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TheBeefSite Newsletter - 24 September 2014

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Wednesday 24th September 2014.
Michael Priestley - Editor

Michael Priestley

Novus International

MSD Animal Health

Cattle Crossroads: Feedlots Could Feel Further Squeeze

Beef markets appear to be at a crossroads in the US, with one possible route bringing tough times for the feedlot sector.

This is unless herd rebuilding efforts begin to take effect and ease supply concerns, an Illinois agricultural economist has stated.

Feedlot margins could be squeezed if feeder cattle values lift further, according to Dr Paul Peterson, Department of Agricultural and Consumer Economics.

But the current assessment of expansion leaves an ‘unclear’ picture.

In an extension newsletter, Dr Peterson explained that Geography is a key factor.

“Areas that have received moisture and have seen grazing conditions improve appear to be taking the first steps toward bumping up production,” said Dr Peterson.

“Areas that have not been so fortunate weather-wise are still trimming herds in an effort to hang on until conditions improve.”

Further pressure is expected to come from rival meats as a reinvigorated pig and poultry sector overcome production problems.

Detailing an ‘unexpectedly’ tight pork and poultry sector, Dr Peterson said: “Porcine epidemic diarrhea virus (PEDv) has reduced hog numbers, while production issues have limited broiler expansion.”

Meanwhile, high prices at the consumer end have been supported.

Similarly, importers of US beef have ‘shrugged off’ higher prices, meaning exports have been consistent with recent years.

The decline in US cattle production was reiterated in last week’s cattle on feed report.

Despite being slightly bearish due to higher placements than expected, placements, total cattle and marketings were all down.

This follows a trend of lower feedlot numbers for over two years and 29 consecutive weeks of slaughter being below year ago levels, Professor Ron Plain and Scott Brown, University of Missouri highlighted.

Further north, recent Canadian government figures show no let-up in the decline of cattle numbers where, as in the US, supplies are 'historically tight'. 

This is according to North Dakota State University livestock economist Tim Petry outlining the likelihood of high prices prompting herd rebuilding where moisture conditions permit. 

"Beef cow slaughter is down 17 per cent for the year and about 25 per cent during the last couple months," he said.

"Fed heifer slaughter declined 8.5 per cent so far this year and the number of heifers on feed on July 1 was down 5 per cent."

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This Week's Articles and Analysis

Old or New Trees For Cow Health and Lamb Survival
Sheep and Cattle both benefit from having trees around, whether in the form of new or restored woodland.

Johne's Detection First: Lymphatic Fluid Used
Lymph vessels near the udder provide a quicker test for standard Brucellosis screening, a team of Austrian researchers has found.

How to Graze Calves on Cornstalks
Cornstalks are under used as a forage option in the Mid West and cut to a main profit factor - winter feeding spend, says a South Dakota beef expert.

Improving Science Behind the Hereford
Hereford cattle are having their carcase trait and feed conversion credentials proven by a progeny evaluation project.

Company News

Biomin's FUMzyme® Receives EU Positive Vote for Authorisation
EU - FUMzyme® from the well-established Mycofix® product line of BIOMIN, is slated to become the first-ever purified enzyme authorized by the EU as substances with proven mycotoxin counteracting properties.
Novus International Launches Web Site for Latin American Customers
LATIN AMERICA - Novus International has launched three new versions of its global web site for customers in Latin America.
Market Reports

USDA Cold Storage - 22 September 2014
USDA Cattle on Feed - 19 September 2014
Irish CSO Reports: Livestock Slaughterings August 2014
USDA Livestock, Dairy and Poultry Outlook - 17 September 2014
USDA GAIN: Argentina Livestock and Products Annual 2014
QMS Monthly Market Report - September 2014

Global Beef Industry News


Germans Move to Beijing to Develop Product Exports
More Land Fewer Harvests

   United States

Wyckoff's Weekly Livestock Outlook: What Has the Cattle on Feed Report Done to Futures?
McDonald's: Beef Sustainability is Job #1, #2 and #3
Slight Bearish News From On Feed Report
CME: Production Costs Rising For Hogs, Cattle
US Launches National Strategy for Combating Antibiotic-Resistance
Market Analyst: Split Across Livestock Futures
International Year of Family Farming 2014
National Farm Safety and Health Week Focuses on 'Protecting What Matters'
Bluetongue Update: New Outbreaks, New Science
Cattle Futures: October Live Cattle Closed up Wednesday
Farm Bureau Leads Delegation to Reduce Trade Barriers Abroad


South America Targets Russian Meat Market
Chinese Fund Set to Invest in Australia's Agriculture Industry


Chinese Firm at Centre of Food Safety Scandal Halts Production


Indian Agriculture Minister Calls for Canadian Investment
FAO to Help India Develop Agriculture, Food Security

   United Kingdom

Pedigreed Aberdeen-Angus Producer Shares Success Story
Autumn's Time to Address Soil Compaction
British Vets Prefer British Meat and Fish
Can Farming Reverse its Ageing Trend?
Pirbright’s Centenary Conference Highlights: Advances in the Research of Virus Diseases of Livestock
NFU Outlines Priorities Ahead of 2015 General Election
Cattle Futures: Wednesday's Close Sets Thursday Up for Steady to Higher Start
Assessing Winter Forages: Quality and Quantity


Colombians Making Progress With TB, Brucellosis


US Calls on Taiwan to Set Ractopamine Residue Rules for Beef


Zagreb to Host 2015 Animal Welfare Conference

   Bosnia and Herzegovina

Bluetongue Found in Imported Bosnia Cattle

   New Zealand

New Managing Director Announced for Moredun Scientific
Investment Priority for New Zealand Beef and Lamb Sectors

   European Union

How Do We Manage Vector-Borne Disease in Livestock?


Drought and High Prices Keep Slaughter Figures High


Second Round of FMD Vaccination Starts in Argentina


The Drost Project - A Visual Guide to Porcine, Pig Reproduction.
VIV Europe Digital 2014
VIV China 2014
EuroTier 2014



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