News Update

News Update
Dec. 19, 2006

Former Employees Sue Swift

Former employees of Swift & Co. are suing the meatpacking giant for $23 million, according to The Associated Press (AP). The Greeley, Colo.-based company was cast into the national spotlight last week when more than 1,000 federal agents from the Department of Homeland Security (DHS) arrested almost 1,300 employees during “Operation Wagon Train,” a massive crackdown on illegal immigrants working under stolen identities at Swift’s plants in Greeley, Colo.; Hyrum, Utah; Marshalltown, Iowa; Grand Island, Neb.; Worthington, Minn.; and Cactus, Texas.

According to AP, 18 former workers who worked at the Cactus, Texas, plant, filed a lawsuit late Dec. 15 against Swift and investment firm HM Capital Partners LLC. The group said Swift and HM Capital Partners conspired to keep wages down by hiring illegal immigrants.

At the time of the raids, Sam Rovit, Swift chief executive officer (CEO), said the company had not condoned the employment of unauthorized workers, nor ever knowingly hired such individuals.

The DHS raid has gained national attention due to its potential influences on everything from immigration reform to cattle markets and retail beef. Some economists are bracing for higher retail beef costs and lower prices for producers due to increased operating costs incurred by meatpacking plants as a result of the raids.

— by Crystal Albers, Angus Productions Inc.

U.S., Panama Sign FTA

The United States and Panama concluded free-trade agreement (FTA) negotiations today, the U.S. Department of Agriculture (USDA) announced.

Secretary of Agriculture Mike Johanns said the agreement will open new export opportunities for our agricultural industry.

“In 2005, U.S. agricultural producers sold some $200 million worth of products to Panama. Under this agreement, more than half of all current U.S. farm exports to Panama will become duty-free immediately, including high-quality beef, mechanically de-boned chicken, turkey, pork variety meats, whey, soybeans, crude vegetable oils, cotton, wheat, barley, most fresh fruits, almonds, walnuts, and many processed foods such as soups, chocolate confectionary, distilled spirits, wines and pet food.”

In addition to tariff-rate quotas on pork, chicken leg quarters, dairy products and other staples, Panama is revising its sanitary and phytosanitary regulations recognizing the equivalence of the U.S. food safety inspection system for meat, poultry and processed food products.

“Panama will also provide market access for U.S. beef and poultry products consistent with international standards and recognize the U.S. beef grading system. In addition, this agreement streamlines import documentation requirements for U.S. processed foods,” Johanns said.

Panama’s tariffs on most remaining U.S. farm products will be phased out within 15 years, according to USDA.

Premium Value Challenge Winners Find Value in AngusSource®

Producers using registered Angus bulls and enrolling in the AngusSource® program are realizing the value. AngusSource, a USDA Process Verified Program (PVP) that documents source, age and Angus genetics, has announced its first round of winners in the Premium Value Challenge (PVC). Producers enrolled in AngusSource could enter the PVC by submitting their sale information on their calves.

Once producers marketed their calves they were asked to submit their sale information to AngusSource. Cattle that received more than a $5-per-hundredweight (cwt.) premium over the Cattle-Fax mid-range weekly price for their region qualify for PVC. The first round of the PVC was conducted for cattle marketed from August through October. The quarterly state winners and their sale information follow.

Homer Mundell, Walsh, Colo., received an $8-per-cwt. premium for his steers. Jerry Timm, Victor, Iowa, received a $6.50-per-cwt. premium for a lot of heifers. Doug and Janice Burgess, Homedale, Idaho, received an $11.5-per-cwt. premium for their steers. In Kansas, DeAnn Ancell, Sylvan Grove, sold heifers at a $14-per-cwt. premium; and Everett Thompson, Quenemo, sold steers for a $5.75-per-cwt. premium. Junior and Carol Kearns, Brookfield, Mo., received an $8-per-cwt. premium for steers. Ron Rupert, McCook, Neb., received a $9 premium for his load of heifers. Kelly Lanaie Albrecht, Wapanucka, Okla., received a $12.50 premium for steers; and John Wright, Kaycee, Wyo., sold his steers for a $15.50-per-cwt. premium.

The steers and heifers sold at premium through various marketing strategies, including private treaty, at a local auction market and via video auctions. Producers who are currently marketing their calves can still participate in the PVC, as it is conducted quarterly. Data is now being collected on calves sold November 2006 through January 2007. Weekly winners receive an AngusSource cap, and state winners will received an AngusSource wind shirt.

For more information about AngusSource or the PVC, go to www.angussource.com.

— release provided by American Angus Association.