News Update

News Update
April 18, 2008

Farm Bill Extended

The Farm Bill Conference Committee meeting originally slated for today was cancelled, and Elizabeth Bostdorff, National Cattlemen’s Beef Association (NCBA) policy affiliate relations manager, reports the Farm Bill Conference Committee has not come to any agreement on the budget numbers.

Not surprisingly, both House and Senate members passed a one-week extension to the current Farm Bill, extending it until Friday, April 25.

Camp Cooley Ranch to host The Texas Challenge II Event

Klaus and Bonnie Birkel, owners of Camp Cooley Ranch, Franklin, Texas, are encouraging Texas Angus breeders and the Texas Angus Association to raise funds to support Angus education, youth and research efforts through the Angus Foundation. Camp Cooley Ranch will again host and underwrite a celebration at the ranch on Saturday evening, April 26, at 5:30 p.m. featuring a Certified Angus Beef® (CAB®) dinner and live entertainment. All Texas Angus breeders and supporters are invited to attend.

In January 2007, the Birkels pledged $250,000 toward the Angus Foundation’s ambitious Vision of Value: Campaign for Angus goal to raise $11 million by Dec. 31, 2011, if Texas Angus breeders and the Texas Angus Association raised $250,000 in matching funds at $50,000 per year for the next five years.

“Far exceeding anyone’s wildest expectations, Texas Angus breeders and friends not only rose to the challenge, but committed more than $250,000 in outright cash gifts and multiyear pledges in the first year alone toward The Texas Challenge. It is safe to say that Texas Angus breeders met the challenge,” says Milford Jenkins, Angus Foundation president. “As a member of the campaign’s leadership cabinet, visionary Angus breeder and a philanthropist at heart, Klaus viewed it his responsibility to invest significantly in the Angus breed and help add value to education, youth and research for the benefit of future generations of Angus breeders in Texas and across the United States by supporting the Angus Foundation.”

After the overwhelming success of last year’s event, the goal has been increased to $1 million, with Texas Angus breeders challenged to raise another $500,000. By hosting The Texas Challenge II, the Birkels are again showing their dedication and commitment to furthering the success of the Angus breed.

As Klaus has previously stated, “I am devoted to this because I believe it is essential that we provide the next generation of young cattle raisers with the knowledge and skills essential to stay competitive and to make a business out of raising cattle. Additionally, there are still many open questions that research can answer about how to manage and raise cattle in a better way. Education and research must be continual and focused toward our industry’s special challenges. Bright young individuals must be encouraged to stay in this business and must see what is possible.”

“After last year’s success, the Texas Angus Association felt that we as Angus breeders and friends of the Angus Foundation could do so much more to support this worthwhile cause. We applaud last year’s efforts, but also recognize that we have a long way to go,” said Rocky Bunting, Texas Angus Association president. “I am confident that we will rise to the challenge of completing our goal, but it will take the support of every Texas breeder and friend of the Angus breed.”

With the ultimate fundraising goal of $1 million by Dec. 31, 2011, The Texas Challenge II allows donors the freedom to designate how their gift will be used by the Angus Foundation, with choices including educational programs, youth activities and/or bovine-related research. As a part of this fundraising initiative, a Texas Angus Association Scholarship Endowment Fund has been created to enable donors to support the next generation of Angus breeders with educational scholarships awarded to Angus youth from Texas through the Angus Foundation.

All funds raised through The Texas Challenge II will count toward achievement of the nationwide fundraising initiative Vision of Value: Campaign for Angus, which aims to raise $11 million by Dec. 31, 2011, to further support the Angus Foundation’s education, youth and research efforts. To date, more than $4.3 million has been dedicated to the campaign through cash gifts, pledges and planned giving commitments.

The Angus Foundation is the not-for-profit affiliate of the American Angus Association that funds and supports programs involving education, youth and research.

— Release provided by the Angus Foundation.

Texas’ Fever Tick Quarantine Zone Shifts

The temporary preventive fever tick quarantine zone in south Texas’ Starr County has been enlarged by nearly 24,000 acres, after fever ticks were found on a premises outside the county’s quarantine zone. Inspectors have used livestock market records to locate the 94 head of cattle sold by the ranch March 28. Using livestock market records, inspectors have contacted the nine initial buyers of the cattle, which are considered to be tick-exposed or infested. The animals are being quarantined, inspected and treated to eliminate the spread of fever ticks. Due to cattle movement, three livestock markets also are being subjected to cleaning and disinfection.

The U.S. Department of Agriculture (USDA) Tick Force and the Texas Animal Health Commission (TAHC) are conducting an epidemiological investigation to identify and locate any other cattle that have been moved from the premises during the past year, so the animals can be inspected, treated and, if necessary, quarantined.

Fever ticks are capable of carrying “babesia,” a blood parasite that can cause “cattle tick fever,” a deadly cattle disease that does not affect humans. The tick was eradicated from the U.S. in l943, but it is still present in Mexico, and a permanent quarantine zone on the U.S. side of the Rio Grande is patrolled on horseback by USDA Tick Force personnel to prevent the introduction of “ticky animals.” In 2007, the fever tick was detected beyond the permanent quarantine, and three temporary fever tick quarantine areas were established in Starr and Zapata counties, and in a contiguous area of Maverick, Dimmit and Webb counties.

“Discovering that fever ticks have pushed outside the temporary preventive quarantine area is very serious and the situation is being addressed with great urgency by the TAHC and USDA Tick Force,” said Bob Hillman, Texas’ state veterinarian and head of the TAHC, the state’s livestock and poultry health regulatory agency. “The TAHC has expanded the temporary quarantine area in Starr County that originally encompassed about 40,000 acres, and the USDA Tick Force is inspecting and treating cattle within the newly enlarged temporary quarantine area to determine the extent of tick spread.”

“Additionally, we are conducting a complete epidemiological investigation to find cattle moved within the previous year from newly detected tick-infested premises,” Hillman said. “Without identification on animals, it will slow the process, but we use every method available, from sale barn, feedlot and slaughter plant records, to recollections and hearsay from cattle owners.”

Hillman asked for cattle owner cooperation to speed up the investigation process. “We will move as quickly as possible to locate, inspect and, if needed, treat and quarantine cattle,” he said. Animals may be moved legally from or within the permanent or temporary fever tick quarantine areas only after they are inspected for fever ticks, dipped or sprayed and permitted for movement by Tick Force or TAHC personnel.”

“Fever ticks have demonstrated their adaptability to hosts besides cattle, which perpetuates the population of these pests within tick-infested areas,” Hillman said. “The pests have been detected not only on white-tailed deer, nilgai, and elk, but also on axis, fallow deer and aoudad sheep within the permanent and temporary quarantine zones.”

The expanded quarantine area in Starr County will now begin at the intersection of Ebanos Road and U.S. Highway 83 in Los Saenz, moving west and northwest along Highway 83 to the county line, then northeast along the county boundary to the northeast corner of the RR Guerra Las Lomas pasture. The quarantine line turns southeast along the Las Lomas and Dr Narro fencelines to Loma Blanca Road, where it runs south to the northwest corner of the Amando Pena pasture (previously known as the AV Margo pasture). The meanderings of this pasture’s fenceline is followed to the northeast, then southeast to the Sanchez Ranch Road. It then follows the Sanchez Ranch Road east to the intersection with the San Julian Road. The line follows San Julian Road south to the intersection with the Ebanos Road and continues along this road to the quarantine starting point at its intersection with U.S. Highway 83.

Hillman said there is one bright spot in the battle against fever ticks in Dimmit County. “After thoroughly inspecting livestock in the area, the USDA Tick Force has determined a small area of the temporary quarantine in Dimmit County is fever tick-free and can be excluded from the temporary quarantine zone,” he said.

The boundary of the area to be excluded from the temporary quarantine begins in Eagle Pass at the intersection of FM 1021 (Mines Road) and U.S. Highway 277 and continues to the junction with Loop 225 (also known as 5th Street) in Carrizo Springs. The boundary follows Loop 225 to its intersection with U.S. Highway 83 in Carrizo Springs. The boundary moves south on US Highway 83 until it turns southwest on FM 2688 and continues to FM 1021 (Mines Road). The boundary follows the Mines Road to its point of origination at the intersection of U.S. Highway 277 in Eagle Pass.

— Release provided by the Texas Animal Health Commission.

S. Korea Resumes U.S. Beef Imports

South Korea has agreed to fully comply with international trade standards regarding beef and beef products, Agriculture Secretary Ed Schafer announced today.

“By allowing complete market access for U.S. beef and beef products from cattle of all ages, South Korea has made a decision that is based on science and in line with international guidelines,” Schafer said. “As a result of a constructive and steady dialogue, Korean consumers will again have access to safe, affordable, high-quality beef at a time when global commodity prices are tightening.”

Since Korea’s ban on U.S. beef implemented in December 2003, the Korean economy has grown and more of its population enjoys increased incomes and a better way of life, Schafer said.

“That is why Congress’s immediate consideration of the United States-Korea Free Trade Agreement (KORUS FTA) is important.”

Once the KORUS FTA is ratified and implemented, and the current 40% tariffs on U.S. beef are fully lifted, the FTA is expected to generate tariff savings of approximately $500 million a year for U.S beef exporters, according to USDA estimates. The International Trade Commission estimates that under the FTA, U.S. beef exports to South Korea could increase by $600 million to $1.8 billion.

“South Korea has raised the bar for other Asian nations, such as Japan, Taiwan and China, and the United States will continue to press for full market access throughout the rest of the Pacific Rim so that unreasonable restrictions on U.S. beef and beef products are fully removed,” Schafer added.

The NCBA applauded the move. Gregg Doud, NCBA chief economist, said South Korea potentially represents a $1 billion market and could grow to be the United States’ top beef customer.

“The U.S. beef industry owes a huge debt of gratitude to President Bush and his administration, as well as our trade negotiators and members of Congress for this historic undertaking on the issue of Korean beef trade,” Doud said.

Initially, the protocol will allow for the shipment of all U.S. beef products (boneless and bone-in beef, as well as variety meats) from animals under 30 months of age, NCBA noted.

Korea has agreed that this is a first step toward accepting all U.S. beef products from animals of all ages as directed by the World Organization for Animal Health (OIE) guidelines.

Assuming trade resumes as planned, NCBA will ask Congress to consider, support and pass the long-awaited U.S.-South Korea Free Trade Agreement (FTA) as soon as possible.

“For U.S. beef trade, the Korean FTA could be could be the biggest and most important bilateral trade agreement in history,” Doud said.

Producer Survey Says Age and Source Verification Pays

A survey of more than 150 cow-calf producers across the country revealed that producers using age- and source-verification systems earned an average of $10 more per hundredweight (cwt.) than generic calves.

The survey, sponsored by Global Animal Management, was conducted during January 2008 and asked producers about prices earned on calves sold during 2007. Survey participants represented herd sizes ranging from less than 50 to more than 5,000. More than 75% of participants sold their calves through a sale barn, about 6% sold calves direct to the feedlot, and just 2% of respondents sold direct to the packer.

Producers like Matt Chisum from Stinnett, Tex., said age and source verification provided substantial value with little additional work. The certificate earned Chisum an extra $4- to $5-per-cwt. premium, and when combined with the VAC45 program, he realized a $10- to $12-premium per cwt.

“Clearly the results indicate there is a market for calves with an age and source process verified program (PVP) certificate,” said Jim Heinle, president of Global Animal Management. “Interestingly, while certified calves earned an average of $10 more per hundredweight than their counterparts, most producers using a verification program don’t realize the extent of the value they’re receiving.

— Release provided by Schering-Plough Animal Health.