News Update
April 10, 2012
USDA Increases Beef Production Forecast
According to the USDA’s latest WASDE report, the 2012 forecast of total red meat and poultry production is raised from last month. Beef production is forecast slightly higher as higher mid-year production is largely offset by lower-than-expected slaughter in the first quarter. The pork production forecast is raised as the March Quarterly Hogs and Pigs report pointed to a slightly higher-than-expected first-quarter pig crop.
The broiler production forecast is raised for the first half of the year based on production data to date and stronger forecast first-half prices. Turkey production is forecast higher as turkey price forecasts are raised. The egg production forecast is raised slightly.
The beef export forecast for 2012 is lowered, reflecting the current pace of trade. Imports are raised on larger expected supplies in Oceania. Pork exports are raised. The broiler export forecast is reduced slightly from last month on higher prices.
The cattle price for 2012 is lowered from last month based on weaker forecast second-quarter prices. The 2012 hog price is lowered based on revised first-quarter prices and a slightly weaker forecast for prices over the middle quarters.
Broiler and turkey price forecasts are raised as current prices remain strong. Egg price forecasts are raised on stronger expected midyear prices.
Checkoff Calling for Nominations for BQA Awards
Applications for the fifth annual checkoff-funded National Beef Quality Assurance (BQA) Award are now being accepted. The National BQA Awards recognize four winners in the area of beef, dairy, marketing and education:
- The beef and dairy awards recognize producers that best demonstrate animal care and handling principles as part of the day-to-day activities on their respective operations.
- The BQA Educator Award is open to individuals or companies that provide high quality and innovative training to individuals that care and handle cattle throughout the industry chain.
- The BQA Marketer Award is open to livestock markets, cattle buyers and supply-chain programs that promote BQA to their customers and offer them opportunities to get certified.
The BQA award winners will be selected by a committee of representatives from universities, state beef councils and affiliated groups. Nominations can be submitted by any organization, group or individual on behalf of a U.S. beef producer, marketer or educator. Individuals and families may not nominate themselves; however, the nominees are expected to be involved in the preparation of the application.
To submit an application, click here. Applications are due via the online submission form by Aug. 10, 2012.
For more information about your beef checkoff investment, visit MyBeefCheckoff.com.
National Beef Quality Audit Benchmarks
Beef Industry Progress
Results will soon be tallied on the comprehensive benchmark study called the National Beef Quality Audit (NBQA), which provides the beef industry with the current baseline of beef production and processing parameters.
The 2011 NBQA study is currently being conducted by meat scientists at leading land-grant universities. Phase 1 of the project includes face-to-face interviews with government, allied industry, packers, foodservice, distributors and purveyors to gather data on the quality attributes of beef. During the interviews, beef supply chain representatives are asked to define traits and rank the traits that are most important to their sector of the industry. They are also asked to indicate their willingness to pay for those different attributes given the priorities set for their business.
Phase 2 of the project is where meat science researchers spend time in the packing plants conducting cooler audits to quantify quality attributes of the carcasses being processed. These audits are conducted throughout the year and across the regions of the United States, so that no specific time frame or location affects the results. A long list of quality characteristics such as ribeye size, fat thickness, marbling characteristics, carcass weight, quality and yield grade, and many more characteristics, are measured and collected to determine the benchmark data.
Unique in the 2011 NBQA — that has not been a component of past audits — is the inclusion of feedback from cattle producers. Producers including feeders, stockers, cow-calf operators and seedstock producers have had the opportunity to provide input to shed light on the quality-based practices implemented at the grassroots production levels.
The NBQA is funded by the beef check-off and has become an important benchmark in the industry. The first audit was conducted in 1991 and follow-up studies have been conducted approximately every four years. The beef industry has relied heavily on the audit results to provide education to producers and beef industry suppliers in efforts to gain a greater understanding about beef production. Beef quality management practices have been influenced by results such as an aggressive industry campaign to reduce injection-site lesions and steps to enhance tenderness and consistency.
Final results of the 2011 NBQA are currently being tallied with an estimated release date of the complete project findings in late May.
USDA to Support Digester Turning
Kansas Feedlot Waste to Biofuel
Agriculture Secretary Tom Vilsack announced USDA approval of a $5 million payment to Western Plains Energy LLC to support the construction of a biogas anaerobic digester in Oakley, Kan. The completed project will utilize waste energy resources from a local cattle feedlot to replace almost 90% of the fossil fuels currently used by Western Plains Energy. The funding of this project is expected to create 15 full-time positions and almost 100 additional construction opportunities.
“For the first time in 13 years, imported oil accounts for less than 50% of the oil consumed in America. That is because we are producing more domestically, using more alternative fuels, and using less energy through energy efficiency efforts,” said Vilsack. “Projects such as this are a key part of the Obama Administration’s all-of-the-above approach to American energy that is supporting the development and usage of renewable energy, revitalizing rural economies and creating an America built to last.”
Western Plains Energy expects to complete construction of the biogas digester in August. It is scheduled to become fully operational in 2013. The digester is expected to produce enough biogas to replace 89% of the fossil fuel that Western Plains currently uses to provide process heat at its Oakley, Kan., ethanol plant, which produces 50 million gallons of ethanol annually.
Animal waste from a local feedlot will be the primary feedstock that Western Plains will use for the digester. It also will use grain dust and waste from a variety of industrial food and municipal facilities. Western Plains expects to be able to produce more than 100 million BTUs (British thermal units) of renewable energy per hour daily.
Today’s announcement was made under USDA Rural Development’s Repowering Assistance Program. This program was authorized under the 2008 Farm Bill. It allows USDA to make payments to eligible biorefineries to encourage the use of renewable biomass as a replacement fuel source for fossil fuels used to provide process heat or power in the operation of these eligible biorefineries. Biorefineries that were in existence when the Bill was enacted, June 18, 2008, are eligible to apply. For more information, visit www.rurdev.usda.gov/BCP_RepoweringAssistance.html.
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