News Update
Feb. 9, 2010

Experiences with Fixed-Time AI

“All estrus synchronization systems work, but none has worked as well for us as fixed-time artificial insemination (AI). In terms of the cost, the results and my time input, it offers us the best solution,” said Mike Kasten, 4M Ranch, Millersville, Mo. He shared his experience with synchronization and AI at the Applied Reproductive Strategies in Beef Cattle symposium Jan. 29. The workshop was hosted in conjunction with the 2010 Cattle Industry Annual Convention and NCBA Trade Show in San Antonio, Texas.

The number of times cows go through the chute seems to be a major sticking point for a lot of people in selecting a synchronization system, Kasten observed, so he started recording the actual time spent on each female. Cows make three trips through the chute, with a total of 10 minutes spent hands-on. Heifers make four trips through the chute, with a total of 11.2 minutes spent hands-on.

“Considering we get up to 80% success rate with the cows and 60% success rate with the heifers, that’s a time investment I’m willing to make,” Kasten said. Read more.

USDA To Release New Long-term Agriculture Projections

The U. S. Department of Agriculture (USDA) will release new 10-year agricultural projections Feb. 11 at noon (EST). “USDA Agricultural Projections to 2019” will be released on the Office of the Chief Economist web site at: www.usda.gov/oce. USDA publishes the projections each year in February.

The report will be available in printed form February 18-19 at USDA’s 2010 Agricultural Outlook Forum in Arlington, Va. (Conference details found at: www.usda.gov/oce/forum). Copies also can be ordered from the National Technical Information Service at www.ntis.gov or 1-800-999-6779. Request document OCE-2010-1.

The long-term projections are developed by interagency committees in USDA, with the Economic Research Service (ERS) having the lead role in the preparation of the report. The new projections cover agricultural crop and livestock commodities, agricultural trade and aggregate indicators such as farm income and food prices through 2019. The projections do not represent a USDA forecast, but a conditional, long-run scenario based on specific assumptions about farm policy, the weather, the economy and international developments. Provisions of the 2008 Farm Act are incorporated into the projections and are assumed to remain in effect through 2019. Normal weather also is assumed throughout the projection period.

Background on USDA’s long-term projections and past issues of the report are available on the ERS web site at www.ers.usda.gov/briefing/projections.

— Release by USDA.

Annual Survey Of Producers Shows Continued Approval Of Beef Checkoff

A survey of 1,200 beef and dairy producers nationwide was conducted in late Dec. 2009 and early Jan. 2010 by the independent firm Aspen Media & Market Research. Despite finding that 7 in 10 producers said the current economic recession had affected their operations negatively, their approval of the beef checkoff increased from 68% in 2009 to 69% in 2010. While not a ‘significant shift,’ researchers noted the economic effect on producer support of the checkoff has been small.

“Knowledge about the checkoff continues to be a predictor of favorability toward it,” says Wesley Grau, cow-calf farmer from Grady, N.M., and chair of the Joint Producer Communications Committee (JPCC). “Producers who are ‘very’ or ‘somewhat’ well informed are more likely to approve of the checkoff, particularly among those who say they are very well informed. Among this group, 78% approve of the program (45% of them strongly), while only 16% disapprove. When you factor in the tough times all farmers and ranchers have been facing, this is encouraging news.”

To that measure, the underlying value of the checkoff remains strong: a large majority (77%) feels the checkoff program has helped contribute to a positive trend in consumer demand for beef; a similar number believe the program has value in weak economic conditions or are confident it is on their side during a crisis.

And, when it comes to their own operations, many producers believe the program has benefited them. A large majority (61%) believe it helps contribute to the profitability of their operations, although this is down from a year ago.

“A key goal as identified by the JPCC is that farmers and ranchers have a positive view of the way the checkoff is being managed. That they trust in the leadership and the decisions being made about their checkoff investment,” says Grau. “This research shows that management of the checkoff is viewed favorably with 62% saying they believe it is being managed well.”

For more information about your beef checkoff investment, go to www.MyBeefCheckoff.com. A copy of the research report is available online.

— Release by My Beef Checkoff.

Profits in Livestock Depend on Demand, Domestic and Foreign, says MU FAPRI

“Tough times across the livestock sector can get better this year, but it will take demand, demand, demand,” said Scott Brown, economist with the Food and Agricultural Policy Research Institute (FAPRI).

“Supply is not the problem. We need a return of consumer confidence,” Brown told University of Missouri (MU) Extension livestock specialists at a meeting on campus. “When consumer confidence was chopped in half, we went into uncharted territory. There will be recovery when consumers are ready to spend, but it will require people getting jobs.”

There are bright spots in the economy. “Economic growth was up 5.7% in the fourth quarter of 2009. That was unexpected,” Brown said. “And we’re getting good news from the stock market.”

Pork prices have begun to rebound in 2010 after extended low prices. That recovery results from strong pork exports, Brown said. But lower beef exports have hurt prices, and the complete return to some Asian markets is not expected soon.

A loss of exports of chicken to Russia also works against the beef trade. Canada and Mexico are top customers of U.S. beef; however, chicken that had gone to Russia now goes south of the border, where it competes with our beef.

The strength, or weakness, of the U.S. dollar affects agricultural trade. As the U.S. dollar drops in value, export sales become easier, increasing our net meat exports, Brown said. “If our dollar strengthens in the world market, it will hurt our exports, big time!”

Beef also lost demand for quality cuts at the high-end restaurants. However, sale of prime cuts through supermarkets has increased. “People buy steaks and take them home to cook,” Brown said. “We’ve got the supply to meet that demand.”

Predicting meat prices has become more complicated for economists, Brown said, because so many factors worldwide affect meat consumption. “It used to be if we could figure out the beef supply, we could tell you the retail price of steaks.”

A recovery in demand, based on economic recovery, brings other downsides into play. As consumers get more money, they use more energy.

Crude oil prices are now below $70 per barrel. If demand increases and crude oil prices head up to $90 per barrel, that will draw money out of consumers’ pockets, affecting buying habits.

Short-term economics may affect the long-term health of the beef industry, Brown said. As feedlots face losses, more will go out of business. That, in turn, could possibly put more packers out of business. “We may be losing infrastructure that we need long term.”

Feed costs also affect meat production and those costs are affected by energy prices.

“Crude oil prices matter a lot,” Brown said. “Now corn prices are tied to the movement of fuel prices. We’re not likely to see those long-term corn prices of $2 a bushel. It’s possible, but not very probable.

“Those higher feed costs add 40% to the cost of raising livestock,” he said. “We used to talk of an annual growth in meat supply of 3%-4% a year. Production is down as we go through a period of adjustment, facing the higher feed costs.”

— Release by MU Extension.

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