Thursday December 26 Ag News

Nebraska Beef on the Marquee in Macau

The rich beef culture of Nebraska and the world's gambling capital were the perfect pair last week as several hundred leaders of Macau's food service and game industry gathered to sample expertly prepared U.S. beef at The U.S. Meat Export Federation’s Second Annual Great American Barbecue - Nebraska in Macau.

One of the special administrative regions of China - Hong Kong being the other - Macau has a small population of just over 500,000 that pales in comparison to its visitor load, expected to reach 30 million this year. But, as the world's gambling hub with 2013 revenue exceeding $40 billion - dwarfing U.S. gambling revenue - it is a magnet for high rollers who love a good meal at any price.
Jim to provide.

Funded by the Nebraska Beef Council, The Great American Barbecue - Nebraska in Macau was the second annual Nebraska beef barbecue event in the territory, and with approximately 200 attendees it topped last year's inaugural event by more than a third, providing testimony to the growing interest in beef from Nebraska and the United States.

"Macau is a vacation destination - the only legalized gaming spot in China - where people from Mainland China go for recreation and can enjoy many options for fine dining" said Myron Danner, Nebraska Beef Council director, who attended the event. "While U.S. beef is locked out of mainland China, we're getting great exposure in the region through Macau."

The invitation-only event drew key representatives from a wide range of Macau food and beverage enterprises, including chefs and senior managers from all the gaming and hotel properties, plus end-users from independent restaurant and retail chains.

"These were the players," said Danner. "These were the people who import the beef and distribute it to restaurants. Many sent executive chefs. The quality of food at the event was as good as you'd find anywhere, and the exposure was phenomenal. Our unique Nebraska high quality beef has struck a chord in a market where extravagant entertainment options are many."

The outdoor event was held at the Hard Rock Hotel Macau, one of several hotel properties situated in the Cotai Strip's City of Dreams complex. U.S. beef packers and exporters donated Nebraska-harvested beef cuts for the event, ranging from whole roasted prime ribeyes to chilled chuck flap tail seared tataki.

U.S. beef is shipped to Macau through Hong Kong, as there is no formal protocol for direct trade. Macau food safety authorities allow U.S. beef into Macau when accompanied by a USDA health certificate issued for Hong Kong.

While the exact volume of U.S. beef exported to Macau through Hong Kong is unknown, according to Hong Kong re-export statistics it is estimated that 542 metric tons of U.S. beef valued at $6.7 million were shipped to Macau during the first 10 months of 2013 - a 57 percent increase over the same period of 2012.

"U.S. beef shipments to Macau are set to grow in future years as Macau offers more entertainment beyond gaming," says John Lam, USMEF's regional programs manager based in Hong Kong. "Macau is a special administrative region of China, and Chinese central authorities have recently encouraged the territory to increase non-gaming offerings to mainland visitors."

Major infrastructure improvements are expected to drive more mainland visitors to Macau in the years ahead. The $10 billion Hong Kong-Macau-Zhuhai Bridge is expected to open in 2016, replacing an hour-long ferry ride on the South China Sea with a 20-minute drive. Macau boasts 35 casinos, and another eight large-scale properties are in development, including resorts being built by Nevada-based gaming companies.



Tax Reform Tops Nebraska Farm Bureau’s Top 5 Agriculture Stories of 2013

Tax reform talks, which started last January with a state legislative proposal to put new sales taxes on the purchase of agriculture inputs, machinery and equipment, then later evolved into a broader discussion about providing property tax relief to Nebraska farm and ranch families, is the state’s top agriculture story of 2013, according to officials at the Nebraska Farm Bureau in releasing its annual list of the Top 5 Nebraska Agriculture Stories for the year.

“It didn’t matter the size of your operation, whether you raised livestock, or if you had dryland or irrigated crops, the reality is if you were a farmer, feeder, or rancher in Nebraska you would have been significantly impacted by the initial sales tax proposal,” said Nebraska Farm Bureau President Steve Nelson. “In twelve months we’ve gone from talking about new taxes on Nebraska farm and ranch families to having a Legislative Tax Committee make recommendations highlighting the need to address the property tax burden that has been a major point of concern not just for farmers and ranchers, but for people all across our state,” said Nelson.

The Legislature’s Tax Modernization Committee unveiled recommendations for tax reform in early Dec. and the Legislature will reconvene in early Jan. to determine the future of tax relief for Nebraskans.

The other top stories, in no specific order, are:

The impacts of the Affordable Care Act (ACA) on farm and ranch families.
“Health insurance out-of-pocket costs are typically much higher for those that are self-employed and have to buy coverage on their own as they don’t have the benefit of their employer paying for part of the coverage. Many farmers and ranchers fall into that category.  These individuals are the ones who are seeing significantly higher premiums, deductibles and, in many cases, significantly higher overall costs associated with purchasing health care coverage due to implementation of the ACA and the mandates and rules associated with it,” said Nelson.

The failure of Congress and the President to pass a farm bill.
“The fact that we were talking about passing a farm bill last year at this time and are still sitting here today without a bill in place is extremely disappointing. While there is a lot of talk about action on the farm bill after the first of the year, there is no guarantee and that continues to be troubling for Nebraska farmers awaiting some certainty about farm programs. Food security is national security. The farm bill is a key piece of that equation and it is disappointing that connection is not being made in Washington,” said Nelson.

The state’s recovery from drought and statewide water management.
“The impacts of the 2012 drought are still being felt today. The drought conditions only further heightened the sensitivity to water management statewide for all water users. The result has been more conversations between those parties and Natural Resources Districts on how to manage to meet the needs for all water users through periods of water shortage. The drought has left a lasting impression on the need for sound water management in Nebraska.”

The growing need for farmers and ranchers to be active in talking to the public about what happens on their operations and where food comes from.
“The ability of farmers and ranchers to produce more food with fewer resources is a great story, but it’s one people in agriculture need to be doing a better job of telling. The average American is now three generations removed from the farm and the gap in communication between farmers and the non-farming public is one we need to bridge and its important farmers and ranchers join in the broader public discussion about agriculture.”

Farm Bureau also identified what it believes will be key agriculture stories for 2014. Among those story predictions are a cooling of the broader agriculture economy, growth in precision technology on farms and greater discussion about U.S. trade policy and implications for greater movement of U.S. agriculture commodities into foreign markets.



WINTER DROUGHT
Bruce Anderson, UNL Extension Forage Specialist

               Are you ready for a winter drought?  Its appearance is much different from a summer drought but the effect is the same.

               A summer drought occurs when a lack of rain causes greatly reduced plant growth and, therefore, much less grazing and hay production.  So what does a winter drought look like, at least from the perspective of a livestock producer in the central Great Plains or Corn Belt?

               In contrast to a summer drought where a lack of rain can cause a brown, barren landscape, a winter drought has abundant moisture.  However, that moisture is in the form of ice or deep snow, often creating what some people might characterize as a picturesque landscape.

               Despite all the moisture as snow and ice, I call this a drought because the effect on livestock is similar to a summer drought.  Corn stalks, winter range, and other grazed forages are covered by snow or ice, making them inaccessible.  Sometimes it is even impossible to get access to previously harvested and stored feedstuffs like hay and silage.

               Are you ready if this happens to you?  Some winter forage already has been covered once although the snow melted away soon so animals could get back to it.  But what if they can’t after the next snow?  What is your backup plan?  If your backup plan is hay, do you have enough?  Can you get it to your animals after an ice storm?  And if it needs to be supplemented, is that on hand and positioned to get to your animals?

               We usually are prepared for normal winter stresses and even occasional storms.  But what are your plans if this winter drought I’ve described does occur.  It can hit much more rapidly than a summer drought.

               Think about it.  And be prepared.

A FORAGE FOR EVERY SEASON
               Think back over the past couple of years.  Did you have ample pasture all season long, or were there times when more forage growth would have helped?

               If you have cows, horses, ewes, or other livestock that can graze year-around, one of your goals should be to graze for as many days during the year as possible.  But no matter where you are, no single pasture can meet that objective.

               Warm-season range grasses provide good summer grazing in many areas, but more green grass would be nice in early spring and for late fall grazing.  For livestock producers in many other places, though, smooth bromegrass, wheatgrass, needlegrass, orchardgrass, fescue, and other cool-season grasses grow well in spring and fall but mid-summer pasture often is limiting.

               To overcome these pasture shortages, you need to have several different types of pasture available.  For example, warm-season grasses like the bluestems, indiangrass, blue grama, and switchgrass provide excellent summer pasture.  Match them up with other, but separate, pastures or meadows that contain cool-season grasses for spring and fall grazing and you will have a good, long grazing season.

               To extend grazing even further, plant winter wheat, rye, or triticale during fall to get pasture as early as late March.  And oats planted in late July or August can be grazed through November, while turnips often provide pasture into December or even January.  Don’t forget that alfalfa and corn also can be grazed effectively throughout much of the year, giving you even more options for timely pasture.

               Start looking at your pasture gaps.  Maybe next year you can extend your grazing season with new and varied pastures.



Midwest Dairy Associaiton Update - FUEL UP TO PLAY 60

A new five-year agreement has been signed to continue Fuel Up to Play 60. National Dairy Council, National Football League, GENYOUth Foundation, U.S. Department of Agriculture, U.S. Department of Health and Human Services, and the U.S. Department of Education extended the agreement during an event in Chicago this month. The program – the nation’s largest in-school nutrition and physical activity program, founded under the leadership of America’s dairy producers – reaches students in more than 73,000 schools nationwide. Because of it, last year 14 million students made better food choices by selecting nutritious options like low-fat and fat-free dairy products, fruits, vegetables and whole grains. Additionally, 14 million students are getting more physically active during the school day.

The $250 million public/private partnership is supported by health professional, education, physical activity, nutrition, government and corporate organizations that come together to positively impact school health. Midwest Dairy’s chairman, Jerry Messer of North Dakota, also serves as chairman of National Dairy Council and led the announcement of the new agreement. Also on hand were Roger Goodell, NFL commissioner; Dr. David Satcher, 16th U.S. surgeon general; Carla Hall, celebrity chef and co-host of ABC’s The Chew; and former Chicago Bears lineman and 1985 Super Bowl Champion Otis Wilson as well as other partners, program advocates and students.

New Dairy Trends Identified
Midwest Dairy participated in the International Dairy Show in Chicago, learning more about consumer trends, and innovations in equipment, packaging and products. Among those they noted were:
-    Lactose-free and gluten-free -- Consultants advised processors and manufacturers to develop products for this growing segment and talked about products which are naturally free of lactose and gluten. Interestingly, they also advised not to insult the consumer with unnecessary gluten-free product claims, such as a recently observed gluten-free claim on bottled water.
-    Alternative sweeteners - including monk fruit juice used to sweeten flavored milk, which can be helpful in maintaining flavored milk in schools.
-    Ice cream - flavors are becoming more and more unique in response to consumer demand.
-    Coffee, coffee, coffee - many product options were available using coffee as a base.

NE Divison Update
In Omaha recently, nineteen registered dietitians working in clinical, community and private practice settings participated in a day-long training focusing on how to communicate ways for those with lactose intolerance to keep dairy foods in their diet. We covered common myths and misperceptions about lactose intolerance, including its prevalence, as well as simple strategies for patients to use to still enjoy dairy foods in their diet.  Stephanie Cundith of our Midwest Dairy staff led a breakout session on social media, equipping the dietitians with tips to tweet simple, yet impactful messages. The dietitians left fully equipped to communicate with their patients, clients, classes and media outlets on how to continue enjoying dairy.

Mark your calendar for the Nebraska State Dairy Convention, March 11, at Divots Conference Center in Norfolk.  We urge all producers to attend this event, where you can visit with other producers, and participate in a “town hall meeting” to discuss your dairy checkoff, as well as other informational discussions.   More information will be coming out early in January.



Retail Meat Prices in 2013
John D. Anderson, Deputy Chief Economist, American Farm Bureau Federation
Last week, USDA Economic Research Service (ERS) released their estimates of monthly average retail meat prices for November. According to this data, beef prices continue to edge higher. Both average Choice and All Fresh retail beef prices rose by about 1% compared with October. The All Fresh retail beef price in November averaged just over $5.01 per pound - the first time this price has surpassed the $5 mark. The all fresh beef price is 4.5% higher than it was last November.

By comparison, both pork and broiler retail prices declined in November compared with the prior month. Pork prices were off by just under 1% from October; however, broiler prices fell rather sharply. The November average broiler composite retail price in November worked out to 195.57 cents per pound. This is a decline of almost 4% from October. That is a fairly sharp drop in a single month. In fact, it is the largest monthly decline in the retail broiler composite price since July 2009. Broiler prices remain above the year-ago level, but not by much - about 1%.

The decline in retail broiler prices is perhaps a little striking in its magnitude, but the fact that prices are declining is not really surprising. Wholesale broiler cut prices have been falling - and falling sharply - for some time now. For example, wholesale boneless/skinless (b/s) breast prices peaked in June at just over $2 per pound but have recently slipped to just over $1.25 per pound. The change in prices on other cuts has not been that dramatic, but all - wings, leg quarters, b/s thighs, etc. - have fallen to below year-ago levels over the past couple of months.

The behavior of wholesale chicken prices raises questions about demand for that product moving forward. For much of the year, retail demand appears to have been pretty strong: the industry has managed to sustain higher year-over-year prices along with increased production. The sharply lower wholesale prices over the last couple of months along with the rapid erosion of retail price in the November data suggest that this may not continue much longer. The prospect of increasing broiler production has naturally raised concerns in the beef sector about a further loss of market share as beef production will almost certainly continue to decline in 2014. If broiler demand is really waning, as it appears to be, beef's prospects for holding onto market share may be improving.



Rabobank Beef Quarterly Q4: High Global Prices to Continue as Supply Remains Tight
The Rabobank Global Cattle Price Index has risen by 6 percent since June, driven by lower-than-expected beef supply in the main exporting countries and strong Asian demand, according to a new report from the Rabobank Food & Agribusiness (FAR) Research and Advisory group.

According to the report, supply will remain tight, especially in 1H 2014, driven by lower feed costs, induced herd rebuilding in the U.S. and the strong export demand from Brazil and Argentina, which will continue to support strong prices. In 2014, Rabobank forecasts continued high prices while global beef supply is expected to rise only slightly, meanwhile China’s demand for imports are expected to increase. The recent announcements to (re-)open import markets will benefit beef trade going forward.

Rabobank analyst Albert Vernooij says,  “the Rabobank Global Cattle Price Index improved further in H2 2013, supported by both continuing strong Chinese import growth and lower-than-expected supply in the main export markets making cattle prices mainly positive.”

The market has been unable to reach its full potential due to consumers’ resistance against high prices in the United States and the European Union, still two of the main beef markets. In addition, exchange rate movements have impacted the competitive position of exporters, resulting in Brazilian and Argentine beef becoming increasingly attractive and leading to a surge in exports.

For 1H 2014, Rabobank expects further upside for the global beef market, with cattle prices remaining elevated in most regions. The main question in many regions remains where to source sufficient beef supplies. With herd rebuilding as the first priority globally, supported by improving climate conditions and moderating feed costs, global beef production will increase only slightly and is expected to decline sharply in key markets like the U.S. The main demand wildcard will be consumer resistance to high beef prices and the growing availability of competing animal proteins due to the improved margin outlook as feed prices tumble.

“China’s importance and influence on the global beef market is set to continue to increase in 2014,” commented Vernooij.  “China’s imports of both frozen and chilled beef are expected to grow further, driven by the shortage of beef in the domestic market, reflected in record high retail prices. We believe that the value of the Chinese markets will grow in excess of 10 percent  annually over the next three years.”

A number of recently announced trade deals will also come to bear in the beef market over the coming months and years, including commitments to reopen closed or impeded markets for beef imports and the Trans-Pacific Partnership, which set goals to improve trade between five beef-exporting countries. The removal of trade barriers will be positive for global beef trade and, combined with lower feed costs, should support renewed investment in the global beef industry.



Farm Accidents Among Young Children Are on the Rise

Childhood injuries involving agriculture and equipment were down a bit on the nation's farms last year, but unfortunately that trend was higher among kids younger than 10 years of age. That's according to new data released the National Children's Center for Rural and Agricultural Health and Safety.

NCCRAHS Director Barbara Lee says an informal survey conducted by NIOSH shows that the rates of injury among children ages 10 and younger rose from 6.6 per 1,000 farms in 2009 to 11.3 in 2012.

"More than half of these injuries were incurred by non-working children," Lee said. "For example, those injured children were brought into the worksite by parents in order to 'keep an eye on them.'"

In the wake of several high-profile deaths this summer--in which children as young as one year of age were riding tractors as passengers when they fell off and were run over--the National Children's Center has renewed its campaign to 'Keep Kids Away from Tractors.'

Meanwhile, the overall rate of non-fatal child injuries per 1,000 farms has declined by 61 percent since 1998. Lee attributes the sustained decline to several factors, such as better outreach efforts to students and families; and willingness of farm owners and parents to end unsafe traditions involving children and young workers.

"Still, on average, a child dies in an agriculture-related incident every three days, and 38 children are injured each day," she says. "That equals about 115 deaths and 13,996 injuries per year."

Lee adds that the economic toll of childhood agricultural injuries is heavy, costing U.S. society an estimated $1 billion per year. Deaths cost society $420 million per year.



MAP Price Moves Lower, Other Fertilizers Steady

Retail fertilizer prices tracked by DTN for the third week of December were still fairly steady with the price of just one fertilizer showing any significant move lower.  Seven of the eight major fertilizers had lower prices compared to last month. MAP was the only one with a significant change and was 5% lower compared to the third week of November. The phosphorus fertilizer's average price was $534 per ton.

The other six fertilizers had fairly small price decreases. DAP had an average price of $498/ton, potash $480/ton, 10-34-0 was at $509/ton, anhydrous $633/ton, UAN28 $318/ton and UAN32 $363/ton.

DAP's average price dropped below the $500 per ton level for the first time since the fourth week of April 2010. The average price of DAP that week was $497/ton.  The remaining fertilizer, urea, was higher from last month, but again the move to the high side was fairly minor. Urea had an average price of $448/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.49/lb.N, anhydrous $0.39/lb.N, UAN28 $0.57/lb.N and UAN32 $0.57/lb.N.

All eight of the major fertilizers are now double-digits lower in price compared to December 2012.  UAN32 is now down 14%, UAN28 is 16% less expensive and 10-34-0 is 18% lower. MAP, DAP and potash are all 22% less expensive while urea is 24% lower and anhydrous is 26% less expensive, compared to last year.



Governors Urge Administration to Reconsider Proposed Reductions to RFS

A group of Midwestern governors, all members of the Governors' Biofuels Coalition, have sent letters to President Barack Obama expressing their support for the Renewable Fuel Standard. These letters come in response to the Environmental Protection Agency's proposal which would scale back the volume of renewable fuels required under the Renewable Fuel Standard in 2014.

In a joint letter to the president, Environmental Protection Agency Administrator Gina McCarthy and Agriculture Secretary Tom Vilsack, Iowa Gov. Terry Branstad, Kansas Gov. Sam Brownback, Minnesota Gov. Mark Dayton, Nebraska Gov. Dave Heineman, North Dakota Gov. Jack Dalrymple and South Dakota Gov. Dennis Daugaard argue in defense of the ethanol standard. The letter stresses the importance of ethanol as it diversifies America's energy portfolio, gives consumers choices at the pump, supports economic development in rural communities and reduces harmful emissions across the nation.

Providing evidence of their claims, the governors point to an Iowa State University estimate that says "corn prices alone could drop 19 cents per bushel based on the proposed rule, which could bring corn prices below the cost of production for many farmers. The proposed EPA rule could also cause a ripple effect on agri-business, our communities, and the entire economy."

The letter sends a direct request from the governors to the Obama administration asking it use its regulatory authority to support the growing renewable fuels industry.
"Specifically, we hope that you will encourage the EPA to increase the biodiesel volume to reflect current production levels, modify the cellulosic target to match production expectations, and reinstate the statutory conventional renewable fuel target since there is clearly no domestic supply shortage."

In November, the EPA proposed cutting by 3 billion gallons the amount of renewable fuels that would be blended into the U.S. fuel supply next year. It included reducing corn-based ethanol use by about 1.4 billion gallons.

In a separate letter to the president, Illinois Gov. Pat Quinn directly requested that the EPA reconsider the proposed rule. Quinn stresses the economic and environmental importance of ethanol while pointing to the role the domestically-produced biofuel plays in providing jobs in rural America.

Quinn points out that the total economic impact of the 14 ethanol plants in Illinois is estimated to be approximately $5.3 billion annually and that these facilities directly provide 4,000 jobs. Displacing more than 35 percent of that state's petroleum use, he argues that the loss of demand for millions of bushels of corn would negatively impact the entire farm economy.



Recent Dry Conditions Stressing Corn, Soy

Dry, hot weather across Argentina's grain belt during the past 10 days has caused concerns among corn and soybean farmers.

Soil moisture levels have fallen in key producing regions, including western Buenos Aires, La Pampa and the south of Cordoba province, to a level where grain crops urgently need more precipitation, according to the Argentina Meteorological Service (SMN).

The biggest issue is with the corn crop, the early planted portion of which is now entering key development phases.

The high temperatures are making the lack of rain a real problem, according to Juan Pablo Ioele, an agronomist at the Argentina Agriculture Technology Institute (INTA) in southeastern Cordoba province.

The good news is that rains are forecast for the next couple of weeks in the grain-producing nucleus of northern Buenos Aires, southern Cordoba and southern Santa Fe. Rainfall of 1.5 to 4 inches will fall, according to Rosario Cereals Exchange forecasts.

Light rain is expected Thursday, which will become heavier next week.

The moisture will be welcome as, since the start of November, rainfall has been just a third of average levels in the nucleus.



NUTRIQUEST Launches a New Specialty Feed Ingredient Purpose-Built for Starter Pigs

NUTRIQUEST, the leader in real-world production solutions, is pleased to announce the launch of Evosure, its new specialty ingredient developed specifically to optimize starter pig performance. Evosure is purpose-built to meet the needs of pig producers, who are constantly on the quest for new methods of improving starter pig performance.

"Evosure has demonstrated positive results through multiple replicated trials and will be beneficial to producers operating in ever-changing economic and production landscapes,” said Dr. Chad Hagen, Senior Vice President of NUTRIQUEST.

The NUTRIQUEST team has proven experience in the design and development of yeast-based products with a team of scientists who together have a combined 110 years of experience in research and product development.

In designing Evosure, the NUTRIQUEST team utilized over 7,800 pigs in seven controlled, highly replicated research trials conducted in commercial production environments.  Research has clearly shown that in targeted starter pig application Evosure outperforms leading competitors’ products in starter feed applications.

NUTRIQUEST recommends combining its two leading yeast-based technologies to maximize starter pig performance. Using research and experience-proven second generation CEL-CAN in sow diets for heavier pigs at weaning and Evosure in starter diets to improve nursery performance optimizes overall pig performance and profitability.

Evosure is yet another stride in the continued growth of the NUTRIQUEST product portfolio, which continues our commitment to the animal agriculture industry and will ensure we deliver on our goal of developing products and technologies that enhance animal productivity in a cost effective, safe and healthy manner while respecting the environment,” said Ken Purser, General Manager of NUTRIQUEST.