News Update
July 13, 2010

Digital Angel Announces Changes in Corporate Structure and Management

Digital Angel, an advanced technology company in the field of animal identification and emergency identification solutions, has announced changes to its corporate structure as part of the company's strategic turnaround plan. These changes address Digital Angel’s growing focus on Destron Fearing, the company’s animal identification business, and include the elimination of its “corporate structure,” and the associated costs of a separate headquarters and several management positions. The new streamlined structure will result in cost savings of approximately $2 million per year.

During the past two years, as part of its turnaround plan, Digital Angel has been divesting businesses deemed to be non-core, in order to focus on the animal identification market. As a result of this streamlining, the company no longer needs a corporate infrastructure.

“Our focus on Destron Fearing eliminates the need for the corporate structure that was put in place by the previous management team. By integrating Destron Fearing’s operational management with Digital Angel’s management of public company functions and responsibilities, we are eliminating positions that can be more efficiently outsourced or performed at Destron Fearing’s headquarters in South Saint Paul, Minn. Under the new structure, we are more streamlined and have significantly lower overhead costs. These savings should allow us to further strengthen our balance sheet and redirect resources to the Destron Fearing Animal Identification business, where we see significant growth opportunities and a bright future,” Joe Grillo, CEO, said.

Effective June 30, 2010, Jason Prescott, treasurer of Digital Angel and vice president of finance for Destron Fearing, has assumed the position of CFO. Lorraine Breece has stepped down as CFO of Digital Angel, as this position has been integrated into the Destron Fearing finance department. Jason has been with Destron Fearing since 2002 and has overseen the accounting and reporting of the business.

As of Oct. 1, 2010, Jonathan McKeage, vice president of corporate development, and Ron Landers, vice president internal audit, will step down and their positions will be eliminated.

Effective Dec. 31, 2010, the positions of COO and general counsel will be eliminated. These positions are held by Parke Hess and Patricia Petersen, respectively.

“We would like to thank Lorraine, Parke, Pat, Jay and Ron for all that they have done for Digital Angel over the years and we wish them well in their future endeavors,” Grillo added. “These executives have worked hard to help restructure the business and establish a stronger financial foundation knowing full well that the result would most likely be the elimination of their positions. There is no longer a separate Digital Angel management team overseeing multiple business units. Instead, operational and corporate management are one in the same as we look toward the future focus on Destron Fearing and the growing Animal Identification market.”

Additionally, the leases on South Florida office space that the previous management team entered into for use as corporate headquarters for Digital Angel have expired.

— Release by Digital Angel.

Leaders Attend Event to Mark Renewal of FAZD Center

Researchers, educators, government officials and agricultural industry leaders from across the nation gathered July 7 at Texas A&M University (TAMU) to mark the renewal of the Foreign Animal and Zoonotic Disease Defense (FAZD) Center as a Department of Homeland Security (DHS) Center of Excellence.

More than 100 invitees from nine states and the District of Columbia attended the meeting, which formally launched the FAZD Center’s six-year renewal under a $21 million package from the DHS to TAMU and Kansas State University (K-State).

The FAZD Center develops products to protect the United States from potentially catastrophic animal diseases, such as avian influenza, foot-and-mouth disease (FMD) and Rift Valley fever. The FAZD Center will co-lead the DHS zoonotic and animal disease defense program with Kansas State’s Center of Excellence for Emerging and Zoonotic Animal Diseases through 2016.

— Adapted from a TAMU release.

Fly Control Essential for Beef, Dairy Herd Health

Whether in the pasture or the barn, fly control is an essential part of keeping healthy dairy and beef cattle herds, said Purdue University Entomologist Ralph Williams.

In pasture cattle the two primary fly pests are horn flies, which are a biting fly, and face flies. Face flies do not bite, but they feed around the eye tissue and can transmit bacterial conjunctivitis, or pinkeye.

“Horn flies are the No. 1 fly pest in the United States,” Williams said. “The threshold at which we recommend control is when those flies reach 200 per animal. It is not uncommon to see a thousand or more horn flies per animal.”

While horn flies do not transmit disease, they can cause economic loss by reducing weight gain, feed efficiency and calf weights.

For cattle in confinement, the stable fly is a biting fly that breeds in the accumulating feed waste and soiled bedding. There’s no disease associated with them, but they, too, can result in economic loss.

Houseflies are the other common confinement pest. While they’re not directly associated with cattle, they can be a nuisance to people and surrounding neighbors.

“In confinement, flies are best controlled through sanitation,” Williams said. “Farmers should identify and remove fly breeding sites like waste and soiled bedding.”

In the pasture, however, fly control can be a bit more challenging. Insecticides can be effective as long as they stay on the animal for an extended time. One such method is through pesticide ear tags.

“For flies in the pasture, insecticide ear tags are really the most suitable to control both face flies and horn flies,” Williams said. “Some of the products available are pyrethroids and organophosphates. The pyrethroid-based tags generally are not very effective for horn flies because of a genetic resistance. Most of the organophosphate tags are very efficient for horn fly control. Abamectin is a new product that is available in some tags and has been very effective for both horn flies and face flies.”

Some tags also are available with a combination of insecticides that will control both face and horn flies.

Other options include self-applied dust bags in a forced-use situation, which cattle need to access daily, and pour-on insecticides, which can last up to a month. Feed-through insecticides, ingested with feed and released in the manure, also can disrupt flies. But if not all cattle in the area are using them, flies could still be present.

— Release by Purdue Ag Communications.

Experts from Human Health, Disease Control and Veterinary Medicine Featured at Zoonoses Symposium

Experts from across the professional disciplines of human health, disease control and veterinary medicine will be featured at the Sept. 23-24 symposium, “Zoonoses: Understanding the Animal Agriculture and Human Health Connection.”

The symposium, which will examine connections between zoonotic diseases, animal agriculture and human health, will be at the Grand Hyatt Hotel, Washington, D.C. The symposium is a program of Farm Foundation, NFP with support provided by the U.S. Department of Agriculture (USDA) Economic Research Service (ERS) and Animal Plant Health Inspection Service (APHIS); Hormel Foods; the National Assembly of State Animal Health Officials; the U.S. Animal Health Association; and the American Veterinary Medicine Association (AVMA).

“The relationships of zoonoses, animal production and human health are characterized by diverse and complex issues,” says symposium coordinator H.L. Goodwin, professor and poultry economist at the University of Arkansas, Fayetteville. “This symposium program represents a unique gathering of global leaders from across the disciplines. Sharing issues and concerns within and across disciplines reinforces the collaborations needed if we are to address the complexity of issues surrounding zoonoses.”

Some featured speakers at the symposium include Juan Lubroth, chief veterinary office, United Nation’s Food Agriculture Organization; John Clifford, deputy administrator, Veterinary Services, USDA APHIS; Ali Khan, assistant surgeon general and deputy director, National Center for Emerging and Zoonotic Infectious Diseases, Centers for Disease Control and Prevention (CDC); Carol Rubin, associate director for Zoonoses and One Health at the CDC; David Heymann of the Centre on Global Health Security, Chatham House, United Kingdom; and Dave Harlan, director of global animal health, Cargill Inc.

The program is designed to clarify specific issues in the relationships between animal agriculture and human health, broaden understanding of the relationship between diverse production systems and practices and zoonotic diseases, and identify questions that need more research or attention. The current program is posted on the Farm Foundation website.

Targeted for participation in the symposium are the multiple disciplines involved in any disease outbreak — public health officials, epidemiologists, virologists, veterinarians, agriculture producer groups and media representatives, particularly those responsible for health, science and agricultural coverage.

“Regardless of the disease, each profession has a key role in the prevention or management of a zoonotic disease outbreak,” says Farm Foundation, NFP Vice President Sheldon Jones. “As evidenced by the recent H1N1 disease outbreak, significant questions exist with both professionals and the general public about the relationship between diseases, agricultural production systems and human health. This symposium is designed to help build a systematic knowledge and a more holistic understanding of those relationships.”

To build the symposium program, Farm Foundation brought together a diverse planning committee of representatives from academia, the veterinary health community, public health agencies, livestock production and the media. The program emphasizes the need for science-based and cohesive communication between the multiple disciplines involved in any disease outbreak.

In addition to the program sessions, the symposium will feature a poster session, with abstracts to be evaluated in three areas: wildlife populations, commercial animal agricultural systems, and human health concerns. Details are posted on the Farm Foundation website, www.farmfoundation.org.

Conference registration is $300 if paid by Sept. 1, 2010, after which the fee will be $350. A special student registration rate of $175 is also available if paid by Sept.1, after which it will be $200. A block of sleeping rooms has been reserved at the Grand Hyatt Hotel, 1000 H Street NW, Washington, D.C  Hotel reservations can be made by calling 202-582-1234 or 1-800-233-1234.  The symposium room rate of $209 per night, single or double occupancy, is available for reservations made by Aug. 25, 2010.

— Adapted from a Farm Foundation release.

Bovine Respiratory Disease Takes an Economic Toll on the Herd

In today’s economic environment, cattle producers are looking to maximize the performance of each animal. Bovine respiratory disease (BRD) is an economic challenge to all cattle producers. This disease complex accounts for approximately 75 percent of feedlot illnesses and 50 percent of feedlot deaths. These numbers represent lost productivity as well as increased labor and medical costs to treat the cattle. While the medical costs associated with these numbers are significant, the economic impact of BRD on the performance of cattle can be devastating.

“BRD is more than just a disease,” says Jerry Woodruff, professional services veterinarian with Boehringer Ingelheim Vetmedica, Inc. (BIVI), “It’s a respiratory disease complex which combines disease organisms with management and environment stressors.”

In the cattle industry, there are a number of built-in stressors such as transition stress, feed changes and environmental exposures. These stressors merge with disease organisms and develop into a complex that challenges an animal’s health. The first 30 days after weaning or receiving cattle seems to be the most critical time for disease detection. During this time period, it is important to reduce stress factors and keep a close watch on cattle.

An Oklahoma State University study shows reduced carcass merit for animals with lung lesions at harvest and a reduced carcass value due to fewer pounds and lower marbling scores. Cattle with active respiratory tract lesions had lower dressing percentage and marbling scores than those with inactive lesions. Equally as important, marbling score, fat thickness and hot carcass weight was reduced in cattle with any lesion as compared to cattle with no lesions.1 Decreased performance due to BRD can be an economic blow to producers and cattle feeders.

The number of treatments received by cattle during the feedlot phase has significant consequences on economically important performance and carcass traits. The number of Select and Standard carcasses increase with the number of treatments for BRD. Research also shows that there are less Prime, premium Choice and low Choice carcasses with an increase in BRD treatments.2

The importance of keeping cattle healthy is fundamental in reducing the number of animals who need to be treated. BRD is a management disease and a preventable problem. “Even if we control or reduce BRD with vaccines, often times we do not control the stressors that cattle are subjected to,” Woodruff says.

Woodruff adds that many producers and feedlot managers look to vaccines as a quick-fix for BRD. However, they need to incorporate good management practices in order to keep cattle and the bottom line in top health. Utilizing exceptional management practices and decreasing the incidence of stressors can help reduce the impact BRD will have on cattle.

Woodruff recommends that feedlot managers and producers work with their local veterinarian to develop a sound vaccination program to prevent BRD.

1 Gardner, B.A., Dolezal, H.G., Bryant, L.K., Owens, F.N., Smith, R.A.: Health of finishing steers; effect on performance, carcass traits, and meat tenderness. J Anim Sci. 1999 Dec:77(12):3168-75.

2 Schneider, M., Tait, R.G., Reecy, J.: Estimation of the effects of bovine respiratory disease treatments through the feedlot phase and the differences among sires of Angus cattle. Iowa State University Animal Industry Report 2007, A.S. Leaflet R2195.

— Release by Boehringer Ingelheim Vetmedica Inc.

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