News Update

News Update
Nov. 13, 2006

South Korea Loosens U.S. Beef Restrictions

South Korean officials have clarified restrictions on U.S. beef, the U.S. Department of Agriculture (USDA) reports.

According to Chuck Lambert, USDA deputy undersecretary, South Korean leaders have agreed to remove silver skin — the membrane separating muscle groups — from their list of prohibited items. In addition, the country will no longer consider cartilage, breastbone and bone chips as specified risk materials (SRMs).

The news comes after USDA’s request for clarification of South Korea’s beef trade restrictions. Although the announcement was welcomed, Lambert said he was “very disappointed that they have been unwilling to establish commercial tolerance levels for bone chips and cartilage. Tolerance levels have been established with many other trading partners.”

Lambert will travel to Seoul in the coming weeks to continue discussion with officials there.

Tyson Report Shows Losses

Investors, analysts and those in the agribusiness community were expected to listen intently today as Tyson Foods Inc., reported its fiscal fourth quarter earnings, Dow Jones Newswire reported.

A report released by PRNewswire shows a net loss of 17¢ per diluted share for the fourth quarter of fiscal year (FY) 2006, compared to 33¢ diluted earnings per share in the same quarter last year. Tyson President and Chief Executive Officer (CEO) Richard Bond said the company has been plagued by supply and demand imbalances as well as export market disruptions in the chicken and beef segments.

“Despite some continuing problems in the protein sector, during the quarter our core business showed improvement and continued to strengthen. In addition, we successfully launched several programs that will better position us for 2007 and beyond,” Bond said.

According to Dow Jones Newswire, for the first nine months ending July 1, beef represented 46% of Tyson’s $19.1 billion in sales, compared with 31% from chicken and 12% for pork.

Auction Added to Show-Me-Select Lineup

The University of Missouri (MU) reports a sixth sale has been added to the Show-Me-Select Replacement Heifer Program’s fall auctions. Cattle breeders in northwest Missouri and those in the north central areas will have a December sale at Green City, Mo.

The sales offer heifers from producers who have participated in the Show-Me-Select educational program. The MU Extension program emphasizes calving ease and using bulls with proven genetics, said Dave Patterson, MU beef specialist.

For program information, sale locations and dates, visit http://agebb.missouri.edu/news/queries/showcur.idc?story_num=3971&iln=870.

— compiled by Crystal Albers, associate editor, Angus Productions Inc.