News Update
May 17, 2010

Threshold to Profit

Cattle enterprises are risky business. You can invest a year’s input into one annual calf sale, or look into ownership in the growing and finishing phases. As market prices move up and down, you have to appreciate a new tool that calculates “breakeven,” the threshold to profit.

Paul Dykstra, beef cattle specialist with Certified Angus Beef LLC (CAB), developed a calf price breakeven calculator to do just that.

“This tool helps you understand the market and make the tough calls on whether to accept a bid,” he says. “It can also help you make an informed decision on whether to retain ownership and finish your cattle.”

Available at www.cabpartners.com/facts/breakeven.php, the breakeven calculator is a spreadsheet that can establish a reference point for producers. But an accurate calculation

can only be determined if users enter precise data.
“Numbers you plug in must be solid, either taken from herd history, futures markets or a feedlot manager who has records of similar calves with similar history,” Dykstra says. “The more you can document similarities, the more accurate the results.”

The calculator begins with an ending price for fed cattle, projected from the Chicago Mercantile Exchange (CME) Live Cattle Futures. It works backwards to predict some aspects of how your calves will perform in the feedlot, accounting for input costs and the final premiums and discounts. Read more.

Missouri Senate Bill 795 Headed to the Governor

On Friday, May 14, the Missouri Senate approved and forwarded to the governor Senate Bill 795. The bill, sponsored by Sen. Rob Mayer (R-Dexter), contains many provisions related to animal and agriculture, which would:

• Create the Agriculture Protection Fund. All fees collected and assessed by the Department of Agriculture that aren’t directed toward a specific program are placed into the fund, which is to be used for the department’s functions and responsibilities.
  

• Allow equipment that is used for the storage of anhydrous ammonia, as of Aug. 28, 2010, to not be subject to state regulations as long as it is in substantial compliance of general safety standards. The Dept. of Agriculture is required to adopt the 1999 American National Standards Institute standard for anhydrous ammonia storage and handling and is not allowed to adopt different standards prior to Dec. 1, 2012.
  

• Penalize individuals for knowingly releasing swine, and include first-, second- and third-offense fines of $1,000, $2,000 and $3,000 per swine, respectively. Anyone possessing a live Russian or European wild boar or swine on public land is guilty of a class A misdemeanor and subject to a penalty of up to $1,000 per violation.
  

• Require animal shelters to pay a licensing fee to the Dept. of Agriculture.
  

• Exempt individuals who use controlled explosive materials to unblock clogged agricultural screens from obtaining a blaster’s license.
  

• Create the “Large Carnivore Act,” which would prohibit the owning, breeding, possession, transferring of ownership, or transporting “large carnivore,” after Jan. 1, 2012, without a permit.
  

• Require the Public Service Commission and the Department of Natural Resources to consider methane and other materials as renewable energy resources.
  

“Agriculture is Missouri’s largest industry, and this legislation allows them to do the things they need to do to continue to feed America,” Sen. Mayer said.

— Adapted from release by Sen. Mayer’s office.

Illinois Firm Recalls Imported Beef Products Due to Potential Animal Drug Contaminant

Sampco Inc., a Chicago, Ill., establishment, is recalling approximately 87,000 pounds (lb.) of beef products that may contain the animal drug Ivermectin, the U.S. Department of Agriculture (USDA) Food Safety and Inspection Service (FSIS) announced Friday, May 14. Ivermectin is a broad-spectrum antiparasitic and is used as a de-worming agent in live animals.

Subject to recall are:

• 12-oz. cans of “Libby’s CORNED BEEF” distributed to retail locations nationwide with production codes “100222 U,” “100219 U” or “100224 U.”
  

• 35-lb. boxes of “Seasoned Cooked Beef” distributed to an establishment for further processing.

Each product package bears “BRASIL 337 S.I.F” on either the top or the side, as well as “Product of Brazil” or “Packed under Brazilian Government Inspection.”

The problem was discovered through FSIS routine sampling. Since March 15, 2010, samples from cooked beef products imported from Brazil establishment SIF 337 have resulted in 12 instances of the level of Ivermectin found in the product exceeding the tolerance level established by the Department of Health and Human Service’s Food and Drug Administration (FDA) of 10 parts per billion in beef muscle. The production lots that produced violative results were refused entry into the U.S. and are not available in commerce. However, it was discovered associated products with similar source materials entered the country separately. These are the products that were released into commerce and therefore subject to the recall.

The Brazilian firm SIF 337 has been delisted and beef products from that establishment are not permitted entry to the U.S.

FSIS is taking additional actions regarding other lots of cooked beef products from Brazil establishment SIF 337 and other manufacturers of cooked beef products from Brazil. The Agency plans to sample at Point of Entry cooked beef product from other manufacturers of like product from Brazil to ensure the problem is only associated with product from SIF 337.

Additional product information regarding FSIS’ Point of Entry sampling can be found at http://www.fsis.usda.gov/PDF/RC_033_2010_Point_of_Entry_Sampling.pdf.

FSIS will also perform retail sampling of lots of other cooked beef product from SIF 337 that entered the country since January 2010 to determine if any of these products in commerce may have Ivermectin above the FDA tolerance level. If additional product is found in commerce, FSIS will take the appropriate regulatory action.

Additional product information regarding FSIS’ retail sampling can be found at http://www.fsis.usda.gov/PDF/RC_033_2010_Retail_Sampling.pdf. FSIS is responsible for assuring that imported meat, poultry and egg products are safe, wholesome, unadulterated and properly labeled and packaged. FSIS randomly samples products at ports for drug and chemical residues.

FSIS and the company have received no reports of illness or adverse reactions due to consumption of these products.

— Adapted from release by USDA FSIS.

Spring Storms Cause Losses in Southern Alberta

The Vancouver Sun May 12 reported extensive cattle losses in southern Alberta’s (Canada) Cardston County. Spring snowstorms accompanied by high winds and timed during calving season have killed hundreds of cattle. Producers have estimated herd losses as heavy as 15%. For more, click here to see the The Vancouver Sun article.

— Compiled by Shauna Rose Hermel, editor, Angus Productions Inc.