News Update
March 9, 2009

Merck, Schering-Plough to merge in $41.1B deal

Drugmakers Merck & Co. and Schering-Plough Corp., already partners in a joint venture, are planning to merge under the name Merck in a stock-and-cash deal worth about $41.1 billion, according to The Associated Press (AP).

According to the two New Jersey pharmaceutical companies, Merck’s top executive, Chairman and Chief Executive Officer (CEO) Richard Clark, will lead the combined company.

However, the transaction is to be structured as a reverse merger. As a result Schering-Plough will be the surviving public corporation but will be renamed Merck, according to AP.

New Data Finds Parasite Control Critical to Cattle Profitability

Researchers at Iowa State University (ISU) concluded that of all the pharmaceutical technologies examined, parasite control in cow herds had the greatest effect on breakeven prices — providing a value of $201 per head.1 This represents a 21% increase from similar data reported in 2007.1

“The original data was based on feed and cattle prices prior to the recent increase in these areas,” say John Lawrence, professor, economics department, ISU. “Now, the question is, does the increase in feed and input costs make a difference in the effect of efficiency-gaining technologies? The answer is yes.”

In 2007, Lawrence and his team examined more than 170 research trials from the last 25 years.2 Recently, they re-evaluated and updated this research based on increases in cattle and feed prices. The study concluded that the importance of each technology increased with higher prices.1

When compared with the second most important practice to a cow-calf herd — the use of growth-promoting implants — parasite control is almost six times more important to breakeven cost.1,2 Producers who use parasite control can expect an advantage of 23% in weaning rate and 4% in weaning weight.1,2 These advantages equal a return of $201 per head based on the use of parasite control.1

“The message is the same as it was before, but now even more so,” Lawrence says. “Efficiency-gaining technologies, such as parasite control and growth promotants, are now even more valuable in improving performance and reducing cost for producers.”

Frank Hurtig, director, Merial Veterinary Services, says this means parasite control is an area that producers cannot afford to cut.

“The urge to cut back on input costs is understandable,” Hurtig says. “However, this data shows that producers cannot afford to skimp on parasite control. In fact, cutting back on parasite control would result in an increase in their overall cost of production.”

Lawrence agrees that producers should think twice about cutting back, and think more about the long-term effect of their decisions.

“Removing these technologies actually increases the cost of raising an animal,” he says. “Producers need to look at these technologies as an investment rather than an expense. The cost to raise their product actually will be lower if producers are using these technologies.”

Hurtig says not only should producers not cut back on parasite control, they should consider adding a spring parasite control treatment.

“Spring parasite control has been shown to result in increased weaning weight and reproductive efficiency,3-6 two areas that greatly affect cow-calf producers’ bottom-line,”Hurtig says. “Producers with a mind on their profit margin should consider all available opportunities to create efficiency and a spring parasite control treatment is a place to start.”

Cow-calf producers can get started with a spring parasite control program risk free by taking the Ivomec® Challenge, according to Merial. For more information visit www.ivomec.com.

— Adapted from a release provided by Merial.

Three Associations Receive Scholarship Grants from AgriLabs

AgriLabs is awarding a total of $1,500 for scholarship grants to three state associations as an outcome of its booth promotion at the recent Cattle Industry Annual Convention in Phoenix, Ariz. The Nebraska Cattlemen Foundation, Lincoln, Neb.; the Oregon Cattlewomen in Salem, Ore.; and the Oklahoma Cattlewomen, Oklahoma City, Okla., each will receive $500 to be used for an educational scholarship for a deserving youth during 2009.

In addition to the scholarship grants, AgriLabs offered a grand-prize drawing of a framed print by rural-America artist Bonnie Mohr. Karen Sweet, Sweet Livestock, Livermore, Calif., submitted the winning registration card and will receive the signed, numbered litho print titled “Summer Pastures.”

— Release provided by AgriLabs.

Protect Your Pastures with Spring Deworming

Rough hair coats and reduced weaning weights are clinical signs of underperforming calves caused by a parasite problem.

Parasites are found in almost all forage situations. Parasites cause numerous problems, including depressed immune systems and a reduction in total feed intake, making cattle more susceptible to disease challenges.

According to Gary Sides, cattle nutritionist for Pfizer Animal Health, parasites require access to cattle to complete their lifecycle. “The purpose of strategic deworming is to treat cattle in a timely manner to reduce the total parasite load on pasture,” he said. “This reduces total exposure of parasites to all cattle on that pasture.

“Internal parasites also suppress appetite, which limits nutrient intake and absorption,” Sides added. “Reduced nutrition impacts animal performance including gain, feed efficiency, immune response and reproduction.”

These losses can be minimized by using a dewormer before pasture turnout in the spring. In 2007, when the Connell Ranch in Whitman, Neb., was experiencing below normal weight in their calves, they began to reevaluate their strategies for deworming.

“We had kept back the smaller calves and were worried about them not doing as well. Many of them were probably 50 pounds under the normal weight we like to see for calves going onto pasture,” explained Zane Connell.

Dectomax® was administered to more than 200 head of steer and heifer calves. By fall, the operation found the treated calves had put on more weight and become some of the heaviest they have ever had.
For additional information on Pfizer’s portfolio of animal products, visit www.pfizerah.com.

— Adapted from a release provided by Pfizer Inc.

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