Wednesday June 5 Ag News

DNA Seminar Set June 26 at Meat Animal Research Center

A meeting June 26 at the Meat Animal Research Center at Clay Center will focus on DNA technology's status and future in relation to the genetic improvement of beef cattle.

The meeting is titled "DNA Technology: Where We've Been, Where We Are and Where We're Headed." and is targeted toward beef cattle producers and extension personnel.

This is a constantly evolving technology. Participants will learn about genomic tools as they relate to making selection decisions in beef cattle and the changes in application and research discoveries over the past 12 months.  The meeting will also focus on the topic of efficiency and early results from a USDA funded project aimed at discovery and deployment of genomic tools for feed efficiency in beef cattle, said Matt Spangler, University of Nebraska-Lincoln Extension beef genetics specialist.

The meeting will begin with lunch at 11:30 and continue through the afternoon with the following topics:
            – Current State of Integrating Genomics into National Cattle Evaluation – Matt Spangler, University of Nebraska-Lincoln
            – New Genotyping Platforms – Elisa Marques, GeneSeek a Neogen Company
            – What do we hope to learn from sequence information? Larry Kuehn and Warren Snelling, US Meat Animal Research Center
            – Genomics of Bovine Respiratory Disease: An Update – Alison Van Eenennaam, UC Davis
            – Life-cycle analysis of beef production – Kim Stackhouse, National Cattlemen's Beef Association
            – Improving beef system efficiency: A genetics perspective – Bob Weaber, Kansas State University
            – Genomic Predictors of Feed Efficiency – Matt Spangler, University of Nebraska-Lincoln

            The meeting will end at 5 p.m. Register by June 17 with Terri Behl, 402-472-6441, tbehl1@unl.edu. Cost is $10 which covers lunch and handouts. This meeting is supported by USDA-NIFA-AFRI integrated project, focused on a National Program for the Genetic Improvement of Feed Efficiency in Beef Cattle.



Food Processing Center Celebrates 30th With Open House Sunday

The University of Nebraska-Lincoln Food Processing Center, celebrating 30 years of serving Nebraska agriculture and agribusinesses in 2013, will have an open house Sunday (June 9) to show visitors the difference it's making.

The open house will be from 1-5 p.m. in the Food Industry Complex on UNL's East Campus.

Nebraska was one of the first states to develop a food processing center, and its center served as an example for other states to do the same.

The center has helped countless Nebraska entrepreneurs take ideas for food businesses from concept to reality.

The open house will feature a variety of activities, including tours of the FPC's internationally famous pilot plants, interactive displays on sensory testing, marketing, food safety and more.

Free ice cream from the FPC's Dairy Store also will be served.



Keeping Flies off Cattle Prevents Stress and Weight Loss

Shoo, fly! With summer upon us, it is important to keep flies off of cattle.

When cattle are exposed to flies, they will often bunch up, with the dominant animals in the center, seeking protection from the flies, said Dave Boxler, University of Nebraska-Lincoln Extension educator in Lincoln County. This behavior can cause an increase in the animals' temperature and stress levels, which could lead to weight loss.

There are three types of flies that cattlemen need to be on the look out for: horn flies, stable flies and face flies.

"I'm anticipating seeing a normal fly population this year," Boxler said.

Horn flies feed off of the blood of cattle and congregate around the horns, necks, and throats of the animals. They feed about 30-35 times a day.

Boxler said that horn flies can cause a loss of $800 million annually.

"It is certainly very important to attempt to control this fly during summer," Boxler said.

Two hundred flies on one animal are enough to see an impact. In one study, calves whose mothers were protected from the horn fly gained an average of 10-20 pounds more than calves whose mothers did not receive pest control, Boxler said.

One way to reduce the impact of horn flies is to buy ear tags filled with an insecticide. These ear tags can cost about $1.50-$2 per tag. There are also other methods of horn fly control such as dust bags, oilers or feed-additives (IGRs).

Stable flies also are blood-feeding flies and feed off of the legs of cattle.

"In a pasture setting, stable flies are most difficult to control," Boxler said.

Cattle affected by stable flies will stomp their legs and bunch in corners of the pasture.

Stable flies have strong impacts on weight gains, Boxler said.

In one study, steers that were protected from stable flies gained on average .44 pounds more per day than steers that didn't receive protection.

Boxler said that the most effective method of controlling stable flies is to spray cattle with an insecticide.

A quart of insecticide can cost around $16-$20. This mixes with water and creates about 25 gallons of spray.

Face flies are another type of fly that bother cattle.

Female face flies feed on secretions from the nose and eyes of cattle, Boxler said.

"It scratches and irritates the eye tissue, which actually sets up the animal for pink eye," Boxler said. "It could cause blindness."

Face flies are a larger concern in areas which receive more than 30 inches of precipitation and have a higher humidity.

"Out in western Nebraska where we have more arid conditions we see the face fly less frequently  than in eastern Nebraska where the face fly is an annual problem," Boxler said.



Beef Entices Des Moines Metro Commuters
Central Iowa commuters will have visions of beef dancing through their heads while traveling throughout the Des Moines metro area during June. Twelve digital billboards will be enticing consumers to choose beef for their grills this summer with larger than life mouthwatering photos of beef positioned throughout the metro area. The six-week promotional campaign, which started in mid-May, is being funded by a partnership between the Beef Checkoff and eleven County Cattlemen Associations.

"The Des Moines metro area has 134 times more people than we do in Ringgold County," said Trent Johnson, president of Ringgold County Cattlemen's Association. "By pooling our money together we can make a greater impact on getting beef on grills this summer. In order to increase demand for beef we need to reach larger population areas. This cooperative effort is allowing us to do just that."

The beef industry is concentrating advertising efforts to reach Millennials and Gen X consumers, those between 25 to 45 years of age. This consumer group is not as familiar with the benefits of beef as generations before them. They also represent a large portion of our nation's growing population.

"Consumer research indicates this group of consumers drives 153 miles each week. Billboards are a cost-effective tool to reach an influential consumer group," said Doug Bear, direct of industry relations for the Iowa Beef Industry Council. "This billboard campaign is expected to reach nearly 68,000 consumers each day in the Des Moines metro area for a total of over 2.8 million media impressions with an impression cost of less than $0.005."

The 11 County Cattlemen Associations participating in this Des Moines metro beef promotion include Adair, Chickasaw, Dallas, Greene, Ida, Madison, Polk, Ringgold, Sioux, Story and Taylor.



San Diego School Districts Adopt “Meatless Mondays"

Last night the San Diego, CA, school board voted 4-1 to adopt a proposal which would force schools to abstain from serving meat to hungry students on Mondays. The proposal, authored by board President John Lee Evans and Vice President Kevin Beiser, applies to elementary and K-8 schools but not middle and high schools.

"We are disappointed with how the school board chose to vote on such an important issue which affects the health and wellbeing of children in San Diego’s schools,” said Animal Agriculture Alliance President and CEO Kay Johnson Smith. “The intentions of board members in support of this measure are gravely misguided as protein is often what is most lacking in school age children’s diets – especially those who may only get real meals when at school.”

As was reported in one article following the board’s vote, over 65% of children in the San Diego School District qualify for the subsidized lunch program based on their family’s income.  

“I wish that the school board would have taken more time to consider this proposal, as the Meatless Mondays campaign is an extreme measure driven by animal rights organizations who hope to end the consumption of meat, milk and eggs in this country.” said Johnson Smith.

Meatless Mondays is a carefully orchestrated campaign that seeks to eliminate meat from Americans’ meals seven days a week — beginning with Mondays. Organized through the Center for a Livable Future at John Hopkins University’s Bloomberg School of Public Health, the campaign, which is funded in large part by a wealthy, long-time animal rights activist, pushes an extreme animal rights and environmental agenda by promoting false claims about animal agriculture.

The Center for a Livable Future has been associated with extremist anti-animal agriculture groups including, People for the Ethical Treatment of Animals, Farm Sanctuary and Compassion Over Killing, and is responsible for the anti-modern farming efforts by the Global Resource Action Center for the Environment.

Early on June 4, 2013, Johnson Smith wrote to members of the school board urging them to “vote no” on the proposal, and provided resources fully explaining the myths behind this campaign.

“The meat industry supports consumer choice; but as the majority of San Diego’s schools already provide students with an abundance of vegetarian options, I see no reason why the school board would find it necessary to validate such an extreme  proposal and deprive students of protein-packed food choices at lunchtime.” 




   
Trade Barriers, Soft Demand Keep April Beef, Pork Exports Sluggish

April exports of U.S. beef and pork edged higher than the previous month but still lagged behind year-ago levels, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

While the overall trend for exports remains sluggish, driven by market access issues and oversupply of domestic product in key markets, several leading trading partners showed positive signs in April.

Beef exports to Japan were up sharply as the island nation regained its ranking as the No. 1 market for U.S. beef for the first time since 2003. At the same time, Hong Kong maintained its rapid growth pace and

Taiwan continued its rebound from beta agonist-related issues that slowed exports last year. 

While the boost in exports to Japan is encouraging – up 49 percent in volume and 44 percent in value versus the first four months of 2012 – USMEF President and CEO Philip Seng cautioned that Japan has a safeguard in place that will increase tariffs if beef import volumes rise too quickly. This safeguard, which was utilized by Japan in 2003 under similar circumstances, remains an important consideration for U.S. exporters and Japanese importers.

On the pork side, Mexico showed double-digit growth in April after a slow start to the year while Central/South America, the ASEAN region and the Caribbean all grew 30 percent or more for the month. U.S. lamb sales were also up sharply to leading export markets.

Summary of April results
April beef export volume of 86,433 metric tons (mt) was down 9 percent from a year ago and export value was down 7 percent to $434.8 million. For January through April, beef exports were 2 percent higher in value ($1.75 billion) despite a 5 percent decline in volume (343,020 mt).

April pork exports totaled 174,073 mt valued at $475.1 million – down 5 percent and 7 percent, respectively, from a year ago. Through the first four months of the year, pork exports were 10 percent below last year’s pace in both volume (702,268 mt) and value ($1.96 billion).

Russia’s suspension of imports of U.S. beef and pork, which officially closed the market Feb. 11, continues to hamper overall performance. USMEF estimates this trade impasse, which is related to Russia’s enforcement of a zero-tolerance policy for beta agonist use, has cost the U.S. industry about $97 million in beef export value and $58 million in pork export value so far in 2013.

“Along with our lack of access to sell beef in mainland China, this is the biggest barrier we face in terms of market access,” said Seng. “One often overlooked factor is the effect this suspension has on the price U.S. products command in markets other than Russia. For example, beef livers to Egypt have increased in volume, but the value is down. There is also downward pressure on the prices offered for rounds, hams and pork for further processing. The impact is much broader than many analysts realize at first glance.”

Through April, beef exports equated to 9 percent of U.S. muscle cut production and 12 percent including variety meat – down from last year’s ratios of 9.6 percent and 12.7 percent. Export value equated to $217.54 per head of fed slaughter, up 3 percent from the same period last year.

Pork exports accounted for 21 percent of muscle cut production and 25.3 percent including variety meat. This is down from 24.6 percent and 28 percent, respectively, during the first four months of 2012. Export value for the first four months of 2013 equated to $52.72 per head slaughtered, down from last year’s pace of $58.84.

Japan regains No. 1 ranking among beef export destinations
The U.S. beef industry continues to capitalize on its recently expanded access to Japan. With April exports more than doubling last year’s performance, exports to Japan moved 49 percent higher in volume (59,969 mt) and 44 percent higher in value ($382.3 million) for the year. This made Japan the leading destination for U.S. beef in both volume and value, overtaking Canada.

“Many observers felt USMEF’s growth projections for Japan were overly bullish,” Seng said. “But we were keenly aware of the unmet demand from existing buyers and the opportunities to secure new business once we had a wider supply available. This shows once again the importance of having experienced staff on the ground who know how to direct marketing resources in a way that will maximize results.”

U.S. beef exports to Canada slowed in April, though volume (55,485 mt, +10 percent) and value ($355,321, +15 percent) remained higher for the year. Exports to Hong Kong, which also recently expanded access for U.S. beef to include bone-in cuts and some products from cattle over 30 months of age, soared by 87 percent in volume (27,965 mt) and 79 percent in value ($158.6 million) in the first four months of the year. Taiwan also continues to perform extremely well in 2013, with exports beating last year’s pace by 84 percent in volume (10,841 mt) and 129 percent in value ($84.6 million). While exports to Taiwan slowed in 2011 and 2012 due to an impasse over beta agonists, this year’s January-April exports exceed the pace achieved when this market was performing at its peak.

In addition to the Russia closure, beef exports were hampered by slow demand in Mexico and South Korea. In the case of Mexico, the price point relative to other competing proteins continues to be an issue that has proven difficult to overcome as exports declined 22 percent in volume (56,766 mt) and 25 percent in value ($242.7 million) compared to a year ago. In Korea, the main issue is an oversupply of domestic protein, which has created a difficult climate for imported products. Exports to Korea were down 20 percent in volume (37,886 mt) and 9 percent in value ($199.7 million). Exports also slumped to the ASEAN region due to weak demand in Vietnam and ongoing trade barriers in Indonesia. This was partially offset by a strong performance in the Philippines, where exports were up 16 percent in volume (4,730 mt) and 35 percent in value ($21.3 million).

Pork exports to Mexico show signs of recovery; South America very strong
While January-April pork exports to Mexico were down 8 percent in both volume (190,464 mt) and value ($345.7 million) compared to last year, April proved to be a very strong month as volume (52,958 mt) increased 19 percent and value ($92.9 million) was up 20 percent. Other markets in the Western Hemisphere also performed extremely well in the first four months of 2013, including:
-    Canada, where exports were up 4 percent in volume (74,817 mt) and 3 percent in value ($265 million) over last year’s record pace.
-    Improved market access resulting from the recent free trade agreement helped push exports to Colombia significantly higher in both volume (7,823 mt, +71 percent) and value ($20.3 million, +56 percent), making it the leading destination in the Central/South America region.
-    Exports to Chile continued to expand, increasing 28 percent in volume (7,349 mt) and 33 percent in value ($19.6 million).
-    In the Dominican Republic, exports climbed 18 percent in volume (5,556 mt) and 22 percent in value ($12.9 million). Variety meat exports to the Dominican Republic actually declined, so this performance was driven by impressive growth in muscle cut demand.

“It is gratifying to see U.S. pork performing so well in our neighboring markets, and the April recovery in Mexico was especially critical,” Seng said. “The strong results in Mexico and Canada really underscore the importance of resolving our issues with country-of-origin labeling so that our exports don’t face retaliatory measures from these trading partners.”

Led by strong results in the Philippines, exports to the ASEAN region were up 41 percent in volume (20,781 mt) and 32 percent in value ($51 million). Exports to Taiwan were much improved in April, nearly tripling in volume and value from a year ago. This pushed Taiwan’s January-April totals ahead of last year’s pace by 2 percent in volume (7,136 mt) and 3 percent in value ($16 million).

Coming off a $2 billion performance last year, pork exports to Japan have struggled to maintain this pace in 2013. Through April, exports were down 12 percent in volume (143,264 mt) and 9 percent in value ($637 million). According to the Global Trade Atlas, Japan’s imports from all sources were down 3 percent in volume (311,548 mt) and 16 percent in value ($1.62 billion), with value declining for the market's four leading suppliers: the U.S., Canada, Demark and Mexico.

January-April exports to the China/Hong Kong region were lower in both volume (135,300 mt, -13 percent) and value ($287 million, -8 percent), but this is mostly a reflection of low domestic prices, which have begun to stabilize in recent weeks. Exports to Korea were down for similar reasons, declining 35 percent in volume (43,613 mt) and 38 percent in value ($119.1 million).

Mexico drives U.S. lamb export value higher
January-April exports of U.S. lamb increased 3 percent in volume (4,368 mt) and 22 percent in value ($10 million) from a year ago, led by strong results in Mexico. Exports to Mexico increased only slightly in volume (3,192 mt) but posted a 32 percent increase in value to $5.4 million. Global exports of lamb variety meat, a key contributor to carcass value, increased 18 percent in volume (3,025 mt) and 35 percent in value ($3.9 million), led by a strong performance in Canada and the Middle East.



Consumer Sentiment Improves 
John Michael Riley, Asst. Extension Professor, Department of Agricultural Economics, Mississippi State University

The news Friday that consumer sentiment took a sharp uptick, with the Thompson Reuters University of Michigan survey reaching 84.5, up from the previous month's value of 76.4  and the highest since July 2007.  At first glance this would likely be viewed as a positive for beef and cattle prices.  The extent of the relationship between a consumer's current state of mind and the prices of retail or boxed beef price as well as an index of restaurant stock prices shows this to be the case.

However, interestingly, this phenomenon has not always been the case. Using consumer confidence data from the Federal Reserve as opposed to the sentiment survey noted previously - which was not as current but more cost effective - indicates that overall there has been a weak positive relationship between confidence and beef prices and restaurant stock performance over the past two years. The relationship was much stronger from September 2008 to December 2010, when prices were declining along with consumer's confidence. The intriguing aspect is that from January 2004 to August 2008, the relationship was negative.

It is important to note that correlation between two items does not automatically indicate a direct impact or response. Still, while the improved consumer sentiment may not directly translate to improved prices, recent data are encouraging on this front.



CME Group Expands Agricultural Options Offering with Three New KCBT Wheat Options Contracts

CME Group, the world's leading and most diverse derivatives marketplace, today announced it has expanded its agricultural options offering through the introduction of three new options on the recently-acquired KCBT hard red winter (HRW) Wheat futures contracts. KCBT Weekly Wheat Options, KCBT-CBOT Wheat Spread Options and MGEX-KCBT Wheat Spread Options will be available for trading on July 1, pending CFTC review.

"Since our acquisition of the KCBT late last year, we've taken a number of steps to grow the existing KCBT futures and options contracts," said Tim Andriesen, Managing Director, Agricultural Commodities & Alternative Investments, CME Group. "We also committed to develop new and innovative options on KCBT wheat futures to provide additional trading and spreading opportunities for our wheat customers. The introduction of these new products expands our options offering and will benefit customers of both varieties of wheat, while further solidifying our role as the leading marketplace for the trading of deep and liquid wheat benchmarks."

KCBT Weekly Wheat Options will provide HRW wheat customers with a cost-effective tool for managing event risk, such as weather and USDA reports. These options will be available for trading on the Chicago trading floor and CME Globex, and will be listed with and subject to the rules and regulations of KCBT. Weekly options on CBOT corn, wheat and soybean futures were previously introduced in June of 2011.

Additionally, KCBT-CBOT Wheat Spread Options and MGEX-KCBT Wheat Spread Options will be available for trading on the Chicago trading floor and CME Globex, and will be listed with and subject to the rules and regulations of CBOT and KCBT respectively. These two new inter-market spread options, and the existing MGEX-CBOT Wheat Spread Options, will enable agricultural participants to manage the risk associated with the price differentials inherent between the hard red spring (HRS), soft red winter (SRW) and HRW varieties of wheat.

KCBT Wheat futures and options will transition to the CME Group Chicago trading floor on July 1, when they will begin trading alongside CBOT soft red winter (SRW) wheat futures and options.



Weekly Ethanol Production for 5/31/2013

According to EIA data, ethanol production averaged 885,000 barrels per day (b/d) — or 37.17 million gallons daily. That is up 22,000 b/d from the week before and the highest average in almost one year (highest since the week ending 6/15/2012). The four-week average for ethanol production stood at 870,000 b/d for an annualized rate of 13.34 billion gallons.

Stocks of ethanol stood at 16.4 million barrels. That is a 2.3% increase from last week and the first increase in six weeks.

Imports of ethanol showed zero b/d for the fifth time in six weeks.

Gasoline demand for the week averaged 370.5 million gallons daily.

Expressed as a percentage of daily gasoline demand, daily ethanol production was 10.03%.

On the co-products side, ethanol producers were using 13.419 million bushels of corn to produce ethanol and 98,769 metric tons of livestock feed, 88,053 metric tons of which were distillers grains. The rest is comprised of corn gluten feed and corn gluten meal. Additionally, ethanol producers were providing 4.61 million pounds of corn oil daily.



U.S. ethanol production and the Renewable Fuel Standard RIN bank
(from EIA)

Renewable Identification Numbers (RINs) form the mechanism used by the Environmental Protection Agency (EPA) to record compliance with the Renewable Fuel Standard (RFS), which began in 2005 and was revised in 2007 as part of the Energy Independence and Security Act of 2007 (EISA). Beginning in 2009, U.S. ethanol production began to grow beyond the targets set by the RFS, leading to an increasing supply of banked RINs through 2012.

U.S. corn ethanol production grew considerably from 2006 through 2012, boosted by the phase-out of the use of Methyl tertiary-butyl ether (MTBE) as an oxygenate and octane enhancer, the availability of blender tax credits, and rising oil prices. Ethanol production and use grew beyond levels called for by the RFS as early as 2006. U.S. ethanol production and use continued at rates beyond the RFS-mandated level through mid-2012. Under these circumstances, there was an excess supply of RINs that were banked for future compliance.

U.S. ethanol production in the first half of 2012 averaged about 900,000 barrels per day (bbl/d), or an annualized total of 13.8 billion gallons. Widespread drought across corn-producing regions in the Midwest reduced corn harvests, and as a result ethanol production rates began to decrease. Ethanol production in the second half of 2012 fell to an average of 830,000 bbl/d, or an annualized total of about 12.7 billion gallons. After accounting for ethanol exports, which do not provide RINs for RFS compliance, this lower ethanol output in the second half of 2012 led to corn ethanol consumption falling an estimated 600 million gallons short of the 13.2 billion gallons expected for the 2012 RFS target. This shortfall was met, for the first time, by a drawdown of banked RINs.

The available bank of corn ethanol RINs was estimated at 2.1 billion gallons after the drawdown for 2012 RFS compliance purposes, while the total supply of all banked RIN classifications (including biomass-based diesel and advanced biofuels) was estimated at 2.7 billion gallons.

While effects of the drought are expected to linger and influence ethanol production levels through the first half of 2013, the larger issue going forward is the 10% ethanol blend wall. The blend wall limits ethanol consumption in E10 gasoline to about 13.3 billion gallons because motor gasoline consumption is projected to reach 133 billion gallons in 2013 (April 2013 Short-Term Energy Outlook).

There is an additional constraint imposed by the growing advanced biofuels mandate under the RFS, which can be met using either biodiesel or imported sugarcane ethanol. Sugarcane ethanol competes with corn ethanol in the E10 blending pool and reached almost 500 million gallons in 2012. With the proposed increase in the total RFS target for 2013 and the possibility of a further increase in 2014 absent a decision by EPA to lower the legislated target for advanced biofuels, the constraint on the amount of ethanol that can be absorbed in E10 blending could limit ethanol use and, therefore, future availability of RINs. Depending on the ability of corn harvests and ethanol production to recover in 2013 as well as the availability of greater ethanol blends such as E15 or E85 to penetrate the market, the corn ethanol RIN bank of 2.1 billion gallons could potentially fall to zero in 2014.



Topic and Denial of Ethanol Industry Involvement Make Serious Hearing a Farce

Today, the U.S. House Oversight and Government Reform Subcommittee on Energy Policy, Health Care and Entitlements is holding a hearing entitled “Up Against the Blend Wall: Examining EPA’s Role in the Renewable Fuel Standard.” From the premise to the witness list, the hearing is a farce.  If invited to speak, representatives of the Ethanol industry would have talked about the success of the RFS and why the oil industry continues to erect barriers to its full implementation.

Bob Dinneen, President and CEO of the Renewable Fuels Association, may not have had a microphone at today’s hearing, but that didn’t stop him from commenting: “The single most effective energy policy this country has ever known, the Renewable Fuel Standard, is under review by the House Oversight and Government Reform Subcommittee on Energy Policy, Health Care and Entitlements.  A policy this important deserves more than a biased, attack-based, monopoly-protecting Big Oil spotlight.

“The focus of the hearing is the Big Oil created blend wall. Big Oil is using fear to protect their total and complete dominance of the fuel market. This is nothing more than a smokescreen meant to distract Americans from the real issues — our addiction to petroleum, our dependence upon foreign oil, the environmental damage from tar sands and fracking, and, let’s not forget, high gas prices. Big oil created the blend wall barrier by refusing to allow access to the market for E85 and resisting with fear and misinformation the use of E15 for those consumers that want to use it. They have had years to prepare and comply with the RFS. Instead, they’ve hired PR firms and lawyers to maintain their monopoly over the fuel market. They created the blend wall and are now complaining about its existence. That is the very essence of hypocrisy.”

At the hearing today, the president of the National Turkey Federation — a fierce opponent of the RFS — made claims that turkey production has decreased and focused the blame squarely on ethanol production.

Dinneen cried foul. “According to numbers from the USDA, turkey production has increased. Record turkey production was achieved in 2012 and a new record is expected in 2014. Per capita consumption is expected to hit a record in 2014. The truth is that feed use of corn and corn co-products from ethanol in 2014 will be at its second-highest since 2000. When co-products like distillers grains are appropriately considered, feed use remains the top use of corn by far. Feed accounted for 49 percent of total use in 2012/13, compared to 27 percent for ethanol (net co-products).”

Dinneen summarized by saying, “It is flat out wrong that not a single representative from the ethanol industry was invited to speak or to present facts on the proven success of the RFS in reducing our dependence on foreign oil, lowering gas prices, improving the environment, or creating jobs and economic opportunities for rural America. This is a bit like asking a roomful of matadors if the bull should live. Long live the RFS!”



Flooding Halts Mississippi River Barge Traffic

Barge traffic on a flooded stretch of the Mississippi River remained at a standstill on Tuesday, but relatively few vessels stood waiting at the channel's system of locks as shippers had received ample warning of the rising water.

The Port of St. Louis and eight locks on the major shipping artery from northern Iowa to St. Louis have been closed by the U.S. Coast Guard and Army Corps of Engineers following record rains around the U.S. Midwest, reports Reuters. It was the third major hindrance to river shipping this year after record flooding on the Illinois River in April and the threat of a low-water closure of the Mississippi in January, events that further solidified communication between the industry and government officials that manage the river system.

"We have a very close working relationship with the river industry, so when we have an anticipated river closure, they know well before we close. It doesn't help if they're parked on the river," Army Corps spokesman Michael Petersen said.

The closures were expected to keep commercial navigation shuttered until at least the weekend or early next week, but shipping traffic will likely accelerate ahead of the anticipated reopening.

Two upbound vessels towing a total of 30 barges were delayed at a railroad drawbridge in Hannibal, Missouri, a Coast Guard spokesman said. Another two vessels hauling a total of 14 barges were also delayed by the lock closures.

Eight locks between Lock 17 at New Boston, Illinois, and Lock 27 in Granite City, Illinois, were closed and a ninth, Lock 16 at Muscatine, Iowa, was forecast to shut later on Tuesday.

Locks on the Illinois River remain open, but since the waterway flows into the Mississippi north of St. Louis and above the southernmost lock closure, barges are unable to navigate to the Gulf Coast.

The latest river forecasts from the National Weather Service suggest Lock 16 could reopen on Saturday and the locks further downriver could reopen over following days as the river's crest moves southward toward the Gulf of Mexico.



Informa Lowers US Wheat Forecast; Updates S. American Production Numbers

Private analytical company Informa Economics estimated U.S. winter wheat production for 2013 at 1.494 billion bushels, down from the firm's May forecast of 1.529 billion, trade sources said Wednesday.  By class, Informa pegged U.S. production of hard red winter wheat at 778 million bushels, 2.5% below the firm's May estimate, but 9.6 million above the U.S. Department of Agriculture's May forecast. Hard red winter wheat yields are forecast to average 36.9 bushels per acre, 3.8 bushels per acre below last year.  Soft red winter wheat production is forecast to total 505 million bushels, 3 million below the company's May estimate but 85 million above last year. The soft red wheat yield is projected to average 60.2 bushels per acre, 0.1 bushel below last year.  The white wheat production is forecast to total 211 million bushels, 5.6 million below last month's USDA estimate and 11 million below last year.

The USDA is slated to update its production forecasts on June 12.

Informa forecast Brazil's soybean production at 82 million metric tons, 15.6 million metric tons above last year, but unchanged from last month.  The company pegged Brazil's all corn production at 78.5 million metric tons, 2.2 million above Informa's previous forecast.  For Argentina, Informa estimated soybean production at 50 million metric tons, down 3 million from Informa's previous estimate.  Argentina's corn harvest is forecast at 25.5 million metric tons, unchanged from last month.



Vilsack Outlines Vision for Agricultural Solutions to Environmental Challenges

Agriculture Secretary Tom Vilsack today said that the Federal government must increase collaboration with producers, researchers and industry to develop the next generation of solutions that will help agriculture mitigate and adapt to modern climate challenges.

"Our farmers, ranchers and forest landowners are the most innovative on earth, and they're up to the task of meeting environmental challenges that lay ahead," Vilsack said. "We know what we're seeing on the ground - more intense weather events, and a greater number of them. USDA will be there to support the efforts of our farmers and ranchers to adapt to these new challenges, just as we have been for decades."

Vilsack noted that under the Obama Administration, the U.S. Department of Agriculture (USDA) has taken a wide variety of proactive steps to prepare for climate challenges projected in the years ahead. This includes the development of Climate Adaptation Plans by USDA agencies to continue delivering quality service in the years and decades to come. Additionally, earlier this year, USDA released two Climate Assessments - one focused on the climate impacts to agriculture in the coming years, and a second focused on U.S. forests.

Vilsack stressed the need to work closely with farmers and ranchers who stand "on the front line" of risk adaptation - and he pledged that USDA will take steps to help producers adapt to new threats. He announced a number of new measures that USDA will take to help producers create new climate solutions:

Regional Climate Hubs:
USDA will establish seven "Regional Climate Hubs" to work in partnership with producers and foresters. The Secretary called them "Service centers for science-based risk management." Working with other agencies, the hubs will serve as a source of regional data and information for hazard and adaptation planning in the agriculture and forest sectors. The hubs will provide outreach and extension to farmers, ranchers, and forest landowners on science-based risk management and will seek to partner with the land grant universities, Extension, and the private sector.

The seven regional hubs will be established for the Northeast, Midwest, Southeast, Northern Plains, Southern Plains, Pacific Northwest, and Southwest. Each hub will be the center of a network of connected activities and services and will be located in a USDA facility within its region.

Natural Resources Conservation Service (NRCS) Tools Customized for Producers:
NRCS will leverage technology and provide technical assistance to agriculture - both by providing new technical tools for researchers, and new tools for farmers and ranchers themselves.
-    Vilsack announced the release of the "Carbon Management and Evaluation Tool," also known as COMET-FARM, a free online tool that will help producers calculate how much carbon their conservation actions can remove from the atmosphere. Created by USDA's Natural Resources Conservation Service and Colorado State University, in cooperation with USDA's Climate Change Program Office, COMET-FARM will also help producers calculate and understand how land management decisions impact energy use and carbon emissions. COMET-FARM allows producers to input information about their land using a secure online interface - including location, soil characteristics, tillage and nutrient use. The tool then estimates carbon sequestration and greenhouse gas emission reductions associated with conservation practices for cropland, pasture, rangeland, livestock operations and energy. COMET-FARM is applicable to all agricultural lands in the lower 48 states. The tool is available for use at http://www.comet-farm.com/.
-    The Secretary also announced the online release of data collected under the Rapid Carbon Assessment, which will be especially useful for technical experts. This assessment was carried out by NRCS beginning in 2010 to develop statistically reliable quantitative estimates of amounts and distribution of carbon stocks for U.S. soils under various land covers and, to the extent possible, differing agricultural management. Over the course of three years, NRCS collected almost 145,000 samples from 6,000 randomly selected locations.

Uniform, Science-Based Cover Crop Guidelines:
USDA agencies have worked together to provide new cover cropping guidelines. In the past, some producers have encountered conflicting cover crop management issues when working with multiple USDA agencies. NRCS, Risk Management Agency (RMA) and Farm Service Agency (FSA) worked together this spring to establish common, science-based guidance on when cover crops should be terminated. The agencies engaged stakeholders, partner universities, and the crop insurance industry to figure out how to make cover crop guidelines straightforward and sensible. Secretary Vilsack announced new guidance for USDA Agencies dealing with cover crops, using a new model based on local climate data, tillage management and soil information to account for daily crop growth and use of soil moisture. With this information, experts determined the latest possible time to terminate a cover crop to minimize risk to the cash crop yield. RMA, NRCS and FSA will all uniformly refer producers to these guidelines, and will use them to administer programs.

Vilsack noted that the steps being announced today build on previous Obama Administration efforts, including an agreement with the U.S. dairy industry to create anaerobic digesters to create energy and reduce greenhouse gases and pollution, promotion of advanced biofuels development, and projects to increase renewable energy and energy efficiency across rural America.

"By taking collaborative, regionally-appropriate steps today to adapt to threats, USDA can help American agriculture continue its tremendous productivity in the years to come," he said. "We've already worked hard to be proactive and ensure that USDA is prepared for modern environmental challenges - but we can't let up in our efforts."



CWT Helps Members Sell 8.2 Million Pounds of Cheese in May

Cooperatives Working Together (CWT) received 71 requests in May for assistance from member cooperatives: 56 for cheese exports and 15 for butter exports. A total of 30 bids ultimately were accepted by CWT, totaling 8.2 million pounds of cheddar, Gouda, and Monterey Jack cheeses.

Through the first five months of 2013, CWT has assisted member cooperatives in selling 59.2 million pounds of cheese, 51.7 million pounds of butter, 44,092 pounds of anhydrous milk fat, and 218,258 pounds of whole milk powder to 31 countries on six continents. This was 14.9% more cheese exports, and 22.8% more butter exports, than were transacted during the same five month period in 2012.

The 2013 CWT sales are the equivalent of 1.675 billion pounds of milk on a milkfat basis, which is the annual production of nearly 80,000 cows and more than USDA’s projected increase in milk marketings for all of 2013.



Goodlatte Amendment a Good Compromise
Jerry Kozak, President and CEO, NMPF

The National Milk Producers Federation said today that a House Judiciary Committee vote requiring the Farm Bill’s dairy reform program to go through regular government rulemaking was a reasonable compromise to get the reform program approved.

“This is the latest attempt at compromise by Congressman Goodlatte on a program that has been approved twice by the House Agriculture Committee and that dairy farmers overwhelmingly support,” said NMPF President and CEO Jerry Kozak.

“It’s time to end the divisiveness and approve reform of the federal dairy program,” Kozak added. “For that reason, we see today’s vote, which appears to accept that the Dairy Security Act  (DSA) will become law, as a good compromise.”

Judiciary Committee Chairman Bob Goodlatte (R-VA) tried unsuccessfully to modify the DSA in the Agriculture Committee both this year and in 2012. That amendment would have eliminated the program’s market stabilization provisions, which give farmers the option of temporarily scaling back their milk production or contributing a portion of their milk check to purchase dairy products to feed the needy in order to bring supplies more in line with demand.

“Having lost in the Agriculture Committee, Chairman Goodlatte brought up a new amendment in the committee he chairs,” said Kozak. It calls for interim federal rules for the market stabilization aspects of the DSA nine months after enactment and final regulations in 21 months.

“While this is not the approach we chose, we see it as acceptable,” said Kozak. “The important thing is to get dairy reform enacted for the nation’s milk producers. If it requires this amendment to do that, we can live with that.”



Effort to Build Awareness of the REAL® Seal in Social Media Launched During June Dairy Month

In celebration of June Dairy Month, efforts by the National Milk Producers Federation (NMPF) to revitalize the REAL® Seal are taking a big leap forward this month. A new campaign is being launched that allows consumers to learn more about the benefits of real, American-made dairy products and foods made with them, using a new Facebook page, blogger outreach, and digital advertising.

The REAL® Seal Facebook page (www.facebook.com/REALSealDairy) creates a new voice and visual feel to engage target audiences, especially moms and heads of households, encouraging them to buy dairy products and foods containing dairy products. The page’s content includes interactive updates, multimedia presentations, contests, polls, and quizzes. One of the elements of the launch later in the month will be a “Name the Character” contest for a new, animated REAL® Seal cartoon character (in the photo). It can be viewed on the REAL® Seal website www.realseal.com.

Reaching out to bloggers writing about the mom/parenting, food/cooking, health/wellness, and lifestyle topic areas will generate online conversation and awareness surrounding the REAL® Seal campaign and lead consumers to official REAL® Seal web pages. In July, a special Buyer’s Guide section will be added to the REAL® Seal website, where consumers will be able to go to find dairy products and foods made with dairy products that are using the REAL® Seal, as well as restaurants that serve only REAL® dairy products. REAL® Seal users will have the option of providing links to their company’s website as well.

“The advent of social media has changed how brands relate to consumers,” said Jim Mulhern, Chief Operating Officer of NMPF, which has leased the REAL® Seal from the United Dairy Industry Association and is spearheading the revitalization. “Today, there is a much is a greater expectation for transparency and engagement across the consumer packaged goods chain. The REAL® Seal allows dairy companies to define themselves amid a sea of imitators, and the new seal will also enable companies to utilize it as a country of origin label, which itself connotes important values.”

Mulhern said that the marketing environment has changed dramatically in the 30 years since the REAL® Seal became a national icon, and that NMPF’s efforts to work with dairy processors to use the Seal must harness new tools to reach consumers. The challenge will be to use social media and other digital outreach efforts to remind older consumers of what the Seal means, and to educate a new generation to look for the REAL® Seal on packages.

“The marketplace has become crowded by products packaged to look like dairy products, depicted as dairy products, even using the common names of dairy products, but that aren’t real dairy,” Mulhern said. “Foods made from grains, vegetables, plants and nuts and have usurped dairy designations like milk, cheese, yogurt, ice cream, and the use of the REAL® Seal can help us reclaim some of dairy’s traditional portfolio.”

Currently the REAL® Seal is being used primarily on dairy products and pizza, said Jim Mulhern, Chief Operating Officer of NMPF. “By stacking messages like ‘Made With, ‘We Only Use’ and ‘American Made’ above the iconic REAL® Seal symbol and dairy product descriptors like cheese, butter, dairy ingredients, we believe its use can be extended to a host of products made with real dairy products sold here and in export markets,” Mulhern said.



How much will heat stress cost you this summer?
Take steps to mitigate the financial impact heat stress could have on your operation this summer

Heat stress is expensive. It is estimated that heat stress costs the dairy industry anywhere from $900 million to $5 billion each year depending upon the calculation used. The level of stress experienced by an animal and resulting financial losses fluctuate as temperature and humidity go up and down.

“Regardless of which figure you use, money goes down the drain each year as a result of heat stress,” says Dr. Jamie Jarrett, dairy nutritionist with Purina Animal Nutrition LLC. “But when we talk in numbers that big, sometimes it can be hard to relate that to what’s actually happening at the individual farm level.”

To help dairy producers understand what the impact heat stress is having on specific operations, Jarrett shares that heat stress can cause a farm to lose 10 to 35 percent of an animal’s current milk production.

A cow producing 100 pounds of milk in thermal neutral conditions could drop to 90 pounds of milk for a 10 percent loss or 65 pounds of milk for a 35 percent loss. Consider if the milk price is $16 per hundredweight, the reduction to 90 pounds of milk equates to a loss of $1.60 per cow per day. The reduction to 65 pounds per day of milk equates to a loss of $5.60 per cow per day.

Take this example across a herd of 500 cows, they are looking at a loss of anywhere from $800 to $2,800 per day.

Knowing that heat stress does not typically happen for one day only, consider if a cow suffered heat stress for a period of 45 days; the losses for a 500 cow herd grow to $36,000 to $126,000. If the herd is milking 1,000 cows the losses become even more significant ranging from $72,000 to $252,000. These numbers don’t take into account reproduction losses and extended days open.

“When we put financials behind these percentages the losses an individual operation is facing start to become very real,” says Jarrett.

Jarrett reminds that at 72 degrees most people are comfortable, but that is the breaking point for adverse effects depending upon the humidity level. “We need to change our mindset in how we think about heat stress”

To combat the financial impact of heat stress Jarrett advises that producers consider the following management strategies:
·        Invest in shade, fans and sprinklers for both the lactating herd and dry cows, most specifically close-up cows. “Research shows the financial benefits of cooling both groups of cows,” she says.
·        Take steps to keep the holding pen cool. Research shows that cooling a cow’s body temperature by 3 degrees F resulted in an increase of 1.75 pounds of milk per cow per day.[3]
·        Provide plenty of water. “Cows drink more than you may think in warmer weather. Make sure that water is not a limiting factor on your operation,” says Jarrett.
·        Choose a highly palatable energy source. Because intake levels are reduced, it’s very important to feed a concentrated source of energy that is very palatable and appealing to the cow.
·        Double check your trace mineral and macro mineral levels. The level of trace minerals and macro minerals in the diet may need to be elevated. Macro minerals can help cows cope with heat stress.
·        Keep an eye on potassium levels. During warm weather cows lose potassium through sweat.
·        Raise dietary cation anion difference or DCAD levels to account for warmer weather.