News Update
March 13, 2009

Vilsack Issues Conditional License for Vaccine to Reduce E. Coli in Feedlot Cattle

Agriculture Secretary Tom Vilsack today announced that the U.S. Department of Agriculture (USDA) has issued a conditional license to Epitopix LLC, of Willmar, Minn., for a vaccine to reduce the prevalence of E. coli O157 in feedlot cattle.

“Providing the American people with safe and nutritious food is a top priority for President Obama and the U.S. Department of Agriculture,” Vilsack said. “The conditional licensing of this vaccine is an important step toward our goal of improving food safety in this country.”

E. coli O157:H7 can cause severe illness and death in humans who consume food tainted with the pathogen. A common path for the pathogen to enter the food supply is when muscle tissue becomes contaminated with E. coli from the intestinal tract of cattle during the slaughtering process. Vaccines to reduce the prevalence and shedding of E. coli pathogens in cattle are one component of a wide-range of options to enhance food safety controls.

According to USDA, the department will continue to explore solutions with all stakeholders to better control E. coli O157:H7 and other foodborne pathogens to reduce the incidence of foodborne illness. USDA’s Animal and Plant Health Inspection Service (APHIS) granted the conditional license following the acceptance of data supporting product safety and a reasonable expectation of efficacy. The safety data included the results of studies that evaluated the product under normal conditions, including field safety trials of the size and scope required for full licensure.

The company will conduct additional potency and efficacy studies during the one-year period of the condition license. APHIS issues conditional licenses in the event of an emergency situation, limited market or other special circumstance. The special circumstance in this case is the absence of other licensed veterinary biological products for use in reducing the prevalence and shedding of E. coli O157 in cattle.

— Release provided by USDA.

What Sent Farm Prices Up Now Bringing Them Down

A trio of economic factors that sent commodity prices soaring in mid-2008 has since reversed course and is pushing prices lower, according to an updated report by three Purdue University agricultural economists.

“The three major drivers that we identified last year were trends in global production and consumption, the value of the dollar, and biofuels,” said Wally Tyner, who, along with Philip Abbott and Chris Hurt, released “What’s Driving Food Prices?” this past July. “One of the key questions we asked in doing this new study was, ‘Are these same three that drove prices up the ladder now driving prices down the ladder?’ The answer is yes.”

Tyner and Hurt, who on Wednesday (March 11) presented the update in a Farm Foundation Forum at the National Press Club in Washington, D.C., found that a stronger American dollar, falling ethanol demand and rising grain stocks combined to send corn, soybean, wheat and rice prices cascading in late 2008. Behind those dramatic changes is the global financial crisis, the economists said.

“The dollar had lost about 67% of its value through July 2008, and since July it has gained 22% of that value back,” Tyner said. “Since July, the expectations on supply and demand are that our stocks are going to be better than we thought since 2008 was a good production year and world demand has dropped. So supplies are not nearly as short now in terms of stocks-to-use ratios as they were before.

“And then the demand for biofuels is not near what we thought it was going to be. The price of oil comes down, the price of gas comes down and demand for ethanol goes down. That means there’s not as much corn needed to make ethanol, and, therefore, not near as much pressure on the price.”
Given time, consumers are likely to see lower prices for some food items, Tyner said.

“Demand is down for everything,” he said. “In particular, demand is down more for meat products, which means less demand for the corn and soybean meal to produce meat. It filters through the system.

“It takes a long time for some animal livestock products before those lower commodity prices get filtered into the meat, dairy and eggs. Poultry products are the quickest. For beef it’s the longest time period — up to several years — and for pork it’s somewhere in between. For some meat products, we may be seeing prices now that reflect more what corn and soybean prices were last year than what they are this year.”

Hurt said, “Some products like eggs, milk and dairy will have lower prices this year. Others like meats may be close to unchanged, and fruits and vegetables will likely still be somewhat higher.”

The news for crop farmers is not as rosy, however. Production costs have not fallen as quickly as commodity prices. As a result, input prices remain relatively high, Tyner said.

“Had commodity prices stayed high, farmers could have supported those input prices,” he said. “It’s going to be a tight margin year for farmers. They came off of two really good years, but this year is going to be much different.”

Hurt said, “The future for agriculture is also closely tied to the depth and duration of the current recession, as well as to the magnitude of the recovery in coming years. Other important factors will be how governments and consumers respond to the downturn and how biofuels policy evolves in coming years.”

To read the July 2008 “What’s Driving Food Prices?” report and update, go to the Farm Foundation web site at http://www.farmfoundation.org.

Farm Foundation is a nonprofit organization promoting non-advocacy agricultural policy analysis. The Oak Brook, Ill.-based organization provides objective information on issues shaping the future of agriculture, food systems and rural regions.

— Release provided by Purdue Research and Extension.

Internships Offered for Texas College Students

A variety of internships are being offered in county offices of the Texas AgriLife Extension Service for college students. “We want to find students with an interest in agriculture, human sciences or youth development so we can let them ‘test drive’ working for AgriLife Extension,” said Dan Bogart, AgriLife Extension human resources specialist. “We get to see them in action, and they get to experience a real work experience at the county level.”

Bogart said the agency hopes to receive applications by March 20, but the deadline is flexible. Interested students can view http://extensionintern.tamu.edu/ for more information.

“Students can use this real work experience to enhance their resume for future job hunts, to gain valuable insight in a potential career choice and to work in a ‘service industry,’” Bogart added.
He also said an internship can provide a student with a “reality check” about careers before making a long-term commitment.

Texas AgriLife Extension Service, a part of the Texas A&M University System, has a presence in all 254 counties to provide objective, research-based education programs and services in agriculture and natural resources, 4-H and youth development, family and consumer sciences, and community economic development.

Applicants should be currently enrolled in an accredited college or university, have at least 60 credit hours completed prior to internship, have a 2.5 or higher grade point average and have a valid Texas driver’s license. AgriLife Extension internships are open to all majors from any college or university. Some institutes may grant semester credit hours for internships.

One’s educational background is not as important as the applicant’s knowledge, abilities and interests related to outreach and education, according to agency officials.

Interns will need to be able to work full-time for one academic semester.

Bogart noted that the agency needs “energetic, innovative, resourceful individuals.” On-the-job training will be provided under close supervision. Because each county office is organized slightly differently, the actual work experience may vary, Bogart noted. Student interns may work in AgriLife Extension at district or county offices throughout the state.

— Release provided by Texas AgriLife Extension.

— Compiled by Mathew Elliott, assistant editor, Angus Productions Inc. (API)