News Update

News Update
July 27, 2007

CAB Sets Sales Record in June

Certified Angus Beef LLC (CAB) set a record in June, selling more pounds of product than in any other month in the brand’s history. CAB moved 56 million pounds (lb.) through its network of licensed packers, distributors, retailers and restaurants.

The previous record, set in August 2003, was 53.6 million lb. CAB President John Stika says the recent record sales volume was a result of planning and the unique blend of “product, people and program.”

“We can credit a combination of things,” he says. “We set ourselves up for this by creating additional demand and growth in foodservice and retail. We also added licensees that we didn’t have a year ago.” Major marketing initiatives also help drive sales.

The Value-Added Products Division eclipsed its March record-high volume month by more than 90,000 lb. The 1.56 million-lb. June was an increase of 21.6% over the same month in 2006.
So far, in the 2006-2007 fiscal year (FY) ending in October, the retail, foodservice and international divisions all show increased pounds sold over the previous year.

International brings the biggest increase, with Canadian and Mexican markets leading the charge. Global sales have spiked 40.5% over the previous year-to-date figures. In June alone they accounted for 4.3 million lb. of total CAB products sold.

“We have exceeded 50 million pounds sold in March, May and June,” Stika notes. “It looks to be an exceptional July, and with continued strength in August and September, the prospect of a record year isn’t out of the question.”

— Adapted from a CAB release.

Johanns Criticizes House Version of Farm Bill

Secretary of Agriculture Mike Johanns expressed his displeasure this week with the Farm Bill proposal offered by the U.S. House of Representatives Agriculture Committee. During a news conference July 25, Johanns said the bill put forth by the committee “misses a major opportunity.”

“The time really is right for reform in farm policy,” Johanns stated. “I feel strongly that the House bill fails to provide that.”

If the bill is adopted as is, Johanns said the legislation would exceed the Administration’s proposal overall by about $36 million. The House bill does not generate “true savings” and creates a farm policy that is less responsive to the free market, Johanns said.

Johanns said he and the president’s team of advisors will recommend that he “veto this bill if it is adopted in its current form.”

Colorado Cattleman Testifies Before Senate Finance Committee

The need for a more workable grasslands conservation program and a permanent disaster assistance program were the top priorities with ranchers this week during a July 24 hearing before the Senate Finance Committee. The Committee held the hearing to discuss Oversight of Government Tax Policy in Farm Country.

Terry Fankhauser, executive vice president of the Colorado Cattlemen’s Association, testified on behalf of the National Cattlemen’s Beef Association (NCBA). His testimony focused on the importance of preserving our nation’s grasslands and the need for a permanent disaster relief program for agriculture.

While NCBA supports continued funding for the Grassland Reserve Program (GRP), Fankhauser identified specific recommendations to help make it more landowner-friendly:

The 2007 Farm Bill should give USDA more flexibility to allow private land trusts to not only hold GRP easements, but also negotiate the terms of the easements.
Third parties should be able to use their own easement template for a GRP easement, as long as it includes the necessary grassland conservation restrictions.
GRP easements should have the ability to be transferred to other qualified organizations in the event of dissolution or if they are unable to fulfill their easement monitoring responsibilities.

On the topic of disaster assistance, Fankhauser said farmers and ranchers need a permanent disaster assistance program to better deal with the effects suffered in the wake of hurricanes, wildfires, tornados, blizzards, floods or even prolonged drought.