TheBeefSite Newsletter - 1 August 2012

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Wednesday 1st August 2012

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Welcome to this week's newsletter

Editorial: Feed Grain Concerns Rise - US Cattle Numbers Fall

Reduced stocks of grain for animal feed and higher feed prices for the foreseeable future are starting to appear inevitable.

Not only has the drought in the US hit the potential harvest for corn but in the Black Sea countries - Russia, Ukraine and Kazakhstan - and across Europe, wheat yields are expected to be down because of earlier harsh winter conditions.

Global production forecasts for wheat are down by four per cent to 665 million tonnes - 30 million tonnes less than last year.

In the US this week corn futures rose sharply with September corn futures at an all-time record high of $8.20/bushel.

A coalition of meat and poultry organisations in the US has called on the US Environmental Protection Agency to waive the federal mandate for the production of corn ethanol.

The Renewable Fuels Standard (RFS) requires 13.2 billion gallons of corn-based ethanol to be produced in 2012 and 13.8 billion gallons in 2013, amounts that will use about 4.7 billion and 4.9 billion bushels, respectively, of the nation's corn.

In a petition delivered to EPA Administrator Lisa Jackson, the coalition asked for a waiver "in whole or in substantial part" of the amount of renewable fuel that must be produced under the Renewable Fuels Standard for the remainder of this year in a bid to release more corn for feed.

The International Feed Industry Federation (IFIF) has voiced an urgent concern that the rise in feed and food costs will continue unabated for the foreseeable future in large part due to the diversion of feed and food grains and oilseeds into biofuels, resulting in critical pressure on feed manufacturers worldwide and higher prices for consumers.

The July Cattle on Feed report in the US shows placements down by 1.8 per cent in June while marketings were down by 6.1 per cent.

The July 1 on-feed number was up 2.7 per cent in the large feedlots included in USDA's monthly survey. Their semi-annual survey of all US feedlots said the total number of cattle on feed in the US was up 0.8 per cent on 1 July.

USDA's semi-year cattle inventory survey said there were 97.8 million cattle in the US on July 1, down 2.2 per cent from a year ago, and the smallest July inventory since this survey began in 1973.

The severe drought conditions that hit the Southern Plains and other Southern states in 2011 has now spread to much of the major cattle producing areas of the US, impacted the numbers.

Chris Harris

This Week's Feature Articles

We have 4 new features this week:

Jatropha as New Livestock Feed Resource
FAO encourages the use of co-products of the energy crop, Jatropha, as new livestock feed resources to reduce food-feed competition.

Potential of Native Beef Breeds Highlighted
The potential presented by a beef cattle enterprise based on native breeds was highlighted during a recent away-day visit to north Perthshire by Moray and Nairn monitor farm community group.

VLA Quarterly - Schmallenberg Recognised in UK
As well as cases of Schmallenberg virus (SBV) continuing to be found in the UK, there was an increase in the rate of undiagnosed bovine abortion, possibly associated with increased submissions arising from increased awareness of SBV, according to the Veterinary Laboratory Agency's quarterly report (January to March 2012).

Optimising Efficiencies in the Feedyard
There is little debate when it comes to the economic importance of feed efficiency in feeding cattle, writes Chad Zehnder from Land O’ Lakes Purina Feed.