TheBeefSite Newsletter - 27 October 2010

TheBeefSite Weekly Newsletter

Wednesday 27th October 2010

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Welcome to this week's newsletter

Editorial: The GIPSA Rule

The USDA’s Grain Inspection, Packers and Stockyards Administration’s (GIPSA) proposal is one which sparks much debate in the US cattle industry.

The goal of the proposal is to level the playing field between packers, poultry, swine and livestock producers.

In short, the rule says that meat packers must justify any deviation from the standard price or contract terms offered to producers, suggesting massive changes in the way livestock is marketed by producers, and procured by processors.

The public are free to comment on the proposal until 22 November 2010.

Meat Quality

The National Cattlemen's Beef Association (NCBA) has fought against this concept, saying that the GIPSA rule jeopardises the long-standing marketing arrangements that compensate producers for providing higher quality cattle.

"If the market becomes generic, there will be no incentives for producers to invest in higher quality products," says Steve Foglesong, President of the NCBA.

Animal Welfare

Colorado University Professor Temple Grandin has said that the rule has serious animal welfare consequences.

With processors prohibited from purchasing stock from another packer or packer-affiliated company (in a bid to prevent inter-packer trades), animals will have to endure additional shipping time.

Adding shipping time is stressful to livestock and stands to increase injury and potential death losses. Companies that don't want to ship the livestock the additional distance would be forced to sell their livestock to independent dealers, who are unlikely to have the correct animal handling programmes and standards in place.

Economy

A study conducted by John Dunham & Associates and commissioned by the American Meat Institute (AMI), estimates that 104,000 Americans would lose their jobs as a result of this rule.

Fewer producers would lead to a lower supply of meat, pushing prices up in store. The study concluded that the GIPSA rule would have a negative impact on producers and consumers.

Perhaps Ms Grandin hit the spot when she said: "Bureaucrats who write rules in Washington, often have no practical experience in the real world."

Charlotte Johnston

This Week's Feature Articles

We have 4 new features this week:

Emerging from the Shadow of Climate Change
The global livestock industry is casting a long shadow in the way the industry is adding to climate change, writes TheCattleSite senior editor Chris Harris.

Opportunities For NZ Meat In China
With its massive population, surging income and rapid urbanisation, China has grown to become one of the world’s largest markets for meat, including beef and sheepmeat.

US Livestock and Dairy Outlook - October 2010
Higher corn prices are expected to reduce the demand for lighter weight cattle, as well put producers out of profit in 2011, according to the latest Livestock, Dairy, and Poultry Outlook from the USDA's Economic Research Service.

Mexico - Livestock and Products Annual 2010
While Mexican cattle inventories for 2011 are expected to decline in 2011, swine production is expected to increase slightly, write Zaida San Juan and Daniel R. Williams II in the latest GAIN report from the USDA Foreign Agricultural Service.

Company News

Boluses Protect Against Retained Placentas
IRELAND - A veterinarian experienced in bovine health management matters says a trace element bolus is one of his preferred means of getting selenium into cows to safeguard against retained placentas post-calving.

Global Beef Cattle Industry News