Mexican Cattle Industry Huge Supplier and Potentially Huge Competitor of U.S 

Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel probably knows more about the Mexican cattle market than almost anyone else in America. He says there have been many changes over the years in the relationship of the supply chain and the markets. Among those changes has been the fact that Mexico is now the Number 4 supplier of beef to the U.S.

"That has a multitude of impacts in Mexico, obviously. It was concurrent with the development of the cattle-feeding industry. It was concurrent with the development of relatively large-scale packing facilities in many cases. And those things depended on the development of roads and transportation infrastructure, processing facilities and, really, the biggest change in the beef industry per se that supported all of this was the conversion of this industry from carcass-based industry just a few short years ago predominantly, now a heavily boxed-beef industry. It happened in the U.S. many years ago. When you go from a carcass-based industry to a boxed-beef industry you open up a whole new set of potential value because now you can direct different parts of the animal to those markets where it has the highest value. And that's what happened in Mexico. And one of the results of that is they are shipping a significant amount of beef to the U.S."

Peel says the Mexicans now have a broad feeding industry of their own that is similar to that in the U.S., but with significant differences.

"They don't necessarily feed cattle the same way in terms of the carcass quality because they have different preferences; it's a different market. And, so, quality is in the eye of the beholder and so it's not necessarily the exact same kind of meat. I distinguish between what I call Mexican-fed beef versus U.S. beef. They're different products.   They do substitute for each other. They do compete in the marketplace to some extent, but they really are different products and so it's a different market and something uniquely Mexican."

You can listen to my interview with Derrell Peel or read more of this story by clicking here.

U.S. Meat Exports Continue to Improve; Japan Repeats as Biggest Customer 

U.S. meat exports continue to improve and there is no one who is happier or more proud of that fact than Phil Seng, CEO of the U.S. Meat Export Federation.  I had a long conversation with him at the Cattle Industry Summer Conference in Denver. You can listen to the full interview by clicking here.

 Seng said he is most proud of the improvement in the Japanese market. It was our largest customer in 2003 and is now set to repeat that distinction in 2013.

"I think we're really pleased with the performance we've had as far as the U.S. industry in Japan this year. I think even the packers and the exporters are surprised at how well it's gone. Our numbers are up dramatically in Japan."

Seng says one of the big reasons U.S. exports are up is confidence in the nation's economy bolstered by its government.

"The actual demand there I would have to credit to the prime minister and his stimulus package. He's passed a stimulus package that's probably comparable to the package that was passed in the United States when we had our financial crisis. And, of course, pumping a lot of money into that economy has made a huge difference. And, so, it's given the Japanese, in my opinion, a lot of confidence. They have a lot of confidence in the future going forward. And, obviously, when you feel you're going to be better off tomorrow than you are today, it makes a big difference as far as your purchasing patterns."

Click here to read more. 

Family Farming: The Key to Alleviating Hunger and Poverty

The following article is an opinion piece distributed by FoodTank.org:

After decades of failed attempts to eradicate hunger, development agencies, international research institutions, non-profit organizations, and the funding and donor communities now see family farmers as key to alleviating global poverty and hunger. Recent estimates show that currently, 1.2 billion people in the world live in extreme poverty, and at least 870 million go to bed hungry every night. As the world gears up for the International Year of Family Farming in 2014, Food Tank: The Food Think Tank and the U.N. Food and Agriculture Organization (FAO) are highlighting effective ways to provide family farmers the tools they need to really nourish the world.

FAO's High Level Panel of Experts on Food Security and Nutrition (HLPE) reports that approximately 96 percent of all the agricultural holdings in Africa measure less than ten hectares. FAO Agricultural Census data shows that around 80 percent of agricultural holdings in sub-Saharan Africa and 88 percent of those in developing countries in Asia measure less than 2 hectares.

 Family farmers play a crucial role in resolving world hunger, but they're also those most likely to fall victim to hunger and poverty. An estimated 800 million people living below the global poverty line work in the agricultural sector. In China and India alone there are respectively 189 million and 112 million smallholder farmers with plots measuring less than two hectares.

You can read more of this story by clicking here.

Groups File Initial Court Documents In COOL Lawsuit

The United States Cattlemen's Association (USCA), joined by National Farmers Union (NFU), the American Sheep Industry Association (ASI) and the Consumer Federation of America (CFA), filed today with the District Court in Washington, D.C. a motion to intervene in the lawsuit filed on July 8 by nine plaintiffs seeking an end to the U.S. country of origin labeling (COOL) program. The motion to intervene was accompanied by a number of other documents from the four groups including a memorandum on the motion for intervention, an answer to the amended complaint and a response to plaintiffs' motion for a preliminary injunction.    

If granted intervenor status by the court, USCA, NFU, ASI and CFA will be presenting arguments in defense of the Department of Agriculture's (USDA) Agricultural Marketing Service (AMS) regulations on COOL. A decision by the court on the motion for intervenor status will hopefully be made in the near future but there is no specific time limit for such decisions.  

A hearing on the plaintiffs' motion for a preliminary injunction is scheduled for August 27. A response to the motion for preliminary injunction by the U.S. Department of Justice (representing the USDA) is due to be filed today, August 9. Plaintiffs are due to file their reply to the opposition papers on the preliminary injunction motion by August 16.  

Click here for more of this story. 

From the Southern Plains Beef Symposium- Beef Faces Years of Tough Competition from Cheaper Pork and Poultry

Steve Meyer with Paragon Economics shared his thoughts about the cattle marketplace, rebuilding the cattle herd, four dollar corn, Zilmax woes and Mandatory Country of Origin Labeling with us after he spoke at the 2013 Southern Plains Beef Symposium in Ardmore over this past weekend.


Click here to jump to our website where you can hear our conversation with this OSU Ag Econ alum.


The Southern Plains Beef Symposium is held the second Saturday in August in Ardmore- and is called the preeminent one day cattle industry program in the country. 

Kristina Butts Says Five-Year Farm Bill Passage Biggest Issue Facing NCBA

The 2013 farm bill is still stalled in the House of Representatives and no action is currently being taken as Representatives are home for the summer recess.   When Congress returns in September, there are only ten working days on their calendar to get a bill passed before the current extension expires at the end of the month. Kristina Butts, executive director of legislative affairs with the National Cattlemen's Beef Association says getting a five-year farm bill done is by far the biggest issue currently before the NCBA. 

"I'm happy to report that we're the closest to getting a farm bill that we've ever been in three years, so that is positive news," Butts said. "It's been a rocky ride-lots of ups and downs along the way, but you guys in Oklahoma have a phenomenal chairman in Chairman Lucas and he's really gone to bat for agriculture and to make sure that we're doing whatever it takes to get a five-year farm bill authorized.

"So, before we left D.C. the last week of July, the Senate did name their conferees. So, they did take the first step forward in naming who's going to be part of these negotiations as we move forward.

"We received information that the House does plan on considering a nutrition-only bill when they get back in September. The number that's been buzzing around is about $40 billion in cuts. So, what we keep pushing is that we're asking that staff members, while Congressmen are back home, start having those conversations to figure out where the differences are. That way when the members of Congress get back to town in September, they can sit down, work out the big differences and we can get that conference report passed by both bodies before the end of September."

You can listen to my full conversation with Kristina Butts by clicking here.

This N That- In the Field Video, Rainfall Past, Present and Future and APP reminder

We have this past Saturday's video conversation with John Collison posted on our website- click here to check it out- we talk with John "In the Field" about the legislative victories that Farm Bureau achieved in 2013 and the startup of their annual August area meetings in every corner of the state. Besides on the our website- you can also see the In the Field interviews with both John Collison as well as with Mike Shulte from the week before on our Oklahoma Farm Report App- available for our iPhone or Android phone.

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We had more clouds and scattered rainfall over the weekend- Mangum in southwest Oklahoma had 1.87 inches of rain over the weekend- most of it in the last 12 hours- and there is more rain falling at various spots in the state as we write this AND- the entire week has chances of rain in the forecast (and you just THOUGHT this is August in Oklahoma)

Click here for three different graphics to catch you up on weekend weather conditions and what is ahead as far as rain is concerned.

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A great way to easily access and to carry around Ron on RON is to download our App on your smartphone.  We have audio, video, web links and stories updated throughout the day as they develop.   

We have posted this morning the videos of the last two In the Field interviews- the Steve Meyer audio conversation we had with him at the Southern Plains Beef Symposium and more.  

AND- we are now posting the daily email on the APP in the News Section- that gives you a great backup days that for some reason the Email police confiscate your email into your Inbox.  

Later this morning- as we normally do- we will have the details of the cattle market opens for Oklahoma City and Joplin. 

Click here to jump to our webstory which has the links to download the Apple and the Android versions of the APP- and we have a permalink for those downloads in the Left Hand Column of the Daily Email.  

Thanks for checking it out- I think you will find its a great way to read, watch and listen to our latest farm and ranch news- at your convenience.