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TheBeefSite Newsletter - 29 October 2014

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Wednesday 29th October 2014.
Michael Priestley - Editor

Michael Priestley

Novus International

MSD Animal Health

Will the US Cattle Prices Last?

US cattle farmers enjoying record high beef prices have one concern – competition from other proteins come spring 2015.

Latest analyst insights suggest there is no major slump in prices on the cards but that a regenerated pig and poultry sector may weaken prices as consumers have ready alternatives.

In the meantime, youngstock numbers will remain tight until 2016, when one Agricultural Economist says the balance will begin to return.

Beef herds are rebuilding and studies going back to the mid 1800’s show that this is when prices hit their peak, according to Professor Chris Hurt, Purdue University.

“There are two reasons for this,” Professor Hurt explained.

“First, the number of market ready animals is already small due to the contraction that has been going on; and second, the retention of heifers and cows further reduces slaughter animal numbers even more thus pulling down beef supplies.”

This year’s figures show that retention has taken 1.7 million females of the market, with even dairy cow numbers falling.

“The milk industry has also likely begun an expansion phase,” added Professor Hurt.

Overall, this means five per cent lower slaughter for the year, with figures showing that heifer retention is a growing phenomenon.

In the present climate, farmers are advised to maximise their returns, with some producers guilty of ‘panic-selling’ recently.

This is according to Professor Roy Burris, University of Kentucky, who recommends preconditioning calves to make sure as many as possible make it to adulthood.

"Folks that are buying expensive calves will want some assurance that calves have been properly immunized and managed - so that they have an edge on survival,” said Professor Burris.

Similarly, cows need taking care of, and bulls should be selected for calving ease.

“There is too much at stake,” he added.

“Feed costs might even be falling a little - at least it seems that corn will be cheaper this fall. Keep those cows in proper condition for good breeding efficiency.

“This coming winter will be a very important time for your cattle operation. There's no excuse for "roughing" cattle through and hoping that the next calving and breeding seasons will work out okay.”

Discussing beef prices, he said farmers should not be waiting for the rug to be pulled from underneath them, he added.

Strong cattle prices should be enjoyed and made the most of.

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This Week's Articles and Analysis

Drivers for Animal Welfare Policies in Africa
A new study from Lesotho calls for improved understanding of animal welfare in African countries or there could be deleterious effects in future on economic growth as well as national and international trade.

Antibiotic Free Cows Contribute to Antibiotic Resistance
Manure from cows fed no antibiotics is supporting soil bacteria growth and leading to antimicrobial resistance, puzzling scientists.

Relax and Enjoy These High Prices
Nothing is going to cause cattle prices to collapse in the near future, so relax, enjoy and maximise returns, Kentucky producers are being told.

Dairy Margin Protection Programme: What Is the Best Option For Me?
Time is running out for US dairymen to make the choice between Livestock Gross Margin insurance and the new Margin Protection Programme.

Why Did Theileriosis and Anaplasmosis Spread to Holstein Crossbred Cows in the Indian Himalayas?
Introducing Holstein genetics into the Indian cattle herd has resulted in an emergence of theileriosis in crossbred cows, while native Red Sindhi cattle go unaffected.

Company News

Biomin: Dramatic Change Needed for Sustainability
GERMANY - The 6th World Nutrition Forum in Munich ended two full days of stimulating sessions with plenty of food-for-thought on issues of sustain:ability across a range of topics — from the animal sciences to management, economics and philosophy.
Market Reports

Australian Rural Commodities Wrap – October 2014
EBLEX Cattle and Sheep Weekly 28 October 2014
Irish CSO Reports - Livestock Slaughterings September 2014
USDA Cattle on Feed - 24 October 2014
USDA Livestock Slaughter - 23 October 2014
USDA Cold Storage - 22 October 2014
EBLEX Cattle and Sheep Weekly - 22 October 2014
Irish CSO Reports - Agricultural Price Indices - August 2014

Global Beef Industry News

   United Kingdom

Owners Urged to Keep Dogs Under Control Around Livestock
Delivering Sustainable Intensification for the Future
Maintain Investment in Northern Ireland’s World-class Veterinary Science Research Urges BVA
Cattle, Sheep Farmers Wanted For Genetics Survey
Stirling Beef Shorthorns Meet Solid Commercial Demand
£5 Million Boost for Food Security
Animal Pychology in Focus at Agricultural Safety Workshop
Over-grooming Risks Apply to Animals as well as Humans


Bullish About Paraguay Beef Potential

   United States

Experts to Address Changing Ag Market Conditions on Friday
USDA Moving in Right Direction on COOL
Cattle Outlook: Fed Cattle Set Another Record
Insect Meal Could be the Future of Animal Feed
Market Analyst: Major Contrast in Livestock Markets
CME: Reductions in Stocks of Frozen Meat and Poultry
APHIS Adjusts BSE Sampling Protocols
CME: USDA Cattle On Feed
CME: Celebrations For Long Serving USDA Chairman
Ranching with Risk: What Does the Weather Say?

   New Zealand

Government Help Vital to Keep Dam Project Affordable


El Nino Outlook Neutral for Australia
Theileriosis Disease Discovered in Australian Cattle


Irish Farmers Protest over Beef Prices


Lessons For Dairy Calves in Belgian Blue Management

   European Union

Blutongue Continues Spread Through Italy, Romania This Week
Beef Recalled over Anthrax Scare
New Director for Agriculture at EU


Indian Feed Association Acts as Platform to Resolve Livestock Issues
India’s Vegatable Oil Imports up 21 Per Cent in Sept 2014


Russia Most Active in WTO Over Animal Health and Food Safety
Call for US to Comply with WTO Ruling
WTO Finds US COOL Restricts Beef, Pork Trade


Bachoco Reports Strong Performance in Third Quarter

   Russian Federation

Russia Extends EU Food Import Ban on Safety Grounds


Nutreco Sees Revenues Fall


The Drost Project - A Visual Guide to Porcine, Pig Reproduction.
VIV Europe Digital 2014
EuroTier 2014
VIV Asia 2015



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