News Update
April 2, 2007

U.S. Strikes South Korea Trade Agreement, Beef Excluded

After 10 months of negotiations and eight days of intense talks, the United States and South Korea today have reached what The Associated Press is calling “the biggest free trade agreement since NAFTA.”

According to AP, the deal is expected to lead to more than 90% of U.S. exports to South Korea being duty free within three years. However, the free trade agreement (FTA) will depend on approval from both governments — a point that has already met some contention stateside.

Sen. Max Baucus (D–Mont.), chairman of the Senate Finance Committee, threatened to block the FTA with South Korea just hours after the deal was reached, according to Reuters. Baucus cited U.S. negotiators’ failure to ensure sufficient access for U.S. beef exports.

“I will not allow it to move through the Senate, unless and until Korea completely lifts its ban on U.S. beef,” he said in a statement. “This is an entirely unacceptable outcome.”

According to Reuters, Baucus and other legislators have criticized Korea’s rejection last year of three U.S. beef shipments that contained trace bone chips.

Gregg Doud, National Cattlemen’s Beef Association (NCBA) chief economist, also rejected news of the South Korean deal, saying, “America’s cattlemen deserve access to the South Korean marketplace. U.S. beef and beef products are the safest in the world, and Korean consumers should have access to the same delicious U.S. beef they enjoyed prior to December 2003. There is simply no justifiable reason for the South Korean government to continue to ban imports of U.S. beef.”

Doud said that without U.S. beef included in the trade agreement, the potential of the Korean market holds little value to U.S. cattle producers. “The next 90 days are critical, and NCBA will continue to closely monitor the situation over this time period. As soon as we see U.S. beef trade based upon OIE guidelines occurring between the United States and Korea, NCBA will support the U.S.-South Korea FTA and the market access terms negotiated in this agreement. If that does not occur, NCBA and our cattle producer-members will oppose this FTA.”

Historically, South Korea represented the third-largest market for U.S. beef and beef variety meat exports, valued at $815 million in 2003, NCBA reports.

 

Corn Futures Plunge

Corn futures plunged for a second day as a result of the U.S. Department of Agriculture (USDA) report released Friday showing farmers’ plans to sow 90.5 million acres of corn this year — 15% more than last year and the most since 1944, according to Bloomberg.com.

According to the report, corn futures for May delivery fell 20¢, or 5.3%, to $3.545 on the Chicago Board of Trade.

Analysts suggest the grain rally will subside for now.

Almost $5M in Stolen Livestock, Equipment Recovered in 2006

The Texas and Southwestern Cattle Raisers Association (TSCRA) announced March 20 it had recovered stolen livestock and ranch equipment worth almost $5 million during 2006.

The organization’s 27 special rangers stationed strategically throughout Texas and Oklahoma investigated 1,045 cases during 2006, primarily involving stray or stolen livestock. Working with federal, state and local law enforcement officials, the special rangers recovered or accounted for 3,716 head of cattle, 144 horses, 10 trailers, 18 saddles and 414 items of miscellaneous ranch property.

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