Tuesday May 26 Ag News

Farm Calendar:  June 14 - Northeast Nebraska Cattlemen's Steak Fry - 6:00 p.m. - Pender Legion



Nebraska Cattlemen Midyear Meeting Set for June 10 - 11

Nebraska Cattlemen Midyear Meeting activities will be held this year in Friend on June 10 and in York on June 11. NC members and all producers are encouraged to participate.

The annual event begins at 8:00 a.m. Wednesday, June 10 with a NC Board of Directors Meeting at the Pour House in Friend.

The NC Midyear Golf Tournament begins at 11:00 at the Friend Country Club. The annual golf event is sold out and a waiting list is being maintained.

Non-golfers are invited to the NC Midyear Area Attractions Tour that will begin at 11:00 a.m. Stops on the tour will include Beaver Creek Products, one of the newest businesses in York and a real success story around the beef industry.  Beaver Creek started production in 2014 using beef packing by-products and is helping to add value to the animals of the beef industry. Another stop will be the Mennonite Heritage Museum. It is located just north of Henderson and gives a step back in time to view the lives of the 35 Mennonite families from Holland and Russia as they moved and settled in the area. The tour will also visit Ely Farms near Grafton, a retail and wholesale food distributor of home-grown crops and value added food products. A fourth tour stop will be at Klute Steel Fabrication of Bradshaw. The firm fabricates structural steel items for the electrical transmission industry. Tour attendees will also visit Advance Agri Direct Cancrete Waterers in York. Cancrete specializes in creating some of the toughest most durable Livestock Waterers on the market.

The NC Midyear Welcome Reception begins at 6:30 p.m. at the Pour House in Friend. Attendees will enjoy a great steak dinner while visiting with fellow cattlemen at the Pour House, a unique wine and craft beer venue located beneath the Historic Warren Opera House in downtown Friend.

All Thursday events will be held at Holthus Convention Center in York. Registration opens at 7:00 a.m. and the first committee meetings begin at 8:00 a.m.: Animal Health & Nutrition  Committee and Taxation Committee. They will be followed at 10:15 a.m. by the Marketing & Commerce Committee and Education Committee meetings. The NC Foundation Lunch will begin at 12:30 and the second set of committee meetings will begin at 2:00 p.m.: Brand & Property Rights Committee and Natural Resources & Environment Committee.

The NC Midyear General Session will be held at 4:00 p.m. Speakers include Scott Yager, Environmental Counsel for the NCBA and representatives from the U.S. Meat Animal Research Center. Special keynote speaker will be University of Nebraska Director of Athletics, Shawn Eichorst.

Midyear sponsors are critical to the success of the event and the list of companies and individuals supporting NC this way will be posted on the NC website.

Anyone interested in more information can access details online at www.nebraskacattlemen.org or call the NC office at (402) 475-2333.



NC Participates at U.S. MEF Board Meeting

Nebraska Cattlemen President Dave McCracken attended the U.S. MEF Board of Directors meeting last week Wednesday and Thursday in San Antonio.

Three topics garnered the most attention among participants. First, the rapid progress of Trade Promotion Authority legislation in Congress had participants collaborating on maintaining and enhancing support among Senators and Representatives. There is strong and broad support for TPA among livestock and grain producers and marketers.

Second, legislation to repeal country of origin labeling similarly attracted strong support. The clear consensus, McCracken said, is that retaliatory tariffs by Canada and Mexico on a wide range of ag products will inflict a huge cost upon producers and marketers if COOL is not repealed.

Third, growing international trade in meat products is prompting discussion about how U.S. producers and marketers can satisfy importer demand for product traceability. An alternative to animal ID being discussed is branded product verification.

NC Nominations Committee to Select NC Rep for USMEF Meetings
The NC Board voted at its April meeting to add an ex-officio member. During the NC Convention in December, the Nominations Committee will recommend to the Board a person to serve a 4-year term on NC’s Board as its representative to the U.S. Meat Export Federation. The term will begin in January 2016. For more information contact NC at (402) 475-2333 or nc@necattlemen.org.



Nebraska Farmers Union Brings Country Support for COOL to Washington, DC

Nebraska Farmers Union (NeFU) sent two of their state leaders to Washington, DC this past week as a part of the National Farmers Union (NFU) targeted Spring Fly-In on Country-of-Origin Labeling (COOL) to show the strong support that family farmers and ranchers from across the country have for COOL.

The message from NeFU President John Hansen and NeFU Secretary Mike Sarchet of Minatare joined sixty other local and state Farmers Union officers from 27 states to ask their elected officials in Congress to allow the World Trade Organization (WTO) process to conclude their established process without interference from Congress.

“Family farmers and ranchers as well as consumers continue to strongly support COOL.  U.S. consumers want to know where the food they are buying for their families came from.  U.S. family farmers and rancher food producers want to be able to identify and differentiate their own food products in their own domestic marketplace just as their competitors do in 70 countries of the world that have some sort of mandatory COOL,” said John Hansen, NeFU president.  “We need to remember that the WTO decision did not outlaw COOL.  It did say the U.S. would need to make changes, not repeal the law altogether.”

The Farmers Union delegation met with both Nebraska Senators and all three Congressmen to ask them to allow the WTO process to continue forward.  While Canada has made ever changing claims as to damages they have incurred from COOL, they are not entitled to any more damages than they can prove.  “There is a lot of difference between what you can say in a press release and what you can prove in an international court of arbitration,” said Mike Sarchet, NeFU Secretary from Minatare.  “We want the process to go forward so that the negotiations can go forward.  We know one thing for sure, if the shoe was on the other foot, the Canadian government would be dragging the process out as long as it possibly could, as they should if they thought their interests were at risk.”

Based on the recent study done by C. Robert Taylor at Auburn, the economic collapse of 2008, not COOL caused a decrease in Canadian cattle exports to the U.S. as U.S. consumers tightened their pocketbooks and ate less beef.  The study will make it difficult for Canada to prove that COOL has caused real economic harm to their agriculture sector.  Canada is not entitled to any damages unless they can prove them.

“While the recent WTO decision was disappointing, it is clear there is still a path forward for U.S. COOL,” said Hansen. “If 70 countries around the world can figure out how to implement mandatory COOL and be WTO compliant, we know the U.S. can figure out a way to implement COOL too.  If the House Agriculture Committee wanted to be helpful, they would help find a way to implement COOL in a fashion that is WTO compliant.  Instead, they chose to insert itself in the middle of the WTO process in an inappropriate and unprecedented fashion with the 38-6 passage of H.R. 2393 that would repeal COOL.  That effort breaks faith with U.S. consumers, U.S. food producers, and Congress that has passed COOL multiple times before,” Hansen concluded.



Countdown: Top 7 Reasons Why Weed Management Fails
Amit Jhala, UNL Extension Weeds Specialist

There are a number of reasons why weed management may be a problem with the weather conditions we are experiencing this year.  Many of these are discussed in the following article.

No. 7. User did not read the label.
A herbicide label is a legal document. It is a violation of federal law to not follow the herbicide label's direction. Reading the herbicide label is important for successful weed management and to protect you, your family, and the environment. The label contains legally binding information — approved by the Environmental Protection Agency (EPA) — on how much herbicide to use for optimal weed control, how to handle the product, and when, where and how it should be applied. The label also lists all the weeds controlled or suppressed by the herbicide product. Often growers may not carefully read the label and then apply a herbicide that isn't labeled to control the predominant weed in the field. This is how weed management programs fail.

No. 6. The herbicide barrier was disrupted or moved.
This can happen when crop residue containing the herbicide is moved, such as by trash whippers, row cleaners, fertilizer units, planters or the wind. Crop residue can reduce weed pressure. We have observed where the soil disruption of using a physical marker inadvertently planted weed seed; the only weeds in the field were where the marker ran.

No. 5. Incorporation was not timely.
Timely herbicide application is critical for optimum weed control. Residual pre-emergence herbicides must be applied before crop and/or weed emergence. Additionally, moisture is needed to activate residual herbicides. Therefore, if irrigation or rain events do not occur within 10 days of residual herbicide application, a light tillage is necessary to incorporate the herbicide into the soil to activate it. If weeds have germinated and emerged before the herbicide incorporation and activation, your residual herbicide program will fail.

No. 4. Too much rainfall and/or irrigation.
The variability of weather is a major cause of unreliable herbicide performance resulting in either inadequate control of weeds or crop damage. For example, excess rainfall after residual herbicide application increases the likelihood of herbicide leaching and off-target movement. Additionally, the increased microbial activity of moist soil degrades herbicides more rapidly compared to dry soil.

No. 3. Application equipment did not do a uniform job.
This can be due to inaccurate sprayer calibration, wind, sprayer speed, using the wrong nozzle type, inappropriate pressure for the nozzle used, or not enough overlap in the spray pattern. We recommend 100% overlap so the pattern from one nozzle ends under the next nozzle tip. Other causes include boom bounce and a boom that's either too high or too low or uneven pressure along the spray boom. Nonuniformity can also be caused by using a spray volume (gallons per acre) that's incorrect for the herbicide being applied.

No. 2. Herbicide rate did not match soil type, weed pressure and/or tillage practices.
Soil type is an important consideration when selecting residual herbicide application rates. Most residual herbicide rates vary based on soil type and organic matter content. For example, if the soil is sandy loam with less than 1% organic matter content, a lower herbicide rate is required than if it were a silty-clay loam soil with more than 2% organic matter. For example, Zidua, a residual soybean herbicide, should be applied at 1.5 to 2.1 oz/acre if the soil is sandy loam (< 1% organic matter); if the soil is a silty clay loam (>2% organic matter), the rate can be increased to 2 to 3.5 oz/acre.

If weed pressure (density) is high, consider using a labeled herbicide application rate on the high end if soil type permits. It is also important to include more than 15 gallons per acre spray volume to improve coverage in dense weed areas. Under no-till production practices, weed control is primarily through herbicides. No-till growers should consider applying preplant burndown herbicides if a field has a history of early emerging weeds such as giant ragweed and kochia. A weed control program can fail if soil type, weed pressure, and tillage practices are not considered before planning.

No. 1.  Weeds are present or about ready to emerge before the herbicide is applied and activated.
Soil residual herbicides must be applied before the crop and weeds emerge. If they are applied after weeds emerge, your herbicide program will fail. Timing of herbicide application is critical with respect to weed emergence. If wet weather or a busy schedule do not permit application of residual pre-emergence herbicides before crop emergence, there are several residual herbicides registered in corn and soybean that be applied after crop emergence. (See these CropWatch articles for Corn and Soybean herbicide options.) They should be tank-mixed with foliar active, post-emergence herbicides to control existing weeds.



Iowa's April Egg, Layer Numbers Show Start of H5N2 Toll

Iowa Egg production during April 2015 was 1.30 billion eggs, down 8 percent from last month, and down 4 percent from last year, according to the latest Chickens and Eggs report from USDA's National Agricultural Statistics Service.

The average number of all layers on hand during April 2015 was 56.1 million, down 6 percent from March, and down 5 percent from last year. Eggs per 100 layers for April were 2,319, down 2 percent from March, but up 1 percent from last year.

In April, avian influenza affected a number of Iowa flocks. Losses resulting from the disease are reflected in these estimates. The June 22 Chicken and Egg report will reflect average inventory for the month of May.

Additional information about the current avian influenza situation in the United States is available at www.usda.gov/avian_influenza.html.



TWO PROBABLE CASES OF HPAI IN ADAIR AND WEBSTER COUNTIES

The Iowa Department of Agriculture and Land Stewardship is responding to two probable cases of highly pathogenic avian influenza (HPAI) in Adair and Webster counties.  With the new announcements, Iowa now has 66 cases of the disease in the state. The Department has quarantined the premises and once the presence of the disease is confirmed, all birds on the property will be humanely euthanized to prevent the spread of the disease.

Adair 1 – Commercial laying operation with an estimated 975,000 birds that has experienced increased mortality.  Initial testing showed it positive for H5 avian influenza.  Additional confirmatory testing is pending from the APHIS National Veterinary Services Laboratories (NVSL) in Ames.

Webster 1 – Commercial laying operation with an estimated 160,000 birds that has experienced increased mortality.  Initial testing showed it positive for H5 avian influenza.  Additional confirmatory testing is pending from the APHIS National Veterinary Services Laboratories (NVSL) in Ames.

As the Department receives final confirmations of the disease updated information will be posted to the Iowa Department of Agriculture and Land Stewardship’s website at www.iowaagriculture.gov/avianinfluenza.asp.

USDA UPDATE ON DEPOPULATION AND DISPOSAL
The U.S. Department of Agriculture’s Incident Response team in Iowa reported that 35 loads of biological materials were transported over the weekend to the Cherokee County Landfill and Recycling Center.  The team anticipates that the large incinerator will begin processing materials this week.

“This marks an encouraging step forward in the response, providing an additional method and location for the disposal of large numbers of affected poultry,” said Dr. Ken Angel, current Incident Commander of the USDA response in Iowa.  After incineration at the landfill, the resulting ash will be deposited there.

Several safe methods are available to dispose of the poultry carcasses including composting, onsite burial, incineration, rendering, and landfilling, each with benefits and limitations. USDA and its State partners evaluate those methods based on factors such as the size of the flock, space requirements, associated costs, local conditions, and regulations.  Some euthanized poultry are being composted, buried, or incinerated on-site at Iowa poultry premises when appropriate.  In addition to the incinerator site in Cherokee County, two landfills have agreed to landfill remains under criteria set by the Iowa Department of Natural Resources.

USDA has more than 1500 staff and contractors helping respond to the avian influenza situation in Iowa.  To date, depopulation has been completed on all previously announced turkey sites.  Composting of turkeys is still ongoing.  Also, 19.1 million commercial layers and pullets have been euthanized as of May 25.



Vilsack Meets with Iowa Officials to Discuss Avian Flu

U.S. Agriculture Secretary Tom Vilsack, along with Dr. Kevin Petersburg of the USDA 's Animal and Poultry Health Inspection Service (APHIS), invited key Iowa leaders-Iowa Governor Terry E. Branstad and Iowa Secretary of Agriculture Bill Northey-to join them in a face-to-face meeting with a diverse group of farmers and related industry leaders severely affected by the avian influenza outbreak.

The meeting on Friday at the Iowa Poultry Association in Urbandale, Iowa demonstrated the depth of concern and joint commitment regarding the avian influenza (AI) outbreak. Iowa is the state considered hardest hit with an estimated 27 million chickens, turkeys and ducks infected by avian influenza since April. Considered the worst outbreak of avian influenza on record, four states, Wisconsin, Minnesota, Iowa and Nebraska, have declared states of emergency.

The federal and state leaders met with 15 producers and supply chain organizations related to egg-laying hens, chickens and turkeys, underscoring their determination to find solutions for farmers and impacted communities.

The Iowa Poultry Association, Iowa Egg Council and Iowa Turkey Federation, through their Executive Directors Randy Olson and Gretta Irwin, expressed appreciation for this cohesiveness to swiftly, rigorously and comprehensively address, curtail and recover from the disease in Iowa. Beyond the long-term impact to farmers, another consequence has been hundreds of related layoffs taking place in rural Iowa.

Representatives in the meeting explained to the federal and state officials the scope of their losses, the ripple effect it will have on the economy, and how certain markets could be lost permanently.



NCGA Applauds USDA for Timely, Positive Review of New Technology Targeting Corn Rootworm

The National Corn Growers Association is encouraged by the U.S. Department of Agriculture's positive initial review, released late Friday, of Monsanto 87411, a product utilizing RNAi technology to combat corn rootworm pressure. The initial reports, which indicated the product does not pose either a plant pest or environmental risk, are a first step toward getting this critical technology to market in a quick and safe fashion.

"We applaud the USDA for moving this new mode of action closer to availability to farmers," said NCGA Trade Policy and Biotechnology Action Team Chair John Linder, a farmer from Ohio. "As insect pressures continue to grow, a new tool such as this will enable us to better combat pests while growing a healthy, abundant corn crop."

USDA has suggested deregulation of this product based upon the positive results of this draft environmental assessment and plant pest risk assessment, thus helping ensure safety while also moving forward in an expeditious manner.



Survey: Poor Roads Raise Brazilian Grain Costs by 30%

The poor state of Brazil's roads increases grain transport costs by R$3.8 billion ($1.2 billion) each year, which accounts for 30% of total costs, according to research released by the Brazilian Transport Confederation (CNT).

Eighty-six percent of losses are concentrated in the shipment of soybeans and corn.

Costs are so high because grain trucks have to travel 1,000 miles or more from many Center-West producing regions to southern and southeastern ports.

These losses, which seem extremely high, are due to the need to use extra fuel, the accelerated wear on trucks and the high percentage of accidents.

According to a survey of grain transporters, some 85.8% said bad roads were a grave or very grave problem.

CNT found 63.4% of grain-carrying roads to have deficiencies in paving, signaling or in construction.

Low efficiency of port equipment was a grave or very grave problem for 100% of users, while insufficient drafts were a grave or very grave problem for 80%, said the survey. Brazil's ports are ranked 122nd in the World Economic Forum's competiveness ranking, while the U.S. is ranked 12th.

Brazil has been working to improve its grain logistics in recent years, most notably through the northern export corridors from the Cerrado grains fields to Amazon ports. But the survey is a reminder of how much there is to be done.

In order to make up for its grain logistics deficiencies, Brazil would have to invest R$195 billion ($62 billion), estimated CNT. In 2014, only R$15.8 billion ($5.1 billion) was invested.



Vilsack Statement on Senate Passage of Trade Promotion Authority

Agriculture Secretary Tom Vilsack today released the following statement regarding Senate passage of Trade Promotion Authority legislation:

"Today the Senate helped move America closer to securing responsible agreements that open markets for America's farmers, ranchers and agribusiness and create jobs and improve wages across the country. Over 70 organizations representing America's farmers and ranchers, and past secretaries of agriculture in both parties dating back to the Carter Administration all support trade promotion authority because export sales are vital for U.S. agriculture. Last year, agricultural exports totaled more than $150 billion and for many of our products, foreign markets represent half or more of total sales. Those exports supported approximately 1 million U.S. jobs last year. The economy is strengthened and better paying jobs are created in rural America and communities throughout the country by the additional economic activity that flows from expanded farm and food businesses.

"Standing still is not an option. Our farmers and ranchers face exorbitant tariffs and others barriers in important foreign markets, and if we do not act to maintain and gain market share in these places, our competitors will. U.S. agriculture's interests are best served by ensuring America is at the table with strong negotiating authority."



Statement by Steve Nelson, Nebraska Farm Bureau President, Regarding Senate Passage of Trade Promotion Authority

“Action by the Senate to pass Trade Promotion Authority (TPA) is a critical step toward expanding trade opportunities for Nebraska agriculture commodities and agriculture products. As we’ve stated on many occasions, Nebraska farm and ranch families have become increasingly dependent on agriculture trade to boost commodity prices and farm income. The United States’ ability to be a partner and player in international trade is directly tied to the passage of TPA.”

“We thank U.S. Sen. Deb Fischer and U.S. Sen. Ben Sasse for their votes in support of TPA. It is our hope the House will take swift action to follow the Senate in advancing TPA legislation, as trade is not just important to farmers and ranchers, but to Nebraska’s overall economy and Nebraska jobs that are tied to both agriculture and manufacturing.”

Note:    Trade Promotion Authority allows Congress to work with the President to set negotiating objectives, however, it ensure that long-negotiated trade agreements are not subject to numerous Congressional amendments and conditions that must then be taken back and forth to the negotiating table. 



Statement by Bob Stallman, President, American Farm Bureau Federation, Regarding Senate Passage Of Bipartisan Congressional Trade Priorities And Accountability Act of 2015

“The U.S. leads the world in agricultural exports thanks to the hard work and ingenuity of American farmers and ranchers. Creating new partnerships and expanding access to international markets will drive us forward in the global marketplace.

“The Senate’s bipartisan passage of trade promotion authority legislation today brings us a step closer to completing ambitious trade negotiations around the world. Congressional support is critical to breaking down trade barriers and completing ambitious new trade agreements like the Trans-Pacific Partnership. TPA streamlines negotiations and strengthens our position at the bargaining table. We urge the House now to act swiftly in passing trade promotion authority to protect the future of agricultural trade.

“The American Farm Bureau applauds Sens. Orrin Hatch (R-Utah) and Ron Wyden (D-Ore.) for their leadership on the Bipartisan Congressional Trade Priorities and Accountability Act of 2015. And we thank Majority Leader Mitch McConnell (R-Ky.) for his leadership on and commitment to moving trade forward.”



House Urged To Act After Senate Passes TPA

The National Pork Producers Council is urging the House to move quickly to approve Trade Promotion Authority legislation after the Senate passed it Friday night.

TPA defines objectives and priorities for trade agreements the United States negotiates and establishes consultation and notification requirements for the president to follow throughout the negotiation process. Once trade negotiators finalize a deal, Congress gets to review it and vote yes or no – without amendments – on it. Congress has granted TPA to every president since 1974, with the most recent law being approved in August 2002 and expiring June 30, 2007.

“We applaud the Senate for approving TPA, which is imperative for finalizing free trade agreements that boost U.S. exports and create U.S. jobs,” said NPPC President Dr. Ron Prestage, a veterinarian and pork producer from Camden, S.C. “Now we need the House to pass it so that one of the most significant regional trade deals ever can be concluded.”

Prestage referred to the Trans-Pacific Partnership (TPP) trade talks among the United States and 11 Pacific Rim countries. Negotiations on the TPP, which Iowa State University economist Dermot Hayes estimates would generate more than 10,000 U.S. agricultural jobs, are in their final stages.

“U.S. trade negotiators will have the leverage they need to close the TPP negotiations once TPA is approved,” he said. “And the U.S. pork industry needs TPP to continue growing our exports.”

Since 1989 – the year the United States began using bilateral and regional trade agreements to open foreign markets – U.S. pork exports have increased 1,550 percent in value and 1,268 percent in volume. The United States shipped more than $6.6 billion of pork to foreign destinations in 2014. The U.S. pork industry ships more pork to the 20 nations with which the United States has Free Trade Agreements than to the rest of the world combined.

Failure to pass TPA, noted Prestage, would send a signal to the world that the United States is turning its back on the Asia-Pacific region – the fastest growing area in the world – and allowing other countries to write the rules for international trade.

"The U.S. pork industry, U.S. agriculture, indeed the entire U.S. economy needs TPA, and we need it now,” Prestage said. “NPPC urges the House to move quickly to pass it.”



Despite Challenges, U.S. Meat Industry Remains Optimistic about International Markets

While U.S. meat exports face imposing challenges in 2015, this hasn’t dampened the industry’s enthusiasm for international marketing. This was the prevailing theme throughout the U.S. Meat Export Federation (USMEF) Board of Directors Meeting, which concluded Friday in San Antonio, Texas.

“The mood is very positive, despite all the challenges we have faced in the first few months of this year,” said USMEF Chair Leann Saunders. “We heard a lot this week about the large volume of protein that’s going to be entering the market in the next 10 years, and our members know the international markets are essential to their ability to move that protein into the value-added marketplace.”

Red meat exports endured a difficult first quarter in 2015, slowed by West Coast port congestion, intense competition in key markets and a very strong U.S. dollar. But Saunders said USMEF members are still confident in their investments in international marketing for beef, pork and lamb.

“They are definitely in this for the long haul and understand this is not a sprint, but a marathon,” she said. “It’s really been a pleasure to interact with USMEF members this week and see the positive outlook they have for the future of our industry.”

The opening speaker at USMEF’s closing business session was Al Almanza, deputy under secretary for food safety at USDA.

“What you all do at USMEF is so, so important for United States trade, our relationships with other countries and the ability of those countries to gain access to the safest meat and poultry supply in the world,” Almanza said. “Your work is evidence of a strong international commitment to science-based food safety policies that protect public health and facilitate trade.”

Almanza provided status reports on a number of issues that have recently interrupted U.S. meat exports, including delisting of pork plants by China. He noted that USDA Food Safety and Inspection Service (FSIS) staff members have prepared detailed responses on each establishment for review by Chinese regulators, documented the corrective actions taken, and asked that the plants be reinstated immediately based on FSIS’s review.

Almanza also discussed disruptions at the U.S.-Mexico border that have resulted in delisting of some U.S. plants. He said USDA is working with Mexican officials to develop protocols allowing them to work together to avoid these situations in the future.

Almanza was also asked about efforts to improve market access for U.S. lamb, which is currently shut out of several key markets due to restrictions dating back to the detection of BSE in the United States. He responded that USDA expects to see progress on this issue within the next two months.

In an industry perspectives panel discussion, representatives of the beef, pork and lamb industries shared their thoughts on the importance of red meat exports to producers, as well as the challenges faced by their respective industries. Panelists were Cattlemen’s Beef Board CEO Polly Ruhland, National Pork Board CEO Chris Hodges and Greg Ahart, vice president of sales for Superior Farms and a member of the American Lamb Board.

Ahart noted that the lamb industry has recently stepped up its efforts to increase exports, and values the work performed by USMEF.

“USMEF staff has been amazing to work with,” said Ahart. “The Middle East chef training program, the promotional materials made available and retail promotions in Mexico have all been a tremendous help.”

Unlike U.S. beef and pork, the U.S lamb industry isn’t focused on growing international markets, Ahart explained. Right now it’s all about simply getting access to markets.

“The cow that stole Christmas also stole Japan from the U.S. lamb industry,” Ahart said. “As beef trade was restored into Japan, lamb was not.”

Hodges explained the impact of porcine epidemic diarrhea virus (PEDV) and how the pork industry is dealing with it. PEDV caused the pig crop to drop dramatically in 2014, while the breeding herd surged because the outbreak led producers to think they would need more sows to maintain their level of production.

“The other thing that happened was that we had record profits in 2014, which led to expansion,” Hodges said. “Kind of odd, isn’t it? We had the worst disease in history, and we walked out of 2014 with profits we had never seen before. Welcome to the pork industry.”

Increased U.S. pork production requires an emphasis on increasing pork exports, Hodges said.

“If our production is going to go up 6 to 7 percent, exports are going to be very important, because Americans can’t consume that much pork,” Hodges said.

He also pointed out that the West Coast port backlog hurt the pork export business, especially to key markets like Japan, which is a tremendous market for U.S. chilled pork.

Ruhland said the beef industry has been challenged by the decline in the cattle herd because the beef checkoff is assessed per head, not by pounds or value produced.

“But at the same time, the foreign marketing budget has increased,” she said. “We realize in the beef industry that we have to operate in the global community in order to retain the sustainability, particularly the economic sustainability of U.S. beef producers. The global community is becoming even more important to beef as we move forward and as we rebuild herd.”

When it comes to international marketing, it’s important for the beef industry not to put all its eggs in one basket, Ruhland added.

“In the long term, we need to balance our portfolio internationally,” she said “We must have a good mix of emerging markets, mature markets and a product mix that allows us to be balanced.”

Ruhland said the beef industry has a strong belief in partnerships, whether with retailers, foodservice providers or others in the supply chain, but its most important partnership is with consumers – both domestically and globally.

“Consumers are where it all ends. They drive the purchasing, so we need to listen to their needs worldwide.”

The USMEF Board of Directors approved one new resolution at Friday’s business session, which related to trade with Cuba. While the resumption of diplomatic relations has raised expectations about expanded agricultural trade opportunities in Cuba, USDA program funding and checkoff funding cannot be utilized for any market research or promotional activities. The USMEF resolution encourages member organizations that favor expanded trade with Cuba to advocate for a change in this policy.

“USMEF is not a lobbying organization, but we are hopeful that agricultural associations that do have a strong lobbying presence will work in favor of this policy change,” Saunders explained. “This would help put USMEF in a better position to examine the Cuban market and assist companies interested in exporting beef, pork or lamb to Cuba.”

Highlighting Thursday’s agenda in San Antonio was a panel discussion on the role of branded products in the international markets. Branded beef and pork products are expected to make up a larger portion of the export business in coming years, as more and more consumers in international markets want information on where their food comes from and the story behind its production.

“In the Japanese market, it’s all about the story – where does our beef come from?” said Jay Theiler, executive director of marketing for Agri Beef, a diversified beef and pork company based in Boise, Idaho. “You have to have a story behind your product, and you have to take that story to your customers.”

Agri Beef exports to 26 countries under names such as Snake River Farms, St. Helens Beef, Double R Ranch and Rancho Elora. Theiler said the company considers itself a “house of brands” rather than a “branded house.”

“We are really focused on segmenting the market for different opportunities,” he explained. “We try to figure out how to be different and tell a story that sets us apart from our competition.”

Such an approach is important in a market like Japan, where a consumer can find roughly 400 brands of pork and more than 300 brands of beef, noted Takemichi Yamashoji, USMEF’s senior marketing director in Japan.

“Branded beef and branded pork are very important in Japan because of that competition,” Yamashoji said. “Whatever is unique or special about your beef or pork needs to be highlighted.”

Andrew Brooks, vice president of marketing for Certified Hereford Beef, echoed these sentiments and shared an interesting story from when the company first became a member of USMEF.

“I remember that the email went out at 4:00 p.m. and by the next morning we had more than 50 emails from importers and companies from around the world, saying, ‘Welcome to USMEF, we want to get more information about your brand, we want to know more about your producers,’” Brown recalled. “We got emails saying ‘I want to hear more about what you have that is unique and different.’ It really opened doors for us.”



USDA Sneaks Beef Import Approvals from Brazil and Argentina
Statement of Food & Water Watch Executive Director Wenonah Hauter

“As has become a common practice by the Obama administration, the USDA’s Animal and Plant Health Inspection Service (APHIS) transmitted to the White House Office of Management and Budget over a federal holiday weekend two major final rules that would open up imports of fresh beef products from Brazil and Argentina, hoping that no one was paying attention. These final rules were sent to OMB on Friday, May 22 but not posted on its website until Saturday, May 23.

“What is significant about these two final rules is that they would relax a longstanding ban by APHIS from allowing fresh beef imports from countries that have a history of foot and mouth disease (FMD) in their animal herds. The U.S. has not had a case of FMD in cattle since 1929. Food & Water Watch and number of livestock groups have already expressed their opposition to this relaxation of the FMD policy.

“In addition, Brazil and Argentina have a checkered food safety history with the meat products that they are already eligible to export to the U.S. USDA has been forced to suspend imports from these two countries over the past decade for food safety violations and for violating inspection standards.

“These new final rules come on the heels of the World Trade Organization ruling that found USDA‘s country of origin labeling regulations to be impediments to free trade.  Consequently, consumers may not know at the meat counter whether the products they buy come from countries that have had a history of animal health and, or food safety problems.

“Food & Water Watch will continue to express its opposition to these final rules at OMB.”



 CWT Assists with 1.3 Million Pounds of Cheese and Whole Milk Powder

Cooperatives Working Together (CWT) has accepted 7 requests for export assistance from Dairy Farmers of America, Michigan Milk Producers, and Northwest Dairy Association (Darigold), who have contracts to sell 553.360 pounds (251 metric tons) of Cheddar, and Monterey Jack cheese, and 749,572 pounds (340 metric tons) of whole milk powder to customers in Asia, the Middle East, and South America. The product has been contracted for delivery in the period from May through November 2015.

Year-to-date, CWT has assisted member cooperatives who have contracts to sell 31.475 million pounds of cheese, 26.482 million pounds of butter, and 20.071 million pounds of whole milk powder to twenty eight countries on five continents. The amounts of Cheese, Butter and Whole Milk Powder in these sales contracts represent the equivalent of 1.033 billion pounds of milk on a milkfat basis.

Assisting CWT members through the Export Assistance program, in the long-term, helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively impacts all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.



Mitsubishi, Mahindra Enter Strategic Partnership in Ag Machinery

Mitsubishi Heavy Industries Ltd., headquartered in Tokyo, Japan, and Mahindra & Mahindra Ltd., part of the Mahindra Group headquartered in Mumbai, India, entered into a strategic partnership in the agricultural machinery field. Under the definitive agreement, Mahindra will invest $25 million for acquiring a 33% voting stake in MHI subsidiary Mitsubishi Agricultural Machinery Co. Ltd. through fresh issue of common shares and Class A shares of MAM. The deal is expected to close by October 1, with the new funding to be used to increase MAM's capital base.

The agreement was signed by Kazuaki Kimura, president and CEO, MHI Machinery, Equipment & Infrastructure, Katsumi Tottori, president, MAM and Rajesh Jejurikar, President & Chief Executive (Farm Equipment & Two Wheeler), M&M.

This deal reaffirms Mahindra's commitment to the North American market by formalizing its relationship with Mitsubishi, which has supplied tractors to Mahindra USA for the past 12 years.

Mahindra is part of the $16.5 billion Mahindra Group's Automotive and Farm Sector. Mitsubishi Agricultural Machinery is a full range agri-machinery company producing and selling tractors, combine harvesters, rice transplanters and other agri-machinery.



USDA Seeks Applications for Grants to Help Socially-Disadvantaged Producers

Agriculture Secretary Tom Vilsack today announced that the U.S. Department of Agriculture (USDA) is now accepting applications to provide technical assistance to socially-disadvantaged groups in rural areas.

"These grants will help socially-disadvantaged business owners develop the tools and skills they need to grow their enterprises and succeed at creating jobs and expanding economic opportunities in rural areas," Vilsack said. "American agriculture is becoming increasingly diverse in many ways, with more minorities and women seeking to enter the field, as well as greater diversity in the age of farmers, the size of operations, in production methods, and in the types of crops being grown. All of these forms of diversity help strengthen U.S. agriculture for the future."

Funding will be made available through USDA's Socially-Disadvantaged Groups Grant Program (formerly the Small, Socially-Disadvantaged Producer Grant Program), which assists organizations that provide technical assistance to socially-disadvantaged groups in rural areas. Examples of technical assistance are conducting feasibility studies, developing business and strategic plans, and providing leadership training.

USDA plans to make up to $3 million in grants available. The maximum award under this notice is $175,000. More information on how to apply can be found on page 28937 of the May 20 Federal Register. Applications submitted by mail must be postmarked by July 20, 2015. Electronic applications must be submitted at www.grants.gov no later than midnight Eastern Time July 14, 2015.

Eligible applicants include groups of cooperatives, cooperative development centers and individual cooperatives that serve socially-disadvantaged groups. The cooperatives or centers can be located in any area, but the groups assisted must be located in an eligible rural area. Also, the majority of the governing body of the organization must be compromised of individuals who are members of socially-disadvantaged groups.

USDA Rural Development is encouraging applications for projects in census tracts with poverty rates of 20 percent or higher. All grants are awarded through a national competition.