World Cattle News:

[mikey]

Friday, May 02, 2008Print This Page
Grain Drain: A Chinese Affair with Meat
CHINA - A change in Chinese meat consumption habits since 1995 is diverting eight billion bushels of grain per year to livestock feed and could empty global grain stocks by September 2010, according to a new study from Biofuels Digest.



The study, "Meat vs Fuel: Grain use in the U.S. and China, 1995-2008," concluded that a complete shutdown of the U.S. ethanol industry would extend the deadline only until 2013.

"It's not food, it's not fuel, it's China," said Jim Lane, editor of Biofuels Digest and author of the report.

The study determined that China's meat consumption since 1995 has increased by 112 percent to 53 kilograms per person per year.


--------------------------------------------------------------------------------
*
"It's not food, it's not fuel, it's China" 
Jim Lane, editor of Biofuels Digest
--------------------------------------------------------------------------------
 
"If the Chinese people had consumed the same amount of meat, per person, in 2007 as in 1995, there would have been enough grain left over to support 927 million people with food for an entire year," said Lane.

The study found that the U.S. increased corn production by 157 million tonnes of corn since 1995. 31 million net tonnes of grain went to support U.S. ethanol production, and 27 million tonnes supported a 15 percent increase in U.S. population during the period. By contrast, the study projected that livestock grain demand to supply Chinese meat consumption increased by 199 million tonnes between 1995 and 2007.

"Given that the U.S. population grew 15 percent, the 82 percent increase in U.S. corn production left plenty for people, plenty for livestock, and plenty for ethanol," said Lane. "The bad news is that we have a global fuel and food crisis of the first magnitude. The only good news is that it's easier to find a steak in Beijing."

The study tracks the meteoric growth in Chinese meat consumption since 1983, a trend spotted early by commentator Lester Brown in his prescient article "Who Will Feed China?" In 1995, meat consumption was 25 kilograms per person, reaching 31 kilograms by 1999, 50 kilograms by 2000, and is 53 kilograms per person today.

"Chinese meat consumption is still 45 percent less than the average consumption in the U.S.," Lane warned. "An additional 277 million tonnes of grain would be needed to support China at parity with the U.S. That would take 68 million acres to grow. There isn't that kind of arable land available anywhere is the world, whether we use grains for renewable energy or not."

The study is available for free download at www.biofuelsdigest.com.

Biofuels Digest is the world's most widely read biofuels daily, providing a free daily summary of biofuels news via web, email and RSS to subscribers at more than 1500 organizations.

[mikey]

Thursday, May 01, 2008Print This Page
First Cattle Get Their Vaccine Jab
UK - Cattle at Bixley Farms in Norfolk were today (1 May) the first animals in the country to be vaccinated against Bluetongue serotype 8 as over one million doses are delivered for animals in the Protection Zone on the first day of the vaccine roll-out.


Intervet, the animal health company behind this new vaccine, isolated the Bluetongue serotype 8 virus in September 2006, soon after the first European outbreak, and started an emergency programme to develop a suitable vaccine. The vaccine has gone from research & development to full-scale production in a record-breaking 20 months rather than the usual five to ten years and its delivery is ahead of schedule.

Under EU law, vaccination is only allowed in a Protection Zone and Defra's vaccination roll-out plan sets out how the vaccine will be distributed to ensure that those livestock most at risk are the first to receive it.

Defra awarded the vaccine tender to Intervet in December after a three-way bid. The company was chosen on the strength of the vaccine's technical credentials, the fact that it requires only one dose for sheep, the speed at which the vaccine could be manufactured and a price point that would encourage maximum uptake by the agricultural community.

David Hallas, general manager from Intervet UK, part of Schering-Plough, comments: "Since Defra placed its order for 22.5 million doses, we have been working around the clock to provide a vaccine to help fight this devastating disease. It is a testament to all those involved at Intervet, Defra and the regulatory authorities that we are ahead of schedule in releasing the vaccine and will be able to help the farming community protect livestock in time for the peak midge season. More doses of the vaccine will be delivered over the next few weeks and months and we expect to complete the Defra order by August."

Tim Cane, farm manager at Bixley Farms, comments: "Bluetongue is a particularly horrific disease and whether you are a smallholder with a few animals or a farmer with a large commercial enterprise it's our duty to ensure that as many sheep and cattle in the protection zone as possible are vaccinated to help prevent the disease from spreading."

[mikey]

Friday, May 02, 2008Print This Page
The Future of Health in GM Livestock
NETHERLANDS - In the coming years, innovation in Animal Husbandry will partially stem from knowledge on the role and functioning of hereditary material in animals.


 
Prof. Dr. Mari Smits

The Animal Husbandry sector can benefit from this knowledge because this knowledge can be used to improve animal health, which in turn will contribute to increase sustainability of Animal Husbandry. The above remarks were made by Prof. Dr. Mari Smits on the acceptance of his duties as professor holding a personal chair in Functional Genomics at Wageningen University on Thursday.

Insight into the functioning and the regulation of genes will strongly increase through the application of all kinds of techniques that are now becoming available, according to Prof. Smits in his inaugural address, Genes in Action. Through this, we are continually discovering more about the way in which animal traits develop; not only the animal's genes but also environmental factors play an important role in this development.

All kinds of techniques are also becoming available with which genetic differences between animals can be determined more rapidly. Smits expects to see analysis equipment on the market within three to eight years that will be able to map the entire genome of an individual animal within a few hours.

Animal Health
Smits anticipates that the knowledge in the field of functional genomics will find application in many areas including animal health. A higher degree of animal health contributes to the sustainability of the Animal Husbandry sector, which society likes to see. One of the areas where Smits sees opportunities is the development of improved vaccines.

Currently, vaccines are being developed purely on the basis of knowledge of the pathogen alone and the efficacy of these vaccines is further improved by trial and error. With a better knowledge of the role and activities of host genes during host - pathogen interactions, we get insight into the mechanisms the animal host is using to combat invading pathogens. This increased knowledge on host -pathogen interactions and the variation herein between animals, can be used in developing more effective newer generations vaccines. Additionally, the resistance of, for example, chickens against salmonella may also be increased through sophisticated breeding programmes focussing on genetic variation with an effect on the genes that play a role in the chicken's response to salmonella.

Another application of functional genomics lies, according to Smits, in the relationship between animal nutrition and animal health, i.e. nutrigenomics. He thinks that with this knowledge, the health of the animal can be influenced by nutrition.

[mikey]

Friday, May 02, 2008Print This Page
Mad Cow Rumours Contagious on the Net
SOUTH KOREA - Ever since Korea agreed to open its doors to US beef the internet has been rife with exaggerated, confused and often, entirely fictional, rumours over mad cow disease. The scaremongering attack has brought about a sense of great concern over US beef.



According to Chosun, this was not helped by the airing of an edition of “PD Diary”, the famous MBC current affairs program, on Tuesday, which claimed that 94 percent of Koreans have genes that make them more susceptible than Americans or Britons to Creutzfeldt-Jakob Disease (CJD), writes the news agency. CJD is the human variant of mad cow disease, and this physical trait makes Koreans two to three times more likely than Americans or Britons to contract the disease.

A tepid and delayed response from the government is only fueling fears. The personal blog of President Lee Myung-bak, who promised that resuming import of U.S. beef will bring high-quality and low-priced beef to the table, has been virtually shut down by Internet users who bombarded it with messages protesting against the decision.

Even madly unscientific rumors like, “Jelly, cookies, a broiled dish of sliced rice pasta and pizza will cause mad cow disease,” or, “Cosmetic products, sanitary napkins, and diapers are also risky because parts of cattle are used in production,” exhorting consumers to hoard such items before the imports, are spreading on the Internet.

[mikey]

Friday, May 02, 2008Print This Page
Weekly Australian Cattle Summary
AUSTRALIA - This report is a collection of weekly cattle price summaries from each Australian state by the Meat & Livestock Australia.


Victoria
Numbers increase
Returning to a full working week following the Friday Anzac day holiday, cattle numbers at MLA’s NLRS reported centres rose by 18%. Despite this, there were reduced pennings in the Western Districts and Gippsland regions. With the final month of autumn, and conditions becoming cooler, even the odd frost has poked its head out in northern areas, which was not all that well received at all following some good rains over last weekend. This will in all probability lower the supply of better quality well finished cattle of all categories right through-out the state especially going into the winter months. There remains an even spilt between heifers and steers, both in the vealer and yearling portion, although there have been more heifers sold off this year than there was during the first four months of 2007.

Most of the remaining supplementary and grain fed cattle are likely to become scarcer, and local butchers in several regions will need to source older cattle for their requirements, even so in the past few weeks this has already happened in some parts of the state. Over recent weeks, the better quality cattle have distanced their poorer quality counterparts for price. This factor became more evident as a number of very poor quality young cattle sold well below 100c/kg. In comparison most well bred and finished young cattle sold at price rates generally between 180c to 220c/kg. Older cattle prices have varied but lately seem to be stabilising to a more consistent price rate.

Quality sells best
Demand for steer vealers averaged 9c to 10c for the top B muscles, but the heifer portion averaged cheaper, most made between 186c to 237c/kg. The C3 steer vealers averaged 185c and heifers sold for 165c to 175c/kg. The best B2 yearling steers made to a top of 225c/kg. The C3 indicator averaged around 176c/kg. Yearling heifers made to a top of 210c with the C3 indicator averaging close to 165c, which was 1c to 5c/kg dearer.

The C3 and 4 score heavy grown steers averaged 6c to 8c dearer making from 151c to 181c, with the C4’s averaging 172c, to be 6c/kg dearer. The C4 bullocks averaged 6c dearer, at 148c to 177c/kg. The extra heavy bullocks made 157c to 162c/kg for the 4 and 5 scores. Older grown heifers generally sold to stronger demand both from trade and export buyers with most categories improving by 2c to 8c/kg across the weeks trading.

Cow prices again were inconsistent over the week. Light 1 and 2 scores up to 400kg ranged from 3c cheaper to 6c dearer, at 70c to 122c/kg. Heavy 3 and 4 score beef cows made from 114c to 156c, with most unchanged to 4c/kg dearer. Heavy Friesian cows sold for 106c to 142c, a rise of 4c to 8c/kg. Most beef cows averaged between 260c and 280c/kg cwt.
New South Wales
Quality and numbers decline
A burst of cold weather early in the week, accompanied by some useful rain in some areas, had a marked impact on a number of selling centres. Consignments were substantially reduced at most sales but the recent drop in stock quality was more pronounced as the impact of deteriorating pasture and colder temperatures takes hold in most regions. Falls of 10mm to 20mm and up to 30mm in more favoured districts will give producers some optimism that a substantial seasonal break can occur before the depth of winter sets in but useful pasture and crop growth is still some weeks away in most areas. The quality and composition of yardings this week indicate most producers are not overly confident of being able to fatten stock before next spring. Hence, light and under-finished young cattle were prevalent in generally smaller offerings.

The total number at NLRS reported centres was 15,094 head. Wagga, Gunnedah and Tamworth had had significant reductions of 1170, 843 and 638 head respectively. The notable exceptions were the Thursday sales of Dubbo and Armidale which had smaller yardings last week due to the ANZAC holiday on Friday. Most centres yarded ample 2 score young cattle suitable for feeders and restockers and a number reported reduced finish and yield in those cattle bought by the trade.

The scarcity of heavy steers and bullocks at auction centres was again pronounced. Only Casino reported good quality and supply with all other centres yarding limited numbers of mainly plainer quality. Prices generally eased by around 5c/kg. A better selection of cows managed to hold rates in most cases.
Market struggles
Despite lower numbers at most centres, prices generally eased across most descriptions. Restockers were strong on the best vealer steers, helping push the average price across all sales for medium weight C2s up 7c to an average of 184c after reaching 205c/kg. Most of the heavier vealer steers also went to restockers but medium weights slipped 2c to average 178c/kg. The few bought by the trade were slightly dearer, ranging from 160c to 197c/kg. Light and medium weight yearling steers to restock were firm to 2c cheaper, most making 160c to 167c/kg. The 2 score medium weight feeder steers were 2c cheaper at an average of 160c, however the 3 score pens averaged 10c dearer at 171c/kg. Heavy weight yearling steers to the trade lifted 3c to average 168c after reaching 191c/kg. Yearling heifers were mainly easier to feeders and restockers but the medium and heavy weights to processors were 5c to 6c dearer, reaching 194c to average 162c/kg.

Grown steers met weaker competition for most categories although quality was generally plainer. Best heavyweights made from 150c to 175c/kg. Grown heifers were slightly dearer, reaching 169c to average 144c/kg. Cow prices varied between weight categories with medium and heavy weights firm to 2c/kg cheaper. Most made from 115c to 145c/kg. Lighter weights were around 10c/kg dearer.
Queensland
Colder weather affects yield
The continuing dry weather combined with colder temperatures is showing in the quality of the cattle being offered. While some centres recorded small increases in supply, overall at physical markets covered by MLA’s NLRS numbers fell by 22%.

Markets early in the week saw cows suffer further price reductions of 3¢ to 6¢/kg. Values for steers and bullocks struggled at times, nevertheless average prices achieved were close to firm. Apart from a few selected lines the majority of young cattle met a cheaper trend, with a small slip in quality resulting in a big fall in value.

With winter almost upon us and frosts already reported in low-lying districts, is reflected in the quality of most cattle. Calves and vealers are the most noticeable as cows start to dry off in milk supply, and this in turn is lowering yield.

At Dalby the slide in cow prices experienced recently came to a halt with rises of 2¢ to 3¢/kg. Steers and bullocks also showed a small price improvement, with a larger number of good heavy bullocks penned. There was a wide variation in the quality of the young cattle and prices fluctuated accordingly, nevertheless apart from secondary grades there was a general upward trend in the market. Calves to restockers were dearer and a large selection of vealer heifers attracted stronger competition from the trade to lift in value by over 10¢/kg. Restocker categories of yearling steers sold to better competition and feeder classes also enjoyed a stronger market however feedlot operators were selective.
A dearer trend
A small number of calves sold to the trade at 168¢, and the largest numbers returned to the paddock around 189¢, with a few sales to 214.2¢/kg. A fair sample of vealers steers sold to restockers at an average of 194¢ with some to 204.2¢/kg. Vealer heifers to the trade averaged 9¢ dearer at 163¢, while butchers at Warwick had to pay up to 209.2¢ for the very small selection of better grades. Lightweight yearling steers to restockers and feeder operators showed improvements with feeders at 162¢ and restockers just under 180¢/kg. Yearling heifers in the D2 range were in the largest numbers and improved 5¢ to average 138¢/kg. Slaughter categories gained 2¢ to 9¢ to average in the high 150¢/kg range, the occasional B muscle line reaching 207.6¢/kg.

Medium weight grown steers to feed experienced a lift of 6¢ and sold from 151¢ to 169.2¢/kg. Heavy steers suited to the export slaughter market averaged 3¢ dearer at 169¢/kg. A larger supply of good heavy bullocks also improved 3¢ to average 171¢ the very occasional sale to 183.6¢/kg. Medium weight score 2 cows averaged 108¢ with the largest numbers of score 3s at 118¢/kg. Good heavy cows generally sold at 134¢ with some old stud cows reaching 149.6¢/kg.
South Australia
Numbers up despite rain
Despite some useful rainfall in some regions over the weekend, it was surprising that the SA LE yarding increased as did Naracoorte and Mt. Gambier. Millicent after a fortnight’s break was the only market to fall.

While quality improved at the SA LE there was also strong competition from the usual buying fraternity, with the addition of two Victorian buyers adding to the mix at generally dearer levels. There was also several large drafts of pastoral cattle offered that attracted feeder activity for both steers and heifers. Feeder orders also sourced well bred 2 and 3 score lightweight steers at dearer levels, while local butchers and wholesalers pursued a better selection of vealers that suited their requirements.

Grown steer numbers while remaining low in the Lower South East increased slightly. Producers seem to be waiting for physical market prices to rise consistently above the 170¢/kg mark before yarding large numbers again. However, there is still some thought that there may not be that many left when producers have opted to chase the feedlot prices.

Naracoorte’s and Mt. Gambier’s quality slipped, although like the SA LE sale any stock showing the desired finish were keenly pursued by wholesalers and processors at mainly dearer levels. Feeders and restockers were again active over a wide range of weights and quality. Cow prices were generally dearer with some excellent quality EU accredited beef cows selling to a peak of 158¢/kg.
Good quality dearer
Only a small number of vealer steers finished with the trade, while the greatest percentage sourced by feeder and restocker orders. The wide range of quality offered led to a wide spread of prices mainly between 150¢ and 187¢ to feeders and restockers, and up to 223¢/kg to the trade. This left most sales ranging around 9¢/kg either side of unchanged. Vealer heifers followed a similar pattern as most attracted prices between 140¢ and 192¢, with isolated B-muscled sales to 225¢, at rates ranging from 2c to 8c cheaper, up to 3¢ to 11c/kg dearer. Most yearling steers were 3¢ to 18¢ dearer as feeders and the trade vied to source a wide range of quality mainly between 150¢ and 188¢/kg. Yearling heifers were also keenly sourced by wholesalers for their better finish as most attracted prices between 142¢ and 192c¢, with feeder and restocker purchases stretched out from 74¢ for pastoral heifers, up to 175c/kg for C2 medium weights.

Grown steer and bullock prices were 1¢ to 7¢ dearer as C3 and C4 sales ranged mainly between 168¢ and 178¢/kg. Cow prices were dearer for heavy beef cows, while being 2¢/kg cheaper for 1 and 2 score dairy cows.

[mikey]

Friday, May 02, 2008Print This Page
In The Cattle Markets
US - A weekly review of the cattle market by Dillon Feuz, Ph.D., Professor, Department of Economics, Utah State University

 

Grass Cattle Economics
Federal government mandates for ethanol are creating an artificial demand for corn and driving up not only the price of corn, but also the price of other grain and oil seed crops. This has in turn dramatically increased the cost of gain in feedlots. Just two years ago, total feedlot cost of gain was in the $45-50 per hundred pounds of gain range. Today total feedlot cost of gain is closer to $90 per hundred pounds of gain. In addition to the obvious consequences of this being a loss of profitability in the cattle feeding sector and downward price pressure on feeder cattle prices, another consequence has been a renewed interest in stocker programs that include grazing cattle on grass. In general, if weight can be placed on feeder cattle for less than $90 per hundred pounds of gain on a grass stocker program, then it should be more profitable than placing those feeders in a feedlot.

In reviewing recent market quotes from Montana, Wyoming, South Dakota, and Nebraska it appears the market for lighter 6-weight steer calves is in the $111-121 per cwt. range. If we assume a market price of $116 per cwt. then a 625 pound steer would cost $725 per head. Let’s assume you can rent grass for $20 per head per month for yearlings from May through August. That is a cost of $80 for the four months. Veterinary, medicine, tags, death loss and other non-labor cost are probably about $22 per head and interest on the calf and other costs would be about $18 per head. Total costs for the summer would be about $120 per head. If the yearling steers averaged 1.67 lbs. per day gain for 120 days, then total gain would be 200 lbs. The cost per pound of gain would be $0.60 ($120/200 lb). The break-even value for an 825 lb. steer on September 1, would then be $102.42 per cwt. ($845/825lbs).

Near the end of April, September Feeder Cattle futures were trading near $110 per cwt. The basis for an 825 lb. steer in Nebraska is typically $1 in September. Therefore, based on the current futures market, one might expect 825 lb. steers to be priced at $111. If my numbers are correct, returns from placing light 625 lb. steers on grass would be $70.75 per head. One factor leading to these higher grass returns is that the present expectations for fed cattle prices increases into fall and winter. Therefore, delaying entry into the feedlot and hence delaying the time that these feeder cattle will be finished will also add value due to the increase in fed cattle price.

The Markets
Slaughter cattle prices were $2.00-3.00 higher in the south with active trade, and prices were $3-4 higher in the north with active trade on Thursday. Prices were mostly $92 in the south and were $150 in the north. Choice boxed beef prices were higher again as well this week compared to last week. Choice prices have increased over $13 per cwt. in the last two weeks. The Choice-Select spread increased last week but still remains historically narrow. Feeder cattle prices were steady to higher in Kansas and were mixed in Nebraska this past week. Prices ranged from $5 higher for 7-weight steers in Kansas to $1 lower for 5-weight steers in Nebraska. Corn prices were down $.25 a bushel at Omaha, just under $5.50 per bushel and the Dried Distillers Grains were $4 per ton higher for the week.

Cattle or Meat Category Week of
4/25/08 Week of
04/18/08 Week of
04/27/07
Kansas Fed Steer Price, live weight $92.00 $89.80  $96.34
Nebraska Fed Steer Price, dressed weight $150.00 $146.52 $154.71
700-800 lb. Feeder Steer Price, KS 3 market average $109.72 $104.61 $111.33
500-600 lb. Feeder Steer Price, KS 3 market average $122.31 $122.23 $126.94
700-800 lb. Feeder Steer Price, NE 7 market average $104.92 $104.33 $109.32
500-600 lb. Feeder Steer Price, NE 7 market average $119.98 $120.86 $130.34
Choice Boxed Beef Price, 600-900 lb. carcass $154.50 $149.03 $161.54
Choice-Select Spread, 600-900 lb. carcass $3.20 $2.26 $13.01
Corn Price, Omaha, NE, $/bu (Thursday quote) $5.47 $5.72 $3.45
DDG Wholesale Price, Iowa, $/ton $172.50 $168.50 $107.50

[mikey]

Monday, May 05, 2008Print This Page
Halal Variety of Luxury Kobe Beef Takes the Spotlight
MALAYSIA - To indulge in Kobe beef is to allow yourself to eat well and sin. Kobe beef, as most of us are aware, comes from cattle that have been spoilt rotten, massaged and fed on a diet of beer and sake.


This practice of pampering the black Tajima-ushi breed of Wagyu cattle in Japan helps relieve stiff muscles, which is believed to show in the tenderness of the beef.

The beef's highly marbled texture is what makes it so popular as the fat, which breaks down during the cooking process, lends much of its flavour to the overall cut.

So tender is a serving of Kobe that many get addicted to it.

The place for meat lovers: The elegant outlet is known for serving fine beef and lamb.

However, the alcoholic cattle do not find favour with those who abstain from alcohol, and as such, Kobe beef has been privy only to those without any restriction in their diet.

Le Meridien Kuala Lumpur executive chef Antoine Rodriguez said most beef lovers were not aware of the Master Kobe variety.

"Master Kobe is only used to describe the very elite, purebred Wagyu with marble scores of nine and greater.

"These Wagyu cattle from Australia are grain fed non-stop and their marble texturing is delicate and certainly higher than Wagyu cattle that have marbling scores of six and above," said the chef, who received the Executive Chef of The Year award at the Hospitality Asia Platinum Awards 2007/2008.

The other thing about Master Kobe beef is that these Wagyu cattle are not fed alcohol.

"The Master Kobe is in fact a halal variety and we have certification for it," chef Rodriguez said.

In fact, Rodriguez has to reserve his orders for the luxury meat, months in advance with the suppliers in Australia.

[mikey]

Monday, May 05, 2008Print This Page
World Beef Production to Rise in 2008
US - The latest forecasts released by the United States Department of Agriculture (USDA) report that global beef production will grow by one per cent (483,000 tonnes) in 2008 to almost 61 million tonnes.


According to LMC, total beef consumption is expected to rise by 554,000tonnes to 60.5 million tonnes.

The USDA reports that global beef exports will grow one per cent to 7.7 million tonnes, but there will be little change to global imports at 7.2 million tonnes. Global

Global production 61 million tonnes
Global beef production will rise due to increasing levels of output in the US, Brazil, China, India and Mexico. These increases will more than offset falling beef production in the EU, Argentina, Australia, the Russian Federation and Canada. Output in the US, the largest beef producer, will increase by one per cent to 12.2 million tonnes because of strong levels of cow slaughterings and heavier carcase weights. Production will increase by three per cent in China to 7.7 million tonnes and by six per cent in India to 2.66 million tonnes. EU beef production is forecast to fall by one per cent to 8.1 million tonnes, with Australian output falling six per cent to 2.08 million tonnes. Beef production in the Russian Federation will drop by two per cent to 1.34 million tonnes, a decrease of 16 per cent compared to 2004.

Consumption +1% to 60.5 million tonnes
While beef consumption will remain unchanged in the US in 2008 at 12.8 million tonnes, total global consumption will rise due to increasing demand in the main developing economies of the world. Demand in China will grow by four per cent to 7.7 million tonnes, with consumption in Brazil increasing three per cent to 7.6 million, due to more beef on the home market because of the EU import ban. Demand in the Russian Federation will grow by three per cent to 2.5 million tonnes. It will rise in India by five per cent to 1.9 million. EU consumption will fall one per cent to 8.6 million tonnes, with demand slipping by two per cent and six per cent in Japan and Canada to 1.16 and 1.03 million tonnes respectively.

International Trade grows
Beef exports will rise by one per cent in 2008 due to increased exports from India, the US and Uruguay. Exports from Brazil, the largest exporter, will remain steady at 2.2 million tonnes. The US will continue to be the largest market for beef imports, but demand for imported beef will fall by four per cent to 1.3 million tonnes due to increased domestic production. Demand in the Russian Federation will rise by 10 per cent to 1.1 million tonnes, but imports to Japan and the EU will contract by 5 and 14 per cent to 650,000 and 550,000 tonnes respectively.

Single Application Closing Date Reminder
Producers are reminded that the closing date for submitting their 2008 Single Application Forms is Thursday 15 May 2008. Applications received by DARD after 15 May and up until 9 June 2008 will incur late penalties. Forms received after 9 June 2008 will be rejected. So far approximately 8,000 applications have been received by DARD.

OCDS ENDS IN DECEMBER 2008
The Older Cattle Disposal Scheme (OCDS) payment rate for May 2008 has decreased by £1.39 to £230.99 per head due to the Euro / Sterling exchange rate weakening by one per cent compared to the end of March 2008. The payment was converted at €1 = 79.105p. Scheme finishes in 2008

Producers are reminded that OCDS will finish at the end of December 2008 and after that date all pre-August 1996 cattle will have to be disposed of without any compensation. At the start of May 2008 there were 32,149 pre August 1996 cattle recorded in the NI herd by APHIS. So far this year 3,234 cattle have entered OCDS. At the current rate of disposals (approximately 200/head per week) there could be up to 25,000 cattle pre-August 1996 left on NI farms in January 2009.

[mikey]

Monday, May 05, 2008Print This Page
Future’s Bright for Dairy Industry, Says Dairy UK
UK - Prospects for the dairy industry are good, as trading conditions for farmers continue to improve, Dairy UK said today in response to DairyCo’s annual farmer intentions’ survey.


Dairy UK Director General Jim Begg said: “Major changes in the dairy market over the past year have improved trading conditions for most dairy farmers. However, for UK milk production to fully stabilise, farmers need the confidence to undertake major investment, allowing them to achieve production efficiencies whilst meeting a growing burden of regulatory costs.

“It is therefore important that the maximum value is obtained from milk. The recent rise in farm gate prices has seen milk recover the ground it has lost over the past 10 years, and sterling’s devaluation will underpin these gains.

“Longer term the prospects are good. The opportunities for further gains from product innovation, supply chain co-operation and efficiency improvements are still enormous. Dairy companies are focusing on product differentiation to generate more added value. The industry is working closely with its customers to realise the opportunities in the market place.

“Aside from these developments producers can be reassured that UK fresh milk and dairy products are just too important to the UK consumer for the market to be unable to adequately reward UK farmers.

“A world-class industry is being built that can take on the challenges of tomorrow and forward looking farmers can be confident that there is a future for them in this industry.”

[mikey]

Monday, May 05, 2008Print This Page
French Abatoirs Deemed Scandalous
FRANCE - It has been reported that almost half of the slaughterhouses in France fail to conform to European standards of hygiene, as per a memorandum from the Directorate General of Food (DGAL).



According to the document French magazine Le Point was able to access, almost half of the slaughterhouses for poultry and rabbits and 42 per cent for pig, cattle and calves are outlawed due to their unhygienic ways.

The magazine goes on to say: "The situation in the slaughterhouses can sometimes be called apocalyptic."

DGAL, however, denies these claims, saying that they are untrue and that out of the 333 abattoirs, only 19 (responsible for processing 1 per cent of the total meat) are of inferior quality due to hygiene issues. "The veterinary services only research the animals upon arrival in the slaughterhouses and check the carcasses' veterinary quality upon departure," vice-director Monique Eloit said.

However, DGAL stressed on the fact that 59 French abattoirs have been closed down within the last half decade for economic and hygienic reasons. This is due to the checks made by the regional directors. The European Union demands a certain level of hygiene and these slaughterhouses have failed thus.

The European agency for animal health is seeing to it that the situation in France is remedied.

[mikey]

Tuesday, May 06, 2008Print This Page
Weekly Outlook: Corn Production Prospects Remain Uncertain
US - The USDA’s Prospective Plantings report released on March 31 provided much of the fuel for the spring rally in corn prices. Corn producers reported intentions to plant only 86.014 million acres of corn, nearly 7.6 million fewer acres than planted in 2007. Intentions were well below expectations and well below the magnitude of acreage needed to allow corn consumption to continue at the current rate of 13.11 billion bushels per year.


It may be that the size of the market for U.S. corn will not grow during the 2008-09 marketing year even without further price increases. There is some evidence, for example, that hog producers are reducing the size of the breeding herd, pointing to a decline in the number of hogs to be fed in 2009. Exports of U.S. corn may decline modestly from the record level being experienced this year if world wheat production rebounds and if the U.S. dollar strengthens. The size of the Chinese corn crop and subsequent trade policies, however, will also be important for U.S. corn export demand.

Ethanol demand for corn is also a little more uncertain as policy makers debate proposals to reduce the level of biofuels production mandates and the magnitude of the blender’s tax credit. Changing the level of mandates, however, would likely have very little short term impact on the demand for corn to produce ethanol if the economics of production remains favorable. The level of the tax credit has a more direct impact on the returns to ethanol production. At current prices for corn and ethanol, however, corn based ethanol production would remain profitable even with a modestly lower blender’s tax credit.

The USDA’s World Agricultural Outlook Board will release the first supply, demand and price projection for the 2008-09 U.S. corn marketing year on May 9. Those projections will likely show a lower level of consumption in the year ahead than is currently projected for the 2007-08 marketing year. The smaller projection will be, in part, forced by a production forecast constrained by intended plantings and trend yield. The potential size of the corn market at current price levels is extremely important in evaluating the size of the 2008 U.S. corn crop needed to avoid rationing of use by higher prices.

If, for example, market size is seen as 13 billion bushels, the 2008 crop needs to be at least 12.7 billion bushels to maintain year-ending stocks at or above one billion bushels. If 86.014 million acres of corn are planted, harvested acreage for grain would likely be near 79 million acres under average weather conditions. A crop of 12.7 billion bushels, then, would require a national average corn yield of 160.8 bushels, nearly 10 bushels above the 2007 average. Even with a potential market for only 12.5 billion bushels, the U.S. crop would need to be near 12.2 billion bushels, requiring a national average yield of about 154.4 bushels per acre to maintain year-ending stocks at one billion bushels.

There is some possibility that planted acreage of corn will exceed intentions reported in March. The market will monitor the USDA’s weekly report of planting progress to evaluate both the likely magnitude of planted acreage and average yield potential. Rapid planting would favor an increase in acreage and at least trend yield. Planting progress in April was generally very slow, with only 10 percent of the crop planted as of April 27, compared to 20 percent last year and the 5-year average of 35 percent. Rapid planting during the first two weeks of May would still support expectations for more planted acreage and expectations for at least a trend yield in 2008.

Even with a slower rate of planting than expected, corn prices stabilized last week. There is a general perception that, given a window of opportunity, producers can now plant the crop more rapidly than in the past. While modern planting systems clearly allow individual producers to plant more acres per day, there is no clear evidence that in aggregate the corn crop actually gets planted more rapidly in recent years than three or four decades ago.

Assuming that the majority of the corn crop gets planted before the middle of May, prospects for a 2008 average U.S. yield at or above trend will be maintained. The question is whether trend yield will be sufficient. An estimate of actual planted acres will not be available until June 30. In addition, even with timely planting, yields are still mostly dependent on summer weather conditions.

[mikey]

Search TheCattleSite:
 Section:
 Whole Site News Articles Business Direcory Disease Guide Recipes Books Focus
Use the above box to search this section or the whole site
Tuesday, May 06, 2008Print This Page
Booming RB Strain Linked to Unpasteurised Dairy
US - The incidence of a strain of tuberculosis (TB) called Mycobacterium bovis, or M. bovis, associated more often with cattle than humans, is increasing in San Diego and is concentrated mostly in Hispanics of Mexican origin, according to a study conducted by researchers at the University of California, San Diego School of Medicine in collaboration with San Diego County public health officials.



Their analysis shows that changing patterns of TB in the United States are increasingly being driven by conditions outside of the country, especially in binational communities. The study is now on line in advance of publication in the June issue of Emerging Infectious Diseases.

Lead author Timothy C. Rodwell, M.D., Ph.D., MPH, associate physician and fellow in the Division of International Health & Cross Cultural Medicine at UC San Diego, and his colleagues analyzed regional data for TB cases in San Diego County obtained from the Tuberculosis Information Management System database maintained by the San Diego County TB Control Program. In their review of 3,291 culture-positive cases of TB covering 1994 to 2005, M. bovis was isolated in only eight percent of cases, but the strain accounted for 45 percent of TB cases in children under the age of 15, with almost all M. bovis cases from 2001 to 2005 found in persons of Hispanic ethnicity.

“This strain of TB is thought to be primarily spread to humans through consumption of raw dairy products from infected cattle, with only minimal human-to-human contagion,” Rodwell said. “Some raw dairy products from Mexico, for instance, unpasteurized cheese like the popular queso fresco, have been found to contain M. bovis and should be considered unsafe.”

Because of the widespread adoption of pasteurization of all commercially available dairy products in the United States, along with aggressive programs designed to keep dairy cattle in this country free of the disease, the threat of M. bovis in U.S. dairy products was largely eliminated in the mid-20th century. The San Diego-Tijuana bi-national region, however, shares one of the busiest border crossings in the United States with the Mexican state of Baja California, where M. bovis is prevalent in cattle and consumption of unpasteurized dairy products is common.

The researchers found that more than 90 percent of M. bovis cases in San Diego occurred in Hispanics, most born in Mexico, Rodwell said. He added that collaborations with Mexico on prevention strategies including education and regulation of unpasteurized dairy products, along with elimination of the disease from dairy cattle would be required long term to ensure that this mode of transmission of TB is stopped.

“The changing face of TB in San Diego County may reflect a new pattern of the disease in the United States,” Rodwell said.

During the period studied, cases of M. bovis TB increased at a rate of just over four percent per year, while cases from the more common strain of TB, M. tuberculosis, declined. Since M. bovis is resistant to one of the four drugs in the standard, six-month course of treatment for TB, treatment for M. bovis is usually extended to nine months. While M. bovis has been most often documented in Hispanic communities with close proximity to Mexico, the researchers point out that a recent review of such cases in New York City – also linked to unpasteurized cheese from Mexico – indicated that the problem is not limited to U.S. regions bordering Mexico.

Additional contributors to the study include senior author Steffanie A. Strathdee, Ph.D., Chief of UC San Diego’s Division of International Health & Cross Cultural Medicine; Marisa Moore and Kathleen S. Moser, County of San Diego Health and Human Services; and Stephanie K. Brodine, San Diego State University.

The study was funded by the National Institutes of Health, a fellowship from the California HIV/AIDS research program at the University of California, and internal funds from the endowment of the Harold Simon Chair, Division of International Health & Cross-Cultural Medicine at UC San Diego.

[mikey]

Search TheCattleSite:
 Section:
 Whole Site News Articles Business Direcory Disease Guide Recipes Books Focus
Use the above box to search this section or the whole site
Tuesday, May 06, 2008Print This Page
Weekly Outlook: Corn Production Prospects Remain Uncertain
US - The USDA’s Prospective Plantings report released on March 31 provided much of the fuel for the spring rally in corn prices. Corn producers reported intentions to plant only 86.014 million acres of corn, nearly 7.6 million fewer acres than planted in 2007. Intentions were well below expectations and well below the magnitude of acreage needed to allow corn consumption to continue at the current rate of 13.11 billion bushels per year.


It may be that the size of the market for U.S. corn will not grow during the 2008-09 marketing year even without further price increases. There is some evidence, for example, that hog producers are reducing the size of the breeding herd, pointing to a decline in the number of hogs to be fed in 2009. Exports of U.S. corn may decline modestly from the record level being experienced this year if world wheat production rebounds and if the U.S. dollar strengthens. The size of the Chinese corn crop and subsequent trade policies, however, will also be important for U.S. corn export demand.

Ethanol demand for corn is also a little more uncertain as policy makers debate proposals to reduce the level of biofuels production mandates and the magnitude of the blender’s tax credit. Changing the level of mandates, however, would likely have very little short term impact on the demand for corn to produce ethanol if the economics of production remains favorable. The level of the tax credit has a more direct impact on the returns to ethanol production. At current prices for corn and ethanol, however, corn based ethanol production would remain profitable even with a modestly lower blender’s tax credit.

The USDA’s World Agricultural Outlook Board will release the first supply, demand and price projection for the 2008-09 U.S. corn marketing year on May 9. Those projections will likely show a lower level of consumption in the year ahead than is currently projected for the 2007-08 marketing year. The smaller projection will be, in part, forced by a production forecast constrained by intended plantings and trend yield. The potential size of the corn market at current price levels is extremely important in evaluating the size of the 2008 U.S. corn crop needed to avoid rationing of use by higher prices.

If, for example, market size is seen as 13 billion bushels, the 2008 crop needs to be at least 12.7 billion bushels to maintain year-ending stocks at or above one billion bushels. If 86.014 million acres of corn are planted, harvested acreage for grain would likely be near 79 million acres under average weather conditions. A crop of 12.7 billion bushels, then, would require a national average corn yield of 160.8 bushels, nearly 10 bushels above the 2007 average. Even with a potential market for only 12.5 billion bushels, the U.S. crop would need to be near 12.2 billion bushels, requiring a national average yield of about 154.4 bushels per acre to maintain year-ending stocks at one billion bushels.

There is some possibility that planted acreage of corn will exceed intentions reported in March. The market will monitor the USDA’s weekly report of planting progress to evaluate both the likely magnitude of planted acreage and average yield potential. Rapid planting would favor an increase in acreage and at least trend yield. Planting progress in April was generally very slow, with only 10 percent of the crop planted as of April 27, compared to 20 percent last year and the 5-year average of 35 percent. Rapid planting during the first two weeks of May would still support expectations for more planted acreage and expectations for at least a trend yield in 2008.

Even with a slower rate of planting than expected, corn prices stabilized last week. There is a general perception that, given a window of opportunity, producers can now plant the crop more rapidly than in the past. While modern planting systems clearly allow individual producers to plant more acres per day, there is no clear evidence that in aggregate the corn crop actually gets planted more rapidly in recent years than three or four decades ago.

Assuming that the majority of the corn crop gets planted before the middle of May, prospects for a 2008 average U.S. yield at or above trend will be maintained. The question is whether trend yield will be sufficient. An estimate of actual planted acres will not be available until June 30. In addition, even with timely planting, yields are still mostly dependent on summer weather conditions.

[mikey]

Tuesday, May 06, 2008Print This Page
US Calms Korean Mad Cow Panic
KOREA - The undersecretary for food safety at the US reasserted the safety of American beef at a recent conference to Korean correspondents.



Richard Raymond, who practiced medicine for 17 years, asserted that the supply of American beef is among the safest in the world, elaborating on preventative measures that the United States has developed against mad cow disease, scientifically known as bovine spongiform encephalopathy (BSE), since the discovery of the first case of BSE in Britain in 1986.


--------------------------------------------------------------------------------
*
"SRM removal alone reduces the potential exposure to consumers of BSE by 99 percent." 
Richard Raymond, undersecretary for food safety at the US.
--------------------------------------------------------------------------------
 
“The single most important thing we can do to protect human health regarding BSE is the removal from the food supply of specified risk materials (SRMs),” Raymond said. “According to the 2005 Harvard Risk Assessment, SRM removal alone reduces the potential exposure to consumers of BSE by 99 percent.”

According to the Korean news agency DongA, Raymond said that slaughter facilities cannot carry out their slaughter operations without the continuous presence of the USDA inspection personnel and that the Food Safety and Inspection Service (FSIS) under the department employs over 9,000 personnel, including 7,800 full-time in-plant and other front-line personnel to constantly monitor slaughter operations.

The under secretary explained that the USDA, which conducted targeted BSE surveillance testing on 20,000 cattle to be slaughtered, has strengthened its surveillance effort since June 2004 by increasing the number of cattle subject to testing to 1,000 per day. He said that some 700,000 cattle were tested over the past two years.

Raymond said that, out of over 759,000 animals tested, only two additional cattle have been detected with BSE since the discovery of the first BSE case in the United States in 1993, and both of them were born prior to initiation of the ban on ruminant feed in August 1997.

[mikey]

Wednesday, May 07, 2008Print This Page
South Korea Backs Away from Renegotiation
SOUTH KOREA - The government of South Korea has rejected US calls to renegotiate the recent beef trade deal and has instead pledged to tighten quarantine procedures and beef labeling rules in a bid to keep BSE out.



"It is impossible to renegotiate the agreement because it has been formally signed by both countries' representatives and is already in the process of being put into effect," South Korea's top negotiator Min Dong-seok told the local daily.

According to the People's Daily Online, the South Korean government came under growing pressure from political parties and civic groups to scrap the April 18 agreement to fully open the domestic market to U.S. beef.

Under the agreement, South Korea will import from the United States most cuts from cattle under 30 months old beginning May. Imports of certain cuts from older cattle will be allowed after the United States strengthens control of feed for cattle.