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Pork Demand Remains Solid
Consumer-level pork demand remained strong in May, leaving pork’s demand index higher than the indexes for beef or chicken when compared to year-ago levels (Figure 1). The last observation for each index is for June 2010 through May 2011 vs. the same period one year earlier. All other observations are for calendar years.
Pork demand is 4.5% higher than one year ago, primarily due to significantly higher retail pork prices. The index for the month of May (as opposed to the 12 months ending with May) was 6.7% higher than that of May 2010, extending the string of higher year-on-year demand indexes to nine months.
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Heat Takes a Toll
Last week the temperatures in Minnesota were very hot – with heat indexes well above 100. I can't remember a time when we've had consecutive heat coupled with high humidity for such an extended period. A day or two with temperatures above 90 degrees are not uncommon, but then we usually get back to normal temps in the 80s.
The extreme heat had a big impact on livestock, too. Unfortunately, some livestock died even though producers did everything they could to keep their animals as comfortable as they could. If the average consumer only knew how much work was put into making sure animals were comfortable during extreme weather, they would truly understand that producers are passionate about taking care of their animals.
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Bipartisan "Gang of Six" Releases Deficit Reduction Plan
A bipartisan group of six senators known as the "Gang of Six" released a deficit reduction plan that would reduce the federal debt by $3.7 trillion. The plan closely follows the Bowels-Simpson recommendations of the National Commission on Fiscal Responsibility. Under the plan there would be an immediate deficit savings of $500 billion, including the establishment of discretionary spending caps by 2015, freeze congressional pay, and sell unused federal property. The plan also requires Congress to cut agency spending, overhaul Social Security and Medicare, and rewrite the tax code to generate more than $1 trillion in new revenue. Much of the revenue would come from revising various tax exemptions. The plan would cut agricultural programs, except for food stamps, by $11 billion over 10 years. This is the strongest bipartisan proposal being considered and is gaining support in the Senate. The "Gang of Six" includes Senators Mark Warner (D-VA), Saxby Chambliss (R-GA), Kent Conrad (D-ND), Dick Durbin (D-IL), Mike Crapo (R-ID), and Tom Coburn (R-OK).
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Senators Press for Action On Free Trade Agreements
Twelve senators have sent a letter to President Obama urging the administration to submit immediately the implementing language for the pending free trade agreements with Columbia, Panama and South Korea, with the understanding that there will be a vote, with enough support for passage, on a separate Trade Adjustment Assistance (TAA) bill that the White House is insisting upon.
The Republican senators committed to support cloture – a vote to cut off prolonged debate – on a TAA bill that includes bipartisan reforms negotiated by Senate Finance Committee Chairman Max Baucus (D-MT) and Dave Camp (R-MI), chairman of the House Ways and Means Committee.
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July 29, 2011: Fourth Annual Pork Lenders Meeting, Country Inn Suites, Mankato, MN. For more information contact: Minnesota Pork Board Assistant Executive Director Jeremy Geske at (800) 537-7675 or jeremy@mnpork.com.
July 31-Aug. 4, 2011: 45th Congress for the International Society for Applied Ethology; hosted by Purdue University’s Livestock Behavior Research Unit of the U.S. Department of Agriculture’s Agricultural Research Service; Hyatt Regency, Indianapolis, IN. For more information, go to http://www.ars.usda.gov/.
Aug. 7-10, 2011: The American Society of Agricultural and Biological Engineers Annual International Meeting; The Galt House, Louisville, KY. For more information contact: www.asabe.org.
August 14 - 17, 2011: 7th International Conference on Boar Semen Preservation; Bonn, Germany. Check our website www.boarsemen2011.com for further information.
Aug. 18, 2011: George A. Young Swine Health and Management Conference, Marina Inn; South Sioux City, NE. For more information contact: http://vbms.unl.edu/web/.
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