Monday November 12 Ag News

NE Cattlemen to Gather at Annual Convention
December 5-7th many cattlemen from across the state will join together for the Nebraska Cattlemen 2012 Annual Convention in Kearney, Nebraska at the Holiday Inn. At this meeting members of Nebraska Cattlemen have the opportunity to participate in discussions in council and committee meetings. These meetings determine the direction and policy of Nebraska Cattlemen for the upcoming year.

As in past years, the Convention will be packed with educational opportunities beginning with the Cattlemen’s College on Wednesday afternoon. On Thursday the Nebraska Cattlemen Council Meetings will be held in the morning, the Foundation luncheon at noon and the Nebraska Cattlemen Committee meetings in the afternoon.

The 2012 Convention will feature a very distinguished group of speakers such as; Wyatt DeJong, 2010-2011 National FFA Central Region Vice President, Baxter Black, cowboy poet, and JD Alexander, 2012 NCBA President, to name a few.

As always Nebraska Cattlemen’s allied industry partners will present their goods and services with outstanding displays in the trade show. The welcome reception in the trade show on Wednesday evening will kick-off this year’s convention.

For more information or to register refer to your November issue of Nebraska Cattleman magazine or you can call Nebraska Cattlemen’s Lincoln office at 402.475.2333or go online to www.nebraskacattlemen.org.



NCBA's Cattlemen to Cattlemen Live Show Will Address 'State of the Industry'

Drought, fires, floods, regulatory overreach, skyrocketing input costs and record herd shortage are all issues cattlemen and women have unfortunately become very familiar with over the past couple of years. NCBA’s Cattlemen to Cattlemen will take a closer look at the current state of the beef industry during a live call-in show on Tues., Nov. 13, at 8:30 p.m. Eastern Standard Time (EST) on RFD-TV.

“Our industry has weathered through tough times. By being resilient, cattlemen and women stick it out and come out stronger on the other side,” said National Cattlemen’s Beef Association (NCBA) CEO Forrest Roberts. “This special episode of NCBA’s Cattlemen to Cattlemen will allow us to answer questions, listen to producer concerns and discuss strategies that are crucial in helping ranchers have successful cattle operations, while continuing to produce the safest, highest quality beef in the world.”

Joining Roberts on the panel are NCBA President J.D. Alexander, Vice President of Government Affairs Colin Woodall, CattleFax CEO Randy Blach and Executive Director of Producer Education Dr. John Paterson. Viewers can ask the panel questions by calling 1-888-824-6688 or by e-mailing their questions to C2C@beef.org. They are also encouraged to join NCBA by calling 1-888-824-6688 or visiting NCBA’s website.

The program will be broadcast again on RFD-TV Wed., Nov. 14, 2012, at 10:30 a.m. EST and Sat., Nov. 17, 2012, at 9 a.m. EST. In addition, all episodes of NCBA’s Cattlemen to Cattlemen are available on the program’s website.



Lager Joins ISU Extension and Outreach as Northwest Iowa Dairy Specialist

Kevin Lager joined Iowa State University Extension and Outreach as an extension dairy specialist on Nov. 1. Lager will serve the western Iowa dairy region and have an office in the Sioux County Extension Office in Orange City.

Lager comes to Iowa State from Texas A&M University where he has served as an extension associate for the Texas A&M AgriLife Extension Service since 2009. His extension experiences include nutrition and nutrient management support to dairy producers, dairy farm worker trainings and Texas dairy industry needs assessments. He has a master’s degree in animal science from Kansas State University and is working towards a doctorate in agriculture from West Texas A&M University.

“Kevin is a good fit for the Iowa State dairy team and western Iowa,” said Leo Timms, extension dairy specialist and animal science associate professor. “His nutrition and nutrient management expertise is exactly what producers are asking for. Iowa dairy producers are good business people and managing costs in this area is of great importance to them, especially this year.”

With a third of Iowa’s dairy herds and 40 percent of Iowa milk production in the western Iowa region, Lager will be able to apply his experiences working with all sizes of dairy herds. Lager grew up on a Kansas dairy farm, worked for a medium-sized operation and interned at a large Kansas dairy. Timms said there are all sizes of operations in western Iowa where the dairy industry has a significant economic impact.

“I look forward to getting to know and serving the dairy producers and the dairy industry in western Iowa,” Lager said. “Iowa State University Extension and Outreach has excellent resources and knowledgeable staff. I look forward to collaborating with them to benefit the Iowa dairy industry.”

Making the move to Iowa with Lager are his wife, Melanie, and their three sons. Lager can be reached at the Sioux County Extension Office, Orange City, or by emailing klager@iastate.edu.



September Pork Exports Steady; Beef Exports Lower

U.S. pork exports in September were steady with last year’s volume, while beef exports were well below a year ago. Despite sluggish volumes, however, the value of both pork and beef exports through the third quarter of 2012 remains ahead of last year’s record-setting pace, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

“We are definitely in a challenging economic environment, which is making it difficult to match last year’s export volumes,” said Philip Seng, USMEF president and CEO. “But our products continue to command an excellent price in the international markets and provide substantial returns to U.S. producers, which is critically important at a time when they face extremely high production costs.”

September pork exports reached 183,853 metric tons (mt), slightly exceeding last year’s total. Though export value declined 6 percent compared to last year to $505 million, it was about 2 percent higher than the August value of $495.5 million.

For January through September, pork exports were up 2 percent in volume at 1.657 million metric tons and up 6 percent in value to $4.6 billion. Exports equated to 23.6 percent of muscle cut production and 27 percent when including both muscle cuts and variety meat (compared to last year’s ratios of 22.8 percent and 27 percent). Export value equated to $56.16 per head slaughtered, 4.5 percent above the per-head average established during the same period last year.

With fewer production days this year, September beef production declined 9 percent and exports fell 17 percent in volume to 90,538 mt. September export value dropped 4 percent to $442.8 million, but was significantly higher on a per-head-of-fed-slaughter basis – increasing 7 percent to $227.65.

Despite January-September beef export volume being down 12 percent to 850,439 mt, export value totaled $4.1 billion. This was 2 percent above last year’s record pace and already exceeded the 2010 full calendar year total of $4.08 billion. Exports equated to 9.8 percent of muscle cut production and 12.7 percent when including both muscle cuts and variety meat, compared to last year’s ratios of 11 percent and 14 percent. Export value averaged $213.63 per head of fed slaughter, up about 6 percent compared to the same period in 2011.

Mexico leads September pork market highlights
September pork exports were led by strong growth in Mexico (51,510 mt, +24 percent, valued at $92.8 million, +7 percent). For the year, exports to Mexico were 15 percent higher in volume (443,442 mt) and 11 percent higher in value ($820 million). Mexico is the leading volume market for U.S. pork and ranks second in value to Japan.

September exports to Japan trended lower, but are still on pace for an excellent year. Through the first nine months of 2012, export value to Japan was up 4 percent to $1.495 billion despite a 6 percent decline in volume to 344,362 mt.

Exports to Canada have posted steady growth in 2012, with January-September volume up 14 percent to 172,812 mt and value climbing 16 percent to $628.2 million. September export volume was record-large at 22,229 mt, breaking the previous record set in August.

Led by outstanding growth in Colombia, exports to Central and South America continue to surge. Exports through September were 20 percent higher in both volume (60,739 mt) and value ($154.5 million) compared to last year. For Colombia, exports were up 74 percent in volume (12,350 mt) and 110 percent in value ($35.1 million). September export volume to Colombia also set a monthly record at 2,131 mt.

January-September exports to the China/Hong Kong region were still ahead of last year’s pace in both volume (313,425 mt, +4 percent) and value ($632.4 million, +21 percent). China’s domestic pork inventory, however, is much higher than a year ago and exports in the fourth quarter are unlikely to match last year. Accordingly, September exports of 30,788 mt were the highest since May but were still 35 percent lower than the September 2011 volume.

Beef exports to Japan remain red-hot
September beef exports to Japan were just 2 percent higher than last year in volume (12,487 mt), but surged nearly 25 percent in value to $86.6 million. This was consistent with the January-September performance in which exports were steady in volume (121,207 mt) but 23 percent higher in value ($806.1 million).

Japan now ranks second in export value to Canada, where January-September exports were down 13 percent in volume (125,625 mt) but still achieved a 5 percent increase in value ($829.7 million).

Mexico remains the leading volume market for U.S. beef, but exports to Mexico have struggled in 2012, – reflecting a weak peso and sluggish economy. Through September, exports to Mexico were 21 percent lower than a year ago in volume (151,767 mt) and 12 percent lower in value ($642.6 million).

With an expanded tariff-rate quota helping boost demand, beef exports to Russia are on pace for another record year. January-September exports were up 8 percent in volume (61,923 mt) and 24 percent in value ($242 million) over the same period last year.

Though U.S. beef still lacks access to mainland China, export growth to Hong Kong has made the region a 2012 bright spot. Exports to Hong Kong were up 14 percent in volume through September at 43,038 mt, and increased 32 percent in value to $224 million.

Led by remarkable growth in Chile and solid performances in Peru and Guatemala, January-September exports to Central and South America climbed 36 percent in volume (26,186 mt) and were 73 percent higher in value ($99.2 million). In fact, exports to the region have already exceeded last year’s full calendar year records of 25,823 mt and $85.5 million.

September lamb export value steady with last year
U.S. lamb exports, which have battled a tough economic environment in 2012, were lower in volume in September (1,336 mt, - 6 percent) but roughly steady in value at $2.3 million. For January through September, exports were down 30 percent in volume (10,050 mt) and 16 percent in value ($19.6 million). With U.S. lamb still lacking access to many key global markets, the USMEF board of directors adopted a resolution last week urging the U.S. government to make access for U.S. lamb a higher priority in trade negotiations.



China Oct Soybean Imports Fall

China's October soybean imports fell 19% from a month earlier to 4.03 million tons, but were stronger than the 2 million-3 million tons market participants had expected, as traders booked cargoes on strong domestic demand despite higher international prices.

Imports in November and December may also beat earlier estimate as buyers accelerated purchases on recent price declines on the Chicago Board of Trade, the state-backed China National Grain & Oils Information Center said earlier.

China is the world's top importer and buys about 60% of the world's traded soybeans. Its imports are expected to rise to a record 57 million tons this year, compared with 52.6 million tons last year, the CNGOIC said.

October imports rose 6% from a year earlier, the General Administration of Customs said Saturday. January-October imports totaled 48.34 million tons, up 16.6%.

Imports may grow 5%-6% in the next five years as growth for feedmeal and edible oil demand moderates, Chen Xuecong, vice general manager of China Grain Reserves Corp's edible oil unit, said earlier this week. Imports have posted double-digit growth in the past few years.

In October, China also imported 900,000 tons of edible oil, up 76% from a year earlier and 5% from September, customs data showed.

January-October imports rose 24% to 6.41 million tons.



Farmer Mac Reports Higher Quarterly Earnings

The Federal Agricultural Mortgage Corporation announced that it achieved record core earnings and program volume for the quarter ended September 30, 2012.

Core earnings, a non-GAAP measure, was $13.4 million for third quarter 2012, up from $11.2 million for third quarter 2011. Core earnings for third quarter 2012 benefited from higher net effective spread of $27.3 million, compared to $22.8 million in third quarter 2011.

This higher net effective spread was partially offset by net provisions to the allowance for losses of $0.1 million, compared to net releases of $0.8 million for the prior year's third quarter.

Farmer Mac had GAAP net income attributable to common stockholders for third quarter 2012 of $16.4 million, compared to net loss of $23 million for the same period in 2011. The increase in Farmer Mac's GAAP net income compared to the previous quarter was almost entirely attributable to the effects of fair value changes on financial derivatives.

Farmer Mac President and Chief Executive Officer Timothy Buzby says he is pleased to report all-time highs this quarter for core earnings and outstanding program volume.



Poultry Industry Continues to Improve Worker Safety

The incidence of nonfatal occupational injuries and illnesses in the poultry sector, which includes slaughter and processing, continues to decline, according to the 2011 Injury and Illness Report recently released by the Department of Labor's Bureau of Labor Statistics (BLS).

The total recordable poultry processing illness and injury rate for 2011 was 5.8 cases per 100 full-time workers (per year), down from 5.9 in 2010. In terms of injuries per 100 full time workers, the poultry industry's rate of 5.8 was below the rate of 6.4 for all animal slaughter and processing and only slightly above the rate of 5.6 for the entire food manufacturing sector.

Poultry processing's 2011 rate of 5.8 represents a 74 percent decrease from 1994 (the oldest data available on the BLS website), when the recorded rate was 22.7, demonstrating the enormous progress the industry has made in improving safety for its workforce.

"The significant and consistent decline in illness and injury rates among our workforce over the past two decades is a direct result of the poultry industry's strong commitment to worker safety," said National Chicken Council President Mike Brown. "Our employees are our most important asset. I commend poultry companies and their management teams for their tremendous efforts to protect them and for their ongoing dedication to further progress."

John Starkey, President of U.S. Poultry & Egg Association, commented, "The industry recognizes that our people are our most valuable asset, and worker safety efforts have never been stronger. Poultry companies continue to devote people, time and other resources to actively identify and correct workplace hazards."

"The poultry industry has been diligent in reducing recordable injuries and illnesses for decades," said National Turkey Federation President Joel Brandenberger. "This most recent data acknowledges the excellent safety performance achievements the poultry industry has accomplished. We all continue to learn additional practices and tools to further protect the people that work hard every day in our plants to provide high-quality, safe and nutritious protein for consumers."

A recent economic impact study found that poultry production and processing is directly responsible for 327,400 jobs in the United States.