News Update
Nov. 29, 2010

Angus Brand Invites Tasting

The world will soon be challenged to “Taste the Difference” between Angus brands in a new campaign developed by the Certified Angus Beef ® (CAB®) brand. The program to establish Angus clarity in the minds of consumers was created after research indicated they are confused about Angus differences.

The resulting campaign will be featured by the brand’s retail, restaurant and foodservice partners around the globe in 2011 using billboards, print, radio advertising and point-of-sale materials.

“Today’s marketplace is vastly different than when this brand started more than 30 years ago,” explained Tracey Erickson, vice president of marketing for the American Angus Association subsidiary. “Many fast-food grab-and-go giants have embraced the rising popularity of ‘Angus,’ and their large marketing budgets have led many to believe that all Angus is equal.

“This presents a unique opportunity for us to capitalize on consumer interests, educate them about the Angus category, and solidify and separate the differences in Angus,” she said. Read more.

USDA Announces Latest Actions in the Eastern Livestock Company Failure

The U.S. Department of Agriculture’s (USDA’s) Grain Inspection, Packers and Stockyards Administration (GIPSA) on Friday Nov. 19, 2010, filed an administrative complaint charging Eastern Livestock Co. LLC, and Tommy P. Gibson of New Albany, Ind., with:

• failure to pay for livestock purchases;
• failure to pay timely for livestock purchases; and
• failure to maintain an adequate bond.

Eastern Livestock Co. (Eastern) is one of the largest cattle brokerage companies in the United States, with operations in 11 states across the Mid-South, Midwest, and West.

“We take very seriously our responsibility to ensure that producers receive all protections afforded them by law, and we will be working closely with the Department of Justice and law enforcement officials in the weeks and months ahead,” said John Ferrell, Deputy Under Secretary for Marketing and Regulatory Programs.

GIPSA currently estimates that Eastern owes more than $130 million to 743 sellers in 30 states. As of today, the agency has documented $81 million in returned checks and is currently onsite at Eastern’s headquarters assessing the situation, investigating possible violations of the Packers and Stockyards Act, and working to ensure that all available protections are afforded toproducers.

Outline of events:

• On Nov. 3, 2010, a livestock seller complained to GIPSA that a payment check received for livestock sold to Eastern had been returned due to insufficient funds.
• On Nov. 4, 2010, GIPSA deployed investigators to Eastern’s headquarters to investigate the original and subsequent complaints of failure to pay for livestock. GIPSA also began deploying rapid response teams to markets nationwide that could be affected by Eastern’s financial failure. The agency also began issuing letters to unpaid sellers encouraging affected producers to submit bond claims. As of Nov. 17, 2010, GIPSA issued 743 letters.
• On Nov. 9, 2010, USDA issued a news release, “Bond Information for Producers Who Sold Livestock to Eastern Livestock Co. LLC,” explaining the situation and providing information on how to file bond claims under the Packers and Stockyards Act.
• On Nov. 9, 2010, Fifth Third Bank filed a motion with the Hamilton County Court of Common Pleas in Ohio requesting issuance of a temporary restraining order and the appointment of a receiver. The court appointed Elizabeth M. Lynch of Development Specialists Inc. of Cleveland, Ohio, as receiver to work on behalf of Eastern’s creditors, among which Fifth Third Bank is the secured creditor. The court also granted a temporary restraining order enjoining Eastern’s access to and dissipation of its financial assets.
• On Nov. 10, 2010, Capital Indemnity Corp. served notice on Eastern cancelling Eastern’s surety bond for $875,000 effective Dec. 30, 2010.

The receiver will be working to ensure that the secured creditor is paid. After the secured creditor (the bank) is paid, the unsecured creditors, including livestock sellers, will be paid out of remaining funds. The receiver is authorized to take immediate possession, control, management, and charge of Eastern Livestock’s accounting books and records of whatever nature and wherever located, in the possession of Eastern Livestock or any other person or entity, including all information regarding the assets, liabilities, equity, income, and expenses of Eastern Livestock.

Purchasers of livestock and others affected by this incident who are unsure to whom to make payment for livestock purchases need to carefully consider their options in light of the applicable state and federal laws. Unpaid sellers may contact GIPSA at 515-323-2579 for information on filing bond claims.

— Release by USDA.

Beef Industry Long-Range Planning Task Force Sets Priorities

In the second meeting of the Beef Industry Long-Range Planning Task Force, Nov. 22-23 in Denver, Colo., 20 beef industry leaders developed the framework for a three-year strategic plan.The task force, representing every segment of the U.S. beef industry, drafted vision and mission statements and outlined six core strategies vital to the future of the industry.

The draft vision: “An industry united around a common goal of being the world’s most trusted and preferred source of beef products.”

The draft mission: “To work collectively in providing the safest, highest-quality beef and beef products for our growing and increasingly diverse domestic and global customers to ensure sustainability for the environment and future generations.”

The six core strategies vital to achieving the vision and mission are to:

• Capitalize on global growth opportunities
• Increase domestic demand for beef
• Grow the U.S. cow herd
• Strengthen beef industry image
• Protect and enhance our freedom to operate
• Improve intra-industry relationships, trust and openness

“I’m excited by the discussion and depth of thinking around this table,” says co-chair Charles Miller, owner of C&J Cattle Co., Nicholasville, Ky. “We’re going to bring some innovative thinking to the core strategies we identified.”

“This is a work in progress and we will be gathering additional input from stakeholders in the industry,” says co-chair Robert Rebholtz, president and CEO of Agri Beef Co., Boise, Idaho. “This plan will guide the entire industry over the next three years. It is important to get it right.”

The task force will meet again in January to complete a draft of the long-range plan in early 2011 for consideration by the directors of various industry organizations.

— Release by the National Cattlemen’s Beef Association (NCBA).

Cattle-Handling Workshops in Mid-December

The Iowa Beef Quality Assurance program, which is funded with checkoff dollars, is bringing Curt Pate back to Iowa in mid-December for “The Stockmanship & Stewardship Tour.” Events will be Dec. 15 at the Armstrong Research Farm near Lewis; on Dec. 16 at the Chris Petty Feedyard south of Leon; and Dec. 17  at Knoxville Regional Livestock Market. The first two events are from 10 a.m.-2 p.m., and the Knoxville event is 11 a.m. till noon.

Curt Pate takes The Stockmanship & Stewardship Tour around the country and uses live cattle-handling demonstrations to inform cattlemen about the importance and benefits of proper cattle handling — and its critical role in increasing consumer confidence in beef.

Brian Waddinham, Iowa Beef Industry Council (IBIC) Director of Industry Relations will also participate in these programs, discussing tools that are available for cattlemen to improve animal care and well-being on the farm. 

At the Armstrong site, Darrell Busby of the Tri County Steer Carcass Futurity (TCSCF) will review TCSCF data showing the impact of cattle disposition on feedlot performance and carcass quality. At the Leon location, Joe Sellers, Iowa State University Extension livestock program specialist, will discuss similar information.

If you plan to attend, please RSVP by Dec. 13 to help with meal plans. Contact either Waddinham at 515-296-2305, Joe Sellers at 641-203-1270 or Clint McDonald at 712-355-1034.

— Release by IBIC.

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