News Update
November 4, 2016
Different Risk Management
Cow herd owners leery of the futures market or insurance for risk management can look to quality beef for protection. Scott Brown, University of Missouri (MU) livestock economist, discussed that option at the MU Thompson Farm field day Tuesday, Sept. 20. He asked the farmers present if any were using risk management. No hands went up.
“You could have made lots of money with risk management,” he added.
Brown said he suggested at the field day a year ago that beef prices had strong downside risk. Prices fell sharply in the past year. The beef-owner response was not a surprise. Livestock owners don’t use risk-control tools widely used by crop farmers, Brown said. The economist spoke after MU scientists told of research on breeding quality beef.
Jared Decker, MU Extension geneticist, said that steers from the Thompson herd had graded 33% USDA Prime. That’s compared to the national average of 3% Prime at the time. Brown’s charts show Prime beef prices consistently sold well above prices for USDA Choice and Select, the lower grades.
For more information, view the news article online.
Angus Convention: This Weekend in Indianapolis
Passion for the future of the beef business will be on display this weekend in downtown Indianapolis, Ind., for the 2016 Angus Convention hosted by the American Angus Association.
The Angus breed, its members, commercial cow-calf producers, feeders and allied industry partners will gather Nov. 5-7 for a celebration of the year’s successes and a look ahead at quality’s role in overall beef production. Here’s what’s in store.
The second-annual International Genomics Symposium, sponsored by Neogen GeneSeek Operations, begins at 10 a.m. Saturday, Nov. 5, and will provide cattle producers with cutting-edge information about advancements in genomics technology — and how these advances impact their businesses.
The Angus Convention Trade Show Grand Opening starts at 12 p.m. Nov. 5, where participants can explore an expansive trade show with allied industry partners from all corners of the industry, from equipment manufacturers to nutrition companies, and financial advisors and technology companies.
Continuing the day’s theme of scientific technology, an afternoon workshop on Nov. 5 will demonstrate how genomic information plays a role in evaluating beef cattle. Sponsored by Zoetis, the Innovation Workshop begins at 2 p.m. and the audience will participate in the evaluation of registered and commercial Angus cattle through live animal demonstrations.
Read more Angus Convention highlights online, and we’ll see you in Indianapolis!
A Look at Antibiotics
Cattle care and antibiotic use is a rising topic at all levels of the production chain. Robin Falkner, Zoetis technical services veterinarian, says those who anticipate and embrace the discussion may find opportunity for profit, specifically in the cattle feeding sector.
He called attention to Walmart’s 2015 notice that it will require sustainable transparency from its meat suppliers, with public reporting on animal welfare and antibiotic use.
“We definitely want to use antibiotics more judiciously and oftentimes that means less,” says Falkner. “But we’re also consious of our animal welfare outcomes, which an animal that’s sick needs to be treated promptly. We’re trying to establish a tension model around antimicrobial use and animal wellness outcomes, and then put within that tension model our husbandry management.”
Watch the interview on this week’s episode of The Angus Report. You can also catch the show at 1:30 p.m. CST Saturday and 7:30 a.m. CST each Monday morning on RFD-TV.
Livestock Auctions Host Meetings on Cattle Prices
Two more South Dakota livestock auction yards have joined with the four livestock auction yards in North and South Dakota that previously announced they would be hosting meetings Nov. 10-15 to explore the causes of the current cattle-price collapse and identify steps that can be taken to reverse the unprecedented price decline.
According to production-cost data provided by the USDA, the average cost of producing a calf in the Northern Great Plains was $1,410 per bred cow in 2015, which covers the total economic cost incurred by the region’s cattle ranchers. When only annual operating costs are considered, the 2015 cost of production was $756 per bred cow.
USDA market news reports that a 550-pound (lb.) calf sold last year at this time in South Dakota brought an average of about $2.16 per lb., or about $1,188 per head. At that price, area ranchers on average recovered all of their annual operating expenses and all but about $222 of their ranch’s total economic costs.
However, the unprecedented market collapse that began in early 2015 has now driven the price of that 550-lb. calf to about $1.26 per lb., or about $693 per head.
For more information, view the R-CALF news release online.
USFRA Unveils Faces of Farming & Ranching Winners
Meet the next class of Faces of Farming and Ranching who will be the voice of agriculture to today’s consumers and end users.
U.S. Farmers & Ranchers Alliance (USFRA) encourages ag trade media to attend USFRA’s press conference on Wednesday, Nov. 9, from 5-5:30 p.m. to meet the next class of Faces of Farming and Ranching who will capture the passion behind agriculture and drive for sustainability and technology on today’s SMART Farm. The public will get to know this group of farmers and ranchers through public appearances, national media interviews, web chats, blog posts, social media activities and more.
For more information, please view the full news release on the USFRA website.
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