Cattlemen's Capitol Concerns
July 3, 2008

The Cattlemen’s Capitol Concerns (CCC) is a weekly report from Washington, D.C., giving an up-to-date summary of top policy initiatives concerning the cattle industry; direct from the National Cattlemen’s Beef Association (NCBA). Please feel free to reprint in full or in part. If you would like to include NCBA’s logo, contact us at 303-694-0305.

Congress in Recess This Week: This is an abbreviated version of the Cattlemen’s Capitol Concerns, with Congress having left town for its annual Independence Day recess.  Congressional activity will resume Monday, July 7.

Korea Finally Opens to U.S. Beef, with First Sales Since Summer of 2007: Quarantine inspections of U.S. beef already in storage in South Korea resumed late last week. Some disruptive efforts are still being made by protesters to block the product from entering commercial and retail channels, but some outlets have reported strong consumer interest and solid sales figures for the week. Other reports cite a mixed reaction from Korean consumers. The Korean Import Beef Association has announced a large-scale sale of U.S. beef at discounted prices, in order to help re-establish consumer interest and confidence. NCBA is watching the situation carefully, and will report further information as it becomes available.  

Despite Delayed Entry into Korea, Beef Exports Surging in 2008: While Korea is a key export market for U.S. cattlemen, lack of access to Korea has not kept global beef exports from making a strong resurgence in 2008.

According to statistics released this week by the U.S. Meat Export Federation (USMEF), 2008 beef exports through the first three weeks of June totaled 480 million pounds – an increase of 34 percent over the same period in 2007. This still trails the 2003 total for the same time period (782.3 million pounds) by 39 percent, but shows significant progress in rebuilding global market share.

In another important benchmark, USMEF reports that during the week of June 13-19, beef export sales actually exceeded those for the same week in 2003 by 12 percent. Worldwide sales for the week reached 32.4 million pounds. 

Russia is emerging as a promising market for U.S. beef, as weekly sales to Russia reached 3.5 million pounds. Year-to-date sales totaled 8.9 million pounds, making Russia the sixth-largest export market so far in 2008.

Below are accumulated 2008 exports in the top six beef export markets, compared to the same time period in 2007 (unless otherwise indicated):

• Mexico: up 4 percent to 243.4 million pounds
• Canada: up 50 percent to 80.4 million pounds
• Japan: up 76 percent to 50.3 million pounds
• Vietnam: up 583 percent to 39.9 million pounds
• Taiwan: up 48 percent to 24.9 million pounds
• Russia: 8.9 million pounds, compared to 773,815 pounds during the same period in 2003 (Russia was closed to U.S. beef in 2007.)

U.S. Beef exports are also reaching a more diverse range of consumers than in years past. In 2003, 61 percent of beef exports were to Japan and Korea. This year, exports to Japan have accounted for just 10 percent of total exports.

Choice Beef Prices Show Positive Movement, Boosting Fed Cattle Prices: The strong increase in beef exports may be one of the factors driving sharp recent improvement in choice beef prices. According to CME Group, the choice beef cutout price has climbed  steadily since April, reaching a level this week that is more than 20 percent higher than one year ago. This trend has helped boost cash market fed cattle prices into the $100/cwt range in recent days, and provided a bump in futures prices as well. Obviously, record-high operating costs continue to make profits elusive in all sectors of the cattle industry. But consumers appear to be showing strong demand for choice beef during the 2008 summer grilling season, which had been an issue of concern due to the difficult economy and drastically higher prices for gasoline and other goods. 

Federal Agencies Review Potential Sites for New National Bio and Agro-Defense Facility: The U.S. Department of Homeland Security (DHS) and the U.S. Department of Agriculture (USDA) have released the proposed Environmental Impact Statement on creating a new National Bio and Agro-Defense Facility (NBAF).  The comment period on this draft impact statement is open until August 25.  In conjunction with this statement, DHS will be hosting a series of public meetings throughout July and August around the countryside to hear comments about building a new NBAF.

The new NBAF would replace the current Plum Island Animal Disease Center located on Plum Island, New York.

Six sites have been proposed to host this new site.  These sites include:

* The current location on Plum Island, New York  
* South Milledge Avenue Site, Athens, Georgia

* Manhattan Campus Site, Manhattan, Kansas
* Flora Industrial Park Site, Flora, Mississippi
* Umstead Research Farm Site, Butner, North Carolina
* Texas Research Park Site, San Antonio, Texas
 
NCBA policy supports updating and fully funding a safe and fully secure facility – whether it be a new NBAF location or renovating Plum Island.  However, our policy does not explicitly support one site over another. NCBA President-elect Gary Voogt recently testified before Congress on the issue. Find more on NCBA’s testimony at these links:

http://www.beefusa.org/NEWSCattlemenvoicesupportfornewNationalBioandAgro-DefenseFacility35762.aspx

http://www.beefusa.org/NEWSMay222008NCBAPresident-electTestifiesonCapitolHillinFavorofNewNationalBioandAgro-DefenseFacilityVOOGT35774.aspx

At the Cattle Industry Summer Conference July 18, the Cattle Health and Well Being Committee will welcome representatives from USDA and DHS to discuss current activities and future plans for foreign animal diseases research in the United States, which includes a discussion of NBAF. 

More Information Released on Canada’s Latest BSE Case:  The Canadian Food Inspection Agency (CFIA) confirmed last Friday that the BSE case announced on June 23 was a five-year-old Holstein cow from British Columbia. As previously noted, no part of the animal’s carcass entered the human food supply and no risk materials entered the animal feed system.

CFIA reports that the animal’s age is consistent with some of Canada’s previous BSE cases, which have ranged from 50 months to 192 months of age. The agency continues to investigate and gather additional information about the animal’s background, including tracing its herdmates at birth. CFIA also announced that it will undertake a comprehensive feed investigation to examine how the animal became infected.

EPA Meetings Focus on Contaminants’ Impact on Aquatic Life: NCBA staff participated this week in informational meetings with the Environmental Protection Agency (EPA). These sessions focused on the derivation of water quality criteria to protect aquatic life from emerging contaminants that exhibit endocrine disrupting activity (for example, pharmaceutical products that may affect the genetic makeup of aquatic species.)

One component of this discussion is EPA's ongoing study of the effects pharmaceutical use in the livestock industry has on aquatic life, and the possible development of water quality criteria in response to results of the study. 

Cattlemen Continue Relief Effort for Farms and Ranches Devastated by Flooding: The National Cattlemen’s Foundation, in cooperation with NCBA, has launched a disaster relief effort to assist farm and ranch families impacted by catastrophic flooding in the Mississippi River corridor and its surrounding areas.
  
NCBA is joining forces with state cattlemen’s associations across the nation to provide assistance through the National Cattlemen’s Foundation. Every dollar contributed will directly assist families struggling to keep their farms and ranches operating under these difficult conditions. Donations are tax-deductible. In conjunction with the foundation, state cattlemen’s associations from states in the affected region will manage distribution of all funds donated.
 
For more information, please visit the foundation’s Web site at www.nationalcattlemensfoundation.org.

Cattle Industry Summer Conference Fast Approaching: The 2008 Cattle Industry Summer Conference is set for July 15-19 in Denver. Pre-registration ended June 25, but cattle producers can still register on-site beginning July 15. Full registration and hotel information is available at: www.beefusa.org/convsummerconference.aspx.

Don't Miss the Award-Winning NCBA’s Cattlemen to Cattlemen:  On this week’s edition of Cattlemen to Cattlemen – airing July 1 through July 6 - viewers can learn more about the importance of premises registration. Cattlemen to Cattlemen will visit cattle farmers and ranchers in Arizona, Maryland, Kentucky and Illinois to hear how premises registration has become an important aspect of their operation.

In next week’s edition airing July 8-13, Cattlemen to Cattlemen brings you a collection of great beef recipes from our very own Chef Michaele Musel!  Chef Michaele demonstrates a great beef grilling recipe that is perfect for your summer barbeque, as well as some other great tips for enjoying the great taste of beef.

NCBA’s Cattlemen to Cattlemen on RFD-TV provides weekly news and features for cattle producers across the country. It airs every Tuesday at 8:30 p.m. Eastern time, with repeat episodes on Wednesdays at 10:30 a.m. and Sundays at midnight (all times Eastern). It is also available online at www.CattlementoCattlemen.org. The program’s sponsors include Purina Mills, Fort Dodge Animal Health, Dow AgroSciences, Bayer Animal Health and McDonald’s. 

For more information or to check out past episodes, visit www.cattlementocattlemen.org.