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Eastern Livestock Company

Eastern Livestock LLC Bankruptcy Update — 3/7/2011
This past week Eastern Livestock creditors (including several LMA members) received a notice and proof of claim form. The notice informed creditors that the first meeting of creditors would be held at 10:00 a.m. on April 5, 2011, at the Federal Building in New Albany, Indiana. Creditors are welcome to attend the meeting but are not required to do so. The notice also provided information about certain deadlines. For example, the deadline to file a complaint to determine dischargeability of certain debts is June 6, 2011. Please note that the deadline to file a proof of claim has not been established yet. Notice of that deadline will be sent out at a later time.

Eastern’s Forward Purchase Contracts ready to be assigned — 1/18/2011
     James A. Knauer,  the trustee in the Eastern Livestock Co. bankruptcy case, posted Friday on his blog at www.easternlivestockbkinfo.com that he has been authorized by the bankruptcy court to assume and assign the over 160 Forward Purchase Contracts held by Eastern to third parties.  Knauer also noted in the blog post that given the rise in cattle prices (as compared with the original contract prices), the rights under these contracts represent a valuable asset of Eastern’s bankruptcy.  
     Offers are being accepted and a complete list of the contracts that are available are posted on the case website www.easternlivestockbkinfo.com.  At this time interested parties should contact Knauer via the online contact form. 

Livestock Marketing Association Update on the Eastern Livestock Bankruptcy:
Market Livestock Through Member Auction Markets to Ensure Prompt, Secure Payment
     (January 13, 2011)  KANSAS CITY, MISSOURI – In light of recent events surrounding the default and bankruptcy of Eastern Livestock Company, the Livestock Marketing Association (LMA) and its member livestock auction markets want to reassure livestock producers that they still have a proven, fiscally sound method for marketing their cattle.
     “There were 731 producers who received bad checks from Eastern but not one of those defaults came from a livestock auction,” said Mark Mackey, LMA chief executive officer.  “Unfortunately those producers probably wish now that they had sold through a livestock auction market where 100% of payments to producers were made. 
     “Livestock auction markets remain the most secure way to market cattle,” Mackey explained. “Livestock auction markets protect the farmers and ranchers they serve by acting as the agent to transfer ownership from the seller to the buyer.  That means that at the end of the sale, the producer gets a check that is backed by a bonded and regulated account and the auction market assumes all of the risk for non-payment.  You don't hear a lot about this because livestock auction markets assume that risk for a very small cost – commission.”

Eastern Livestock Statement Audio- 1/13/2011

Eastern Livestock trustee authorized to settle forward purchase contracts — 1/5/2011
     On January 4, the U.S. Bankruptcy Judge in the Eastern Livestock Chapter 11 bankruptcy case entered an order granting an emergency motion filed by the trustee James Knauer on December 30 asking for permission to settle forward purchase contracts.  Judge Basil Lorch’s order authorizes the trustee to immediately settle (by cancellation or otherwise) forward purchase contracts under which Eastern Livestock would have been obligated to purchase cattle. 
     The trustee’s authority to settle the forward purchase contracts includes the authority to sell any forward purchase contract by assuming and/or assuming and assigning any forward purchase contract and provides that such assumption and assignment (free and clear of liens) is valid.  Finally, Judge Lorch’s order provides that by January 31st and by the end of each succeeding month in which an outstanding forward purchase contract exists, the trustee is required to file a report identifying the actions that the trustee has taken under the January 4 order.
     In addition to the trustee’s motion seeking permission to settle forward purchase contracts, the trustee also filed an application for approval to employ Development Specialists, Inc. (specifically Elizabeth Lynch) as a consultant to assist the chapter 11 trustee. Lynch had been the state-court appointed receiver in this case, authorized to operate Eastern’s business until Knauer was appointed trustee.
     “LMA is pleased to see that trustee James Knauer recognizes the efforts that Liz Lynch has already put into this situation over the last 60 days, and will be drawing on her expertise as we move forward,” LMA CEO Mark Mackey said Wednesday.

Trustee appointed in Eastern Livestock case — 12/29/2010
     (LMA Attorney Ernest Van Hooser has provided this update regarding Eastern Livestock Co., LLC, New Albany, Ind.)
     On Monday, Dec. 27, the U.S. Bankruptcy Court for the Southern District of Indiana approved the appointment of Indianapolis attorney James A. Knauer as trustee in the Eastern Livestock case. As trustee in this Chapter 11 case, Knauer’s duties will include operating Eastern Livestock’s business.
     The bankruptcy court had earlier entered an order authorizing Elizabeth Lynch, the state-court appointed receiver, to operate Eastern Livestock’s business until the bankruptcy trustee was appointed.
     Knauer, a partner in the firm of Kroger, Gardas & Regas, LLP, has extensive experience in business litigation, corporate bankruptcy and business reorganization.

Creditors seek involuntary Chapter 11 bankruptcy for Eastern Livestock —- 12/7/2010
     Three creditors of Eastern Livestock Company have filed a motion with U.S. Bankruptcy Court for southern Indiana to put Eastern into involuntary Chapter 11 bankruptcy. The creditors are David L. Rings, Russell Springs, Ky., Southeast Livestock Exchange, LLC,  Waynesville, N.C. and Moseley Cattle Auction, LLC, Blakely, Ga.
     The creditors also filed an emergency motion,  asking the Court for an order permitting the current receiver, Elizabeth Lynch, to act as a custodian to administer Eastern’s property, and prohibit Eastern’s management from exercising any rights related to the property, pending the appointment of a bankruptcy trustee, which could come as soon as Monday. A hearing on this emergency motion will be held this afternoon at 2 p.m. (CT).
     Members are reminded to use caution in dealing with cattle connected with Eastern, and not to accept or move any such cattle without the benefit of legal counsel.

LMA Members: Click here to go to the members only area to read about why you should beware if people are selling livestock they are feeding for Eastern.

Eastern Livestock’s court-appointed receiver ‘asks to partner with LMA’ — 12/1/2010
     The dialogue on the Eastern Livestock Company situation continued Wednesday morning with a conference call involving LMA CEO Mark Mackey, LMA attorney Ernest VanHooser, Eastern’s court-appointed receiver Elizabeth Lynch and her legal counsel.
     A major discussion point were the numerous scenarios involved in all the Eastern transactions and what it will take to move these cattle back into commerce. LMA believes “the sooner these cattle can be moved, without legal recourse, and people paid, the better it will be for all involved,” Mackey said, adding that the receiver asked to “partner with LMA in this process.”
     The receiver agreed in principle with the need to move the cattle, and a 1 p.m. (CT) conference call this afternoon will continue the dialogue on this issue.
     LMA will provide more information as it becomes available. 

LMA update on Eastern Livestock Company - 11/23/2010
     LMA this morning participated in a USDA-hosted stakeholders’ conference call regarding the Eastern Livestock Company situation.
     Most of the call was a review of USDA’s enforcement activity and the administrative complaint filed last Friday against Eastern and Tommy P. Gibson.
     LMA believes at this point the Grain Inspection, Packers and Stockyards Administration (GIPSA) should be able to tell us the exact amount owed Fifth Third Bank, and the amount of funds in the Eastern account when it was frozen.
     GIPSA has agreed to confer with its auditors and discuss LMA’s request.
     Doug O’Brien of GIPSA and USDA Deputy Undersecretary John Ferrell discussed the potential for low interest loans for those affected by this situation. O’Brien said USDA welcomed “ideas and strategies” for these loans.
     LMA will provide more information as it becomes available.

Update on Eastern Livestock Company - 11/18/2010
     Livestock Marketing Association CEO, Mark Mackey was in New Albany, Indiana today and was able to meet with Court Appointed Receiver, Elizabeth Lynch.
     LMA has submitted an action plan to the Receiver addressing numerous scenarios involving Eastern Livestock Company.
     LMA has also learned that a forensic data recovery team is on site at Eastern and is in the process of reconstructing all Eastern transactions.
     It is very important to note that no livestock connected to Eastern should be moved or accepted without full legal counsel.
     LMA is hopeful that through this process we have developed a positive dialogue with the Receiver and Fifth Third Bank. LMA representatives will be remaining in New Albany. As this dialogue is developed or new information becomes available we will continue to publish updates.

LMA update on Eastern Livestock Company - 11/12/2010
     On Wednesday, Fifth Third Bank, Cincinnati, Ohio, filed suit against Eastern Livestock Company, New Albany, Ind.  The bank’s court filing included, among other things, a motion for the emergency appointment of a receiver. On Thursday, LMA learned the court had appointed a receiver, Elizabeth M. Lynch, of Development Specialists, Inc., Cleveland, Ohio.
     LMA will provide more information as it becomes available.

Eastern Livestock Company – LMA Statement 11/10/2010 2:00 p.m.
     LMA has learned that Fifth Third Bank, Cincinnati, Ohio, Wednesday morning filed suit against Eastern Livestock Company, New Albany, Ind. In connection with that suit, summons have been issued to Eastern and Thomas Gibson. The bank has filed a motion for a temporary restraining order and permanent injunction, and for the emergency appointment of a receiver.
      LMA is in the process of acquiring the suit documents, and will provide more information as it becomes available.

Eastern Livestock Company –
LMA Statement 11/8/2010 2:30 p.m.
     The Livestock Board of Trade (LBT) a service division of Livestock Marketing Association (LMA) has learned from the Des Moines, Iowa, office of the Grain Inspection, Packers and Stockyards Administration that Eastern Livestock Company, New Albany, Indiana, has a total of $94 Million in unpaid livestock transactions. The LBT has also obtained financing statements from the Kentucky Secretary of State’s office. The secured party on file is Fifth Third Bank, Cincinnati, Ohio. In these documents, Fifth Third claims a security interest in all of Eastern Livestock Company’s assets. Assets include livestock (farm products), inventory, accounts receivable and general liabilities (contracts, contract rights, etc.).
     LMA will continue to monitor the situation with Eastern Livestock Company and will release updated facts to our membership as soon as they are made available. Members are urged to contact the Livestock Board of Trade and LMA’s legal team VanHooser & Eftink, P.C. if they are holding returned checks or otherwise unpaid livestock transactions.

Statement from LMA regarding Eastern Livestock Co.:
     The Livestock Marketing Association is aware of the current situation with Eastern Livestock Company based in New Albany, Indiana: That numerous checks written by Eastern Livestock Company for livestock purchased have been returned as “Refer to Maker” and are now being returned as “Insufficient Funds”. 
     The LMA Livestock Board of Trade and our legal team is closely monitoring the financial status and dealings of Eastern Livestock and is working diligently to assist our LMA members in deciding upon an appropriate course of action.  We will provide ongoing updates on the financial status of Eastern Livestock to our members as new information becomes available.

  
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LMA News Headlines

February 3, 2012 — Daily News Headlines

China to invest in agriculture innovation to boost food security
Exerpts taken from Michael Martina, Reuters
     China said on Wednesday it would boost agriculture innovation in an effort to increase food output, signaling that the world's most populous country is trying to tackle outdated farm and food infrastructure to feed its people. 
     China accounts for a fifth of the world's population with less than 9 percent of its arable land, and the cabinet suggested in a document that China's leaders were aiming to get serious about technology to ensure long-term food supplies.
     The State Council, or cabinet, said in the first policy document of the year it would increase investment and subsidies for the agricultural technology sector this year to stabilize grain production, state media reported.
     It also said the government would seek to push banks to increase lending to rural areas and keep prices of agricultural commodities at "a reasonable level."
     The central government estimates that China's national grain consumption will reach 572.5 million tons by 2020. Although China is largely self sufficient in wheat, it is not in soybeans and corn.
     In 2010, China returned to importing corn in earnest after years of blocking foreign grain, buying a record 1.57 million tons, up 18 times from the previous year because domestic production couldn't keep up with demand.
     Some analysts say China's agricultural production growth lags behind the country's overall economic growth.
     The country is expected to triple corn purchases this year, and rice imports are also expected to rise. Read more at http://bit.ly/AjpAfI.

U.S. farmers, ranchers owed $100 mln by MF Global
Excerpts taken from K.T. Arasu, Reuters
     CHICAGO - U.S. farmers and ranchers who had accounts with failed broker MF Global have got back the bulk of their money but are still owed about $100 million, the Chicago Mercantile Exchange indicated on Thursday after announcing a fund to help them.
     The $100 million is believed to be part of MF Global customers' $1.2 billion in funds that remain missing after the chaotic flameout of the broker and marks the first time the amount still owed to farmers and ranchers has been quantified.
     Thousands of MF Global clients have received about 70 percent of their money held in segregated accounts since the broker filed for bankruptcy on Oct. 31.
     The CME on Thursday announced it would launch on March 1 a $100 million fund to protect farmers and ranchers who used grains and livestock futures markets operated by the exchange against fiascos like that of MF Global in the future.
     A CME source said the exchange arrived at the $100 million figure based on the average size of accounts held by farmers and ranchers with MF Global.
     The CME insurance plan covers farmers and ranchers who use the exchange for up to $25,000 and cooperatives for up to $100,000 when a clearing member fails. Read more at http://bit.ly/w24e51.

Farm Bill Development in Full Motion
Exerpts taken from USAgNet
     The agriculture community took a number of important steps toward a 2012 Farm Bill this week, with commodity groups meeting in Washington to discuss the issues and the Senate Agriculture Committee announcing a hearing schedule. Farmer and staff leaders of 13 commodity groups met in Washington, D.C. Tuesday and Wednesday to build relationships and consensus around farm policy priorities. 
     At the session, they confirmed their commitment to work together in the coming process and their common belief that a new farm bill should be completed this year to provide certainty to farmers and the industries they support.
     On Wednesday, Senate Agriculture Chairwoman Debbie Stabenow (D-Mich.) announced her Committee will hold four hearings in February and March on farm bill issues. 
     A hearing set for Feb. 15 will cover energy issues; a hearing set for Feb. 29 will cover conservation issues; a hearing set for March 14 will cover nutrition issues; and a hearing set for March 21 will tackle what is expected to be the biggest road block to quick completion of the bill, risk management and commodity title policies. Read more at http://bit.ly/xVzLW5.

Beef industry outlook, MCOOL webinar available
Lisa M. Keefe, meatingplace.com
     A new quarterly series of webinars examining the economics of the beef cattle market with Kansas State University Prof. Glynn Tonsor will make its debut on Tuesday, Feb. 7, at 1:30 p.m. CST.
     The first webinar will focus on “Beef-cattle economics: Outlook update, national and regional inventory adjustment, and MCOOL assessments.” The discussion will examine the broad economic outlook for cow-calf, stocker and feedlot operators this year; the key elements of the USDA’s Cattle Inventory report; and the status and direction of Mandatory Country of Origin Labeling.
     The webinar is sponsored by Merck. Tonsor is a livestock economist and an assistant professor in the Agricultural Economics department at KSU. You can register for the webinar at http://www.marketingandtechnology.com/repository/webinars.

Bill Gates Speaks Out on Need for Innovation in Ag Research
Exerpts taken from USAgNet 
     Bill Gates, founder of Microsoft and one of the richest men in the world, highlighted the relative lack of money devoted to agricultural innovation and research in his annual letter outlining the Bill and Melinda Gates Foundation's 2012 priorities.
     The Foundation was founded by the Gates' in 1994 and is now the world's largest philanthropic organization. Guided by the philosophy that every life has equal value, the Foundation spends the majority of its funds on global health and development projects, both of which are intimately tied to agriculture.
     Gates' comments in his 2012 letter expand on his longstanding interest in agricultural development, to which he says his Foundation has devoted $2 billion.
     In the letter, Gates said the world population is projected to swell to 9.7 billion by 2050. To meet the needs of this growing number of people, he said it is imperative to help poor farmers sustainably increase their productivity so they can feed themselves and their families, but he realized that is only achievable if we prioritize agricultural innovation.
     Gates' focus on agricultural research has the potential to dramatically amplify growing concern about the overall stagnation, and in some areas, decrease, in funding for agricultural research. Read more at http://bit.ly/yKfedU.

Career Opportunities at LMA
     Think you or someone you know would be a great addition to the Livestock Marketing Association team?  Then check out the ‘Careers’ page at www.lmaweb.com.  There you will find career opportunity listings and instructions for applying. 
     LMA is currently seeking qualified applicants for a full time Communications & Training Director.  Applications are also being taken for a semester internship program in both the Government Affairs & Communications and Membership Services and Special Events departments.

February 2, 2012 — Daily News Headlines

Hormel to cease use of sow gestation crates and Seaboard Foods /Prestage Farms respond to HSUS video
Excerpts taken from Meatingplace.com by Tom Johnston
     Sow gestation crates, which have been banned in several states and were largely the focus of a Humane Society of the United States (HSUS) video released on Tuesday are making news again today.
     Hormel Foods has announced they will end the use of sow gestation crates by 2017.  Meanwhile Seaboard Foods Inc. and Prestage Farms Inc. are responding to the undercover video released by HSUS, saying that it affirms their commitment to proper and humane treatment of animals. 
     HSUS claimed such abuses as hitting animals with iron rods, but the video, the companies said, didn’t show any such abuse and instead stands as another of the activist organization’s salvos against sow gestation crates.
     In a statement, officials at Shawnee Mission, Kan.-based Seaboard Foods said they “strongly dispute” the allegations. Temple Grandin, who also is quoted in the video, is quoting in the Seaboard statement as saying “there was no bad behavior by people” in the operations depicted at Seaboard Foods.
     “We are pleased that our employees are following proper industry-supported protocols and procedures,” Seaboard President and CEO Terry Holton said.
     Clinton, N.C.-based Prestage Farms said it has launched an internal investigation to determine whether any of its employees abused animals and whether to take necessary actions, but head veterinarian Ron Prestage told Meatingplace that after multiple viewings of the video he saw nothing that would constitute abuse.
     “The video’s focus is primarily on the use of gestation stalls and depicts this production practice as being cruel to the animal,” the company said.  “Prestage Farms has production systems for both group housing and individual housing.  We respect the right of farmers to use different housing systems because we know that good animal care is the result of the individual commitment of those who care for the animals as well as sound production practices. Whether raised in groups or individual housing, we are committed to sound animal care.”
     Seaboard also said it uses both stalls and group pens to house gestating sows.  “Animal welfare experts and professional groups have found no one method for housing gestating sows that is clearly better than the other when managed properly,” the company said, noting that it continues to research best management practices for alternative sow housing in its system.

Labor Dept. changes child labor plan
Associated Press, Sam Hananel
     Under pressure from farm groups, the Labor Department has agreed to modify a plan that's intended to keep children away from some of the most dangerous farm jobs.
The proposal now will include broader exemptions for children whose parents are part owners or operators of farms, or have a substantial interest in a farm partnership or corporation, officials said Wednesday. The rules would ban children younger than 16 from using most power-driven equipment and prevent those younger than 18 from working in feed lots, grain bins and stockyards.
     The rule's original language exempted youths only on farms wholly owned or operated by their parents, but did not include thousands of farms owned by closely held corporations or partnerships of family members and other relatives.
     Labor Secretary Hilda Solis said her agency would work with the Agriculture Department to ensure that the rules reflect the concerns of rural communities.  The Labor Department estimates the rule would affect fewer than 56,000 workers.
     Solis said the Labor Department would propose the modified rules this summer and offer a separate comment period on those changes. The agency will continue to review more than 18,000 comments it has already received.
     Until the new exemption is made final, the Labor Department's Wage and Hour Division will apply current laws that ban children from performing certain hazardous occupations.

Nebraska bill addresses animal abuse reporting
Excerpts taken from Pork Magazine by Marlys Miller, Editor
     During a week that included the latest Humane Society of the United States (HSUS) undercover video release, another bill surfaced in a state legislature to address such tactics. Nebraska lawmakers are considering a bill (LB915) that would tighten requirements for animal abuse reporting.
     Sen. Tyson Larson, O’Neill, Neb., introduced the legislation, which would shorten the time that a person could report animal abuse, abandonment, cruelty or neglect to 12 hours. There is currently a 24-hour window in Nebraska.
     According to the bill, any person submitting a report of animal abuse would be required to include all documentation including video, photographs or audio that is evidence of the alleged abuse. Failing to report animal abuse within the designated timeline would be a Class IV felony.
     A second provision of the bill also would make it a crime to obtain employment at an animal facility with the intent to disrupt the businesses normal operations. This would include misrepresenting ones intent upon applying for employment. Violations would be a Class IV felony.
     Iowa lawmakers have a somewhat similar bill that has been amended and is under consideration in the Senate. The bill would make it illegal to take a job or gain access to an animal facility under false pretenses. Earlier provisions about outlawing videotaping were removed because of questions of legality. A similar video measure failed in Florida’s statehouse.
     While the Nebraska Senate Ag Committee took no immediate action, this is another example of state lawmakers attempting to address practices they say are not really about animal care, rather such actions are focused on garnering public and political influence and fundraising.

USDA Issues Vet Loan Repayment for Underserved Areas
USAgNet
     The U.S. Department of Agriculture (USDA) announced Wednesday 80 awards to American veterinarians to help repay a portion of their veterinary school loans in return for serving areas lacking sufficient veterinary resources. The awards, totaling more than $7.7 million, were made by USDA's National Institute of Food and Agriculture (NIFA) through the Veterinary Medicine Loan Repayment Program (VMLRP) and will benefit 34 states, Puerto Rico, and other federal lands.
     Recipients are required to commit to three years of veterinary service in a designated veterinary shortage area. Loan repayment benefits are limited to payments of the principal and interest on government and commercial loans received for attendance at an American Veterinary Medical Association-accredited college of veterinary medicine resulting in a degree of Doctor of Veterinary Medicine or the equivalent. Loan repayments made by the VMLRP are taxable income to participants. Also included in the award is a federal tax payment equal to 39 percent of the loan payment made directly to the award recipient's IRS tax account to offset the increase in income tax liability.

USDA: Corn exports, soybean sales tumble
Anglea Bowman, Staff Writer
     According to the USDA's latest U.S. Export Sales report, corn exports of 669,600 MT were down 29 percent from the previous week and 11 percent from the 4-week average. The primary destinations were to Japan (184,800 MT), Mexico (143,400 MT), South Korea (89,700 MT, including late reporting of 57,700 MT), Venezuela (56,500 MT), Costa Rica (39,900 MT), and Canada (29,700 MT).
     Corn futures closed higher on Wednesday as the market was supported by fund buying as the dollar index was solidly lower and equities were stronger. On Thursday futures opened 6 to 7 cents lower as the market turned lower overnight on profit-taking following recent gains and on technical selling after the March contract failed to push above $6.50. 
USDA SALES REPORT
: THIS WEEK 912,008 LAST WEEK 958,136 DIFFERENCE -46,128

February 1, 2012 — Daily News Headlines

Texas cattle herd declined 11% last year
January 30, 2012 by Bob Meyer – Brownfield
     Last Friday’s Cattle Inventory from USDA showing how much the drought is affecting cattle numbers in the Southern Plains. The Texas herd declined 1.4 million head to 11.9 million cattle and calves as of January 1, an 11 percent decline from a year earlier. Cow numbers declined 12 percent down 650,000 to 4.8 million cows. That is the biggest decline in the Texas cattle herd in nearly 150 years of record-keeping.
     Similar declines in Oklahoma where the total cattle and calves declined 12 percent to 4.5 million head, a loss of 600,000 animals. Cow numbers in Oklahoma totaled 1.78 million head as of January 1, down 90,000 or 14 percent from a year earlier.  In Kansas, cow numbers and total cattle and calves both declined 3 percent for the year.
     As expected, some of the animals moved north, Nebraska’s total herd increased 250,000 or 4 percent last year to 6.45 million animals. The Cornhusker State added 80,000 cows to 1.94 million head at 6 percent increase for the year. That now makes Nebraska the second-largest cattle-producing state in the nation. Colorado cow numbers increased 4 percent to 880,000 while total cattle and calves increased 4 percent to 2.75 million head. Iowa’s total herd held steady for the year but cow numbers increased 5 percent to 1.1 million head.
     Another interesting note, the report shows that while total cow numbers declined 12 percent in Texas last year dairy cow numbers in the state increased 2 percent. 

Cargill beef procurement VP to retire
Daniel McCoy - Wichita Business Journal
     Cargill Inc. on Tuesday announced that Kenneth Bull, vice president for procurement in the company’s U.S. beef business, is retiring.  Bull will remain at Cargill until the third quarter of 2012, capping off a 33-year career with the company.
     He joined Cargill in 1984 and came to Wichita in 1986 to work for what is now Cargill Meat Solutions. He has been in Wichita ever since.
     “Ken is well known and respected throughout the beef business, and he has done an outstanding job educating various audiences about our business, as well as being a voice of reason in the defense of free enterprise and open markets,” John Keating, president of Wichita-based Cargill Beef, said in a news release. “His passion for the North American beef business has made him a champion for beef production and his legacy will benefit the industry, its customers, and consumers, for years to come. Ken will be missed.”

China Meat Appetite Means Massive U.S. Exports, AgriTrends Says
By Elizabeth Campbell – Bloomberg - Jan 30, 2012 5:31 PM CT
     U.S. exporters will continue to see “massive demand” for meat overseas, especially from China, the world’s biggest pork consumer, according to Brett Stuart, the co-founder of farm-industry researcher Global AgriTrends.
     U.S. pork exports may climb 2.7 percent this year, beef exports may rise 10.8 percent, and broilers will increase 2.4 percent, Stuart said today during a conference call organized by AgStar Financial Services Inc., a livestock industry lender in Mankato, Minnesota. In 2011, U.S. meat and poultry exports rose $3.24 billion from a year earlier to $16 billion, he said.
     “The incentive to import pork remains huge” in China, Stuart said. “The bottom line is their fundamental structure is keeping their prices significantly higher than the equivalent U.S. prices here, which tells me they’re going to continue to be significant buyers of all imported pork, and specifically U.S. pork.”
     Demand from South Korea also will be strong, Stuart said. While the Asian nation will buy about 16 percent to 19 percent less pork than 2011, the volumes will be as much as 35 percent above the five-year average, Stuart projects. The country’s outbreak of foot-and-mouth disease last year led to a culling of about 30 percent of its hog inventory, and some of those farms won’t come back into production, he said.
     Exports helped drive prices to records, and producers shouldn’t be concerned about becoming too dependent on foreign markets, Stuart said. Cattle futures touched $1.29675 a pound on Jan. 25, the highest since the commodity started trading on the Chicago Mercantile Exchange in 1964. That marked the seventh record this month. Hog prices reached $1.0435 a pound on April 1, the highest since at least 1986.
     “In one sense, while it may feel like we’re increasing our exposure overseas, what we’re really doing is decreasing our exposure here at home,” Stuart said.

Animal Rights Group Targets More Hog Facilities
USAgNet - 02/01/2012
     The Humane Society of the United States released an undercover video on Tuesday, taken at two separate swine systems near Goodwell, Okla.-- Seaboard Foods’ and Prestage Farms’ breeding and gestation facilities. The video was shot late in 2011, and HSUS charges that it reveals inhumane treatment of pigs, the focus of which is gestation stalls, as well as baby pig processing techniques.
     According to Pork Magazine, HSUS has filed legal complaints with the U.S. Securities and Exchange and Federal Trade Commission alleging false and misleading statements about animal care presents on Seaboard's website. HSUS employed a similar tactic with Smithfield Foods in November.
     Paul Shapiro, HSUS senior director of farm animal protection, says HSUS is a stakeholder in Seaboard. He reported that HSUS had not communicated with either company about the video or its filing before today.
     Seaboard is the nation's third-largest pork producer, and supplies pork products to Wal-Mart, and Prestage is the nation's fifth-largest pork producer. HSUS argues that Seaboard and Prestage are lagging behind their competitors, pointing to Cargill as moving 50 percent of its sow operations from gestation stalls to group housing. Also, Smithfield Foods has set a goal to eliminate the use of sow-gestation stalls by 2017.
     "We're calling on these pork companies and their buyers, like Wal-Mart, to end this practice--end the use of gestation crates," Shapiro said.
     As Shapiro noted, a developing animal activist tactic is to link such videos and what they present as abusive conditions to a consumer brand.
     In response to this latest HSUS video and actions, the National Pork Board said 'America's pork producers take seriously our ethical responsibility for the proper care of pigs. Responsible pork producers condemn the mistreatment of any animal.'

January 31, 2012 — Daily News Headlines

Consumer support national legislation
     According to a press release by the United Egg Producers (UEP), consumers overwhelmingly support national legislation that would transition egg production from the conventional cages to enriched cages. This study was commissioned by UEP and was conducted by an independent research company, The Bantam Group.
     The survey was conducted nationwide in two parts with 1,000 registered voters for each and by keeping the sponsorship of the survey anonymous so as not to bias any of the respondents. The first survey investigated consumer support for enriched cages and the second one on support of federal legislation.
     The survey found that consumers, by a margin of 4-to-1, would support federal legislation that would transition egg production from conventional cages to enriched cages and by a margin of 2-to-1 that federal legislation was preferable to state legislation. According to the UEP press release, consumers support the transition from the existing conventional cages to enriched cages for egg production by a 12-to-1 margin. They also said that the two most important groups supporting the legislation (H.R. 3798) are UEP and the Humane Society of the United States (HSUS).
     The UEP is a Capper-Volstead cooperative for U.S. egg farmers, representing the ownership of approximately 88 percent of the nation’s egg-laying hens.

U.S. restaurants to see modest sales upswing in 2012: analyst
By Chris Scott, meatingplace.com
     The nation’s restaurant operators can expect to at least maintain the positive sales momentum they achieved in 2011 over the next 12 months, but same-store sales growth in 2012 will rely on menu pricing, according to Deutsche Bank analyst Christina McGlone.
     In a report, McGlone predicts that same-store restaurant sales will look similar to 2011 results with an average of a 2.5-percent gain over year-ago results. Under the assumption that a slow macroeconomic recovery will continue – with GDP expected to climb 2.5 percent – U.S. restaurants should enjoy another year of positive same-store sales based on the historical results usually seen with positive GDP and slowly improving housing, employment and income levels.
     However, sales performance will vary by dining concept. She noted a recent surge for foodservice and drinking establishments in late 2011 (up 10.1 percent in December after a 7.3 percent in November) will likely outperform casual dining. The latter segment was up just 2.9 percent in December from a 0.2-percent gain in November 2011.
     Higher food costs have the potential to be mitigated by the additional menu price points, reducing the pressure on restaurant earnings, McGlone noted.

Horses in drought areas having increased chances of disease
     Many areas in Arkansas, Oklahoma, northern Texas and Louisiana are seeing increased cases of horses being diagnosed with pigeon fever or some may call drought distemper. According to Mark Russell, assistant professor-equine extension at the University of Arkansas, “Pigeon fever is not very common in Arkansas. It is more prevalent in drier climates, but the recent drought in parts of Arkansas may be why we’re seeing it now.”
     The Louisiana Department of Agriculture and Forestry has received more than 30 reports, while KXAS-TV, Dallas, said the disease was on the rise in northern Texas. On KWTV-DT, Oklahoma City, 60 cases were seen in the Shawnee area of Oklahoma.
     The disease causes abscesses to form on the breast of the horse making it protrude like a pigeon breast. They can also occur along the belly, lower neck region or front or rear limb. Cattle can also be susceptible to the disease. Usually it is transmitted by insects, especially flies, but can be transferred by horse-to-horse contact or by contaminated soil.

Deadline Feb. 2 to enter last WLAC qualifying contest
     There’s one more chance to qualify for the 2012 WLAC, and that’s March 8 at Groesbeck Auction and Livestock Co., LLC, Groesbeck, Texas.
     The postmark entry deadline for the Groesbeck contest is Feb. 2.  Complete contest rules and a downloadable entry form are available at www.LMAWEB.com. Click on World Livestock Auctioneer Championship.

January 30, 2012 — Daily News Headlines

John McBride, LMA Director of Information Retires
      After 35 years of service and more one liners than can be counted, LMA’s Director of Information John McBride is retiring.  McBride, a native Iowan, graduated in 1970 from Creighton University, Omaha, Nebraska, with a bachelor’s degree in journalism. Prior to joining LMA, he worked as a reporter/editor at the Omaha World-Herald and for six years was regional information officer with the Kansas City office of the Federal Trade Commission. McBride joined LMA in 1976.  “LMA appreciates John’s contributions to the organization and his quick-wit will be missed”, said Mark Mackey, LMA CEO.  A new position is being developed on staff at LMA and in the interim all are encouraged to contact Kristen Parman, Vice President Membership Services at (800) 821-2048 or kparman@LMAWeb.com.  

Storyline never gets old: calves, feeders continue higher
DROVERS CATTLE NETWORK, Greg Henderson
      It’s an unprecedented market rally, and a story-line that never gets old – feeder cattle were $2 to $5 higher last week. Short yearlings weighing 650 to 850 pounds saw the strongest demand.
      Feedyards and packers were locked in a week-long struggle with a light trade occurring late Friday afternoon at $124 per hundredweight, $2 lower than the week before. Packers are struggling with losses that exceed $100 on every animal processed
      But the stocker and feeder cattle markets continue to draw the most attention and headlines as winter nears the mid-point.
      “The unbelievably mild winter throughout the central portion of the country has been ideal for cattle growing with efficient weight gains posted at every level of production,” says USDA Market News reporter Corbitt Wall.
      “The purchasing of grass stocker is in full bloom even though the first signs of green grass are at least 60 to 90 days out,” Wall says. “Fact is, most stocker buyers admit that they would be even more aggressive for turnout cattle if they were assured that the balance of the winter would continue mild.”
      Last week’s auction receipts totaled 258,400, compared with 298,500 the previous week and 296,700 last year. Direct sales of stocker and feeder cattle totaled 50,000, with video/Internet sales at 14,800. The weekly total was 323,200, compared to 383,500 a year ago.
      USDA’s cattle inventory report was released Friday afternoon showing 90.8 million cattle and calves, down two percent from the previous year. It was the 14th consecutive annual decline in cattle numbers.
      Beef cows fell 3 percent to 29.9 million head, and the 2011 calf crop was pegged at 35.3 million head, 1 percent lower.

Keystone XL bill gets 44 U.S. senators on board
REUTERS, Roberta Rampton
      A group of 44 U.S. senators, all but one Republican, have signed on to proposed legislation that would authorize the Canada-to-Texas Keystone XL oil pipeline despite the refusal of President Barack Obama to advance the project.
      Republican Senator John Hoeven is set to introduce the bill on Monday that, if passed into law, would allow work to begin immediately on all but the sensitive Nebraska portion of TransCanada's $7 billion controversial project.
      Obama put the pipeline on the backburner earlier in January, saying the administration needed more time to review the environmental impact in Nebraska, where the state government is evaluating a new route after rejecting an initial plan that sent the line through a sensitive aquifer region.
      The bill, led by Hoeven, Richard Lugar and David Vitter, incorporates an environmental review done by the U.S. State Department, and allows Nebraska time to find a new route.

Cattle vaccine protects against leptospirosis
      Scientists at the U.S. Department of Agriculture (USDA) have found that a commercial vaccine is effective against leptospirosis in cattle.
      A widespread zoonotic disease, leptospirosis is transmitted naturally from domestic and wild animals to humans. The contagious disease, which is caused by Leptospira bacteria, is spread through contact with food, water or soil contaminated with urine from infected animals. It can affect all farm animals, rodents and wildlife.
      Agricultural Research Service (ARS) is USDA's chief intramural scientific research agency, and this research supports USDA priority of promoting international food security.
      Scientists found that the vaccine appeared to be effective at both three-month and one-year periods after vaccination. Although the vaccine did not provide complete protection from shedding at one year after vaccination, it induced greater immunologic responses and protection against shedding of leptospirosis than the standard vaccine.
      After cattle were challenged three months after vaccination, bacteria were detected in the urine for several weeks, but the cattle appeared to be capable of clearing the infection, whereas non-vaccinated cattle remained infected, according to Zuerner.
      Although the vaccine was partially successful in protecting cattle against leptospirosis, scientists agree that improvement is still needed.
Findings from this research were published in Clinical and Vaccine Immunology.

January 27, 2012 — Daily News Headlines

LMA’s Washington, D.C. Fly-In, March 21-23, has special program planned
     LMA’s annual Washington, D.C. Fly-In of its members this year has a very special briefing planned for agriculture committee staff and the committee members’ ag legislative assistants.
     Unlike previous years where individual meetings were scheduled with ag committee and subcommittee chairs and/or their staff, this year, LMA will be providing a “Livestock Marketing 101” briefing in the House Agriculture Committee’s hearing room for influential ag staff.  The briefing is tentatively scheduled for Friday, March 23, at 10 A.M. (ET).
     Meetings will also be scheduled with USDA officials, and attending members will be meeting with their congressional delegation as well. 
     LMA Vice President for Government and Industry Affairs Nancy Robinson called the Fly-In “the perfect opportunity for market operators to better understand their government at work, as well as assisting LMA in influencing members of Congress and USDA officials on legislative and regulatory issues of concern to all marketing businesses.”
     For more information or to sign up for this year’s fly-in, call LMA’s Jeahn Creviston at 800-821-2048 or e-mail:  jcreviston@lmaweb.com.

John Deere turns 175
     This year, Deere & Company marks the 175th anniversary of its business, which began when company founder John Deere successfully manufactured and marketed the self-scouring plow in 1837. Deere had moved from his home in Vermont to start a small blacksmith shop in Grand Detour, Illinois. He later moved the business to Moline, Illinois, where the world headquarters is still located.
     The company was incorporated as Deere & Company in 1868. From the one-man shop at its inception, Deere currently has more than 60,000 employees worldwide.
     John Deere is the world's leading manufacturer of agricultural and forestry equipment as well as a leader in construction and turf care equipment. Additionally, Deere manufactures engines and powertrains for its own equipment and that of other companies, and provides credit and other financial services to those who purchase equipment.

Florida turns down ‘Ag Gag’ bill; Iowa to consider similar measure
     A measure that would have made it a crime to take certain pictures on a farm without the owner's permission was turned down by the Florida Legislature on Wednesday.
     Under what opponents called the "Ag Gag" bill, photographing or videotaping "abusive, unsanitary or otherwise dangerous or illegal activity on a farm" could subject a person to criminal prosecution and imprisonment.
     It was aimed at animal activists who often are hired under false pretenses and go onto a farm and make undercover videos of alleged livestock abuse.
     Legislators, expressing First Amendment concerns and pressured by activists, stripped the "Ag Gag" provisions from an omnibus agriculture bill that later passed. 
     Meanwhile, the Iowa Legislature is about to take up a similar measure. House File 589 would make it illegal to videotape at farms or other animal operations while undercover.
     In both states, farmers said the legislation is needed to protect the state’s agricultural economy against activists who deliberately cast their operations in a negative light and continue videotaping rather than reporting abuse immediately.
     In Iowa, the House passed the bill last year but it stalled in the Senate – and was later re-written -- after the state attorney general’s office said the bill would most likely face constitutional challenges because of provisions that would have made it illegal to possess or distribute audio or video recordings. The U.S. Supreme Court has previously ruled that films depicting animal cruelty represent the exercise of free speech.

Consumer five-year beef trends provide mostly good news
     A five-year look at consumer data from the checkoff-funded Consumer Beef Index identifies some key trends, including: an ongoing rise in the percentage of consumers that say the positives of beef outweigh the negatives; more consumers saying they intend to eat more beef in the future versus less; and a smaller percentage of consumers saying they have heard a story about a beef “issue” in the news. 
     Of concern, the Beef Board said, is the slightly reduced frequency of weekly beef meals, a trend many consumers tie to the recession and lingering concern about the nutritional merits of beef relative to other protein choices.  

Japan loses track of possibly contaminated cows
     Japanese authorities have lost track of nearly 3,000 dead cows suspected of containing high levels of radioactive caesium, according to news reports. The cows ate rice straw contaminated in the Fukushima nuclear disaster last spring
     Last year Japan's health ministry ordered the testing of more than 4,500 beef cattle suspected of being contaminated with radiation. But according to a leading Japanese newspaper, so far only a third has been tested, with the whereabouts of about 3,000 head of slaughtered cattle remaining a mystery.
     Of the tested meat, about 6 percent were found to contain radioactive caesium above the acceptable safe limit. Food safety experts say, however, that consumers would have to eat a significant amount of contaminated meat to suffer any damage to their health.

January 26, 2012 — Daily News Headlines

LMA ‘very pleased’ to announce Boehringer Ingelheim Vetmedica, Inc., as Platinum Level sponsor for June’s WLAC
     LMA has announced that Boehringer Ingelheim Vetmedica, Inc. (BIVI) is the Platinum Level sponsor for THE 2012 World Livestock Auctioneer Championship (WLAC).
     LMA President David Macedo said the Platinum Level “is the highest level of sponsorship for the WLAC, now in its 49th year, and widely considered the World Series and Super Bowl of the livestock auctioneering profession.
     “We are very pleased to be working with a worldwide leader in cattle vaccine products, a company that shares our members’ concerns about livestock health.”
     BIVI Brand Manager Monica Porter said, “We realized that the livestock auction market owner has a key role in the value that producers capture for the cattle they sell and has a significant influence on the health protocols that producers follow.
     “We want to partner with LMA members to help educate cattle producers on ways to improve their end product through flexible health programs, like our Range Ready Quality Feeder Calf program. Healthier calves pay producers back with repeat buyers.”
     The Range Ready Quality Feeder Calf program, Porter said, “is a preconditioned calf program that offers the convenience of online enrollment, as well as flexible protocols to fit the management styles of producers throughout the country.
     “Upon completion of the protocol, producers are provided a certificate electronically that shows what products were given and when, so buyers can have confidence in the health program behind the cattle they are purchasing.”
     Discussing BIVI’s future work with LMA, Porter said, “The value of being able to talk directly to livestock market owners and getting feedback on what works in different geographical areas is invaluable to our program and planning. We appreciate the partnership we are building with LMA members and the WLAC contestants.”
     BIVI is the U.S. animal health division of Boehringer Ingelheim Corporation, a family-owned company founded in 1885 in Ingelheim, Germany. BIVI recently expanded its vaccine manufacturing facility in St. Joseph, Mo., and continues to dedicate itself to research and development of innovative vaccine products for cattle producers.
     The 2012 WLAC will be held June 16 at Turlock Livestock Auction Yard, Inc., Turlock, Calif.

Report expected to show smallest U.S. cattle herd in 60 years
     Industry analysts are saying that a record-setting drought, record feed costs and intensifying competition with cash crops for land are behind the continuing decline in the U.S. cattle herd, which is forecast to be the smallest in six decades as of Jan. 1.
     USDA's bi-annual cattle inventory report, released on Friday, is expected to show a 1.4 percent drop in cattle numbers from a year ago.  Analysts polled by Reuters news service expect the data to show the U.S. cattle herd at 91.26 million head, the smallest since 1952 and down from 92.58 million a year earlier.
     Friday's figures, analysts noted, should highlight how a shrinking U.S. herd may keep beef and cattle supplies tight for months if not years to come -- even as beef exports boom.
     "This report (on Friday) is expected to confirm what people have been thinking about," says Jim Robb, an economist at the Livestock Marketing Information Center in Denver. He said wholesale beef prices will set record highs in 2012 and 2013.

AFBF urges Congress not to restrict antibiotic use
     The American Farm Bureau Federation has urged Congress to oppose legislation that would restrict the use of antibiotics in livestock and poultry. In letters to Senate and House members, AFBF said the legislation would handicap veterinarians and farmers in their efforts to maintain animal health and protect the nation’s food supply.
     “Farm Bureau members use antibiotics carefully, judiciously and according to label instructions to treat, prevent and control disease in their flocks and herds,” said AFBF President Bob Stallman. “These products are critically important to the health and welfare of the animals and to the safety of the food produced from these animals.”
     AFBF also said that antibiotic use in animals does not pose a serious public health threat.
     “Proponents of the bill suggest that antibiotic use could constitute a public health threat through antibiotic-resistant bacteria in animals being passed along, creating a similar resistance in humans,” said Stallman. “However, in more than 40 years of antibiotics being used to treat animals, such a public health threat has not arisen, and recent government data shows the potential that one might occur is declining.”

USDA revises nutrition standards for school meals
     USDA Wednesday introduced a new rule setting nutrition standards for school meals. It’s the first change in the standards in over 15 years. The changes, which are expected to cost $3.2 billion over the next five years, include sharp reductions in sodium content in meals, minimum and maximum calorie levels, larger portions of fruits and vegetables and more whole grains.
     First Lady Michelle Obama, along with USDA Secretary Tom Vilsack, introduced the new standards at a Washington, D.C. elementary school.  USDA officials are promoting the standards as an important accomplishment of the Healthy, Hunger-Free Kids Act that President Obama signed into law last year.
     As for the standards specific to meat and proteins, school lunches will need to offer at least a minimum amount of meat or meat alternatives daily. The report notes that offering meat or a meat alternative daily “supplies protein, B vitamins, vitamin E, iron, zinc, and magnesium to the diet of children, and also teaches them to recognize the components of a balanced meal.”
     Acceptable protein foods listed by USDA include lean or extra lean meats, seafood, poultry, beans, peas, fat-free and low-fat dairy products and unsalted nuts and seeds.
     For school breakfasts, the final rule, effective over a three-year period starting  July 1, does not require a daily meat or meat alternative. Instead, menu planners may offer a meat or meat alternate in place of grains after the minimum daily grains requirement is met.
     As meat alternates, schools have the option to offer such items as kidney beans, pinto beans, black beans, garbanzo beans/chickpeas, black-eyed peas, split peas and lentils.
     USDA offered a set of school lunch menus, comparing the foods offered today with those meeting the new standards. Changes in entrees include whole-wheat spaghetti with meat sauce and whole-wheat roll in place of a hot dog with ketchup, or oven-baked fish nuggets and whole-wheat roll in place of a breaded beef patty and regular wheat roll.
     And won’t the kids love this? The final rule gives schools the option to offer commercially prepared tofu as a meat alternate in school lunches and breakfasts.

January 25, 2012 — Daily News Headlines

LMA joins several groups in writing House panel on highway transportation issues
     LMA has joined a number of other livestock, farm and rodeo groups in sending letters to the chairman and ranking member of the House Committee on Transportation and Infrastructure expressing their views on three highway transportation measures, soon to be folded into the Highway Bill, an omnibus highway transportation bill that’s currently making its way through the House and Senate. 
     The individual bills would prohibit the transportation of horses on double deck trailers, provide certain highway transportation exemptions for agriculture, and increase truck weights for trucks with an additional axle. 
     Other organizations signing onto the various letters include NCBA, National Chicken Council, National Pork Producers Council, Professional Rodeo Cowboys Association, American Meat Institute, National Turkey Federation, American Farm Bureau Federation and American Trucking Association.
     The letter supporting states having the option to increase truck weights on trucks with an additional axle expressed the agriculture industry’s frustration with “antiquated transportation rules and regulations that are inconsistent and impede the flow of commerce for agri-business.”  The ag groups went on to encourage the inclusion of H.R. 763 in the Highway Bill: a measure giving the states the option to increase truck-weight limits to 97,000 pounds with inclusion of a sixth axle on trucks.
     The letter further pointed out that the federal weight limit has been set at 80,000 pounds for more than 25 years and, as a result, has not kept up with more efficient ways to transport ag commodities and increasing demand for agricultural products.
     A second industry letter addressed current inconsistencies in the nation’s transportation laws that “hinder the flow of commerce for agri-business,” leading to greater transportation costs that “strain the budgets of family-owned businesses.”  In alleviating current ag transportation constraints, the livestock and farm groups signing onto the letter asked that certain ag exemptions be included in the Highway Bill. 
     The exemptions are: (1) creating a uniform mileage exemption for farm-use vehicles exceeding 26,000 pounds; (2) waiving certain driving restrictions during planting and harvest seasons; and (3) exempting certain farm vehicles, including the individual operating the vehicle, from certain federal requirements, i.e., commercial driver’s license, medical certificates and hours of service.
     The third letter expressed strong opposition to provisions in the Highway Bill prohibiting the use of double deck trailers to transport horses, including those transported in trucks especially configured to haul rodeo stock.  This controversial measure (Section 905) would in the view of the ag groups limit their ability to transport horses and “sets a dangerous precedent for the transportation of all livestock and agricultural goods.”
     The letter emphasized the importance the livestock industry puts on the welfare and safety of their animals and that what was needed was “responsible legislation that addresses actual safety concern, not legislation that pushes the agendas of animal rights activist groups.” 
     All of the letters can be found on LMA’s website, www.LMAWEB.com  by going to the “Hot Topics” link.  LMA members are urged to call or send copies of the letters to their U.S. Representatives and Senators in support of LMA’s legislative efforts. 

Deadline Feb. 2 to enter last WLAC qualifying contest
     There’s one more chance to qualify for the 2012 WLAC, and that’s March 8 at Groesbeck Auction and Livestock  Co., LLC, Groesbeck, Texas.
     The postmark entry deadline for the Groesbeck contest is Feb. 2.  Complete contest rules and a downloadable entry form are available at www.LMAWEB.com. Click on World Livestock Auctioneer Championship.

HSUS-UEP egg bill draws criticism from NPPC, NCBA
     The Humane Society of the United States (HSUS) and the United Egg Producers (UEP) announced they would make passage of H.R. 3798, the “Egg Products Inspection Act Amendments of 2012,” a top legislative priority this year.
     Introduced this week, the bill would require egg producers to essentially double the space allotted per hen and take other animal welfare measures. It would also set labeling requirements for eggs and new air-quality standards for hen houses.
     The National Pork Producers Council and NCBA both issued statements opposing the bill on the grounds that it would set a dangerous precedent in terms of federal regulation of animal housing.
     “This HSUS-backed legislation would set a dangerous precedent that could let Washington bureaucrats dictate how livestock and poultry producers raise and care for their animals,” said NPPC President Doug Wolf.  “If enacted, it would open Pandora’s Box for special interest groups to pursue similar federal laws on pig farmers, dairy farmers and other family farming operations.”
     NCBA President Bill Donald agreed, saying, “This ill-conceived legislation could set the model for a one-size-fits-all approach to cattle production…This legislation won’t improve animal health or care and will result in further costly and burdensome regulations being placed on America’s food producers.”
     The legislation would in effect codify an agreement the Humane Society of the United States came to with the egg industry last year.

U.S. beef sales to Japan could soar if curbs are lifted
     U.S. beef exports, on course to set records for a second straight year, may get a further boost as Japan, once the biggest overseas customer for U.S. beef, considers easing trade restrictions.  
     Sales to Japan may jump 43 percent to 202,100 metric tons, the most since 2003, should the restrictions end in the second quarter, Global AgriTrends, a Denver-based research company, estimates. The government may allow the import of U.S. beef from cattle 30 months or younger, up from the current 20 months or younger restriction. That change could happen about the middle of the year, according to Japanese officials.
     “We go to 30 months of age again, all of a sudden most of our cattle are eligible,” said Brett Stuart, the co-founder of Global AgriTrends and a former economist for the U.S. Meat Export Federation. “We go from a restriction that probably was only allowing 30, 35 percent of U.S. cattle to provide cuts for Japan and we take that percentage up to roughly 90, 95 percent.”

January 24, 2012 — Daily News Headlines

First time in any auctioneer competition, Kansan, 18, wins Greeley qualifying contest for 2012 WLAC
     GREELEY, COLO. – It was his first time in any auctioneer contest, and Blaine Lotz, 18, made the most of it. He won LMA’s 3rd qualifying contest for the 2012 World Livestock Auctioneer Championship (WLAC)
     Lotz, who studied at a Montana auction school when he was 15 and started livestock auctioneering the year he turned 16, defeated 19 other contestants in competition held here Jan. 17, hosted by Greeley’s Producers Livestock Marketing Association.
     Asked how he felt when his name was called as champion, Lotz, of Edna, Kan., said, “To tell the truth, I was very shocked to place as well as I did, considering the competition.”
     He is a freshman at Coffeyville Community College, Coffeyville, Kan. In addition to being a full-time student, he works 2-5 sales a week.
     The reserve champion here was Kevin Schow, Paxton, Neb., and the runner-up champion was Russele Sleep, Bedford, Iowa. The three winners are guaranteed a spot in this summer’s WLAC. That’s also true for the next five highest-scoring contestants in the contest here. 
     They were, in alphabetical order, Mike Bailey, Jennings, Kan.; Jeff Bynum, Southside, Ala.;  Dustin Focht, Stillwater, Okla.; Martin Machado, Winton, Calif., and Daniel Mitchell, Cumberland, Ohio.
     The June 16 world championship will be held Turlock Livestock Auction Yard, Inc., Turlock, Calif.
     First-timer Lotz isn’t worried about the California competition, which will include many veteran contestants. “I’m just thrilled to death to be able to rub elbows with contestants of such a caliber.”
     Nor is he bothered that he will almost certainly be the youngest contestant in Turlock. “No, not really,” he said.  “I am young, but I’m willing to learn, and I’m looking forward to participating.”
     Lotz was sponsored by South Coffeyville Stockyard, Inc., South Coffeyville, Okla., and Fredonia Livestock Auction, Fredonia, Kan.
     Reserve Champion Schow is one of those veteran contestants moving on to Turlock. This will be his sixth time in the WLAC, where he finished among the 10 finalists in 2009 and 2010.
     At the age of 41, he’s been an auctioneer for about 18 years. “My Dad was my inspiration to become an auctioneer,” Schow said.
     And no wonder: if he wins in Turlock, Kevin will be the second world champion in the Schow family.  His father, Dean, won the top title in 1980. Kevin Schow was sponsored by Ogallala Livestock Auction Market, Inc., Ogallala, Neb., and Ranchland Livestock Auction, Inc., Wray, Colo.
     For Sleep, the runner-up champion and an auctioneer for seven years, this June’s WLAC will be his third. His highest finish to date was last year, when he was one of the ten finalists.
     What keeps him coming back? “It’s just a great group of guys. The auctioneers and the livestock people connected with the contest are just one big family – that’s what I like about it.”
     Sleep’s sponsors were Russell Livestock Market, Russell, Iowa; Clarinda Livestock Auction, LLC, Clarinda, Iowa; Madison County Livestock Auction, Winterset, Iowa; SEK Stockyards, LLC, Gas, Kan., and Fort Scott Livestock Market, LLC, Fort Scott, Kan.
     A cash award and a custom-made belt buckle goes to the winner in each of the four qualifying contests. The reserve and runner-up champions also receive custom buckles.
     The eight highest scorers in each qualifying contest, along with the reigning International Livestock Auctioneer Champion – Rod Burnett, Armstrong, B.C. – make up the field of 33 for the 2012 WLAC.
     The fourth and final qualifying contest will be March 8 at Groesbeck Livestock and Auction Co., LLC, Groesbeck, Texas. The qualifying contests and the WLAC are broadcast live at www.LMAAuctions.com.
    
FAWC urges House members not to co-sponsor ‘downed animal’ act
     The Farm Animal Welfare Coalition (FAWC), which includes LMA, has written all members of the U.S. House, urging them not to co-sponsor HR 3074, the “Downed Animal & Food Safety Act,” which seeks a federal law banning non-ambulatory livestock from entering the nation’s food supply.
     FAWC pointed out the current 112th Congress is the fifth consecutive Congress in which animal rights groups, led by the Humane Society of the U.S. (HSUS) and Farm Sanctuary have sponsored the measure, which FAWC said demands the Congress “interfere in actions underway or already taken by the U.S. Department of Agriculture (USDA), as well as in the routine science-based practices of the livestock and meat processing industries.”
     FAWC said the bill “represents the height of redundancy and a waste of congressional and USDA time and federal tax dollars. Industry has moved quickly and responsibly over the last decade to ensure appropriate classes of nonambulatory animals do not enter the food supply.”   
     HR 3704 is also premature, FAWC wrote, since USDA “is currently reviewing two petitions – one from HSUS, the other from Farm Sanctuary – calling for department action to accomplish exactly what HR 3704 alleges is necessary, i.e., the immediate death of all nonambulatory livestock presented at slaughter no matter the reason or temporary nature of these animals’ inability or unwillingness to stand or walk under their own power.”
     To bolster its claim the legislation is “unnecessary and redundant to USDA and industry actions,” FAWC cites six specific actions, between 2003 and 2011, taken by USDA and the industry to ensure that nonambulatory animals are not allowed in the food supply.
     As these actions by the industry and USDA have demonstrated, FAWC wrote, “appropriate, science-based actions to ensure the proper handling of nonambulatory livestock while ensuring the safety of the U.S. food supply have been and continue to be taken.” 
     The letter concluded, “We respectfully request Congress act prudently to conserve its time and resources for the significant challenges we face and not legislate to mollify animal rights political pressure.”
     Signing the letter along with LMA were the American Farm Bureau Federation, the American Feed Industry Association, the Biotechnology Industry Association, the National Pork Producers Council, the National Milk Producers Federation and the National Renderers Association.

Supreme Court overturns California downer law
     In a long-awaited decision that favored the National Meat Association, the U.S. Supreme Court unanimously ruled Monday that in the case of NMA vs. Harris, the Federal Meat Inspection Act (FMIA) preempts a 2008 California state law regulating the handling of nonambulatory livestock at slaughtering facilities beyond the scope of the FMIA.
     The California law not only prevents the purchase, selling or receiving of nonambulatory livestock by slaughtering facilities, but also requires the facilities to immediately euthanize “downer” animals and forbids the selling of its meat. National Meat Association officials were pleased with the decision.
     “We couldn’t be more pleased that the Supreme Court not only found in favor of our very clear and reasonable arguments, but that they did so unanimously,” said NMA CEO Barry Carpenter in a news release.
     A preemption clause was added to the FMIA by Congress in 1967. As the Court pointed out in its opinion written by Justice Elena Kagan: “The clause prevents a State from imposing any additional or different – even if non-conflicting – requirements that fall within the scope of the Act and concern a slaughterhouse’s facilities or operations. And at every turn (the California law) imposes additional or different requirements on swine slaughterhouses: It compels them to deal with nonambulatory pigs on their premises in ways that the federal Act and regulations do not.”

NY meat processing plant to break ground this summer
     After securing a federal grant covering most of its construction costs, a meat processing plant in Sullivan County, N.Y., will break ground this summer.
     The Southern Catskills Red Meat Processing Facility has won final site plan approval from officials in the town of Liberty and construction will begin in early summer, said Allan Scott, CEO of the Sullivan County Industrial Development Agency (IDA). He expects the plant to open for business sometime this year.
     The plant is expected to help local livestock producers to supply high-end meats to markets and restaurants in the New York metropolitan area and reduce the time farmers previously needed to process their livestock. The plant is expected to employ five full-time employees and support more than 50 new agricultural jobs once it opens.

January 23, 2012 — Daily News Headlines

Cattle on feed up 3 percent, placements in December drop 6 percent
     As most industry analysts expected, Friday’s USDA monthly cattle on feed report showed  that the prolonged drought in the southern plains has led to fewer cattle available for placement into feedlots, and the December placement figure was 6 percent below December, 2010.
     Marketings out of feedlots during December totaled 1.80 million head, down 2 percent from December,  2010.  Total number on feed as of January 1 was 11.9 million head, 3 percent above Jan. 1, 2011.
     The increase in the total number on feed, compared to a year ago, is not surprising given the rapid increase in placements last summer and fall, analysts said.

Livestock feed supplies sufficient, USDA says
     With hefty numbers of cattle in feedlots, many producers are concerned about feed supplies in the coming year: will there be enough?
     USDA’s latest Feed Outlook says even though more cattle were in feedlots, there is sufficient  corn on hand, and enough to offset lower sorghum production.  The feed grain supply for the current marketing year is forecast at 358 million metric tons (MMT), with total feed use for the current marketing year at 334 MMT, reflecting higher corn exports. 
     Domestic use is expected to be 290.5 MMT, down slightly reflecting lower projected feed use and lower sorghum supplies.  Barley and oat production was unchanged.
    
International trade big reason for soaring 2011 cattle prices, says MU’s Ron Plain
     U.S. cattle prices hit record highs in 2011 and a good portion of the credit goes to international trade, University of Missouri Extension Ron Plain said in a new report The U.S. exported more beef in the first 11 months of 2011 than in any previous calendar year, and through November, 10.6 percent of U.S. beef production was exported.
     The three biggest growth markets for U.S. beef exports are Canada (up 106 million pounds compared to January-November 2010), Japan (up 99 million pounds) and South Korea (up 97 million pounds).
     U.S. beef imports during the first 11 months of 2011 were down 11.9 percent compared to a year earlier. Shipments from Canada were down 21.2 percent, imports from Australia down 23.1 percent and Brazil down 40.0 percent. Through November, beef imports equaled 7.9 percent of U.S. beef production.
     Cattle imports during November were down 7.7 percent compared to 12 months earlier. During the first 11 months of 2011, cattle imports were down 10.3 percent with cattle from Canada down 36.3 percent but imports from Mexico were up 14.2 percent. When the totals for 2011 are in, imports of cattle are likely to be close to 2 million head, down 10 percent from 2010 and the lowest since 2005.

Beef packing plant in central Iowa to reopen this spring
     A beef packing plant in Tama, Iowa, closed since 2004, is reportedly reopening this spring and will eventually hire 350 employees. However the Des Moines Register recently reported residents remain somewhat skeptical about the reopening, as the plant has closed and reopened several times before. The plant most recently closed in 2004 after U.S. beef exports declined with the mad cow disease scare.
     Cattlemen see the need for the slaughter plant centrally located in the state with Iowa’s feedlot population increasing over the past decade. USDA reported Iowa’s feedlot population has increased from 350,000 in 2001 to 610,000 last month, making it the fifth-largest cattle-feeding state.
     The 106,000-square-foot plant will open with an initial daily kill of 50 to 80 head, slowly building up to a maximum slaughter of 800 cattle per day.

Germany wants EU-wide animal welfare label on meat
     Germany will press the European Union to introduce a label on meat saying it came from humanely raised farm animals, German agriculture minister Ilse Aigner said last week. The move would be part of a new German government program to improve farm animal welfare, she said.
     An EU-wide label on meat to show consumers that the animal was reared humanely should be introduced, she said. "This will make it possible for consumers to recognize products which were produced using a very high level of animal welfare," she said, adding that it would not be practical for Germany to make such a move alone.
     Farm animal welfare is part of a program for agriculture and consumers setting out a series of medium and long term goals for German farm policy announced by Aigner.
     The program said the amount of space farm animals receive and their freedom of movement were key factors for animal welfare. The actual definition of humanely-reared still needs considerable research, said a report from a ministry working group preparing the program


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