CBB members reject ’separation’ recommendation

At the Cattle Industry Summer Conference in Denver, members of the Cattlemen’s Beef Board have voted 62-30 to disapprove of the recommendation from the Cattlemen’s Beef Board Executive Committee that the Federation of State Beef Councils be separated from the National Cattlemen’s Beef Association.

That decision followed earlier action by directors of the Federation of State Beef Councils, who overwhelmingly passed (59-3) a “straw poll” resolution that reads as follows:

“…the Federation should operate in a more independent structure while maintaining the synergies and efficiencies of the current relationship with the National Cattlemen’s Beef Association—and strongly opposes the recent actions of the Cattlemen’s Beef Board Executive Committee, including the separation recommendation.”

The directors then passed a separate resolution calling on the chairman and vice-chairman of the Federation to form a committee to develop recommendations on how to build “a more independent structure” for the Federation. Both resolutions will be officially considered by Federation directors at their Saturday business meeting.

PSF gets reprieve on odor abatement deadline

Premium Standard Farms in north Missouri has been given a reprieve on an impending deadline with the state of Missouri to install equipment to reduce pollution and odors.

Last week, the hog operation filed a motion in Jackson County Circuit Court asking for two more years to comply with a settlement reached in 1999 and a revised one in 2004. The deadline for PSF to comply was going to be this Saturday, July 31st. While the Missouri Attorney General’s office opposed PSF’s motion in court, it agreed to continue negotiating with the company over the next month in an effort to reach a compromise.

PSF President Bill Homan told Brownfield last week they have an aggressive schedule of installing state-of-the-art barn scraper technology at all their farms in the next two years.

Premium Standard Farms is a wholly-owned subsidiary of Smithfield Foods.

Friday midday cash livestock markets

A moderate cattle trade developed yesterday in most areas with live sales from 92.50 to 93.00, 2.00 to 2.50 lower than last week. Dressed sales in the North ranged from 147.00 to 148.00, 2.00 to 3.00 lower than last week. We could see more sales today with asking prices on the cattle still on the show lists around 94.00 plus in the South and 149.00 to 150.00 in the North. Choice boxed beef is down 1.88 at 151.51, and select is .49 lower at 145.25.

Feeder cattle receipts at Missouri Auctions this week totaled 22,041 head. Compared to last week, feeder steers sold mostly steady, heifers weighing less than 650 pounds were 2.00 lower to 2.00 higher, heifers over 650 pounds steady to 2.00 higher. Feeder steers medium and large 1; 568 head averaging 577 pounds traded at 126.33 per hundredweight. 366 heifers averaging 573 pounds averaged 114.25.

Barrows and gilts in the Iowa/Minnesota direct trade opened 3.13 lower at 79.57 on a carcass basis, the West was down 2.76 at 79.76, and the East is 2.44 lower at 82.22. Missouri direct base carcass meat price is steady at 74.00 to 75.00. Today’s kill is predicted to be cut to 365,000 head with the Saturday slaughter at only 15,000 head.

For updated market information throughout the day tune to your local Brownfield radio station affiliate.

Cattlemen concerned about cow numbers

At the Cattle Industry Summer Conference in Denver, cattlemen are discussing how to rebuild the nation’s cow herd.

Beef cow numbers in the U.S. have fallen to their lowest level in more than 50 years. Montana rancher Bill Donald, president elect of NCBA, says a combination of factors has led to the decline.

“Every time we have gotten a signal, a market signal, to rebuild we have had a major drought in some portion of the country and so our cow herds just got shifted around from one region to another rather than expanding like we would have liked and what would have been good for the industry,” said Donald.

Donald says rising land values are also a factor.

“The value of land has gotten high and a lot of people have sold their ranches to people that aren’t necessarily ranchers,” said Donald. “While they might lease out a portion of it or somewhat, their numbers are down from that because there are less resources to utilize.”

NCBA responds to CBB allegations

The National Cattlemen’s Beef Association has responded to allegations by the Cattlemen’s Beef Board that NCBA may have breached the financial firewall between its policy and checkoff divisions.

During a Thursday morning news conference, NCBA’s CEO Forrest Roberts said his organization goes to great lengths to comply with the firewall.

“NCBA, whether it is a member of our leadership or a member of our staff, would never, never intentionally breach the financial firewall,” said Roberts.

Roberts says just because the beef board’s accountant was unable to determine compliance on select items does not mean that NCBA was not compliant. He says NCBA will work with the beef board and the ag marketing service to understand the written guidelines that are currently being developed.

NCBA President Steve Foglesong says where mistakes were made, corrections will be made. “We will resolve every one of these questions. Where we need to do something, where we need to balance the books we will do that. That’s exactly the way we have always done it before, for the last 20 years, even before the NCBA, back in the NCA days,” he says.” “Everybody just got together, sat down, and wrote the books and made it right.”

Foglesong says audits are nothing new, although this is the first time one’s been made public.

“They are tools to make the check-off and firewall stronger. And every time you do one, you have some lessons that you learn how you can make it better. We made changes from the last one that helped to make it and we will continue to do that. It’s a work in progress and it always will be,” says Foglesong.

NCBA’s CEO Forrest Roberts was asked by a reporter if NCBA is suspicious of the release of the audit details and timing.

“That is a question you should be asking the Cattlemen’s Beef Board,” says Roberts.  “The questions that I want us to focus on are ‘How are we going to make sure that we address any issues within this compliance review?’”

Julie Harker contributed to this report

AUDIO: Steve Foglesong, Forrest Roberts, Scott George (47 min. MP3)

Thursday midday cash livestock prices

So far on Thursday there is very little activity in the feedlot cattle trade with just a few bids of 93.00 live and 148.00 dressed in the North reported. Yesterday brought moderate movement in Eastern Nebraska and Iowa at around 147.00 to 150.00 dressed 3.00 lower and 93.00 live, 2.00 lower. More trade is expected to develop in those areas today. The South remained at a standstill yesterday and seems slow to start today. Asking prices are around 96.00 plus in the South and 149.00 plus in the North. Boxed beef cutout values are lower, with the choice down .92 at 153.78, and select down .43 at 145.91.

Feeder cattle receipts at the Ogallala Livestock Auction in Nebraska totaled 1,000 head. No comparison to last week, due to no feeder cattle sale. Steers accounted for 92% of the run, with weights over 600 pounds 99% of the offering.  Feeder steers medium and large 1; 276 head averaging 905 pounds traded at 110.03. Just a few heifers traded, those weighing 804 pounds brought 105.93.

Barrows and gilts in the Iowa/Minnesota direct trade opened 3.01 lower on very light receipts at 81.17 on a carcass basis, the West is down 2.32 at 81.17, and the East is up 2.72 at 85.82. Missouri direct base carcass meat price is steady from 74.00 to 75.00.Iowa market hogs last week averaged 268.4 pounds, 1.1 pounds heavier than the previous week and 2.1 percent higher than 2009. Slower chain speed this month may be compromising the current status of the finishing floors according to DTN.

More market information is available throughout the day on your local Brownfield affiliate radio station.

Cattle conference could be controversial affair

Cattlemen from the across the U.S. are gathering in Denver for the Cattle Industry Summer Conference—and it has the makings of a controversial affair.

The divide between the Cattlemen’s Beef Board—the organization that administers the beef checkoff—and the National Cattlemen’s Beef Association widened even further this week when the Beef Board accused NCBA of breaching the financial firewall between its policy and checkoff divisions.  That follows an earlier dispute over the NCBA’s new governance proposal. 

Long-time beef industry observer, Chuck Jolley of Jolley & Associates in Shawnee, Kansas—who also covers the beef industry for cattlenetwork.com—says a split between the two organizations is probably inevitable.

“I’m not sure there are enough people who want to keep the status quo, as is, coming out of this,” Jolley says. “I think they’ll probably—if not a permanent split, there will be quite a bit more distance between the two organizations than there has been in the past.”

But Jolley sees it having very little impact on beef promotion activities.

“The promotion itself will go on as is—there won’t be any changes that I can see in that,” he says. “The real changes will be in the working relationship between the two organizations—and I really can’t see that having any material effect on beef promotion as such.”

Jolley says the other big topic of discussion at the conference will be the livestock marketing rule proposed by USDA-GIPSA.

AUDIO: Chuck Jolley (7 min MP3)

Legislation would extend market reporting

Legislation to reauthorize mandatory livestock price reporting for five years has been introduced in the Senate.  It also makes two significant changes to existing law. 

The bill calls for mandatory reporting of wholesale pork cuts in order to expand transparency to the pork industry.  It also instructs the Secretary of Agriculture to establish within one year an electronic price reporting system for dairy products.

The legislation was introduced by Senate Ag Committee chair Blanche Lincoln and Ranking Member Saxby Chambliss.

NCBA responds to Beef Board’s audit report

The National Cattlemen’s Beef Association (NCBA) has responded to a Cattlemen’s Beef Board audit which said NCBA had “improperly charged or insufficiently documented” some expenses related to the beef checkoff.  Among the discrepancies was the payment of international and domestic travel expenses for the spouses of staff and volunteer leaders of NCBA. 

NCBA president Steve Foglesong of Illinois says if mistakes were made, they will be corrected.  He says NCBA strives for accuracy and will continue to seek clarity on the Beef Board’s guidelines to ensure compliance. 

Foglesong promised a more complete response to the audit will be presented at this week’s Cattle Industry Summer Conference in Denver.

Grassley okay with 90-day comment extension

A long time advocate for more competition in the livestock industry says the 90-day extension for public comment on changes to the USDA’s livestock marketing rule sounds reasonable to him. Iowa Senator Charles Grassley says attempts to increase competition go back to the 1990s.

“Having the law enforced in November is a victory as far as I’m concerned.”

Grassley says now’s the time for opponents – who had requested a 120 day extension – to make their case. For his part, Grassley says this is about settling disagreements and getting competition back into the livestock industry.

“And I think we’ve had enough evidence over the last 15-20 years, a lot of those things have not been the case – particularly, when you have the vertical integration.”  Grassley says it’s about “fairness.”

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