News Update
April 4, 2011

Danish Parliament Votes for Saturated Fat Tax

Meatingplace.com reports the Danish government has decided to further pursue a tax on meat, meat products, oils and processed foods containing saturated fats and dairy products after a vote passed by a large majority in the Danish Parliament. The tax would place meat and dairy products in the same category as cigarettes and alcohol.

It is not believed the tax will be charged to imported products, which raises some doubts about its legality and competitiveness for the Danish meat and dairy industries.

— Adapted from a report on Meatingplace.com.

Beef Board, State Beef Councils, Beef Checkoff Dedicate $200,000 for Japan Disaster Relief

The Cattlemen’s Beef Board, the Federation of State Beef Councils and the Beef Checkoff Program have dedicated a total of $200,000 in a combined effort to help feed consumers in Japan who were injured, misplaced and left homeless and hungry by the devastating earthquake and tsunami there.

The Beef Promotion Operating Committee last week approved an amended 2011 foreign-marketing proposal — or “Authorization Request” — that added $100,000 from the Beef Board budget to help fund a Japan Relief Program established through the U.S. Meat Export Federation (USMEF), a contractor to the Beef Checkoff Program. Federation Chairman David Dick of Missouri said the Federation voted to send an additional $100,000 from its budget, for a combined checkoff investment of $200,000.

“It’s just about impossible to imagine the challenges those folks in Japan are facing right now,” said Beef Board Chairman Tom Jones, who also chairs the Operating Committee. “As human beings, we all feel a deep sense of sympathy for them and have that heartfelt desire to be able to help out in some small way.”

Jones said the funding for the CBB portion of the relief fund will come from money released from Fiscal Year (FY) 2010 projects that were completed under budget. At a recent meeting in Denver, USDA Marketing Specialist Craig Shackelford assured Operating Committee members that the measure would be in line with checkoff expenditures allowed through the Beef Act and Order, as long as it remains tied to the existing approved promotion program in Japan.

The checkoff-funded foreign-marketing program for Japan in FY 2011 includes investment in the “Trust” campaign, which also receives funding from the USDA Market Access Program. As part of that program, USMEF headed up establishment of a “Japan Relief Program” that is pooling resources from a wide range of commodity organizations, including the beef and pork checkoffs and private companies throughout the distribution chain.

The beef checkoff investments will help provide U.S. beef and beef products to help with the food shortages in Japan, which are expected to continue well into the year. The relief program involves pooling resources to source beef in the U.S., ship it to Japan, and then use existing distribution channels and key accounts in foodservice and retail to develop meals for delivery to displaced consumers.

“Those of us who sit on the Operating Committee believe producers and importers who invest in the checkoff nationwide would support us in this important humanitarian effort,” Jones said. “Most important, this program will deal with the immediate needs in Japan, at the same time strengthening ties with those folks by delivering the nutritious sustenance that we know our U.S. beef provides.”

For more about beef checkoff investments, visit www.MyBeefCheckoff.com.

— Release by The Cattlemen’s Beef Board.

Early Registration for LEAD Conference Ends June 15

Youth from across the country will travel to Saint Louis, Mo., for the National Junior Angus Association (NJAA) annual Leaders Engaged in Angus Development (LEAD) Conference, Aug. 4-7.

Themed “Meat Me in St. Louie,” the leadership event is sponsored by the Angus Foundation and is designed for members ages 14-21.

“LEAD is one of our most popular events during the year, and for good reason,” says Robin Ruff, American Angus Association director of junior activities. “It’s a chance for Angus juniors to network while developing leadership potential and an awareness of issues facing the beef industry.”

Angus juniors will attend leadership workshops, listen to keynote speakers, tour area Angus operations and local attractions and visit Cardinal Stadium. Conference space is limited, and early registration is encouraged by the June 15 deadline. The early registration fee for NJAA members is $200. For more information and online registration, visit www.angus.org/njaa or call 816-383-5100. 

— Release by American Angus Association.

Latest U.S. Corn Stock Estimates Lower Than Expected

U.S. corn stocks are 6.52 billion bushels (bu.), down 15% from a year ago and less than initially expected, according to a Texas AgriLife Extension Service economist.

“This is a big surprise, and indicates we’re using up last year’s crop faster than we initially thought,” said Mark Welch, AgriLife Extension grain marketing economist. “We saw corn trading for more than $5 through the winter and expected to be backing off our use, but that hasn’t happened. Demand has been so strong that we overestimated what we had in stocks.”

The recent data released by the U.S. Department of Agriculture-National Agricultural Statistics Service (USDA-NASS) suggests the nation may not have enough corn acreage to meet demand.

“[Before the report] we thought 92 million acres planted was enough,” Welch said. “We may need 93 million or 94 million now. That’s what the market is evaluating today in that we need more acres.”

The largest increase in corn-planted acreage in 2011 is expected in South Dakota where growers intend to plant an additional 850,000 acres compared to 2010. Wet field conditions prevented many farmers from planting intended acres, according to USDA.

The largest decrease in planted corn is expected in Texas, down 150,000 acres due to an increase in cotton acreage.

“Producers are going take advantage of historically high cotton prices,” said John Robinson, AgriLife Extension cotton economist. “Texas will plant more cotton acreage this year than any other state.”

Texas is estimated to plant 548,000 acres of cotton. The U.S. is projected to plant 12.6 million acres of cotton, 15% above last year.

“Even though the forecasted 2011 U.S. cotton plantings are 15% higher than for 2010, market watchers were actually expecting an even higher number,” Robinson said. “So USDA’s forecast of 12.6 million acres of U.S. all cotton was interpreted as bullish, sending Thursday’s (March 31) cotton futures market limit up.”

Acreage increases of more than 100,000 cotton acres are expected in North Carolina, Georgia and Mississippi.

Meanwhile, corn demand has been strong in the livestock feedlot and ethanol production sectors, Welch said. Those sectors have been able to use options and other strategies to mitigate price risk, preserving margin potential, he said.

“For anybody to survive in an ethanol plant or feedlot, you locked in those prices last fall and got into futures and options strategies to limit your risk,” he said.

Developments in the Middle East could create a hurdle in the improving U.S. economy, Welch said. That could cause consumers to cut back on spending as a result of higher crude oil prices, slowing the demand for meat proteins such as beef and poultry.

As Japan continues to recover from the devastating tsunami event, Welch said he thinks they will need more imports of commodities in the future.

“Their demand for basic raw commodities may increase in response to the catastrophe,” he said. “As they are concerned about quality or restocking supplies in case of another aftershock, I think they may be more concerned about maintaining those levels.

“I think we will see positive export response in grain and meat products to Japan. Over the long term, the reputation of the American farmer providing reliable, quality commodities will keep them as one of our most important customers.”

— Release by Texas A&M AgriLife Communications.

K-State to Sponsor Canola Field Tours in May

Kansas farmers will have several opportunities to get a firsthand look at canola fields and research plots in Kansas during the Canola Field Tours scheduled for May.

“The winter canola crop has survived the winter in good condition and we want to give producers an opportunity to see the crop growing in the field,” said Mike Stamm, K-State Research and Extension canola breeder.

“These field tours allow canola producers and those interested in growing canola to view the crop at a time when yield potential is being determined,” Stamm said.

Times, locations and speakers for the tour, which is sponsored by K-State Research and Extension, include:

• May 2, 10 a.m.: Jimmy Vardy Farm, Anthony — View canola/wheat rotation blocks including four winter canola varieties tolerant to sulfonylurea herbicide soil residual.
• May 4, 9 a.m.: Dean Elvin Farm, Marquette — View 20 commercial winter canola cultivars and canola/wheat rotation blocks.
• May 23, 2 p.m.: K-State Southwest Research-Extension Center, Garden City — View the National Winter Canola Variety Trial and learn about today’s newest and top-performing varieties. Also learn about wheat varieties and diseases, cover crops and vertical tillage.
• May 24, 2:30 p.m.: Ed Schultz Farm, Arlington — Canola/wheat rotation blocks, including four winter canola varieties tolerant to sulfonylurea herbicide soil residual.
• May 24, 2:30 p.m.: K-State Redd Foundation Field, Partridge — View the National Winter Canola Variety Trial, K-State intermediate variety trials, and experimental K-State Roundup Ready winter canola cultivars.
• May 25, 10 a.m.: Sedgwick County wheat and canola plots, Clearwater — View 20 commercial canola cultivars, along with the Sedgwick County wheat tour. Wheat varieties and diseases will be discussed.
• May 26, 10 a.m.: Tim Tureck Farm, Wellington — Canola/wheat rotation blocks, including nine winter canola cultivars, along with the Sumner County wheat tour. Wheat varieties and diseases will also be discussed. Lunch will follow this tour.

Producers, county extension agents, agronomists and those involved in agribusiness are welcome to attend and learn more about new canola cultivars, variety testing programs and production practices, Stamm said.

“The K-State canola breeding program coordinates the testing of commercial and experimental cultivars across the state of Kansas. We are also very interested in better understanding wheat’s performance following winter canola compared to continuous wheat,” he said.

More information and directions to the sites are available by contacting any local county extension office or Troy Lynn Eckart at 785-532-5776 or sprite@ksu.edu.

— Release by Steve Watson for K-State Research and Extension.

View the Latest Edition of ‘The Angus Report’

The April 1 edition of The Angus Report, available at http://bit.ly/gjcDVF focuses on how sorting in the feedlot improves profitability; marketing tips for Angus breeders from Regional Manager Jerry Cassady; and a report from Robin Ruff on Raising the Bar.

The American Angus Association’s online news program offers cattlemen the opportunity to catch up on important industry issues while learning more about management tools and value-added marketing opportunities. The weekly web-based news program covers a variety of topics in a traditional television news format. Watch www.angus.org for reports posted each Friday.

— Release by American Angus Association.

— Compiled by Linda Robbins, assistant editor, Angus Productions Inc.