News Update
Sept. 15, 2009

American Angus Association® Launches New Ad Campaign

The American Angus Association has launched its new advertising campaign this week, emphasizing the economic advantages of Angus and the services of the Association.

The multimedia campaign, which leverages opportunities in print, Internet and television, marks a departure from the Association’s traditional, print-based approach to breed promotions.

“By spreading our message across a number of opportunities, we believe our message will reach a wider audience of producers who should be using Angus genetics to improve their bottom lines,” says Bryce Schumann, Association CEO. “In developing our campaign’s message, we used information developed by Certified Angus Beef’s Supply Development team, which has evaluated economic data on hundreds of thousands of cattle.”

The campaign will expand in early October with a strong advertising presence in state, regional and national beef publications.

The Association’s Internet presence will also be increased through its partnership with Cattlenetwork.com, a leading news web site for the U.S. cattle industry.

The first of several television commercials, which will be aired this fall on RFD-TV and by other satellite networks, can be viewed by clicking on the window below.

“This is a new approach for the Association, because we’re inviting anyone who has a stake in the Angus business to help us spread the word about this great breed of cattle,” Schumann adds. “Anyone who has a web site can incorporate the video into their own site. If you have questions on how to do so, we encourage you to talk to Rich Masoner, manager of API web services, who can provide you with assistance. We will release other Internet-based videos later this fall, and let the industry know they’re available for widespread use.”

View the new commercial spot at www.angus.org.

For more information, contact Eric Grant at egrant@angus.org or 816-383-5118. To add this commercial spot to your web site, contact Rich Masoner at rmasoner@angusjournal.com or 816-383-5239.

— Release provided by the American Angus Association.

“$35 More Per Head?” — Here’s the Study That Backs Up the American Angus Association’s New Ad Campaign

Premiums on Angus-based steer calves set a 10-year record last fall, despite a sagging economy and slumping prices for commodity calves. High-percentage Angus steers netted an extra $34.51 per head over non-Angus contemporaries at auction, smashing previous records, both per hundredweight (cwt.) and per head.

That’s according to “Here’s the Premium” (HTP), a long-term study initiated by Certified Angus Beef LLC (CAB) in 1999. “The project compares prices for Angus versus non-Angus calves and feeders at auction markets across the United States,” says Steve Suther, CAB industry information director. Read more.

Nobel Peace Prize Winner, ‘Green Revolution’ Researcher Norman Borlaug Dies

Norman Borlaug, a Nobel Peace Prize laureate and agricultural scientist who helped develop disease-resistant wheat, died Saturday at the age of 95.

Borlaug, known as the founder of the Green Revolution, received a Congressional Gold Medal from then President George W. Bush on July 17, 2007. He received the Nobel Peace Prize in 1970 for his work to fight famine, and was a distinguished professor of international agriculture at Texas A&M University.

According to CNN.com, Borlaug was known as a champion of high-yield crop varieties, and other science and agricultural innovations to help fight hunger in developing nations.

Borlaug died from cancer complications in Dallas, Texas, a spokeswoman for Texas A&M University said.

He was awarded the Presidential Medal of Freedom in 1977, and the Congressional Gold Medal in 2006.

Secretary of State Hillary Rodham Clinton and Agriculture Secretary Tom Vilsack released a statement following news of Borlaug’s death, saying, “We were saddened to learn of the passing of Dr. Norman E. Borlaug, whose pioneering agricultural research improved the lives of millions of people around the world and earned him the Nobel Peace Prize, the Presidential Medal of Freedom and the Congressional Gold Medal. Only Dr. Martin Luther King Jr., Mother Teresa, Nelson Mandela and Elie Wiesel have been similarly honored with all three awards.”

Click here to read a transcript or listen to a PBS interview with Gary Toenniessen of the Rockefeller Foundation, a longtime backer of Borlaug’s work.

Cull Cow Prices Continue Decline, Could Rebound in 2010

Last year, faced with drought and rising production costs, the U.S. beef cattle industry reduced the breeding herd. This year, the dairy industry is in a contraction mode having faced rising costs and very low milk prices since last year. The reduction in the dairy breeding herd this year has been prodded by the industry’s Cooperatives Working Together (CWT) program, which is currently in its second round of dairy herd buyouts. A third CWT buyout is likely later this year. Therefore, unlike last year, total cow harvest so far this year has averaged above a year ago due to a larger number of dairy cows in the harvest mix.

As of the end of August, (latest actual data), Federally Inspected (FI) total cow harvest on a weekly average basis in 2009 has been nearly 2% larger than last year and more than 16% higher than the 2003-2007 average. FI dairy cow harvest through the end of August was 15% higher than in 2008 and about 21% larger than the prior five-year average.

FI beef cow harvest on the other hand for the eight-month period was on average nearly 8% smaller than a year ago, but when compared to the 2003-2007 average was still roughly 13% larger. Of interest, last year dairy cows as of mid-August represented around 42% of the cow harvest mix, this year dairy cows have accounted for about 48% of harvest.

Cull prices in the Southern Plains have averaged lower than last year during the first eight months of 2009, due to many factors including, but not limited to, larger imports of lean beef (especially from Australia and New Zealand), a year-to-year decline in cow byproduct (e.g. hides) values, very low wholesale pork prices, and increased U.S. cow harvest.

From January through August, lean cull cow prices on a weekly basis in the Southern Plains averaged just under $48.00 per cwt., 12% lower than 2008 figures, and 6% less than the 2003-2007 average price. So far this year, cull cow prices peaked in late June at just below $55.00 per cwt. but have eroded since this summer.

Looking ahead, fall cull cow prices will likely continue to erode at least well into the fourth quarter of this year as dairy cow harvest remains large and pork prices keep beef sales on the defensive. Rather, large dairy cow harvest is expected to continue into at least early 2010. Overall, in 2010 cull cow prices are forecast to rebound compared to 2009 prices as supplies of cull cows are expected decline.

— Provided by the Livestock Marketing Information Center.

U.S. Beef Opportunities in the EU

Growing volumes of U.S. beef will start to arrive in the European Union (EU) market this fall under the duty-free, high-quality beef quota agreement that was negotiated earlier this year, according to the Cattlemen’s Beef Board (CBB).

The quota is part of a compromise agreement intended to address the long-running dispute over the EU’s ban of beef from cattle raised with growth promotants.

Thad Lively, senior vice president of policy, planning and research for the U.S. Meat Export Federation (USMEF), contractor for the Beef Checkoff program, says there’s very little grain-fed beef available in the European market, and that presents a huge opportunity for U.S. product — not for massive volumes but in the highest value end of the market.

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