News Update
October 5, 2017
A Tale of Two Spreads
Those who follow beef supply trends know this year stands out for the rapid increase in premium quality beef.
Four inquiries from cattle producers in the past week prompt me to review the realities of fed-cattle value. In the “brave new world” of 70% or higher Choice in the national average fed-cattle mix, it’s natural to hear those hard questions about the future of producer premiums for Choice, Certified Angus Beef® (CAB®) and Prime carcasses. We’ve just posted the three largest CAB sales tonnage months — August, September and July, in order — as the all-time largest in the history of the brand. Even so, the cutout value difference between CAB and Choice carcasses in the weekly spot market was very close to $13 per hundredweight (cwt.) last week. Even as production for the CAB brand has outpaced Select production in 21 of the 37 posted weeks this year, demand for the brand has underpinned and supported values for the higher-quality beef. Yes, supplies can become a bit more robust than absolutely required some weeks, depending on the season, but the CAB cutout premium speaks for itself.
Continue reading this CAB Insider article online.
Local FARMS Act Will Make Farm to Fork
Investments in American Communities
On Oct. 4, 2017, a bipartisan coalition led by principal bill authors Senator Sherrod Brown (D-OH) and Representatives Chellie Pingree (D-ME), Jeff Fortenberry (R-NE), and Sean Maloney (D-NY), introduced the Local Food and Regional Market Supply Act (Local FARMS Act) to catalyze the 2018 Farm Bill’s investment in programs and policies that spur economic development in rural and food producing communities nationwide. The National Sustainable Agriculture Coalition (NSAC), one of the bill’s leading nonprofit partners, praised the bipartisan coalition for prioritizing the development of new markets for farmers and expanded healthy food access for American families.
“The Local FARMS Act is a priority for the National Sustainable Agriculture Coalition because it recognizes the vast, untapped potential in our farming and food-producing communities and offers ways to transform that potential into economic prosperity,” said Wes King, NSAC policy specialist. “As others have rightly noted, the farm bill is not just an ‘agriculture bill,’ it’s a jobs bill too. The Local FARMS Act means opportunity for our family farmers, as well as increased access to fresh, healthy foods for American families.”
Read the full NSAC news release online.
Confirmation of Censky & McKinney for Key USDA Posts
The U.S. Senate has confirmed Steve Censky, nominated by President Donald J. Trump, as deputy secretary of USDA and Ted McKinney, selected by the president, to be under secretary for trade and foreign agricultural affairs for USDA.
Read the full statement online.
NIAA Antibiotics Symposium Speaker Lonnie King:
Urgent to Act Now
There are important issues to be discussed at the upcoming National Institute for Animal Agriculture (NIAA)-hosted Antibiotic Symposium which, according to keynote speaker Lonnie King, are cost effective, can be implemented quickly and can have an impact on antibiotic resistance now.
Antibiotic Stewardship: Collaborative Strategy for Animal Agriculture and Human Health is the theme for the seventh Antibiotic Symposium presented by the NIAA, once again bringing together all sectors of the animal food production industry and partners in human medicine and public health. This year’s symposium will be hosted Oct. 31-Nov. 2, 2017, at the Hyatt Regency Dulles, in Herndon, Va.
King, professor and dean emeritus, College of Veterinary Medicine, Ohio State University, is presenting the closing remarks at the two and a half-day symposium. His topic, “What must be done next: Prioritizing immediate actions,” will seek to integrate the conclusions of the previous presenters, panel discussions and the deliberations of the participants into actions.
“We need different voices to produce consensus and cause action,” says King of the NIAA’s well-known focus on collaboration and bringing stakeholders together to analyze, evaluate and discuss issues vital to the animal ag industry.
For more information, read the full news release online.
Trade, Market Outlook Presentations
to Kick-off 25th Range Beef Cow Symposium
Greg Hanes with the U.S. Meat Export Federation (USMEF) and Jim Robb with the Livestock Marketing Information Center (LMIC) will kick-off the opening session of the upcoming Range Beef Cow Symposium to be hosted Nov. 28-30, 2017, at the Little America Hotel and Resort in Cheyenne, Wyo. The popular event has been providing pertinent industry market and research information to cattle producers biennially since 1969 and is a joint effort coordinated by the Extension programs of South Dakota State University, Colorado State University, the University of Nebraska and the University of Wyoming.
Hanes will provide attendees with an update on international beef trade and the outlook ahead. With the rules for beef trade to China finalized this past June and trade agreements such as North American Free Trade Agreement (NAFTA) being reviewed, this is a critical time for beef producers and industry organizations to be aware of international trade opportunities and challenges.
Offering insight into factors affecting livestock and feed grain prices — and where those prices may be headed in 2018, LMIC’s Robb will provide an overview of market data and influences.
Learn more by visiting the website online.
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