News Update

News Update
March 31, 2008

Cattlemen Win Access to Mexico for U.S. Breeding Cattle

Persistent cattlemen helped win access to Mexico for breeding cattle from the United States in an important trade victory this week. Agriculture Secretary Edward Schafer announced March 27 that Mexico has agreed to allow importation of breeding cattle from the United States born after Jan. 1, 1999, effective today. The National Cattlemen’s Beef Association (NCBA) has long fought for fair and free international trade for U.S. cattle producers.

“The opening of the Mexican border has been long overdue and it is definitely a great win-win for both U.S. and Mexican cattlemen,” said NCBA President Andy Groseta, an Arizona cattle producer. “Our seedstock producers can sell their superior genetics to Mexican cattlemen who are striving to improve the genetics of their cow herds. As we all know, many of the Mexican stocker and feed cattle come back to the U.S. So it is a win-win for all parties concerned.”

Mexico denied access to U.S. breeding stock beginning Dec. 23, 2003, when the United States announced its first-ever case of bovine spongiform encephalopathy (BSE). Since that time, Mexico has only allowed importation of registered U.S. dairy heifers under the age of 24 months, despite in-depth international negotiations to include breeding stock.

“This is a big win for U.S. cattle producers — and in particular — those in the seedstock community,” said Gregg Doud, chief economist for NCBA. “Mexico is currently working to expand its herds, so this decision comes at a critical time.”

Traditionally, the United States has shipped approximately $125 million annually in live cattle breeding stock to Mexico.

When the United States implemented the second Minimal Risk Regions Rule Nov. 19, 2007, it was widely believed Mexico would lift the restriction on breeding stock. But the situation remained unresolved until yesterday. Mexico continues to ban the import of beef and beef products from animals more than 30 months of age.

“The issue of over-30-month beef to Mexico has always been extremely sensitive politically,” Doud said. “However, NCBA’s expectation is that once Mexico receives its ‘controlled risk’ status from the World Organization for Animal Health (OIE), which is expected in May, then this issue should be resolved as well.”

OIE recommendations, which are based on the latest science, provide guidelines for trade in cattle of any age, as well as beef and many other cattle products. These guidelines apply to all OIE risk country classifications for BSE with recommended mitigation measures appropriately applied to protect both human and animal health.

“Canada, Mexico and the United States have been engaged in candid, productive talks over the past two days,” Secretary Schafer said. “We mutually agreed on the importance of normalizing beef and cattle trade in North America, consistent with the guidelines established by the World Organization for Animal Health.”

— Release provided by NCBA.

WTO ruling against EU ban on beef with hormones a ‘victory’: U.S. official

U.S. Trade Representative Susan C. Schwab said the World Trade Organization (WTO) ruling, announced Monday, that a ban by the European Union (EU) on imports of U.S. beef from certain hormone-treated cattle remains scientifically unjustified would be a boon to U.S. beef producers — as well as EU consumers.

“The panel’s findings on the EU ban are an important victory for all U.S. farmers and ranchers,” Schwab said in a statement. “EU consumers should have access to U.S. beef — it is of high quality, safe and competitive. Considering the EU’s position as the world’s second-largest beef importer, resolution of this dispute will benefit not only U.S. cattle producers and beef exporters, but also EU importers and consumers.”

The ruling allows the United States and Canada to maintain sanctions on specified European products, though the EU has the right to appeal.

The dispute, one of the longest running in the history of the WTO, dates back to 1996, when the United States succeeded in its challenge of the EU prohibition. Following an unsuccessful appeal by the EU, the WTO authorized the United States to raise tariffs on imports from the EU to the tune of nearly $117 million per year. The United States did so in 1999.

In late 2003, the EU amended its ban. The original ban prohibited, among other things, imports of meat from cattle to which any of six growth-promotion hormones had been administered. The amended version maintained a permanent ban on one of those hormones and provisionally applied the prohibition to the five other hormones, pending availability of sufficient scientific evidence. USTR notes that the EU already had claimed it had sufficient scientific evidence for banning those five hormones.

“It is not surprising that the panel found that the EU continues to be unable to scientifically justify its ban,” the agency said. “The hormone levels the EU is concerned about are 50 times less than the acceptable daily intake and they represent a tiny fraction of what occurs naturally in an egg or one glass of milk.”

— Release provided by meatingplace.com.

Westchester Foundation Ag Scholarship Applications Due April 30

College students as well as high school seniors looking for help in funding college expenses are invited to complete an application for the Westchester Foundation scholarship by April 30.

Scholarships are awarded to high school seniors accepted for enrollment or students already enrolled at an accredited college, university or community college in a course of study related to agriculture or agribusiness.

The Westchester Foundation was established by Murray Wise, founder and chief executive officer (CEO) of the Westchester Group Inc., with a mission to enhance the future of American agriculture by helping to ensure a steady supply of bright, dedicated, well-educated leaders. Students are selected by the Foundation’s Board of Directors based on academic qualifications, community and school involvement, leadership potential, and financial need.

“I’ve spent my entire life immersed in many areas of agriculture; it is an industry I am passionate about,” Wise said. “It has become increasingly more important for young people involved in agribusiness as well as production agriculture to obtain a college education in order to excel in the industry. I’m grateful to have the resources available to ease the financial burden of higher education for dedicated students who can make a difference in agriculture.”

Provided the students maintain acceptable grade point averages, the scholarship can be renewed annually for up to four years. While the amount awarded for each scholarship varies by individual and economic need, successful applicants may anticipate a minimum of $1,000 per year to fund any expenses related to attendance at the college of their choice.

Many scholarship recipients have had positive experiences with the Westchester Foundation and have been able to use their award for otherwise unattainable opportunities.

“One of the wonderful aspects of the Westchester scholarship is that it not only helps with tuition and textbook fees, but it can be used for any college expense,” noted Heather Busse, a scholarship recipient since 2006 who attends the University of Illinois. “I had two opportunities to study abroad and was able to use some of my scholarship money to learn about the agricultural economies in the Baltic countries as well as study the soybean industry in Brazil. I am thankful to the Westchester Foundation for the global perspective I’ve gained from these experiences.”

Applications can be downloaded online and must be completed and submitted no later than April 30 in order to be considered for scholarship funds for the fall semester of the 2008-2009 school year.

The Westchester Foundation was established in 1997 solely to provide financial resources toward a college education for students with the talent and drive to continue the extraordinary success of the nation’s agribusinesses.

Westchester Group Inc. is a leading agricultural asset management firm, providing a complete range of agricultural real estate and management services as well as auction services. The company specializes in portfolio management and acquisition of farmland for institutional and corporate clients and individual farmers, as well as individual investors. Westchester manages a diverse range of crops for their clients, including corn, soybeans, almonds, wine grapes, apples and citrus.