News Update
Oct. 22, 2010

104,000 U.S. Jobs Could Disappear as Result of USDA’s Livestock Marketing Rule

An economic impact study conducted by John Dunham and Associates Inc. concludes that the Obama Administration’s proposed rule on livestock marketing could leave approximately 104,000 additional Americans without jobs. Consequently, the study reports a $14 billion reduction in the National Gross Domestic Product. The U.S. Department of Agriculture (USDA) Grain Inspection, Packers and Stockyards Administration proposed the rule June 21, 2010, in response to a request made by Congress. However, National Cattlemen’s Beef Association (NCBA) President Steve Foglesong said the rule goes beyond the intent of Congress and serves as another example of government overreach into private business.

“I am tired of hearing this Administration talk about job creation when their efforts seem to be more focused on job destruction. In fact, USDA Secretary Tom Vilsack held a news conference today touting the Administration’s efforts to create jobs in rural America. Really? Enough is enough,” said Foglesong. “Congress did not direct USDA to write a rule that would take away the rights of cattle producers to be innovative and creative by embarking on contract agreements for premium, consumer-demanded beef. The goal of cattle producers is to provide the very best and safest product possible, while sustaining our family owned operations for future generations. The administration should help us accomplish these goals and not throw them down the drain along with 104,000 jobs.”

The study found that retail meat prices would increase 3.33% at a national level, which would result in a 1.68% drop in consumer demand. Foglesong said family farmers and ranchers would also witness a reduction in beef demand and profitability. He said it is unfortunate that this study was even conducted but USDA left no choice. USDA did not conduct a comprehensive economic analysis and has indicated to 115 members of Congress calling for an economic study that one will not be conducted.

“Why wouldn’t USDA want to do an economic analysis? Why wouldn’t the proponents of this rule want an analysis to build their case? This doesn’t make any sense,” said Foglesong. “This country is facing record unemployment and this Administration seems determined to surpass their own record and send even more Americans to the unemployment lines. I encourage anyone concerned about this economy, rural America and safe and affordable food to tell USDA to pull this rule. It is high time we stop this pervasive invasion of government into private business.”

The study, commissioned by the American Meat Institute (AMI), is available online in an interactive format that aggregates economic impact on national, state and congressional district levels. To view the complete study and the impact of a specific state or congressional district, go to www.MeatFuelsAmerica.com/GIPSA. For more information on the proposed rule, visit NCBA’s website.

— Release by NCBA.

Checkoff Gauges Consumer Issues Surrounding Beef Safety

The beef checkoff conducts periodic surveys to monitor consumer confidence in the safety of beef. These studies provide measures of the effects on consumers of issues in the marketing environment and support a strategic foundation for consumer and influencer programs in issues management and communications.

To this end, the checkoff recently compiled a comprehensive research report on consumer perceptions of beef safety, including a  trend analysis of consumer confidence in ground beef and steak, effects of the Hallmark recall on consumer confidence, safety concerns related to factory farming and the effects of beef production methods on safety perceptions.

Ninety-five percent of Americans eat beef. That’s the majority of the population, by far. But what about food safety? 

“The checkoff has asked questions both to gauge concern levels for issues that might affect beef but also to get a reading on the things that anti-meat groups might successfully leverage to frighten consumers,” says Rick McCarty, who conducts market research for the beef checkoff. “While bacteria are rated as the most concerning safety threat, pesticides have remained an issue of concern.”

The study also shows that the hierarchy of consumer concerns about food safety issues has changed little in the past 10 years with the exception of the diminishment of mad cow disease in the mid-2000s. Concern about antibiotics and hormones has remained stable since 2000 at a level significantly below bacteria concerns, McCarty notes. It is reasonable to assume these issues create a sort of ‘background noise’ in the consumer environment whose volume rises and falls depending on incidents and associated media coverage.

“Continued thought must be given to how to both make the product safer and how to get consumers to recognize the critical role they must play,” says McCarty. “That’s why the checkoff continues to support programs such as Safe and Savory at 160 and safety research, and online engagement through websites such as Beef. It’s What’s For Dinner and Explore Beef.”

The report concludes that the most important industry focus should be on providing product benefits that are not associated with a specific production method. This, of course, should be accompanied by a continuation of the industry’s consumer messaging programs that promote the taste, safety, nutrition and convenience that are a hallmark of all beef products. 

Click here to read the rest of this report. Visit MyBeefCheckoff.com for more information about your checkoff investment.

— Release by The Beef Checkoff Program.

NASS Releases Livestock Slaughter Report

The National Agricultural Statistics Service (NASS), Agricultural Statistics Board, USDA released its Livestock Slaughter Report Oct. 22.

Commercial red meat production for the United States totaled 4.16 billion pounds (lb.) in September, down 2% from the 4.26 billion lb. produced in September 2009.

Beef production, at 2.25 billion lb., was 1% above the previous year. Cattle slaughter totaled 2.90 million head, up 3% from September 2009. The average live weight was down 21 lb. from the previous year, at 1,289 lb.

Veal production totaled 11.3 million lb., 4% below September a year ago. Calf slaughter totaled 71,200 head, down 12% from September 2009. The average live weight was up 28 lb. from last year, at 273 lb.

Pork production totaled 1.88 billion lb., down 6% from the previous year. Hog kill totaled 9.34 million head, down 6% from September 2009. The average live weight was unchanged from the previous year, at 270 lb.

Lamb and mutton production, at 13.1 million lb., was down 12% from September 2009. Sheep slaughter totaled 204,000 head, 9% below last year. The average live weight was 129 lb., down 1 pound from September a year ago.

January to September 2010 commercial red meat production was 36.1 billion lb., down 2% from 2009. Accumulated beef production was up slightly from last year, veal was down 1%, pork was down 4% from last year, and lamb and mutton production was down 4%.

September 2009 contained 22 weekdays (including one holiday) and 4 Saturdays. September 2010 contained 22 weekdays (including one holiday) and 4 Saturdays.

— Release by NASS.

USDA-ERS Released Livestock, Dairy and Poultry Outlook

USDA’s Economic Research Service (ERS) today released the October Livestock, Dairy and Poultry Outlook. This report provides timely livestock, dairy and poultry information, focusing on current production, price and trade statistics for each of the sectors. Highlights include:

• Beef/Cattle: A slow start to wheat pasture season and higher corn prices have softened the demand for lighter weight feeder cattle. Meanwhile, cow slaughter has continued heavy throughout the third quarter and into the fourth quarter.
• Beef/Cattle Trade: Asian markets continue to provide growth in the U.S. beef export market. Beef exports through August were 17% higher year-over-year and are forecast to total 2.28 billion lb. exported in 2010, 18% higher year-over-year. High currencies among major U.S. trading partners continue to curb buying momentum among U.S. beef importers. Beef imports in 2010 are forecast at 2.48 billion lb.

For additional information, the full report is available to download at http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1350.

Supporting tables will be released on Oct. 26. The next issue with forecast tables will be released on Nov. 19.

— Release by ERS.

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