View this email as a Web page Please add Cow-Calf Weekly to your Safe Sender list.
A Prism Business Media Property
November 22, 2006


Table of Contents
Fear and Greed, And Supply and Demand
Happy Thanksgiving!
Worry About The Important Stuff
Variant CJD Claims Second Dutch Victim
BSE-Contaminated Meat May Be In UK Stores
Russian Export Market For U.S. Beef Reopened
Cattle-On-Feed Report Offers A Mixed Bag
SDSU Plans Jan. 9-11 High-Value Beef Workshop
Imported Beef Off The Menu For North Korean Despot
RFV Isn't A Big Concern In Beef Cattle Diets
Foreign Market Development Allocations Announced
House Republican Leadership Announced
Incoming House Ag Head To Give USDA A Look-See
New House Speaker Announces 110th Congress Agenda
Canada Launches Feed Investigation
China Reports Two FMD Outbreaks
Japan Confirms Its 30th Case Of BSE
BEEF Quality Summit Presentations Now Online
How Milk Production Impacts Nutrient Needs
New Edition Of American Cowman Update Now Available
Total U.S. Premises Count Reduced To 1.4 Million
Wisconsin Rolls Out Voluntary Animal ID Cost Sharing
SDSU Plans Dec. 4 Cattle Seminar On Feed Issues


ADVERTISEMENT

This year Camp Cooley Ranch celebrates 20 years of ultrasound performance in our Brangus herd. From this work results some of the most powerful, performance proven Brangus, Angus and Charolais bulls to ever sell at Camp Cooley. Your search for Quality in Volume begins and ends at Camp Cooley Ranch. Give us a call or stop by for a visit!
www.campcooley.com
1-800-251-0305

Our Perspective
Fear and Greed, And Supply and Demand
After three years of record-breaking, bin-busting corn harvests, corn prices have defied all conventional wisdom by skyrocketing. Bred females have lost $300 and calves $150/head in the initial market implosion.

In the short-term, fear and greed rules, and they certainly took over the last several weeks. When one domino fell, the others followed closely, and market fundamentals became irrelevant. We went from a "never having another bad day" attitude to "we are heading to zero at Mach 1."

While the reality is somewhere in between, the situation illustrates why commodity producers always seem to focus on supply. It's not because supply is the biggest factor; it's simply the factor we can quantify either before or after the effect, and supply to some extent is also under producers' control.

Demand is a more nebulous measure; it's rarely fully known until after the transaction occurs. Still, it is demand that has rallied the corn market; it is demand that has made it possible for our industry to enjoy unprecedented prices for an extended period of time. It is demand that will take corn to new price levels, as well.

It's unfortunate our industry has always been so supply-driven and cost of production-oriented. Just imagine what we could have done if we'd focused on growing the top line instead.
-- Troy Marshall


Back to Top

Happy Thanksgiving!
My dad always said there are people who give thanks with their words, and those who demonstrate it through their actions.

If much is expected from those who are given much, then by just mere birth in this country we have an awesome responsibility. I hate to think of all the times I failed to embrace the freedom and opportunity we all have, and I am especially thankful for those people each and every day that prove that the American dream, and American ideal, is alive and well.

Working in this industry, well, I wouldn't trade places with anyone. Hopefully you have your health and loved ones to be thankful for.

Of course, when I count those blessings and give thanks for them, it's impossible to not think of those putting their lives in harm's way to ensure I can enjoy all these things. We could all make a point of expressing our gratitude to our brave young men and women, and their families, this Thanksgiving season in some way.

We all have a lot to be thankful for. With those blessings, comes the responsibility to use them to make the world a better place for the less fortunate. It's hard not to be thankful for being given the job of feeding God's children.
-- Troy Marshall


Back to Top

Worry About The Important Stuff
I suppose someone can make the case that national ID, or even country-of-origin labeling, can save your operation in the case of a disease outbreak. In reality, however, neither is likely to amount to a hill of beans in and of themselves in regard to the profitability of your specific operation.

Rather, they reflect broader national issues, likely your vision of what it means to be customer-centric and what is the proper role for government. These can be very important issues, but if they involve very much of your time or energy, they probably reflect management priorities that are way out of line.

I received an email this week from a producer who said he hadn't slept well for a couple of years because of one of these issues. I admire his commitment and passion but, upon reflection, it made me think of how often we let one of these industry issues take on a life of its own and its importance to swell all out of whack.

If this producer had spent all those sleepless nights focused on marketing his cattle better, breeding better cattle, enjoying his family more, making a bigger contribution in his community, or even team-roping, he would be a lot happier and healthier.

These broader philosophical arguments mentioned above aren't without merit, and may be worth good discussion, even an occasional debate. However, there are a lot more important things that relate directly to the success of our operations that deserve our time and consideration.
-- Troy Marshall


Back to Top


ADVERTISEMENT


What they don't teach you in AniSci 101.

The Charolais-influence in your crossbreeding program adds an exceptional boost of heterosis, economic value and cowherd predictability. Charolais-influence adds value in virtually every segment in the U.S. beef industry.

You choose your end-use target. Use Charolais genetics to get there!

Click here for more information.

Food Safety
Variant CJD Claims Second Dutch Victim
Variant Creutzfeldt-Jakob Disease (vCJD), the human form of BSE, has claimed a second Dutch person, this one a 16-year-old boy. A 26-year-old Dutch woman died from vCJD in may 2005. The Dutch Institute for Health and Environment diagnosed the latest fatality in June, attributing the infection to consumption of contaminated meat products.
-- Joe Roybal


Back to Top

Beef Safety
BSE-Contaminated Meat May Be In UK Stores
British inspectors say BSE-contaminated meat may be on sale throughout Britain due to widespread slaughterhouse fraud, The Independent reports. The inspectors accuse slaughterhouses of swapping samples from carcasses to stop them failing tests to detect the disease.

The article says current rules call for brain stems of all cattle more than 30 months old to be checked, but some abattoir owners are suspected of substituting the brains of younger animals to ensure the meat is sold. Earlier this month, beef was removed from supermarket shelves across Britain because of the failure to test just one cow's brain for BSE.

Inspectors belonging to the public service union Unison reported the alleged practice at two British slaughterhouses, but believe the fraud may be widespread. A third case is under investigation in Northern Ireland, where a lab said DNA testing discovered samples taken from two cows could not be from animals more than 30 months old.

As of December 2005, 153 deaths have been attributed to variant Creutzfeldt-Jakob disease in the United Kingdom.
-- Joe Roybal


Back to Top

Foreign Trade
Russian Export Market For U.S. Beef Reopened
With official signing of a bilateral trade agreement between the U.S. and Russia, the U.S. beef has regained access to the Russian market, effective immediately pending a plant audit tour by Russian inspectors.

After site visits, the market will immediately open to U.S. boneless beef, bone-in beef and beef variety meats from cattle under 30 months of age with an approved export certificate, reports the National Cattlemen's Beef Association. The second step in the re-opening process should come in May 2007 when the World Organization for Animal Health (OIE) General Assembly makes its final decision on the U.S. risk-status for BSE.

Pending the determination of the U.S. as an OIE-designated controlled-risk or negligible-risk country, Russia will reopen to all U.S. beef and beef products from cattle of all ages with the removal of OIE designated specified risk materials.

Previously, Russia was the largest export market for U.S. beef livers. In 2003, Russia was the fifth-largest export market for U.S. beef in terms of quantity, importing more than 140 million lbs. of U.S. beef and beef variety meats valued at over $53 million.

For more details on this agreement, go to the Office of the U.S. Trade Representative online at: www.ustr.gov.
-- NCBA news release


Back to Top

Markets
Cattle-On-Feed Report Offers A Mixed Bag
The Nov. 1, cattle-on-feed (COF) report set an all-time record for the month of November, at least since the new series began in 1996. The COF number came in at 12 million head, so there are a lot of cattle on feed.

Perspective is important, however, as this number is only 4% above last year, and the drought spurred a lot of early placements. This is highlighted by the fact the October placement also was the second lowest on record and came in at 87%, which was below expectations. Marketings came in at a healthy 2% above last-year levels.

We've certainly seen the lows from a numbers standpoint in this cattle cycle, but numbers certainly are not the driver in this lower market. In fact, high feed costs, drought conditions and the dramatic drop in feeder prices all combined to create another run of cow liquidation, which means numbers will remain very manageable out front.

The lower prices can be explained with two words -- higher corn. The feeder and calf market showed signs of stabilizing this week, fear is subsiding, and the market will return to fundamentals. More than anything, the corn market is reacting to three, bin-busting harvests in a row, and the fact corn supplies aren't increasing due to continuously building demand.
-- Troy Marshall


Back to Top

Beef Marketing
SDSU Plans Jan. 9-11 High-Value Beef Workshop
The production and marketing of high-quality, high-value beef is the focus of the BEEF 2020 workshop, Jan. 9-11, at the South Dakota State University (SDSU) Animal Science Complex in Brookings. The workshop is from 2 p.m. Jan. 9, to noon Jan. 11. Registration is $50; registration deadline is Dec. 20.

The workshop is designed to educate attendees on producing high-quality, high-value beef, says SDSU Extension beef specialist Cody Wright. Topics include evaluation of live-market cattle, beef-carcass grading and pricing, feeding and management strategies to improve carcass quality, genetic prediction of carcass merit, marketing the calf crop, meat/food safety technology, beef-carcass fabrication, factors that affect eating quality, and product taste panels.

Visit ars.sdstate.edu/extbeef/BEEF_2020.htm for more info or to register, or contact Wright at 605-688-5448 or cody.wright@sdstate.edu.
-- Joe Roybal


Back to Top

Industry News
Imported Beef Off The Menu For North Korean Despot
You may have read that North Korean leader Kim Jong Il likes to eat donkey meat, which he terms "heavenly cow," but the sawed-off little Socialist apparently also has a hankering for beef.

It's for that reason that beef has turned up on the list of 24 luxury items banned from Japanese export to North Korea as part of U.N. Security Council resolution 1718. The measure, enacted in response to North Korea's Oct. 9 nuclear test, calls on U.N. member states to ban export of weapons technology and luxury goods.

The 24 items include beef, tuna meat, caviar and its substitutes, liquor, cars, motorcycles, motorboats, yachts, watches, cameras, audio and video devices, movie and music software, jewelry, carpets and tobacco. A Japan Times article says Kim is believed to favor such items for his personal use and as rewards for loyalty from the impoverished nation's power elite.
-- Joe Roybal


Back to Top


ADVERTISEMENT
The POWER of one BRAND can change your future in the beef business.

Certified Angus Beef ®, the oldest, most successful branded beef program in the industry returned more than $50 million in grid premiums in 2003. The demand for CAB® brand products translates into fed cattle premiums of $2-$5/cwt. Source-verified, high-percentage Angus replacement females often top auctions by selling for $50-$100 per head above cash market. Sale barn surveys conducted at nine auction markets indicated premiums are paid, not for black-hided cattle, but for high-percentage-Angus cattle.

One brand, one breed--the power of one can change your future in the beef business.


www.angus.org




Certified Angus Beef® and CAB® are registered trademarks of Certified Angus Beef, LLC

Nutrition
RFV Isn't A Big Concern In Beef Cattle Diets
Farmers and ranchers often tell University of Nebraska agronomist Bruce Anderson that their prairie hay, cane hay or other grass hay looks great but lab tests indicate a surprisingly low relative feed value (RFV). That's despite good protein and satisfactory total digestible nutrient (TDN) levels. So what's wrong with RFV?

Nothing is wrong, writes Bruce Anderson at beef.unl.edu, but it helps to understand how RFV is calculated and how it should be used.

First, RFV is calculated using only fiber values. Though protein certainly affects the value of hay, it has no effect on the calculation of RFV, he says.

RFV was initially developed for the dairy industry to help rank the potential energy intake of different hays by lactating dairy cows. And it does this quite well, especially for legumes like alfalfa.

Grass hay, however, is more difficult, as it has more fiber than alfalfa, which lowers its RFV. That fiber, however, often is more digestible than alfalfa fiber. Thus, grass hay frequently is ranked lower than it should be using RFV.

RFV also doesn't predict performance by other types of animals, such as beef cows, as well because potential energy intake doesn't have as much influence on their performance.

When you feed grass hay to animals other than dairy cows, focus on crude protein and TDN, Anderson says. RFV is much less important and could cause you to worry more than its worth.
-- Bruce Anderson, University of Nebraska-Lincoln


Back to Top

Government
Foreign Market Development Allocations Announced
USDA announced FY 2006 allocations for the Foreign Market Development program. The $34.5-billion program focuses on reducing market impediments, improving the processing capabilities of importers, modifying restrictive regulatory codes and standards in foreign markets, and identifying new markets or uses for U.S. products. The program was established in 1954.

Cooperators receiving funding include: American Seed Trade Association, American Sheep Industry, American Soybean Association, Cotton Council International, U.S. Dairy Export Council, U.S. Grains Council, U.S. Meat Export Federation, U.S. Wheat Associates, USA Poultry and Egg Export Council, and USA Rice Federation.
-- P. Scott Shearer, Washington, D.C., correspondent


Back to Top

House Republican Leadership Announced
The House Republican Caucus elected Rep. John Boehner (R-OH) as Minority Leader, Rep. Roy Blunt (R-MO) as Minority Whip, and Rep. Adam Putnam (R-FL) as Republican Conference Chairman. Speaker Dennis Hastert (R-IL) intends to step down from leadership.
-- P. Scott Shearer, Washington, D.C., correspondent


Back to Top

Incoming House Ag Head To Give USDA A Look-See
Rep. Collin Peterson (D-MN), new chairman of the House Ag Committee, has indicated that next year he will hold oversight hearings on USDA management decisions. One of the first hearings will concern USDA's animal ID plan of which Peterson has been very critical.

According to press reports, Peterson said, "Bush administration officials have screwed this up so bad that I am now against what they are doing."

Peterson will also investigate the administration's stricter regulations on financial transactions on ag exports to Cuba, which have diminished U.S. ag exports to Cuba. He'll ask the administration to appear before the committee to explain its policy.
-- P. Scott Shearer, Washington, D.C., correspondent


Back to Top

New House Speaker Announces 110th Congress Agenda
Speaker-elect Nancy Pelosi (D-CA) has outlined the first items of business for the House of Representatives in the 110th Congress. Items identified include: increasing the minimum wage, implementing tougher ethics and disclosure rules for the House of Representatives, passage of the 9-11 commission's recommendations, cut interest rates on student loans, and allow Medicare to negotiate drug prices for seniors -- similar to the Department of Veteran Affairs' program. The 110th Congress convenes Jan. 4.
-- P. Scott Shearer, Washington, D.C., correspondent


Back to Top

Animal Health
Canada Launches Feed Investigation
The Canadian Food Inspection Agency (CFIA) has launched an investigation and is monitoring livestock movement related to non-compliant feed shipments to cattle farms in Quebec and Ontario the past 2-3 weeks, CCNMatthews reports.

The efforts came after supplier Agribrands Canada Inc. reported a small amount of meat and bone meal had contacted ingredients used in production of ruminant feed. Teams of CFIA inspectors are visiting about 100 farms in Ontario and Quebec. And CFIA is identifying implicated animals and monitoring movement of all cattle and other ruminant animals exposed to the feed.

In addition, CFIA will verify that suppliers to Agribrands Canada have revised their processes and procedures to prevent such situations in the future. The agency also will inspect all feed mills, farms and transport vehicles handling the contaminated material to ensure proper cleaning of equipment.
-- Joe Roybal


Back to Top

China Reports Two FMD Outbreaks
China reported two new outbreaks of foot-and-mouth disease (FMD) in the southwest and northwest part of the country. AFP reports more than 260 head of livestock were culled as a control measure, and both outbreaks are under control, according to China's Ministry of Ag.

The outbreaks were in two villages in Wanzhou district of Chongqing municipality in the southwest, and in Yongdeng county in the northwest province of Gansu. The northwest province of Qinghai reported an outbreak Sept. 30.
-- Joe Roybal


Back to Top

Japan Confirms Its 30th Case Of BSE
Japan's Ag, Forestry and Fisheries Ministry confirmed the country's 30th case of BSE last week. The 64-month-old dairy cow died earlier this month in Hokkaido, being born before Japan implemented its ban on the feeding of meat-and-bone meal in fall 2001.
-- Joe Roybal


Back to Top

Tips for Profit
BEEF Quality Summit Presentations Now Online
More than 200 attendees participated in BEEF magazine's BEEF Quality Summit in Oklahoma City last week. Attendees heard from 23 speakers -- producers, academics, retailers and marketers -- on how to capitalize on opportunities available in the new beef-value chain.

Those PowerPoint presentations are now available online at www.beef-mag.com. Click on the BEEF Quality Summit logo in the upper right-hand corner of the opening page, and look for coverage in the January issue of BEEF.
-- Joe Roybal


Back to Top

How Milk Production Impacts Nutrient Needs
Managing for milk level in your cow herd is similar to determining whether the porridge is too cold, too hot, or just right, says the University of Nebraska's Rick Rasby.

Too little milk in the cow herd equates to lighter weaning weights, which impacts dollars generated in the cow-calf enterprise. But low milk level in a cow herd should result in lower feed costs.

High milk level equates to heavier weaning weights, but can increase feed inputs and thus cow costs. As milk potential increases so do nutrient needs. Cows with a high milk level have a greater need for pounds of protein, pounds of energy (TDN), ounces of mineral, etc., to be consumed daily to meet those needs compared to cows with a low level of milk potential.

A number of years ago, the University of Nebraska developed three groups of cows similar in weight but differing in level of milk produced.

Cows in the moderate level of milk gave 28% more milk than the cows in the low level of milk group. Cows in the high milk level gave 46% more milk than cows in the low milk group.

As you'd expect, the feed for lactation between the three groups differed. Cows in the moderate and high level milk groups needed more feed to stay in similar weight and body condition compared to cows in the low level of milk group.

More interesting is that feed during gestation was greater for cows in the moderate and high level of milk groups compared to cows in the low level of milk group. This indicates that even when cows with different milk-producing abilities weren't lactating, milk potential increased nutrient needs.

In addition, feed requirements in the feedlot were greater for the offspring of dams that had higher milk potential. Data from the U.S. Meat Animal Research Center in Clay Center, NE, indicates cows with greater potential to produce milk also have a greater percent of their body weight as heart, liver, and lungs. So the greater nutrient need for non-lactating cows and for their offspring in the feedlot may be a result of having to maintain more heart, liver, and lungs, which are highly active tissues.

If cattle are asked to produce in a lush environment, then cow mature weight and level of milk is less of a concern, but carrying capacity will be reduced. If feed resources are limited, cow weight and milk production need to be carefully scrutinized, as both not only impact nutrient requirements but also feed intake. Cows bred for a high level of milk production have higher nutrient requirements even when not lactating.

So how big should your cows be and how much milk should they give? It depends, Rasby writes. Match cow size and milk level to your feed resources.

"From an economic standpoint, the greater number of cows that can be grazed on a given forage base and meet their nutrient needs from the grazed resource base, the greater the profit potential of the enterprise," Rasby says.
-- Rick Rasby, University of Nebraska-Lincoln


Back to Top

New Edition Of American Cowman Update Now Available
The latest edition of the twice-monthly American Cowman Update is available today. The free electronic newsletter is aimed at the management and lifestyle concerns of smaller herd producers in the U.S. It complements the Web site, www.americancowman.com which offers a stockpile of resources for that demographic.

In the latest edition of American Cowman Update, you'll find a checklist of items to consider in buying hay, management philosophies, and information on feeding "natural" cattle. Visit www.americancowman.com to register for the newsletter, then check back often for new Web site features.
-- Joe Roybal


Back to Top


ADVERTISEMENT
Scour Bos® at preg-check saves you time
Preg-check season is upon us and now is the time to protect against scours. You can give Scour Bos 9 from Novartis Animal Heath US, Inc. at the same time you're already running cows through the chute. Begin protecting heifers up to 16 weeks pre-calving and give the annual booster up to 10 weeks pre-calving. Click on the Scour Bos logo to learn more.


Animal ID
Total U.S. Premises Count Reduced To 1.4 Million
USDA revised its total premises count for U.S. livestock farms - for National Animal Identification System (NAIS) purposes - from 2.1 million total premises to 1.4 million. The 2.1-million figure had been based on figures from the National Agriculture Statistics Survey (NASS), which USDA says it learned counted locations for each species a producer owned. Thus, the 2.1-million figure included duplications for operations of more than one livestock commodity.

After a NASS recalculation of the statistics to remove duplications, USDA says the resulting estimate of 1,433,582 livestock farms in the U.S. offers a more accurate figure for the purposes of NAIS.

Under the new NASS estimates, number of livestock operations by state includes: Alabama, 35,336; Alaska, 307; Arizona, 5,163; Arkansas, 37,417; California, 32,340; Colorado, 22,909; Connecticut, 2,506; Delaware, 1,541; Florida, 28,062; Georgia, 35,349;

Hawaii, 1,335; Idaho, 18,687; Illinois, 30,011; Indiana, 34,758; Iowa, 47,246; Kansas, 39,333; Kentucky, 61,184; Louisiana, 19,311; Maine, 4,150; Maryland, 7,799; Massachusetts, 3,427; Michigan, 28,953; Minnesota, 44,109; Mississippi, 28,917; Montana, 78,966;

Nebraska, 30,815; Nevada, 2,518; New Hampshire, 2,265; New Jersey, 5,286; New Mexico, 11,241; New York, 25,440; North Carolina, 35,990; North Dakota, 14,080; Ohio, 48,013; Oklahoma, 71,388; Oregon 28,545; Pennsylvania, 42,071; Rhode Island, 489;

South Carolina, 16,087; South Dakota, 22,351; Tennessee, 67,903; Texas, 187,006; Utah, 12,436; Virginia, 37,532; Vermont, 4,429; Washington, 21,853; Wisconsin, 51,193; West Virginia, 17,634; and Wyoming; 8,211.

Animal owners can voluntarily participate by registering their premises with their State, Tribe, or Territorial animal health authority online, by telephone, or by mail. Register online at: animalid.aphis.usda.gov/nais/premises_id/register.shtml.
-- Joe Roybal


Back to Top

Wisconsin Rolls Out Voluntary Animal ID Cost Sharing
Wisconsin is offering a voluntary animal ID cost-sharing program on a first-come, first-serve basis to in-state producers with a premises registration number. The program consists of sign-up, approval and confirmation of participation followed by tag purchase and application, reports Wisconsin Ag Connection. Reimbursement is upon completion of these steps.

Meanwhile, USDA has released official Animal Identification Numbers (AIN) as part of the National Animal Identification System (NAIS). The Wisconsin Department of Ag Trade and Consumer Protection (DATCP) and the Wisconsin Livestock Identification Consortium (WLIC) are initiating the voluntary animal ID program using DATCP-selected AIN tags. All USDA-approved devices will be accepted as official ID in Wisconsin. Cost sharing, however, will be for DATCP-selected AIN Radio Frequency ID tags only and doesn't cover application of tags, the report says.

For background on how to purchase animal ID tags or devices, visit: http://animalid.aphis.usda.gov/nais/animal_id/purchase_tags.shtml. Learn more about NAIS at: www.usda.gov/nais.
-- Joe Roybal


Back to Top

Industry Meetings
SDSU Plans Dec. 4 Cattle Seminar On Feed Issues
South Dakota State University specialists will update producers on beef-production issues at a Dec. 4 cattle seminar in Brookings. Set for 11 a.m. to 2:30 p.m. in the Brookings County Resource Center, topics include adjusting to the changing scope of feed, alternative feeds and rations, benefits of high corn costs, hedging feed needs, risk management, cattle outlook, and cow-calf operation adjustments.

The seminar is free and lunch is provided by the South Dakota Cattlemen's Association. Reserve a seat by Dec. 1 by calling 1-877-212-2564.
-- Joe Roybal


Back to Top


ADVERTISEMENT
Thank You To Our Cow Calf Weekly Sponsors!
Click on sponsors logo for more information.


About this Newsletter

You are subscribed to this newsletter as #email#

To unsubscribe from this newsletter go to: Unsubscribe

To subscribe to this newsletter, go to: Subscribe

For information on advertising in this newsletter, please contact: Bret Kealy at bkealy@prismb2b.com

Do you have comments or suggestions about BEEF Cow-Calf Weekly or its content? Write to:
Troy Marshall, troy@seedstockdigest.com
Joe Roybal, jroybal@beef-mag.com
Clint Peck, cpeck@beef-mag.com

 

To get this newsletter in a different format (Text or HTML), or to change your e-mail address, please visit your profile page to change your delivery preferences.

For questions concerning delivery of this newsletter, please contact our Customer Service Department at:
Customer Service Department
Beef Magazine
A Prism Business Media publication
US Toll Free: 866-505-7173 International: 847-763-9504
Email:">beef-mag@pbinews.com