South Korea. U.S. Trade Representative Susan Schwab, in announcing the deal Friday, said it would “reopen the Korean market to all U.S. beef and beef products, from cattle of all ages.” Yes, but…officials on both sides of the Pacific note that complete market access to U.S. cattle over 30 months of age hinges on the U.S. Food and Drug Administration finally publishing its enhanced feed ban regulation, which should happen May 15. Once the rule is implemented, analysts say, it will complete the access deal. Beginning in mid-May, South Korea will allow the import of all U.S. beef products, including boneless and bone-in beef, and variety meats, from animals under 30 months of age.

USDA is working on two versions of the mandatory country of origin labeling (COOL) legislation in order to be ready to implement the legislation by the end of September. With the farm bill still unresolved, USDA is working on the version devised in 2002, and the one Congress is now considering, which is considered friendlier to producers and businesses.

Tyson Foods has announced the June closing of its beef and pork processing plant in York, Neb. Tyson said it was shifting the plant’s operations to other Tyson plants. The York closing will result in the elimination of 110 jobs.

April 21, 2008
KSU hosting International gathering on beef cattle welfare, May 28-30

The Beef Cattle Institute at Kansas State University has marshaled an impressive roster of participants for its International Symposium on Beef Cattle Welfare, May 28-30, on the campus at Manhattan, Kan.

The meeting will begin with a presentation on cattle handling, on May 28. Veterinarians and producers will discuss such topics as understanding animal instincts; the use of position, distance, angles and speed to communicate with cattle; teaching cattle to respond in a positive manner; removing cattle from pens and pastures, and more.

The presentation and demonstration will included video footage and live cattle interaction at the University’s Weber Arena.

Speakers at the symposium will include researchers, producers and veterinarians from around the globe, addressing current welfare-related issues facing the beef industry. Speakers will also include, organizers say, people in policy-making positions within the federal government, professional societies and industry commodity groups.

KSU Associate Professor KC Olson said the aim of the symposium is to “provide a venue in which science-based recommendations for food animal management can be conveyed to policy makers, veterinarians and producers.”

In a major breakthrough, South Korea has agreed to reopen the Korean market “to all U.S. beef and beef products, from cattle of all ages,” said U.S. Trade Representative Susan Schwab. The deal was announced the same day the new South Korean president is to begin two days of meetings with President Bush. Schwab said the deal, effective in mid-May, will be “a huge boost to our ranchers and producers,” and will remove “a major obstacle” to the consideration of an overall free trade agreement between the two nations.

Analysts predict today’s monthly cattle on feed report will show on feed numbers slightly above a year ago, while placements in March are seen down 8 percent and marketings down 2 percent from last year’s numbers. Total numbers on feed are predicted to be just below the record April 1 inventory, set in 2006.

President Bush will sign a one-week extension, until next Friday, of the current farm bill. Congress is still mired in negotiations on a new bill, and both the House and Senate passed one-week bill extensions this week. The President won’t sign any more extensions, his spokesman said.

A new survey, conducted by a third party firm and published by Vegetarian Times, says that 3.2 percent of U.S. adults, or 7 million people, are vegetarians. Fifty-nine percent are women and 53 percent of all vegetarians said they follow a vegetarian diet to improve their overall health.

April 18, 2008
Annual meeting, WLAC registration package in the mail

It’s the annual gathering point for the livestock marketing industry – LMA’s summer annual meeting, and the World Livestock Auctioneer Championship. And the registration package for both events is on the way to LMA members.

The events get underway June 26 at the Best Western Ramkota Hotel in Sioux Falls, S.D., and conclude June 28 with the 45th annual WLAC, at Sioux Falls Regional Livestock market, in nearby Worthing, S.D.

In between are outstanding speakers, the Marketing Industry Issues Forum, the annual Industry Trade Show, the always-popular LMA-PAC Auction, events for the kids, and much more. The LMA Board of Directors meeting and the Membership Luncheon will be held Friday, along with the traditional barbecue that evening, sponsored by Sioux Falls Regional Livestock.

The package includes complete program and registration information. Please note: the Best Western Ramkota is already full. Members are advised to call the Ramkota anyway, in case rooms are freed up.

There are three alternative hotels listed in the package, and all of them are within two miles of the main hotel, the Ramkota. The registration deadline is June 4.

Plan now on joining your fellow members for three days of information, education, and fun. For further information, call LMA, 800-821-2048.

April 18, 2008
LMA’s donation to Kiowa County 4-H aimed at helping restore county fairgrounds

LMA will donate the remaining money in its Greensburg, Kan., tornado relief fund to the 4-H Council in Kiowa County, Kan., to aid in the rebuilding of the county fairgrounds.

Following last May’s devastating tornado in the Greensburg area, which severely damaged the fairgrounds, LMA collected over $30,000 from its members and the public. The money was used to buy a variety of materials – from generators to fence posts -- needed immediately by livestock producers hit by the storm.

Five LMA member markets in the Greensburg area were used to distribute the material, free to producers.

About $4,400 was left in the fund, said Mike Lewis, former LMA director and owner of Pratt Livestock, Inc. A major organizer of last spring’s relief effort, Lewis said, “The county fairgrounds are the site of many 4-H activities, including livestock shows.

“We felt it was only natural that relief money, gathered by many of America’s livestock markets, go to a facility used by the next generation of livestock producers.” Lewis will present the check, on behalf of LMA, to officials of the 4-H Council.

LMA President Jim Santomaso, Sterling, Colo., said, “Giving to the 4-H is always a good investment for the future of agriculture. And helping restore the fairgrounds will benefit the entire community.”

Congratulations to two Texas members, Hatch Smith and G. Dave Scott. Smith, former LMA president and owner of the Llano Livestock Auction, was recently named an honorary director of the Texas and Southwestern Cattle Raisers Association. Scott, vice president of Port City Stockyards Co., Sealy, was re-elected TSCRA first vice president.

A federal judge has upheld a New York City Board of Health requirement that fast-food restaurants must post calorie information on menus and menu boards. The state restaurant association had sued, saying the provision was a free speech violation. However, U.S. District Judge Richard Holwell said the measure “is reasonably related to the government’s interest in providing consumers with accurate nutritional information.”

USDA Secretary Ed Schafer Wednesday said President Bush would okay a short-term provision of the current farm bill, set to expire Friday, but only if members of a House-Senate conference committee can agree on sources of funding and they accept “real reforms” in the bill. The House Wednesday passed a one-week extension, through April 25, of the current farm bill. The Senate is expected to do the same by this Friday.

April 17, 2008
Food recall bill would affect cattle that go down at plants

A bill called the Food Safety Recall Information Act (H.R. 5762) was recently introduced in the U.S. House. It would require USDA to list all of the retail stores and school districts that have received food products later recalled, regardless of how USDA classes the recall.

The bill was introduced by Rep. Rosa DeLauro (D-Conn.) and has 10 co-sponsors. It also includes a provision eliminating what bill supporters call a “loophole” dealing with cattle that go down after they reach a plant.

Currently, livestock that arrive at a plant and are non-ambulatory cannot go to slaughter. However, livestock that are ambulatory on arrival, and later go down, can go to slaughter if they pass an additional inspection.

The recall bill would not allow these latter livestock to be slaughtered. Producers and USDA have defended the current re-inspection provision. They note that animals that go down after they reach a plant may still be safe for human consumption, and not slaughtering them would be an economic hardship for their owners.

April 17, 2008
Animal welfare provisions to be on California ballot

California voters in November will vote on animal welfare provisions. The Humane Society of the U.S. led the effort, and collected significantly more signatures than required to get the “Prevention of Farm Cruelty Act” on the state’s ballot.

If approved, crates, stalls and other tethering devices would be banned for veal calves, gestation sows and laying hens. The Act also requires that animals must be allowed to lie down, stand up and turn around.

If passed, the Act would take effect Jan. 1, 2015. Violations would be ruled a misdemeanor, and on conviction, an individual could get up to 180 days in jail, and/or receive up to a $1,000 fine.

***MEMBER NOTICE*** Members Tuesday were mailed the Nominations Report from the Executive Committee, which contains the Committee’s recommended candidates for the office and regional director positions whose terms of office expire in June. A ballot seeking members’ votes on the nominations will be sent to members in May. This report can also be viewed by going to Hot Topics, and click on the 2008 Nominations Report.

Selling cattle from Minnesota? Members are reminded that if they are, they should check on their state’s import rules. Last week, USDA downgraded Minnesota’s status because of repeated incidents of bovine tuberculosis. This downgrade means new testing requirements on cattle going from Minnesota to another state.

USDA has purchased 1.5 million electronic eartags and will provide them to health officials for use in the bovine TB control program. They are compliant with the National Animal Identification System (NAIS). The goal is to link the cattle to their premises of origin, for traceback in the case of another outbreak. USDA said there are bovine TB investigations underway in several states.

The Grain Inspection, Packers and Stockyards Administration (GIPSA) has filed a complaint alleging that Creekstone Farms Premium Beef, LLC, Arkansas City, Kan., has continued to operate as a packer when its current liabilities exceeded its current assets. If the allegations are admitted, or proven at an oral hearing, the firm could be subject to a cease and desist order, and assessed a civil penalty. Creekstone is best known for battling USDA over its proposal to test every head of cattle it slaughters for mad cow disease, a position the agency opposes.

USDA Undersecretary Richard Raymond, speaking at a recent food safety conference, said USDA will increase testing for E.coli contamination. Currently, testing is conducted for only one strain of the bacteria, 0157. Testing will be added for six more strains, because Raymond said illnesses from these strains are “at least as prevalent” as 0157 illnesses. Packers said additional testing is unnecessary, since the measures they now use to protect against contamination from one strain, protects against the others.

Two days of talks between the U.S. and South Korea, over beef trade issues, ended Monday with little progress made. South Korea offered to import bone-in beef from cattle less than 30 months old, but the U.S. refused the offer, saying there should be no restriction on both age and bone parts of cattle. South Korea at one time was the third-largest overseas customer for U.S. beef.

Joseley Batista, CEO of Brazil’s JBS S.A., said 2008 will be the year of a turnaround in the company’s beef division. JBS owns JBS Swift & Co., and is trying to acquire two more U.S. competitors. Talking with reporters and financial analysts recently, Batista also predicted the price of beef the company sells, and the price it pays for cattle, will increase.

Uruguay Sunday held what beef promoters are calling the world’s largest barbecue. Some 1,250 cooks used six tons of charcoal and grilled 26,400 pounds of beef. The event was held to promote the country’s image as a major cattle producer. Last year Uruguay exported more than $1 billion in beef products, its largest export.

Poor returns for fed cattle in Canada, and the high cost of weight gain, is sending more Canadian cattle to U.S. feedlots. According to CanFax, the statistics branch of the Canadian Cattlemen’s Association, on March 1, Canadian feeder cattle totaled 890,000 head, down 13 percent from last year. More cattle will be fed in the states, Alberta LMA member Blair Vold said, due to the lower cost of corn in the U.S., “compared to our barley prices here.”

U.S. beef and pork exports posted solid gains in the first two months of 2008, according to data compiled by the U.S. Meat Export Federation and released by USDA. Exports of beef muscle cuts were up 36 percent over the same period in 2007, while beef variety meat exports jumped 40 percent. The pork industry saw its fifth-consecutive month of record-breaking overseas sales in February, up 55 percent over 2007, and up six percent over the record set in January.

April 14, 2008
Accidents at U.S. disease lab acknowledged; lab may be moved

The only U.S. facility permitted to research highly-contagious foot and mouth disease, on remote Plum Island, N.Y., has experienced several accidents with the virus, the Bush administration acknowledged Friday.

That is causing concern because the Bush administration, the Associated Press reported, is likely to move the facility to the mainland. The five sites under consideration are Manhattan, Kan., Athens, Ga., Butner, N.C., San Antonio, Texas and Flora, Miss.

The new site could be picked later this year, the AP said, and the lab could be open by 2014. The number of livestock in the counties and surrounding areas of the sites, according to government figures, range from 542,507 in Kansas, to 132,900 in Georgia.

Democratic leaders of the House Energy and Commerce Committee demanded to see documents from the administration they believe highlight the risks and consequences of moving the facility. The live virus has been confined to Plum Island since 1954, to keep it far from livestock.

Jay Cohen, undersecretary for science and technology for the Department of Homeland Security, told the Committee there was an accidental release of the FMD virus into cattle holding pens in 1978. That prompted new safety procedures, he wrote.

While that incident was previously known, the AP said, Cohen also said there were “in-laboratory incidents” – contamination within the facility but not outside it – since 1954. That was the year USDA acquired the facility, off Long Island.

Hallmark/Westland Meat Packing Co. has been billed $67 million by USDA to cover the cost of 50.3 million pounds of recalled beef the government bought for various federal assistance programs, including the school lunch programs. The plant is now closed, and its ability to pay the bill is doubtful.

In the midst of gloomy economic news, the nation’s ag trade surplus – the difference between the value of the ag products imported, versus the value sold – continues to be positive. In February that surplus was $3.6 billion, and the ag trade black ink now totals $15.9 billion for the period October, 2007 – February, 2008.

April 11, 2008
Producer affidavit should verify country of origin, says USDA’s Knight

Under a provision in the federal farm bill, an affidavit from livestock producers will verify an animal’s origin, once country of origin labeling goes into effect, USDA Undersecretary Bruce Knight said this week.

“The farm bill language on (COOL) is saying an affidavit should be all that is necessary for documentation,” he said. Agency staff are nevertheless working out two proposed regulations, based on whether Congress is able to complete work on the new farm bill, Knight told a meeting of agricultural journalists.

The deadline for implementing mandatory COOL is September 30, and that date is being pushed by members of Congress, “particularly those on the appropriations committees which fund USDA,” one observer said.

Knight said proposed rules for implementing COOL must be out by mid-summer at the latest. That’s because there must be 60 days for public comments prior to the Sept. 30 deadline.

Disputes among various industry groups has held up implementation of COOL since the 2002 farm bill. Packers and retailers consistently argued that the 2002 rules were too onerous to implement, and the Republican-led Congress delayed the program.

When the Democrats took control of Congress, they demanded that USDA move ahead to get the program started.

The farm bill has established three separate labels for meat origin labeling.

“Product of the U.S.” will mean the meat came from an animal born, raised and processed in the U.S.

A second label would be for meat from an animal that has crossed national borders for fattening and/or processing. Meat from those animals would be labeled, for example, “Product of the U.S. and Mexico.”

The third label would cover meat such as ground beef, which may contain meat from several nations. That label, for example, could read, “This product contains meat from the U.S., Canada, Mexico and New Zealand.”

April 11, 2008
USDA’s work on NAIS blasted by subcommittee chairwoman

Rep. Rosa DeLauro (D-Conn.) this week blasted USDA’s efforts to implement the National Animal Identification System (NAIS). DeLauro’s position is important, because she is the chairwoman of a House appropriations subcommittee with jurisdiction over USDA’s budget.

At a subcommittee hearing Wednesday, she said she has not decided whether to give USDA the $24 million it requested for NAIS in its 2009 budget. “If we do proceed with funding…we will require a high degree of accountability from USDA,” she said.

And according to Feedstuffs magazine, DeLauro “hinted that she would push USDA to require that meat procured for its feeding programs come only from animals identified” as part of NAIS. USDA is one of the nation’s largest beef buyers for the federal school lunch program.

DeLauro is a longtime advocate of a mandatory ID program. USDA’s decision in 2006 to make the program voluntary is a “disservice to the country,” she told Undersecretary Bruce Knight.

When she asked Knight if he had “rethought” a mandatory program, Knight noted that the poultry, pork and sheep industries all had voluntary programs that would soon move to the 48-hour traceability goal. But, he said, there was “very, very intense producer-led opposition” in the dairy and beef industries to a mandatory program.

The agency’s decision to go to a voluntary program was “pragmatic,” he said, to move past “those pockets of opposition.”

The American Farm Bureau Federation this week asked USDA to aid struggling pork producers, hit by higher feed costs and lower hog prices. Specifically, AFBF urged the agency to buy more pork for its various food programs. Wholesale pork prices on April 1 hit their lowest level in four years, at $54.87 cwt., although prices rebounded somewhat later in the week, AFBF said.

Pork producers in Manitoba want their federal government to challenge the U.S. mandatory country of origin labeling law, scheduled to become effective in September, under terms of the North American Free Trade Agreement (NAFTA). This comes after Manitoba producers say U.S. pork processors have cancelled many production contracts. The U.S. firms reportedly said they will stop buying Canadian hogs once MCOOL is implemented.

The federal farm bill will go to a House-Senate conference committee for the first time this morning. Funding the bill is still a major concern. House conferees are expected to present a bill that spends less than the Senate version.

U.S. and South Korean negotiators will meet Friday for what are described as “technical” talks on beef trade issues. A South Korean spokesman said the talks are “open-ended” and could last several days. These talks come just ahead of the new South Korean president’s Washington visit, April 18-19.

As expected, USDA has downgraded Minnesota’s status for bovine tuberculosis, which will put new restrictions on cattle and bison shipped out of state. The downgrading came after the fourth herd since October, 2007 tested positive for TB. Gov. Tim Pawlenty last week appointed the assistant commissioner in the state ag department as the state’s TB coordinator, overseeing statewide efforts to eradicate the disease.

The state of Arkansas, and the city of Boonville, Ark., have offered a variety of incentives to Cargill Meat Solutions to rebuild its Boonville meat packing plant. The plant, the city’s largest employer, was destroyed by a March 23 fire. A Cargill spokesman said it was still too early to speculate on whether the plant would be rebuilt.

That’s some auction. An antique tractor auction Tuesday ended after running for eight days in Bridgeport, Neb. The sale started April 1 with 3,000 tractors and a total of about 25,000 items for sale. It drew about 3,500 registered bidders from eight countries, and Internet bidders from 10 other countries.

April 9, 2008
USDA audit of 18 plants finds 3 humane handling violations

Humane livestock handling violations were found at three of 18 slaughter plants recently inspected by USDA. The most serious violation: one plant was found to be insufficiently stunning animals, so that they were not rendered insensible on the initial stunning attempt. The establishment took corrective action, and its suspension was held in abeyance.

None of the inspected plants was identified, nor were the plants where violations were found. All 18 were under contract with federal food assistance programs.

Other handling violations found included excessive use of electric stunning prods and overcrowded holding pens. Another plant was cited for using a high-powered hose to wash cattle before slaughter.

While not a violation, inspectors said care should be taken to avoid undue animal stress or excitement.

The audits followed the massive beef recall in February at Hallmark/Westland Meat packing Co., where workers were caught on video treating animals inhumanely. USDA Secretary Ed Schafer furnished the inspection results to Sen. Herb Kohl (D-Wis.), as a follow-up to Schafer’s testimony at a Senate subcommittee hearing in February.

America’s biggest hamburger seller, McDonald’s, has launched a multi-media campaign to combat what it calls “myths” about the quality of its beef and chicken. As for the source of its beef, the company says it uses “mostly domestic beef…we also import some beef from Australia and New Zealand. All our suppliers…are required to meet the same high standards for quality and safety.”

Two people in Spain have died of Creutzfeldt-Jakob Disease, the human form of mad cow disease. That brings the death toll in Spain from CJD to three. Spain’s Agriculture Minister said the two new victims probably caught the disease from beef they had eaten before 2001, and that Spaniards could safely continue eating beef.

April 8, 2008
‘Covert operations’ now part of USDA meat inspection procedures

Undercover meat inspectors?

Following the massive meat recall at Hallmark/Westland Meat Packing Co., USDA has changed how it inspects packing plants, USDA Secretary Ed Schafer said recently.

“We’re redirecting our inspectors, we’re rotating them differently,” he said. “We don’t want them getting too cozy with the businesses they’re working in and we’ve tightened up the time that cattle are in pens.”

Schafer said the agency is looking into other ways to observe plant operations without being seen. And, said Undersecretary for Food Safety Dr. Richard Raymond, “We are doing covert operations.

“We are undercover, looking at these plants when they don’t know we’re there,” he said. “The white van sitting on the road with a flat tire just might have a camera in the window.”

April 8, 2008
New operators for Woodbury, Tenn., market sought

The owners of Woodbury Canon Livestock Auction Barn – previously known as Maxwell Livestock Market, LLC, Woodbury, Tenn. - are looking for new market operators. The board of Mid State Livestock Producers, which owns the market, said the long-time operators, Bob and June Maxwell, have announced their retirement.

Market features include: a sales arena with theater seating, equipped with HVAC; a pull-through unloading facility and a restaurant within the building. The market currently has a weekly sale for cattle, goats and hogs, a horse sale twice a month, a dairy sale twice a month, and four feeder calf sales each year.

April 7, 2008
Justice official: industry concentration not reason enough to reject JBS purchases

The special counsel for agriculture in the Justice Department’s Antitrust Division recently acknowledged that the purchase of two of its competitors, by JBS S.A., would further increase concentration in an already-concentrated beef processing sector. However, Douglas Ross said, a high level of concentration alone does not necessarily violate the antitrust laws.

Ross was speaking at an NCBA meeting. He said that specific evidence is required to prove the JBS acquisitions will reduce marketplace competition.

Numerous industry, general ag organizations and legislators have expressed concern about the pending JBS purchases of Smithfield Beef Group and National Beef Packing Co.

Ross encouraged cattlemen to make their views known, saying the Department listens carefully to producers and groups about how a proposed merger might affect them.

While he praised Mexico’s decision last week to lift its ban on U.S. breeder cattle, USDA Secretary Ed Schafer Wednesday said he sees no justification for Mexico’s continuing restrictions on importing U.S. beef. Mexico still bans U.S. beef from cattle over 30 months old.

Corn futures hit an all-time high Thursday at the Chicago Board of Trade, as the July 2009 contract hit $6.21 ½. May corn settled a little over four cents higher, at $6, while May soybeans ended 14 cents higher at $12.57/bushel. Some analysts said a major factor in the rising prices was investors who re-entered the commodity markets, after many liquidated positions to raise cash during a credit crunch.

In Iowa, ag land realtors report “top quality” land is now averaging more than $5,000/acre in many parts of the state. The price of state farmland jumped 11 percent in the past six months and 18.1 percent over the last year.

Leaders of the House and Senate Ag Committees have agreed on a broad outline of a final farm bill, Senate Ag Committee Chairman Tom Harkin said Thursday. However, there has been no agreement on how to pay for it. The sticking point, one report said, seems to be over how much will be spent on a permanent disaster aid program, compared to increases for food stamps in the bill’s nutrition section.

April 4, 2008
Nebraska market man Strotheide dies at age 58

Funeral services will be held tomorrow in Chadron, Neb., for Doug Strotheide, who had just recently purchased the Gordon, Neb., Livestock Market, after being out of the business for six years. He was 58, and had been ill with pneumonia, when he died Wednesday.

A Nebraska native, Strotheide had been in the livestock business all his life. In 1980, together with partners, he purchased markets at Crawford and Gordon, Neb., and Edgemont, S.D. He ran those businesses until he sold them in 2002. A few weeks ago, with partner Dick Minor, he re-purchased the Gordon market.

Well-known in the area as an auctioneer and rodeo announcer, Strotheide finished as runner-up champion in the 1986 World Livestock Auctioneer Championship, held in Ellensburg, Wash.

The family requests memorials to the Chadron Volunteer Fire Department. Donations may be sent to the Bank of the West, P.O. Box 1001, Chadron, Neb., 69337.

The auctioneer’s gavel will come down for the last time next Friday at the South St. Paul, Minn., Stockyards, which is closing after 122 years. Once one of the largest markets in the nation, the market will give way to a 320,000 square foot office park. Spokeswoman Jena Swanson said “urban sprawl and high operational costs” led to the closing. “The cattle are getting farther and farther away every year.”

USDA Secretary Ed Schafer this week said the agency remains committed to a voluntary National Animal Identification System (NAIS). “I don’t like government telling people what to do,” he said in an interview following his speech to the National Institute for Animal Agriculture.

USDA Wednesday announced the availability of $16.8 million in emergency funding to try and eradicate bovine tuberculosis in Minnesota, Michigan and California. The money will be used for herd buyouts, “enhanced surveillance” and working to find the source of infection. And the Minnesota Senate Finance Committee has approved $3.5 million for a herd buyout in a part of the state hit by the disease. The bill’s author said the buyout is voluntary.

The mayor of Grand Island, Neb., told JBS-Swift officials their plant could be shut down if ongoing wastewater problems were not resolved. The plant has been cited four times in the last nine months for violating its discharge permits. JBS-Swift is the largest single client of the city’s wastewater treatment plan. A manager said the plant is taking steps to deal with the problems.

New Jersey Gov. John Corzine, looking to slash state spending, wants to make the state the third in the nation without a state Department of Agriculture. The other two are Alaska and Rhode Island. Farmers are protesting the idea. The state has about 10,000 farms, provide about 12 percent of the state’s jobs and generate about $924 million annually.

A California legislative committee Tuesday advanced legislation that would levy criminal penalties on packing plants that process meat from downer cattle and other livestock. The California Cattlemen’s Association wants the bill expanded to ban marketing businesses and dealers from buying, selling or receiving “non-ambulatory” animals. The CCA also wants to prohibit producers from transporting or delivering downer livestock. The legislation must go through several more legislative levels before reaching the Governor.

As reported here Monday, the California Livestock Auction Markets Association is asking its consignors not to bring livestock to market that are downers, dying or diseased. CLAMA also noted it has “strongly supported” efforts to keep downer livestock out of the marketing and processing chain.

Legislation that would have banned corporate ownership of farms and ranches in Nebraska failed Tuesday, lessening chances that a voter-approved ban that stood for 24 years would be renewed. The bill would have prohibited non-family corporations, but not out-of-state interests, from Nebraska farm ownership. The out-of-state provision was in response to a federal appeals court decision that threw out the original 1982 law, saying it illegally burdened out-of-state interests.

The World Trade Organization decision this week that the European Commission’s ban on hormone-treated beef was unlawful, won’t change the EU’s position, or end the ban, an EU spokesman said. The WTO’s decision allows the U.S. and Canada to keep sanctions on EU imports worth about $125 million annually.

April 2, 2008
RFD-TV to broadcast hour special on LMA’s June 28 World Livestock Auctioneer Championship, beginning July 28; former champs Korrey, Lex Madden to co-host

North America’s best livestock auctioneers will display their competitive marketing skills in Worthing, S.D., June 28 – and in America’s living rooms beginning July 28.

For the second consecutive year, LMA’s annual World Livestock Auctioneer Championship (WLAC), held in June at the Sioux Falls Regional Livestock market, will be the subject of a one-hour special on RFD-TV, premiering July 28.

RFD-TV, now in its 8th year, is the first 24-hour network for rural America. “The WLAC has a wide appeal,” said Mike Hansen, RFD-TV’s executive vice president. “The contest is something everyone can identify with, because try to find anyone in rural America who hasn’t been to an auction, or who isn’t planning to go to one soon.”

LMA President Jim Santomaso said the Association was looking forward to bringing the contest – “an outstanding example of competitive marketing in action” – to the 31 million homes served by RFD-TV.

“It’s no coincidence that everything from fine art, to championship horses, to the world’s finest livestock, is sold at auction,” he said. “Whatever you have to sell, a competitive auction is the best way to sell it. That’s an important message we’ll be bringing with this program.”

The audience is definitely there, Hansen said. “The program has great viewership, and we absolutely get viewer feedback.” As soon as last year’s program was broadcast, he said, “We started getting e-mails asking, ‘When will it be on again?’ and ‘Where can I get a copy of the program?’”

Last year’s program was shown more than once, and LMA officials said additional broadcast dates will be announced later.

RFD-TV is on cable TV systems in all 50 states, Hansen said. On the Dish Network, it’s channel 231, and on Direct TV it’s channel 379.

Santomaso said the program “will let us turn the spotlight, not only on an exciting and competitive event, but also on the basic principle behind that event: putting your livestock in front of several buyers creates competition – and that’s the best way to get the best price.”

The TV program will be a comprehensive look at the Championship, now in its 45th year. There will be a montage of the 33 semi-finalists as they market cattle during the contest, which is an actual sale.

That will be followed by a closer look at the 10 finalists as they return to the ring and sell more cattle. Behind-the-scenes interviews with the contestants, past champions, market owners, livestock consignors, LMA officials and others will also be featured.

Co-hosts for the broadcast will be two former world champions: 1998’s Lex Madden, Torrington, Wyo., and 2002’s John Korrey, Iliff, Colo.

Thirty-two of this year’s semi-finalists qualified for the Worthing event through four WLAC quarter-final competitions, conducted last fall and winter by LMA. The top eight scorers in each quarter-final qualify for the World Championship.

The WLAC traditionally gives a “bye” into the semi-finals to the International Auctioneer Champion, and he is the 33rd semi-finalist.

To become one of the 10 finalists, the 33 semi-finalists go through an interview on industry issues and topics, and then sell several drafts of cattle. They’re judged on vocal clarity and quality, bid-catching ability, the ability to keep the sale moving, and by the judges – market owners and professional livestock dealers – answering the question, “Would I hire this auctioneer to work for me?”

The top 10 scorers then return for a final round of selling cattle, where the same judging criteria is used. The three titlists – world, reserve and runner-up champion – are named that evening at an awards banquet.

The three winners take home thousands of dollars in cash and prizes, including, for the world champion, a year’s use of a new truck.

The contest starts at 8 a.m. and is open to the public.

The WLAC caps LMA’s annual meeting, which begins June 26 at the Best Western Ramkota Hotel in Sioux Falls. The meeting will offer marketing business owners, and interested producers, a look at a number of key industry issues, discussed by knowledgeable speakers. For registration and program information, contact LMA at 800-821-2048.

Welcome, new member! Gordon Livestock Auction Market, Inc., Gordon, Neb.

The much-awaited USDA “Prospective Plantings” report was released Monday. It showed U.S. farmers intend to plant 86 million acres of corn this year, down eight percent from last year’s total. That would still be the second-largest total since World War II. The report also shows soybean acreage is expected to jump 18 percent, to 74.8 million acres, and acres given to wheat should be up six percent, to 63.8 million acres.

The European Union’s continuing ban on meat treated with hormones violates international trade rules, the World Trade Organization said Monday. The ruling allows the U.S. and Canada to keep tariffs worth $125 million each year on EU products ranging from Roquefort cheese to Dijon mustard. The tariffs were first imposed in 1998, after the EU lost a lengthy international legal battle over its ban.

April 1, 2008
Markets changing to compete, serve customers better, story notes

That old term, “sale barn owner,” is one that doesn’t fit David Patton, who sees his role as a livestock marketer. “It is not just selling cattle anymore, it is marketing cattle,” he said in an article appearing last weekend in both Iowa Farmer Today and Missouri Farmer Today.

Patton is a partner in South Central Stockyards, Vienna, Mo. His comments came in a story looking at the changing face of marketing today. Writer Mindy Ward noted that many market owners “are incorporating new marketing techniques to keep their operations and customers profitable.”

One of the ways Patton does that is to market cattle at South Central through an online live auction.

Patton believes such auctions are a tool to showcase quality Missouri cattle. These sales not only attract buyers, but also consignors, he said. “We have a lot of producers who check in online to see how their cows are doing. They are businessmen who like to watch their cattle sell.”

LMA Vice President for Membership Services Kristen Hendricks told the writer online auctions will only increase as rising gas prices pinch the pocketbooks of prospective buyers.

LMA’s online auction service, www.lmaauctions.com currently has 46 markets listed, with 18,000 regular viewers.

A major benefit of an online auction, she noted, is that buyers see the product, buy it and pay transportation costs once. The bottom line is for markets to find “what works in their area and for their clients and buyers.”

USDA has released a 226-page document that lists all school districts nationwide that received beef included in last month’s 143 million pound recall. The lawmakers who pressured the agency to release that information now say USDA should release names of all the retail stores that got the recalled beef.

A former human resources manager at the Swift Beef plant in Marshalltown, Iowa, has been sentenced to 12 months probation for telling an illegal immigrant how to use fake documents to get rehired, after the immigrant had been arrested earlier at the plant.

Korea’s new foreign minister said he hopes the beef trade dispute between his nation and the U.S. can be resolved soon, but he offered no precise timetable. New Korean President Lee Myung-bak is scheduled to visit the U.S. this month and visit with President Bush, and the issue is expected to be on the agenda.

March 31,2008
California markets seeking consignor help on humane handling issues

The California Livestock Auction Markets Association (CLAMA) is calling on its livestock consignor customers to join with the Association to ensure that proper animal handling practices “are in place, and operating, as intended, at every step in the production, marketing and slaughter process.”

In a letter to be distributed to customers by the CLAMA’s members, customers are also urged to use “sound management practices” to decide when to market their livestock, or move them to slaughter.

“Obviously,” the letter says, “animals unable to withstand the rigors of transportation and marketing should be properly disposed of at the ranch, dairy, farm or some other accepted disposal site.”

The letter comes in the wake of the inhumane treatment of non-ambulatory cattle uncovered at a single California processing plant. Those incidents “have made it more important than ever for all participants in the beef production and marketing chain” to redouble their efforts to insure proper animal handling, the letter continues.

CLAMA, founded in 1980, has “strongly supported” efforts to keep non-ambulatory animals out of the marketing and processing chain. That’s because such animals “are at the greatest risk of becoming a target for inhumane treatment, and pose a serious threat to the human food supply,” the letter says.

Refusing to market or slaughter downers, or livestock that are dying, diseased, and/or severely weakened or crippled, is one of an interlocking series of safeguards to protect the nation’s food supply, the letter points out.

CLAMA is working with LMA to develop and distribute “market-specific animal handling training information and materials “to further assure that our facilities are part of the solution, and not the problem.”

These materials include the recent DVD on proper animal handling, financed by the beef checkoff with production assistance from LMA.

The letter closes with CLAMA thanking producers for “all the hard work” they put into “providing the best and safest beef in the world….if there is any way (CLAMA) or your local livestock market operator can help… please let us know.”

USDA is considering a proposal not to identify retailers who may have sold tainted meat, except in cases of serious health risk. If that rule had been in place last month, consumers would not have been told if retailers had meat from the Chino, Calif., plant involved in the biggest meat recall in history. USDA says the recalled meat posed only a minimal risk to human health. The limited disclosure plan is popular with the food industry, but several members of Congress oppose it.