2013 Beef Production and Consumption in for a Roller Coaster Ride, Peel Says 

Writing in the latest Cow-Calf Newsletter, Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist, takes a look at where beef markets are headed in the coming year.

Beef production in 2012 decreased by a projected 1.1 percent compared to 2011 with a 3.3 percent decrease in slaughter partially offset by a 2.3 percent increase in carcass weights. In 2013, mostly steady carcass weights and a five percent or more decrease in cattle slaughter is expected to result in a 4.8 percent decrease in beef production. This would be the second largest year over year decrease in 35 years, second only to the 6.4 percent decrease in 2004. The 2013 decrease is expected to be followed by a 2014 decrease of 4.5 percent or more. These two years would represent the largest percentage decrease since the late 1970s.

The impact on consumption, however, does not always match the change in production. Domestic per capita consumption will depend on production levels but must be adjusted for beef imports and exports. In 2013, per capita beef consumption is expected to drop 3.5 percent, less than the production decrease because beef imports will increase and beef exports will decrease. The decrease in per capita beef consumption in 2013 will be similar to the year over year decrease in 2011 compared to 2010. In 2011, domestic per capita beef consumption decreased 3.8 percent due to a sharp increase in beef exports despite a minimal decrease in beef production. Though 2004 had a sharper production decrease, per capita beef consumption that year increased nearly two percent due to the sharp drop in beef exports following the first BSE case in the U.S. Beef consumption may drop more sharply in 2014 with a five percent decrease in per capita consumption compared to the lower 2013 level. 

You can read the rest of Derrell's analysis on our webpage by clicking here.

Smithfield at Almost Forty Percent of Their Sows in Group Housing 

Smithfield Foods, Inc. (NYSE:SFD) has announced that at the end of 2012 it had successfully transitioned 38% of pregnant sows on its company-owned farms in the United States from individual gestation stalls to group housing systems.

In the latest update, the company reported that it remains on track to finish its conversion to group housing on all company-owned farms in the U.S. by 2017. In 2007, Smithfield made a business decision to convert to group housing for pregnant sows on all company-owned U.S. farms based on input from its customers.

In addition, Smithfield said that its international hog production operations also will complete their conversions from gestation stalls to group housing on company-owned farms by 2022. Smithfield's hog production operations in Poland (AgriPlus) and Romania (Smithfield Ferme) completed their conversions to group housing facilities on company-owned farms a number of years ago.

Click here for more on this story.

 

ASA Welcomes Cochran, Thanks Roberts for Service as Senate Ag Ranking Member

Canton, Miss., soybean farmer and American Soybean Association (ASA) President Danny Murphy welcomed Senator and fellow Mississippian Thad Cochran to his new post as Ranking Member of the Senate Committee on Agriculture, Nutrition and Forestry today.

"A former Chairman and member of the Senate Agriculture Committee for more than three decades, Ranking Member Cochran has been a tireless advocate for American agriculture," said Murphy. "ASA has worked closely with the Ranking Member throughout his tenure on the Committee, including during his service as Chairman from 2003 to 2005. He has been a strong leader on risk management, export, conservation, food aid, and agricultural research programs important to all farmers, and we look forward to continuing to work closely with him and his staff as Ranking Member."

Announced Jan. 3, Sen. Cochran takes over the ranking membership from Sen. Pat Roberts of Kansas, who had held the position since 2011.

Click here for more.

Clem McSpadden Memorial Rodeo Team Scholarship Fund Established at OSU

The late rodeo legend Clem McSpadden will long be remembered at Oklahoma State University thanks in part to a new endowed scholarship fund in his memory.

The OSU Rodeo Team, with support from OSU alumnus Walt Garrison, has established the Clem McSpadden Memorial Rodeo Team Scholarship Fund. Garrison, a member of the rodeo team when he was a student at OSU, donated $30,000 to the newly established scholarship fund.

A former Dallas Cowboy football player, Garrison has promoted a positive image for rodeo and the western way of life throughout his career. The announcement of this new scholarship was made at the first Rodeo Legacy Banquet.

"The banquet was held to honor those who have been a part of OSU rodeo in the past, as well as to acknowledge those currently involved," said Cody Hollingsworth, rodeo team coach.

In addition to the announcement of the new scholarship, a live and silent auction also took place during the banquet. Several thousand dollars were raised thanks to the generous support of many rodeo team supporters. Proceeds will go toward building the scholarship fund, as well as operating and travel funds for the rodeo team.

You can read more by clicking here.

Beef Industry Leaders Seek Solutions to Checkoff Dollar Erosion, Dewald Says

It's no secret that, over the years, inflation has eroded the purchasing power of the dollar. The dollar is worth far less now that it was in the 1980s when the dollar-a-head Beef Checkoff program was begun.

Scott Dewald, executive vice president of the Oklahoma Cattlemen's Association, has been working with other cattle industry leaders seeking solutions to this problem. He recently returned from a meeting in Denver in which enhancements to the checkoff program were discussed. He joined us on yesterday on the Beef Buzz.

"Quite frankly, there are several things that could be done to make the value of the dollar we currently have worth a little more. There could be some tweaks to the act and the order. And, then, beyond that do we have an opportunity to raise the checkoff?" Dewald Said.

"The reality is that we don't have as much money by today's dollar value as we did back in '86 when the original act was passed.   We just don't have the purchasing power to go out and by TV. We don't have the purchasing power to get in front of the consumers as much as we should be able to. And so I think you will see a move made for a possible enhancement to the checkoff. Will that be another dollar? Another 50 cents? Will it be state by state? Those questions are yet to be answered. We saw Ohio try to do a dollar increase in their checkoff for state programs that failed. So we've got to be careful. Whatever we do has got to make sense and there's got to be a succinct, quantifiable reason for doing it. I would tell you that the funds from the checkoff need to be enhanced greatly if we want to be competitive."

You can hear more of my interview with Scott Dewald by clicking here.  

Choice Boxed Beef, Finished Cattle Trade Higher Last Week

In this week's beef report with Ed Czerwien of the USDA Market News Office in Amarillo, Texas, the choice cut market ended the week of January 5 at $194.26 cwt, which was .70 higher than the previous Friday. The total boxed beef volume was 5,731 loads moved.

The general trend in the finished cattle trade was $1.00 higher at mostly $128.00 cwt on a live basis. Dressed deals in the North were mostly $2.00 to $3.00 higher at $205.00 cwt.

The average live weight from the cattle harvested in the Texas Panhandle was 1,282 pounds, a decrease of six pounds from the previous week.

You can hear Ed's complete weekly report by clicking here. 

This N That- Rainfall Coming- Clay Explains Things to the Secretary and Big Iron's First Sale of 2013 is Tomorrow 

We have a rain making system coming up from old Mexico over the next couple of days- and it appears that it will bring measurable rainfall into our state.  Heaviest amounts will be in southeastern Oklahoma- but even the Panhandle could get a half inch or more.  We have the latest graphic that shows who may be getting how much over the next couple of days- click here to check that out.  You can also see on that page a graphic courtesy of Gary McManus that shows rainfall amounts from May 1, 2012 through yesterday.  It is scary how low some of the amounts are- Kay and Noble and Grant counties, for example, have only received about six to nine inches of rain since last May  Oh. My. Goodness.

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Our friend Clay Pope called in to a National Public Radio program yesterday that has USDA Secretary Tom Vilsack- and "Clay  from Oklahoma" wowed them with his knowledge of Conservation programs- the host asking him if he is a political junkie or something. The Secretary, in responding to Clay, did confirm that the Farm Bill extension passed New year's Day provides for CSP and EQIP to continue for the rest of the current fiscal year.  You can read the transcript of the show- which offers some good insights not just from our man Clay- but from several other farmers who called in from across the country.- click here to check it out.

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it looks like a really good used equipment sale for BigIron.com with the close of bids starting tomorrow morning. You can go to the BigIron website and easily register to bid on things like tractors, combines, sprayers, cultivators and a lot more- 573 items total. Click here for the full listing of the January 9 sale of BigIron.Com.