News Update
Dec. 29, 2009

Taiwan Parties to Restore Partial Ban on US Beef

According to a Business Week report, Taiwan’s two main political parties have agreed to reinstate a partial ban on some U.S. beef imports.

Tuesday’s decision by the ruling Nationalists and main opposition Democratic Progressive Party will restore a previous ban on ground U.S. beef and offal. The ban was lifted in late October, and the government’s move caused public outcry over safety concerns.

Agriculture Secretary Vilsack Announces $116 Million For Rural Water Projects

Agriculture Secretary Tom Vilsack today announced the selection of $116.9 million in water and environmental project loans and grants that are being funded through the American Recovery and Reinvestment Act (ARRA). Altogether, U.S. Department of Agriculture (USDA) has announced $2.08 billion for Recovery Act water and environmental project loans and grants, benefiting people throughout the country.

“Recovery Act projects are helping rural communities of all sizes build a foundation for economic strength, future prosperity, and a healthy environment,” Vilsack said. “The projects we’re announcing today will help create jobs while rebuilding America’s infrastructure.”

The ARRA funding announced today is being administered by USDA Rural Development’s Water and Environmental Program which provides loans and grants to ensure that the necessary investments are made in water and wastewater infrastructure to deliver safe drinking water and protect the environment in rural areas.

Funding of individual recipients is contingent upon their meeting the terms of the loan or grant agreement.

More information about USDA’s Recovery Act efforts is available at www.usda.gov/recovery. More information about the Federal government’s efforts on the Recovery Act is available at www.recovery.gov.

— Release by USDA.

OSU Animal Scientist Talks American Beef in China

There is no question that China’s beef sector is attracting the interest of investors and world beef exporters. After decades of low prices, Chinese live cattle prices of roughly $1 per pound are higher than those of even the United States.

China’s appetite for beef is growing at a long-term trend rate that is unparalleled by any other major consuming market. It is one reason that Oklahoma State University’s (OSU’s) Brad Morgan, Department of Animal Science meat scientist, recently traveled to all corners of China and talked to several purchasing groups regarding the usefulness, high quality and safety associated with the current U.S. beef offering.

“China’s foodservice and restaurant sectors have expanded at a rate double than that of its already torrid GDP growth,” Morgan said. “One can find a plethora of new beef-focused restaurants, ranging from hot pot and Korean barbecue restaurants to the golden arches of McDonalds in primary cities like Beijing and Shanghai, which have 18 million people each, as well as smaller, secondary cities.”

However, Morgan said China’s beef industry faces structural problems meeting the new demand. Household cow-calf operations and the small, but growing, feedlot industry remains in the hands of small households, whom in recent years have chosen to raise hogs and poultry rather than beef cattle. Cattle’s long production cycle and lean profits make investment unattractive.

“China’s ‘modern’ beef slaughter and processing industry, the majority of whose infrastructure is less than 10 years old, is squeezed between high cattle prices and demand constraints for most beef products,” Morgan said.

While in China, Morgan, with the cooperation of the U.S. Meat Export Federation (USMEF), conducted a series of one-day workshops with several of the largest Chinese food importing and processing businesses that are beginning to utilize U.S. beef items into their operations.

One of the organizations was the COFCO Corp., which is China’s largest diversified products and services supplier in agribusiness and food industry.

Morgan said this company is similar to Cargill or ConAgra in the U.S. in that they are not only in the meat processing business, but they are also leaders in the wine, hotel, snack food and canned food items manufacturing.

During the seminars, Morgan discussed the overview of the U.S. beef industry, the process associated with beef carcass grading, and the ongoing and future aspects associated with beef safety programs.

“I was amazed by their level of questions and their thirst for knowledge regarding the various aspects associated with the U.S. beef industry,” Morgan said.

In addition to these lectures, Morgan was one of two U.S. scientists asked to speak to 800 attendees from 18 countries during the inaugural Pacific Rim Conference, organized by the American Society of Animal Science and the Chinese Association of Animal Science and Veterinary Medicine.

Morgan, who has conducted research or been a featured speaker in 30 different countries, said the conference was a first-time venture into international venues in hopes to bridge gaps and facilitate communication and information sharing between these existing memberships and this growing community of animal and meat scientists in China.

“Currently, the 1.3 billion Chinese are consuming 6 million tons of beef annually, of which they are only raising approximately 25% of their demand,” Morgan said. “We need them to understand U.S. beef and everything that it literally brings to their tables.”

Release provided by OSU Extension.

ICA Annual Convention Preview

Steve Hunt, CEO, U.S. Premium Beef, and Dan Thomson, Kansas State University, are scheduled to be the Opening General Session speakers at the 2010 Iowa Cattlemen’s Association (ICA) Annual Convention. During Tuesday’s Luncheon, Daren Williams, National Cattlemen’s Beef Association (NCBA), Executive Director of Communications, will recognize the Iowa graduates of the Master of Beef Advocacy program. The Brand Wall ceremony, 2009 county membership awards and Beef Quality Assurance (BQA) state award will be presented.

At 2:30 p.m. on Tuesday, the Policy Committee work begins and all ICA members are encouraged to attend, participate and vote at all Policy Committee meetings. During the Cattle Production Committee meeting, John Lawrence, Director, Iowa Beef Center, will cover “The Future of Iowa State University Beef Research and Extension;” Randy Sacco, Research Immunologist Ruminant Diseases & Immunology, National Animal Disease Center, will discuss “Bovine Respiratory Disease Research at the National Animal Disease Center;” and Kellie Carolan, Seedstock Manager, ICA, will talk on “Age and Source Verification.”

At the Business Issues Committee meeting, Eldon McAfee, Attorney at Law, Beving, Swanson & Forest PC, will address the attendees on “What is a Discharge of Manure? The Lowell Vos Case.” Mike Cline, cattle producer from Elgin, Iowa, will lead the discussion on “Food Safety at County Event” at the Beef Product Committee meeting.

“ICA’s position on issues is determined by policy written and voted on by the members at the Annual Meeting held during the ICA Annual Convention,” said Tom Shipley, ICA Director of Issues Management and Policy Implementation. “These are the directions ICA follows whether in the capital building in Iowa or in Washington, D.C.”

All committee meetings will be updated on the Governance/Membership Restructuring of the NCBA, and Resolution and Directive review and new policy action will be discussed.

Tuesday evening’s events consist of the President’s Reception and Dinner, followed by the ICA Awards Presentation and concluding with the Iowa Cattlemen’s Foundation Auction. Wednesday, Jan. 6, the annual meetings of the Iowa Beef Industry Council (IBIC) and the ICA will start at 9:30 a.m. The ICA Annual Convention officially adjourns at 12:30 p.m.

The ICA Annual Convention is Jan. 4-6 at the Gateway Hotel and Conference Center in Ames. For more information please call the ICA office at 515-296-2266, or visit the ICA web site, www.iacattlemen.org.

— Release provided by ICA.

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