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TheBeefSite Newsletter - 29 April 2015

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Wednesday 29th April 2015.
Michael Priestley - Editor

Michael Priestley

MSD Animal Health

Novus International

US Herd Rebuilding Doesn't Suit Everyone

Signs of recovery are evident in the US cattle industry after drought-induced herd liquidation, but this is not good news for some.

Australians have been warned this week that their cattle might need more consideration from the middle of this year, both in terms of stocking and marketing.

Although it may be some time off, an ‘over-correction’ in US cattle numbers will impact Australian exports.

This is according to Meat and Livestock Australia, which told its producers that market diversity is ‘imperative’.

Australian beef has, for several months, been plugging the gap in beef supply left by the 2012 drought. ‘Extraordinarily strong’ demand for Australian manufacturing beef has led to a string of record shipment months.

However, since the New Year, the price of imported beef to the US has been dropping.

And while sky-high beef prices have smashed record after record in the US, importers have not had life easy. 

Labour disputes at ports, falling US demand, an ‘unexpected’ improvement in the cattle inventory in February and a sharp drop in the futures before Christmas have not gone unnoticed in the Australian agricultural media.

“While the potential downward pressure on the beef market may not be for some time, it is important to be aware that US production will grow again,” said an MLA spokesperson.

“Once the US cattle herd gets into the second and third generations of rebuilding, an excess of cows will again become available to US processors, potentially limiting the demand for imported lean manufacturing beef – although, this may not be until late 2016 or 2017.”

First signs of US rebuilding came in February with the cattle report when North Dakota State livestock economist Time Petry stated herd rebuilding had started ‘in earnest’. read more

He was reacting to a 2.1 per cent rise in beef cows calved in 2014 and seven per cent more beef heifer replacements to calve this year. 

Many analysts have underlined the fact that a herd recovery will take several years and that the US consumer has been loyal to beef at a time when it could have switched to pork or poultry during record retail prices.

Structural problems in the poultry sector and the recent bird flu outbreak are challenging one industry, while porcine epidemic diarrhoea virus (PEDv) has potentially cost the pork sector over a billion dollars.

The figure comes from an impact assessment at Purdue University last year, which predicted beef to show the largest spillover benefits, although small.

In terms of avian influenza, any broiler outbreak would be critical on markets – almost all outbreaks have been on turkey farms – and it remains ‘a real source of uncertainty’ for livestock.

This is according to the American Farm Bureau’s chief economist, John D. Anderson, who says the big question remains on the impact broilers will see from avian influenza.

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This Week's Articles and Analysis

Cattle Have No Close Contact With Badgers
Electronic collars have shown that cattle do not commonly interact with badgers at close range.

Tips for Managing New Bulls After Purchase
The purchase of a bull represents a major investment and regardless of price, the purchasing farmer invests trust and faith in the bull. So how can farmers ensure the bull lives up to these expectations?

When Should Cows Calve?
Very few cows calve on their due date, but how can a ranch know what to expect?

How Much do Horns Grow Through the Feedlot Phase?
Even with polled genetics increasing, horned cattle still raise welfare issues, a Kansas State University study has shown.

Legumes Allow 40 Per Cent Higher Stocking in Australia
Adding legumes to rangeland pastures in Australia can benefit carrying capacity for many years.

In Ranching Its Earth Day Every Day
Resourcefulness is paramount in ranching. Belts, sweepers, tyres and machinery can all get re-purposed to limit farming's impact on the planet as well as the wallet.

Market Reports

USDA Livestock Slaughter Annual Summary - April 2015
USDA Cattle on Feed - 27 April 2015
USDA Livestock Slaughter - 24 April 2015
EBLEX Cattle and Sheep Weekly - 24 April 2015
USDA Cold Storage - 23 April 2015
Irish CSO Reports - Livestock Slaughterings March 2015

Global Beef Industry News


New Bluetongue Strain Found in Australia
Drought-hit Aussies Finding Heifers Earn More than Steers
Australian Farmers Want Trade Deal to Centre on Agriculture


Alltech, Ridley Agree Merger
Help for Irish Farmers to Control Johne's Disease


Uruguay Meat Exports Up


Environmental Feed Life Cycle Guidelines Released
Livestock Identification and Recording Vital for Food Security
Maize to Lead Global Grain Contraction
Could the Apple Watch Fit Farming?
Uniting to Sustain African Farming
Small Farmers and Water: Necessities For Tomorrow's Beef

   United States

CME: Slightly Bearish Outlook from USDA Report
Cattle Outlook: Cattle on Feed Higher
CME: Cold Storage Report Gives Bearish Meat Market Outlook
Protein Packaging Sector to Be Worth $11 Billion in 2019
CME: US Beef Markets Will Remain Under-Supplied for Months
Beating BVD Rests on Persistently Infected Calf
Antibiotic Stewardship Requires Data and Diagnostics
CME: Market Uncertainty Causes Cattle, Hog Futures Decline


Indian Beef Exports to Surge Ahead

   United Kingdom

Lamb Loses Out as Consumers Buy More Beef
Calf Rearing Demonstration to be Held at Livestock Event
EU Help to Promote Scotch Beef, Lamb
Scottish Farming Union Sees GM Feed Proposals as Unworkable
Vets Call for Badger Cull Change
Political Parties Commit to Food and Farming
Welsh Markets to Display bTB History on Screens

   New Zealand

New Zealand Beef Production Expected to Rise


Environmental Pasture Management Yields More Grass

   European Union

BRF Agrees Joint Venture to Access UK Foodservice Sector
More Freedom for EU to Decide on Use of GMO's for Food and Feed


Mexicans Expect 12 Per Cent Beef Export Surge


China Steps up Monitoring of Farm and Aquatic Products


The Drost Project - A Visual Guide to Porcine, Pig Reproduction.
Biomin - Surveying the Global Mycotoxin Threat


More on VIROCID - The Global Disinfectant
Life Technologies
Biomin - The Natural Way

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