News Update

June 28, 2016

Future Angus Stockman
to Attend AI School

Future Angus Stockmen, offered through the American Angus Association, strives to equip the beef industry’s future generations with the tools and knowledge they need to be successful. This year, the program partnered with Select Sires to sponsor one Future Angus Stockmen participant to attend artificial insemination (AI) school.

Benjamin Hicks, Carrollton, Ga., was selected as the recipient, and says they currently use AI in their operation, and it is important for him to better understand the technology.

“AI is crucial to our operation,” says Hicks, who serves as herdsman at MM Cattle Co. “In my own herd, AI will allow me to selectively breed my cattle, so I can produce better quality calves to market to consumers. Through breeding selection, I will be able to not only enhance my own personal herd but also the entire herd I care for at MM Cattle Co.”

To learn more about Future Angus Stockmen, view the Angus news release online.

— Adapted from a release by JD Rosman, Angus Media.

Volatility Challenges Beef Markets

The Rabobank global beef index ticked up in Q1 2016 after declining for much of 2015. However, it shows signs of dropping again as softening prices in the United States and Canada battle strengthening prices in Australia and Brazil, according to the Rabobank Global Beef Quarterly Q2 2016.

“Volatility is a key theme across most markets at the moment,” says Angus Gidley-Baird, senior animal protein analyst at Rabobank. “A range of factors are creating a degree of uncertainty, including the economy and exchange rates influencing Brazil, seasonal conditions impacting Australia, the economy impacting China, and market volatility impacting the U.S.”

The low value of the real, high domestic prices and the slow economic conditions will continue to support increased Brazilian beef exports. Exports to China, which reopened in June 2015, totalled more than 70,000 tons from January to May, while exports to Saudi Arabia, another new market, are more than 11,000 tons in the first five months of 2016.

For more information, access the Rabo Ag news release online.

— Adapted from a release by Rabobank Food and Agribusiness Research.

K·Coe Isom Applauds U.S. House Tax Reform Effort

K·Coe Isom, the nation’s leading agricultural accounting firm, commented on the tax reform proposal June 27 released by U.S. Speaker of the House, Paul Ryan. Ryan proposes to reduce individual and corporate tax rates in the U.S. and take steps toward simplifying the tax code.

“This appears to be a great start to an important effort,” said K·Coe Isom CEO Jeff Wald. “Farmers in the United States support the goals of lowering tax rates and simplifying the tax code, provided those efforts don’t take away the flexibility farmers rely upon for their businesses and for financial planning.”

Some of the specific items in the House Republican tax proposal that could affect farm businesses and families include:

Provide all businesses with the benefit of full and immediate write-offs of their investments in both tangible and intangible assets.
Repealing all estate taxes.
Repealing the Alternative Minimum Tax (AMT).
Streamlining the current seven-tiered tax rate structure of 10% to 39.6% for individuals to a lower three tax brackets, 12%, 25% and 33%.
Lowering the corporate tax rate to 20%.

For more information, view the K-Coe Isom news release online.

— Adapted from a release by K-Coe Isom.

All-American July 4th Cookout Ticks Up

A cookout of Americans’ favorite foods for the Fourth of July, including hot dogs, cheeseburgers, pork spare ribs, potato salad, baked beans, lemonade and chocolate milk, will cost slightly more this year but still comes in at less than $6 per person, says the American Farm Bureau Federation (AFBF).

Farm Bureau’s informal survey reveals the average cost of a summer cookout for 10 people is $56.06, or $5.61 per person.

Although the cost for the cookout is up slightly (less than 1%), “Prices in the meatcase are starting to look better from the consumers’ perspective,” said Veronica Nigh, an AFBF economist. “Retail ground round prices are trending lower,” she noted, pointing to the nation’s cattle inventory and commercial beef production, which continue to rebound from dramatically low levels in 2014 and 2015.

To read more, view the Farm Bureau news release online.

— Adapted from a release by the American Farm Bureau Federation.

Sanofi and BI to Swap Animal Health
and Consumer Healthcare Businesses

Sanofi and Boehringer Ingelheim announced June 27, the signing of contracts to secure the strategic transaction initiated in December 2015, which consists of an exchange of Sanofi’s animal health business (Merial) and Boehringer Ingelheim’s consumer healthcare (CHC) business.

This step marks a major milestone before closing of the transaction which is expected by year-end 2016 and remains subject to approval by all regulatory authorities in different territories. The integration of Boehringer Ingelheim’s Consumer Healthcare (CHC) business into Sanofi and Merial into Boehringer Ingelheim would start after closing.

Upon closing this transaction will be a significant business swap in the pharmaceutical sector and an important event in the history of both companies.

For more information, view the BI news release online.

— Adapted from a release by Rene Ward, Boehringer Ingelheim.

— Compiled by Paige Nelson, field editor, Angus Media.

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