News Update
Aug. 12, 2009

USDA: Second-Largest Corn Crop Projected

The U.S. Department of Agriculture (USDA) released its World Agricultural Supply and Demand Estimates (WASDE) report today, projecting U.S. feed grains supplies for 2009-2010 higher with corn production more than offsetting a reduction in supplies as 2008-2009 corn exports are raised 50 million bushels (bu.).

Corn production for 2009-2010 is projected at 12.8 billion bu., up 471 million as higher forecast yields (153.4 bu. per acre to 159.5 bu. per acre) more than offset a small reduction in harvested acres.

According to the U.S. Grains Council (USGC), the report stated U.S. corn supplies are projected at a record 14.5 billion bu., up 134 million bu. from the previous record set in the 2007-2008 marketing year. Corn exports are projected 150 million bu. higher “reflecting reduced foreign production prospects and stronger expected import demand from Mexico and Taiwan.”

USGC President and CEO Ken Hobbie said rising demand for ethanol and exports are responsible for the outlook.

— Adapted from information provided by USGC.

AP Article Suggests Link Between Handling Citation, Recall

A Fresno, Calif., meat plant last week recalled approximately 826,000 pounds (lb.) of ground beef due to at least 28 reported salmonella-related illnesses in three western states.

Now The Associated Press (AP) is reporting Beef Packers Inc. had been issued animal handling citations last year in a government review of meatpacking plants. Although citations were later rescinded on an appeal by the parent company, Cargill Meat Solutions, the article suggests the stunning and dragging of cattle may have increased the risk for E. coli and salmonella contamination.

Dan Thomson, of Kansas State University (K-State), refuted the idea, telling AP he believed problems with humane handling did not cause contamination at the Fresno plant.

“It wasn’t clear that these cows were drug long distances across dirty floors. They may have just been moved a few feet,” Thomson said. “A lot of animal hides get contaminated on farms, or in transport to the abattoir.”

Argentina Beef Prices Skyrocket

Local beef prices in Argentina have risen more than 20% in 2009, according to a Fortune magazine article released through CNN.com Tuesday.

According to Fortune, beef in Argentina accounts for 5% of the consumer price index and is the country’s third-largest export.

The price increases are reportedly due to scarcity caused by a severe drought and complicated by the global recession. Many farmers there are converting their fields from grazing to grains, now the country’s top export.

Five-State Beef Conference Set for Aug. 31-Sept. 2

Extension personnel from five agencies are working together to provide the latest information to beef producers on everything from nutrition to marketing at three meetings taking place Aug. 31-Sept. 2.

The Five-State Beef Conference is aimed at beef producers from the Texas High Plains, Oklahoma Panhandle, Eastern New Mexico and southern portions of Colorado and Kansas, said Ted McCollum, beef cattle specialist with the Texas AgriLife Extension Service in Amarillo.

McCollum is joined in hosting the meeting by Extension officials from Colorado State University (CSU), Oklahoma State University (OSU), New Mexico State University and K-State.

Meetings are scheduled Aug. 31 in the Moore Community Building in Dumas, Texas; Sept. 1 in the Cimmeron County Fair Building in Boise City, Okla.; and Otero Junior College Student Center, Banquet Room 116 in La Junta, Colo. Each meeting will begin at 2:30 p.m. with registration and conclude at 7 p.m., followed by an evening meal.

Topics and speakers will be:

• Winter cow nutrition, McCollum and Jack Whittier, CSU.
  
• Controlling production costs, Glenn Selk, OSU, and Jason Ahola, CSU.
  
• Cash vs. grid marketing, Deb VanOverbeke, Oklahoma State, and Scott Howard, CSU.
  
• Market outlook, Rodney Jones, OSU.
  
• Value-added opportunities - increasing cost or adding premiums, Manny Encinias, New Mexico State.
  
• What it takes – participating in value-added programs, Doug McKinney, OSU.

The registration deadline is Aug. 21. Registration fee will be $35 per person or $50 for a couple. Checks should be made payable to OSU Animal Science and mailed to Animal Science Extension, 201 Animal Science, Stillwater, OK 74078.

For more information, contact McCollum at 806-677-5600, or the OSU Animal Science Extension at 405-744-6060.

— Provided by Southwest Farm Press.

South Korea Lifts H1N1 Ban on Live Hogs

South Korea has lifted its ban on North American live hog imports imposed in April due to concern surrounding the H1N1 flu outbreak. According to National Pork Producers Council (NPPC) President Don Butler, Korea is a top market for U.S. pork exports and an important destination for swine breeding stock.

In 2008, South Korea was the sixth-largest market for U.S. pork, with exports valued at $284 million. The country also ranked as a top destination for U.S. live hogs last year, with exports of $1.1 million. During the first five months of 2009, exports to Korea were down 10% by volume and 7% in value.

Since September 2007 the U.S. pork industry has lost nearly $4.5 billion, and producers have lost an average of more than $21 per hog marketed. While high production costs are the primary culprit for the industry’s economic woes, restrictions on U.S. pork and hog exports by a number of countries due to H1N1 concerns exacerbated the problems.

— Provided by Kansas Livestock Association.

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