News Update
March 9, 2010

Concern Expressed with New American Royal Initiative

Kansas Livestock Association (KLA) Executive Vice President Dee Likes and American Angus Association CEO Bryce Schumann were part of a group of beef breed and trade organization leaders who met with the American Royal Executive Committee recently to discuss the show’s new emphasis on locally grown and raised food. Beef leaders expressed concerns about the Royal’s Good Food Good Futures Institute. Spokespersons for the institute have expressed the need to “reorganize agriculture” by moving away from conventional production and more toward natural, organic and more “environmentally sustainable” operations.

The beef groups told American Royal leaders that mainstream ranchers and feeders don’t oppose natural, organic or locally produced systems, but they are concerned when marketers disparage conventional meat and agricultural products in an effort to create differentiation. These are growing segments of agriculture, but represent only a single-digit percentage of food production. Beef executives emphasized farmers and ranchers involved in conventional agriculture, which includes most producers, will be challenged to meet projections that food production needs to double by 2050 in order to feed the expected growth in world population.

— Adapted from release provided by KLA.

Secretary Vilsack Outlines New Trade Strategy to Increase Ag Exports

During a keynote speech at the 2010 Commodity Classic in Anaheim, Calif., March 5, Agriculture Secretary Tom Vilsack laid out U.S. Department of Agriculture (USDA) plans to increase exports of agricultural products and strengthen the American agriculture economy.

While USDA has traditionally looked at agricultural trading partners by geographic region, under the new trade strategy outlined by Vilsack, the agency looks at countries based on their position on an agricultural market continuum. USDA reports the plan will enable tailored strategies to increase exports to each individual market. Read more.

Wednesday Marks One-Year Anniversary of Ongoing U.S.-Mexican Trade Dispute

March 10 marks the one-year anniversary of an ongoing trade dispute with Mexico that continues to put U.S. jobs at risk. The dispute began when Congress terminated funding for the U.S.-Mexico cross-border trucking pilot program in the fiscal year (FY) 2009 Omnibus Appropriations Act — a move which failed to meet U.S. commitments under North American Free Trade Agreement (NAFTA) and prompted Mexico to impose damaging retaliatory tariffs on U.S. agriculture and manufacturing goods.

“This dispute has been going on for far too long,” said Steve Foglesong, president, National Cattlemen’s Beef Association (NCBA). “It’s time for the Administration to take action before the critical relationship with our top trading partner is further compromised, putting agriculture exports and imports, and American jobs, at risk.”

Although Congress addressed the issue by removing the prohibition on the trucking program within FY10 appropriations, the Administration has yet to make progress with Mexico in removing the tariffs. The U.S. Chamber of Commerce estimates as many as 25,000.U.S. jobs could be lost as a result of the impasse.

Mexico is the top export destination for U.S. beef, dairy, poultry, rice, soybean meal and oil, corn sweeteners, cotton, apples and dry edible beans. The U.S. exported a record $1.4 billion in beef and beef variety meats to Mexico in 2008, and a total of $910 million in 2009 (as a result of the economic crisis). Mexico is also a major market for pork, corn, soybeans, eggs, vegetable oils, fresh U.S. potatoes, snack foods and other consumer-oriented agricultural goods. Trucks move more than 70% of the value of U.S.-Mexico trade.

“Escalating trade retaliations hurt everyone,” Foglesong continued. “We live in a global society and our economy is inextricably linked to our ability to do commerce with key trading partners like Mexico.”

Earlier this month, a bipartisan group of more than 50 members of the House sent a letter (www.beefusa.org/uDocs/ustrdotmexicantariffs3110807.pdf) to U.S. Trade Representative Kirk and Transportation Secretary LaHood expressing concern about the Administration’s lack of progress in resolving this yearlong issue.

— Release by NCBA.

U.S. Bone-in Beef Returns to Taiwan

U.S. bone-in beef made a splashy return to Taiwan last week at a trade reception and products show for 80 guests representing importers, restaurateurs, retailers and the trade at the five-star Sherwood Taipei Hotel.

Funded by the Texas Beef Council, the beef checkoff and USDA Market Access Program (MAP) funds, the Feb. 25 event highlighted the versatility of U.S. beef, which was featured in Chinese-style dishes along with Thai-style chuck tender salad, braised chuck short ribs, baked garlic flavored bone-in short ribs and OP ribs.

“The reception is a great way for the industry to celebrate U.S. bone-in beef’s return to Taiwan,” said Philip Seng, president and CEO of the U.S. Meat Export Federation (USMEF), contractor to the Beef Checkoff Program. “It’s an opportunity for the U.S. beef industry to demonstrate its continued commitment to this market, and thank those who have shown support and patience in re-establishing U.S. bone-in beef in Taiwan.”

Among the special guests in attendance was Keith Schneller, director of the American Institute in Taiwan’s Agriculture Trade Office.

Each course of the dinner was introduced by C.K. Chen, the executive chef of the Sherwood Taipei, who recently debuted the Sherwood’s new dry-aging facility for U.S. steaks. The Sherwood exclusively features U.S. beef at its signature restaurant, Toscana.

“By partnering with a celebrity chef like Chef Chen in cooking demonstrations, we can showcase U.S. beef in diversified cuisines and provide participating foodservice operators with a wealth of U.S. beef creations,” said Davis Wu, USMEF-Taiwan director.

Beef checkoff investments continue to build on the popularity and quality of U.S. beef to continue growing market share and establish long-term purchasing loyalty. Taiwan ranked among the leading destinations for U.S. beef exports in 2009, importing a total of 60 million pounds (lb.) of beef muscle cuts and variety meat valued at more than $141 million. While the volume of imports remained level with 2008, the value of the imports rose 11%.

— Release by the National Cattlemen’s Beef Promotion and Research Board.

Making BRD a Cattle Industry Concern

A multidisciplinary team of Oklahoma State University (OSU) scientists and practitioners is riding herd on one of the most challenging concerns of Oklahoma’s $4.6 billion cattle industry: bovine respiratory disease (BRD).

BRD is the most common disease among feedlot cattle in the United States, accounting for approximately 75% of feedlot morbidity and 50%-70% of all feedlot deaths. BRD causes between $800 million and $900 million annually in economic losses from death, reduced feed efficiency and antimicrobial treatment costs.

“Immune response and morbidity issues relative to cattle growth and carcass quality affect every level of the beef industry, from the producer to the packer, all the way to the consumer as end user,” said lead investigator Clint Krehbiel, holder of the university’s Dennis and Marta White Endowed Chair in Animal Science.

A relatively recent development of research conducted by Krehbiel and his collaborators shows cattle that have three or more bouts of disease produce lower-quality meat.

“As the number of antimicrobial treatments increased, average daily gain in the background phase decreased, cost per unit increased, and net returns declined,” Krehbiel said. “Moreover, marbling scores, color stability and overall acceptance of the final beef product by consumers decreased as the number of antimicrobial treatments increased.”

A longer version of this release will be featured in the March Angus Beef Bulletin EXTRA. Sign up to receive the monthly electronic supplement to the Angus Beef Bulletin at www.angusbeefbulletin.com/extra/about.html.

— Adapted from news release by OSU Cooperative Extension Service.

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