Tuesday May 12 Ag News

May is Beef Month: Beef’s Versatility Promoted For Summer Grilling Season
Beef Checkoff shares steak swaps quick guide to ensure consumers have options for every taste and budget

As Americans start to enjoy the warmer weather and fire up their grills, Beef. It’s What’s For Dinner. is continuing to ensure beef cravings are satisfied with a quick guide for simple steak swaps. Whether consumers are unable to find their favorite cut of steak at the grocery store or there’s a desire to try something new, beef’s variety and versatility mean there are almost endless options.

According to retail sales data, taste is the number one reason consumers choose beef, and that is especially true during summer grilling season when steak sales jump, on average, more than 10 percent, between Memorial Day and Labor Day.

To help consumers make the most out of grilling season, the Beef. It’s What’s For Dinner. culinary team, funded by the Beef Checkoff, has developed a chart of simple steak swaps for top grilling cuts that make it easy to get beef on the table, regardless of what cut of beef consumers have on hand.

“As beef farmers and ranchers, we know firsthand that one of the biggest benefits of beef is its great taste and incredible versatility, and summer grilling season is a great time to lean into this benefit,” said Buck Wehrbein, Federation division chair at the National Cattlemen’s Beef Association, a contractor to the Beef Checkoff. “Whether it’s due to availability, budget or preference, by providing consumers with these easy swaps, we can continue to keep beef at the center of the plate this grilling season.”

To see the latest from Beef. It’s What’s For Dinner. , visit BeefItsWhatsForDinner.com. 



Fischer Requests DOJ Investigate Potential Illegal Practices by Beef Packers

Today, U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Agriculture Committee, led a bipartisan group of 18 of her Senate colleagues in writing a letter to the U.S. Department of Justice requesting that the department investigate potential anticompetitive activities in the highly concentrated beef packing sector.

“Recent pricing discrepancies between fed cattle and boxed beef are pushing cattle producers and feeders to the brink…Cattlemen across America seriously question the ability for their children to take over what are frequently multi-generational family-owned operations that serve as the engines for their communities and our country’s food supply,” the letter reads. “It is critical for the DOJ to act expediently to investigate these concerning circumstances.”

“As attorney general, I share the concerns expressed by Senator Fischer regarding the past and current business practices of the meatpacking industry. The Nebraska Department of Justice has an important responsibility to ensure that anti-competitive conduct impacting the cattle industry and Nebraska consumers not be allowed in our state. My fellow attorneys general and I will fulfill our duty to investigate, and fully prosecute, if an investigation reveals that certain companies in the meatpacking industry are not properly complying with our laws that prohibit anti-competitive behavior,” said Nebraska Attorney General Doug Peterson.

“COVID-19's impact on the cattle market has reignited concerns that surfaced following the 2019 beef packing plant fire. These concerns continue to focus on extreme market deteriorations that repeatedly take place for the production segments of the beef industry that are closely followed by rapid increases in boxed beef values. We are grateful that Senator Fischer has reinforced the Nebraska Cattlemen’s ask for the DOJ to investigate meat packing industry margins by also asking for an investigation,” said Nebraska Cattlemen President Ken Herz.

More information:
Senator Fischer’s letter follows one written last week by 10 state attorneys general calling for the Department of Justice to investigate potential anticompetitive activity in the cattle industry.

Senator Fischer has also written to Senate Judiciary Antitrust Subcommittee leadership calling for a public hearing to examine competition and claims of possible market manipulation. Consequently, Chairman Mike Lee (R-Utah) and Ranking Member Amy Klobuchar (D-Minn.) wrote their own letter to the DoJ calling for investigations into potential anticompetitive activity.



Lincoln Premium Poultry Provides Update on COVID-19 Numbers, Continues Mitigation Efforts

Lincoln Premium Poultry provided an update today to the community on recent cases at their facility.  Since reporting to the public one week ago, Lincoln Premium Poultry reported an additional 12 cases of COVID-19 over the past week, which brings the company total to 40 cases. As of today the company has also registered 72 negative cases among employees.

“We will continue to do everything we can to protect our team members.” said Kolterman, “We believe the efforts we have undertaken within our facility has helped us keep the numbers manageable, but we also recognize that much of this is out of our control. Regardless, we will keep doing our very best to maintain a safe working environment.” 

Lincoln Premium Poultry has provided the opportunity for individuals over 65 to self-isolate at home, with pay.  Individuals who test positive as well as individuals with known direct contact with a person who has tested positive are also self-isolating at home with pay.  “We are excited to share that 11 team members have recovered and have returned to work.” said Kolterman.

Lincoln Premium Poultry has implemented additional protection measures recommended by UNMC, including additional screening, strict mandatory use of masks, and additional deep cleaning.  The company had previously limited visitors to the facility, stopped food service and installed dividers on tables, provided further space between workers, implemented nightly intense cleaning interventions, is taking the temperature of all entering their facilities and had provided masks to their workforce.  They have also provided a $2/hour increase to all hourly workers, which began in March, and are regularly providing chicken for their team members.  This virus is not foodborne and cannot be transmitted through food or potable water.

“We continue to push for testing for any of our team members who show symptoms or who have been directly exposed,” said Kolterman, “We appreciate the willingness of Three Rivers Health Department to advocate for additional testing in our area.”

Kolterman praised the LPP team, “We recognize that this is a difficult time for anyone who is an essential worker and we will keep supporting our team members.  They continue to amaze us with their perseverance and have worked hard to produce product on our original ramp-up schedule.”



Land O'Lakes Turns on Wi-Fi in Rural Communities

Land O'Lakes, Inc. announced an effort to tackle the lack of rural broadband access, an issue dramatically exacerbated by the coronavirus and for many, the unparalleled and sudden shift to conducting virtually all daily tasks online. Land O'Lakes, Inc. and many of its rurally located retail-owners are planning to offer free and open Wi-Fi access to local citizens for the next six weeks outside many of their company locations, manufacturing facilities, along with other satellite businesses in 11 states across America's heartland.

"As millions of Americans shift to work and school from home and increasingly look to telehealth for critical healthcare services, the urgent need for internet connectivity in rural America has never been so dire," said Beth Ford, president & CEO of Land O'Lakes, Inc. "Today, we are proud to take the step along with many partners to bridge the gap and provide this critical service to these communities during this crisis. But our efforts now are only a short-term solution for a much bigger problem that people in our rural communities face, even when we are not experiencing a viral pandemic. As a member-owned cooperative, Land O'Lakes believes that we are all stronger together, and we are incredibly appreciative of the generosity of our retail-owners during this trying time."

With deep roots across rural America, Land O'Lakes has worked to raise awareness for the need to increase access to digital connectivity in rural communities, partnered with advocates and allies, and now see an opportunity to deploy the power of the co-op system to make a difference in local communities. To that end, Land O'Lakes is also issuing a call to action to other companies with footprints in rural America who can also help provide these free Wi-Fi hotspots at their own facilities.

This service is being offered as part of a trial that is anticipated to last approximately six weeks, but may be suspended or continued as circumstances change. As part of this effort, Microsoft will work with local broadband providers to devise more ways to amplify Wi-Fi signals in these local communities, including providing hardware to participating facilities and broadband providers.

As nearly 19 million Americans -- or 40% of the nation's schools and 60% of healthcare facilities outside metropolitan areas -- lack internet connectivity, Land O'Lakes has long advocated for significant broadband infrastructure investment in rural areas at both the state and federal level as part of its initiative, the American Connection Project. As Land O'Lakes and its partners continue these advocacy efforts in the future, investment will help ensure the vitality of rural America beyond the end of the coronavirus pandemic.

Ford continued, "If there were a time to band together with and for our rural neighbors -- many of whom are critical to feeding our nation -- now is that time. I encourage businesses with footprints in rural communities to join us in this small action to connect our rural communities; and I strongly urge state and federal policy makers to join us in fixing the problem by closing the digital divide in rural America."

On April 15, Land O'Lakes and a coalition of other partners sent a letter to all 50 state governors, asking for their support of the initiative and inviting them to leverage their own resources to add additional Wi-Fi hotspot locations around their states. In addition, they asked states to support policies that would increase access to telemedicine and urged their support of robust state and federal infrastructure investments that solve rural internet connectivity challenges.

Land O'Lakes is offering free Wi-Fi access at the following locations (this list updates as new locations are confirmed):
Iowa -- Washington, Spencer Sioux City, Story City, Ames, Vincent
Nebraska -- Lincoln, Ogallala
Illinois -- Mt. Vernon
Indiana -- Evansville, Frankfort
Kansas -- Park
Minnesota -- Winthrop, Melrose, Pine Island
Missouri -- Montgomery City, St. Joseph, Neosho
North Dakota -- Gardner
Ohio -- Dayton (Vandalia)
South Dakota -- Pierre
Wisconsin -- Mt. Horeb, Hillsboro, Chippewa Falls

Members of the communities served can access the Wi-Fi from their cars; hours will vary by location. Each facility has designated a portion of its lot for Wi-Fi users, which will allow for proper social distancing practices. To maintain social distancing, guests are asked to stay in their own cars while using this service.



Land O'Lakes, Inc. reports results for first quarter 2020

Land O’Lakes, Inc. today reported net sales of $3.8 billion and net earnings of $37 million for the first quarter ending March 31, 2020, compared with net sales of $3.5 billion and net earnings of $67 million during the first quarter of 2019.

Our priority is the safety of our employees who continue to work on behalf of our members-owners and serve consumers. In our new, ever-changing economic environment, we are concentrating on what we can control: innovation built on solid business fundamentals,” said Beth Ford, president and CEO of Land O’Lakes, Inc. “We are pleased with the performance and are well-positioned for the future, particularly in our digital applications.”

Improved performance in Purina Animal Nutrition was driven by higher volumes in Premix and Lifestyle Feed, and favorable product mix in Milk Replacer. Earnings in Dairy Foods were flat with prior year as strong Retail demand was offset by sharp commodity market declines and lower volumes in Foodservice due to impacts of COVID-19. Crop Inputs showed improved volumes in Seed and Crop Protection Products driven by favorable spring planting conditions, but overall earnings were lower due to product mix and timing of vendor rebates. Ending liquidity was $965 million, up 12% from prior year levels.



IRFA Praises Iowa Leaders for Ensuring Biofuels Included in Latest Round of Economic Stimulus Legislation

Today the U.S. House of Representatives introduced a new round of legislation to provided economic relief in the midst of the COVID-19 pandemic, which explicitly included aid for U.S. biofuels producers.

In response, Iowa Renewable Fuels Association Executive Director Monte Shaw made the following statement:

“We thank Representatives Abby Finkenauer, Cindy Axne, and Dave Loebsack for working closely with House leaders to ensure biofuels were included in the latest legislation providing economic stimulus funding. Iowa’s biofuel producers are suffering great losses as Americans are staying home and fuel demand has plummeted. Over 40 percent of Iowa ethanol production remains offline and without immediate help losses will only deepen. Without economic help, many plants may face bankruptcy or lack the necessary resources to purchase corn when demand ultimately returns. We are eager to see this legislation pass through Congress quickly as it will provide producers with a much-needed lifeline.”



ICA Applauds Sen. Grassley's Cash Trade Bill

The Iowa Cattlemen’s Association (ICA) fully supports Senator Grassley’s new bill mandating a minimum level of negotiated cash cattle trade.

The bill, which was introduced on Tuesday, May 12, closely mimics a bill first introduced by Sen. Grassley and former Sen. Russ Feingold, D-Wis. in 2002. That bill required a minimum of 25 percent of a packer’s daily kill to come from the spot, or cash, market to improve accuracy and transparency of data reported through Mandatory Price Reporting (MPR). In addition, the bill intended to give independent producers competitive opportunity as packers would have been required to participate in the cash market.

The newest version of the bill, co-sponsored by Sen. Jon Tester, D-Mont. and Sen. Joni Ernst, mandates a minimum of 50 percent cash trade and a 14-day delivery period. This bill closely resembles ICA’s official policy and advocacy efforts.

Earlier this spring, the association’s Feedlot Council and Board of Directors assumed policy supporting a mandate on cash trade because of the lack of long-term changes necessary to provide price transparency and competition amongst cattle feeders who market cattle though traditional cash means. Since that time, leaders and staff have worked to inform Sens. Grassley and Ernst of the challenges faced by Iowa’s cattle producers, and encouraged their support of a mandate requiring at least 50 percent cash trade.

“After working diligently for nearly a decade, ICA has encouraged our industry and other organizations to trade more cash cattle to no avail,” says Dustin Purhmann, ICA’s Feedlot Council chair. “As a cow-calf producer and feedlot nutritionist, I can say that our group has examined and discussed many ways to remedy the uptrend in committed cattle to packers. Unfortunately, we feel that a mandate is the only way to make a lasting change our industry needs to regain some leverage, competitiveness, price discovery and transparency.”

Iowa’s cattle producers participate in the cash market with higher frequency than other regions of the United States, setting the base price for formula transactions that are much more commonplace in large feedyards in southern states like Texas. In most weeks, more than 50% of Iowa’s fed cattle are traded through cash negotiation, compared to about 5% in Texas.

Cattle traded through formula transactions bring $20-40 per head more than negotiated cash cattle, even though the cash cattle in the upper midwest generally grade much higher.

“Ultimately, cattle feeders in the south are rewarded for the quantity, not quality grade, of their cattle,” says Purhmann. “The current system makes it difficult for Iowa’s producers to capture a premium for our high grading fed cattle.”

Industry experts, livestock economists, the Chicago Mercantile Exchange and the Commodities Future Trading Commission have all advocated for increased price discovery across the United States.

“This problem has plagued our industry for years,” says Matt Deppe, CEO of the Iowa Cattlemen’s Association. “With the reauthorization of Livestock Mandatory Reporting scheduled for later this year, now is the time to take action.”

Iowa’s cattle producers have recently had to bear the brunt of the challenges caused by decreased packing capacity due to COVID-19. Formula cattle have filled nearly all available slaughter space, leaving Iowa’s market-ready cattle in the feedyards.



Ranch Group Grateful for Swift Senate Action to Fix Broken Cattle Markets

Today, U.S. Senators Charles Grassley (R-IA) and Jon Tester (D-MT), along with Senators Joni Ernst (R-IA), Cindy Hyde-Smith (R-MS), Mike Rounds (R-SD), Tina Smith (D-MN), and Steve Daines (R-MT) introduced a bipartisan bill that requires beef packers with more than one plant to purchase at least 50% of their cattle in the competitive cash market each day for each of their plants. The bill further requires that cattle meeting the 50% threshold must be harvested within 14 days of purchase. R-CALF USA CEO Bill Bullard issued the following statement in response to the bill’s introduction.

“Our industry is grateful for the swift action by Senators Grassley, Tester and others to halt the ongoing erosion of our cattle industry’s most critical market – the competitive cash market where beef packers purchase cattle for beef production and where price discovery occurs for the entire cattle industry.

“The largest beef packers have progressively shifted large numbers of cattle out of the competitive cash market and into contract arrangements where no price discovery can occur. However, the beef packers continue tying the price they pay for their contracted cattle to the razor thin cash market that is no longer capable of establishing a competitive price for cattle.

“This has contributed to the disconnect between the prices that cattle producers receive for their cattle and the prices that consumers are now paying for their beef.

“Today, consumers are paying near-record to record prices for beef while cattle producers are receiving seriously depressed prices for their cattle. This is an indication of market failure and Senator Grassley’s and Tester’s bill represents one of the first meaningful steps that Congress and the President must take to begin restoring competition to our broken markets.

“We are further encouraged by the non-preemption provision in the bill that allows individual states to require an even higher percentage of cattle to be procured from the cash market as this empowers states to get more involved in their respective cattle industries.”



Model of beef cattle, transportation industries as critical infrastructures reveals vulnerabilities

An interdisciplinary team of Kansas State University researchers developed a computer simulation that revealed beef supply chain vulnerabilities that need safeguarding — a realistic concern during the COVID-19 pandemic.

Caterina Scoglio, professor, and Qihui Yang, doctoral student, both in electrical and computer engineering, recently published "Developing an agent-based model to simulate the beef cattle production and transportation in southwest Kansas" in Physica A, an Elsevier journal publication.

The paper describes a model of the beef production system and the transportation industry, which are interdependent critical infrastructures — similar to the electrical grid and computer technology. According to the model, disruptions in the cattle industry — especially in the beef packing plants — will affect the transportation industry and together cause great economic harm. The disruptions modeled in the simulation share similarities with how the packing plants have been affected during the COVID-19 pandemic.

"When we first started working on this project, there was a lot of emphasis on studying critical infrastructures; especially ones that are interdependent, meaning that they need to work together with other critical infrastructures," Scoglio said. "The idea is if there is a failure in one of the systems, it can propagate to the other system, increasing the catastrophic effects."

The study included a variety of viewpoints to create a realistic and integrated model of both systems. Co-authors on the paper include Don Gruenbacher, associate professor and department head of electrical and computer engineering; Jessica Heier Stamm, associate professor of industrial and manufacturing systems engineering; Gary Brase, professor of psychological sciences; Scott DeLoach, professor and department head of computer science; and David Amrine, research director of the Beef Cattle Institute.

The researchers used the model to evaluate which supply chain components were more robust and which were not. They determined that packing plants are the most vulnerable. Scoglio said that recent events in the middle of the COVID-19 pandemic raise important issues about how to safeguard the system.

"An important message is that after understanding the critical role of these packers, we need to decide how we could protect both them and the people who work there," Scoglio said. "While the plants are a critical infrastructure and need to be protected, taking care of the health of the workers is very important. How can we design a production process that can be flexible and adaptable in an epidemic?"

According to the paper, the beef cattle industry contributes approximately $8.9 billion to the Kansas economy and employs more than 42,000 people in the state. Since trucks are needed to move cattle, any disruption in either cattle production or transportation almost certainly would harm the regional economy, Scoglio said.

"Packers need to be considered as a critical point of a much longer supply chain, which needs specific attention to make sure it will not fail and can continue working," Scoglio said. "Beef packers are a critical infrastructure in the United States."

The project was supported by the National Science Foundation and focused on southwest Kansas, but the researchers acknowledge that cattle come from outside the region and interruptions may have larger national effects.



 NPPC Supports Livestock Provisions of Heroes Act

The National Pork Producers Council (NPPC) expressed strong support for livestock agriculture provisions in the Heroes Act introduced today by the U.S. House of Representatives Committee on Appropriations. These provisions include funding for the U.S. Department of Agriculture to provide:
-    Compensation for euthanized livestock that can't be processed into the food supply due to COVID-related packing plant capacity reductions. This fact sheet provides an overview of the current challenge faced by U.S. pork producers.
-    Expanded direct payments to livestock famers who have suffered severe losses as COVID-related market disruptions have caused the value of their livestock to plummet. In USDA implementation of this program, NPPC continues to seek the removal of payment caps to ensure much-needed aid is extended to those farmers who need it most.
-    Increased funding for animal health surveillance and laboratories, which have been tapped to perform COVID-19 testing during this human health emergency.

"U.S. pork producers are facing an unprecedented financial and animal welfare crisis," said Howard "A.V." Roth, NPPC president and a hog farmer from Wauzeka, Wisconsin. "These provisions represent a critical lifeline for hog farmers struggling to weather this storm. We urge Congress to come together quickly on final legislation that includes these provisions."

"House Agriculture Committee Chairman Collin Peterson has been a champion for U.S. pork producers and the daunting issues they are facing," added Roth. "We thank hm for his support of these provisions."

For more information on U.S. pork industry's response to COVID-related challenges, please visit http://nppc.org/issues/issue/your-food-is-our-priority/.



ACE welcomes language in stimulus bill directing aid to biofuel producers, thanks Congressional members for urging this support

The American Coalition for Ethanol (ACE) welcomed the phase four stimulus proposal (the HEROES Act) House Speaker Pelosi introduced today which includes a provision that would establish a new Renewable Fuel Reimbursement Program at the U.S. Department of Agriculture (USDA). Senators are expected to consider similar legislation. ACE thanks Representatives Cheri Bustos (Ill.) Cindy Axne (Iowa), Angie Craig (Minn.) and Abby Finkenauer (Iowa) for leading a letter to help encourage the inclusion of biofuels in this legislative relief package. ACE CEO Brian Jennings issued the following statement in reaction to the draft language and in appreciation of the letter:

“This is the first time Congress has introduced a stimulus bill that would provide aid directly to biofuel producers and for that we are extremely appreciative. ACE members are grateful for this show of support from the Members of Congress who stepped up this week to call on congressional leadership to include emergency assistance for ethanol producers suffering the economic fallout of COVID-19, as well as all the Members of Congress on both sides of the aisle who have been working on financial aid. It’s important that securing aid for the biofuel sector continues to be a bipartisan goal. This is one important step in the process but until a bill is signed into law by the President that contains direct aid, we need to stay in constant contact with Members of Congress.”

The letter was also joined by Representatives Mark Pocan (Wisc.) Collin C. Peterson (Minn.) Dave Loebsack (Iowa), Kenda Horn (Okla.), Lauren Underwood (Ill.), and Ron Kind (Wisc.). You can access the letter here.

ACE’s top priority during this pandemic is securing financial aid to retain the ethanol industry’s skilled workers and keep the lights on during these unprecedented times. Efforts at the Environmental Protection Agency, the U.S. Department of Agriculture, and the White House have so far not yielded the urgent response the ethanol industry needs. An immediate cash infusion is needed to help producers survive this catastrophic downturn. Following the release of the bill text, ACE launched a grassroots advocacy campaign today calling on ethanol advocates to express their support for the funding assistance contained in the House legislation and to urge their Members of Congress to keep working on direct aid until legislation is enacted by both the House and Senate and signed into law by the President. Let your Congressional leaders know this issue is critical to the economic survival of many U.S. renewable fuel producers, farmers, and rural communities. Take part in the call to action by utilizing ACE’s Action Center.



RFA Welcomes Inclusion of Renewable Fuel Emergency Relief Measures in HEROES Act

The Renewable Fuels Association today welcomed the inclusion of the “Renewable Fuel Reimbursement Program” in the HEROES Act unveiled today by House Democrats. RFA said the program would provide vital assistance and emergency relief to the nation’s struggling ethanol industry, which has seen its markets devastated by COVID-19 stay-at-home orders. RFA thanks Speaker of the House Nancy Pelosi (CA-12), House Agriculture Committee Chairman Collin Peterson (MN-07), and countless other renewable fuel champions in the House for ensuring relief for the biofuels industry was included in the package.

Inclusion of the relief program in the HEROES Act comes after Reps. Cheri Bustos (IL-17), Abby Finkenauer (IA-01), Cindy Axne (IA-03), Angie Craig (MN-02), led a letter to House leadership yesterday, warning that a struggling biofuel industry could have cascading effects on the entire agriculture sector. The letter was also signed by Reps. Dave Loebsack (IA-02), Mark Pocan (WI-02), Collin Peterson (MN-07), Ron Kind (WI-03), Lauren Underwood (IL-14) and Kendra Horn (OK-05).

In addition, RFA and other farm and biofuel groups sent a similar letter to House and Senate leadership yesterday.

“The Renewable Fuel Reimbursement Program represents a potential lifeline for the 350,000 men and women whose jobs depend on a healthy and vibrant ethanol industry,” said RFA President and CEO Geoff Cooper. “We greatly appreciate the efforts and leadership of Chairman Peterson, Congresswoman Bustos, and so many other renewable fuel supporters in the House. They understand that rural communities across the nation depend on the renewable fuels industry for job creation, economic vitality, and new market opportunities for farmers. They know we cannot afford to leave behind such a vital sector of the economy, and we thank them for standing up for low-carbon, homegrown renewable fuels. This program would lend a crucial helping hand and ensure that ethanol producers are able to participate in the economic recovery from COVID-19.”

For qualifying renewable fuel produced between January 1 and May 1, 2020, the program would provide assistance of 45 cents per gallon.

Cooper noted that the ethanol industry is experiencing the worst economic crisis in its 40-year history, with roughly half of the industry’s capacity offline today. Nearly 70 ethanol plants are completely idled and another 80 facilities are operating well below normal output rates. “When an ethanol plant shuts down or reduces production, it destabilizes the entire rural economy,” Cooper said. “Jobs are lost, farm commodity demand and prices plummet, supplies of vital co-products like distillers grains and captured CO2 evaporate, and the nation’s drivers are denied lower-cost, cleaner-burning fuel options at the pump.”

RFA is urging swift passage of the HEROES Act and looks forward to the Renewable Fuel Reimbursement Program becoming law.



Brazil Cuts Soybean Forecast

Brazilian crop agency Conab cut its estimate for soybean production for the 2019-2020 growing season as productivity declined amid dry weather in some of the country's southern states.

Brazilian farmers produced 120.3 million metric tons of soybeans for this season, still a record for the country, as harvesting work came to an end. In April, the agency estimated a crop of 122.1 million tons. Brazil produced 115 million tons of soybeans in 2018-2019, after setting the previous record of 119.3 million tons in 2017-2018.

The state of Rio Grande do Sul, and to a lesser extent Santa Catarina, were hit by dry weather that reduced output. Those declines were outweighed by record production in Mato Grosso, Parana, Goias and other states, Conab said.

Brazil's corn production is forecast to rise from a year ago, to 102.3 million tons from the record of 100.04 million tons in 2018-2019. In April, Conab had forecast a crop of 101.9 million tons.

Brazil's corn crop has been growing as cattle ranchers increasingly use feedlots to feed their animals instead of pastures, and as production of ethanol made with corn increases.

Brazil's mild winters allow it to produce corn year round, with Conab considering the country to have three crops, in the summer, in the winter and in the country's northern and northeastern states.

The summer crop had some productivity problems because of the dry weather in the south, Conab said. Planting for the winter crop has finished, and rain is needed this month to help a big part of the corn develop properly, according to the agency.



Americas’ Dairy Groups Warn EU Against Market-Distorting Practices

As the European Union (EU) is poised to begin government-financed intervention purchases of skim milk powder (SMP) and butter, dairy farmers and processors in key dairy-producing countries around the world are calling on the EU to avoid the market-distorting practices that have significantly harmed them and the broader global dairy market in the past.

A coalition of dairy organizations from Argentina, Brazil, Chile, Costa Rica, Ecuador, Guatemala, Mexico, Paraguay, Uruguay and the United States joined together in urging the EU not to repeat the inventory-building and extended market-price suppression it engaged in just a few short years ago.

Exporting large quantities of government-purchased SMP and butter at below-market rates onto the world market will prolong the deeply challenging environment under which dairy sectors are operating worldwide. The EU intervention program would artificially distort prices for an extended period and displace commercial competition just as the world begins to recover from the immediate impacts of the COVID-19 pandemic. The groups instead urge the EU to adopt measures that further spur consumption within the EU and encourage its producers to implement appropriate production practices to survive during this difficult time.

A coalition representing dairy industries from around the world issued the following joint statement:

“The European Commission must avoid dumping government-purchased SMP and butter on the world market and implementing policies that undermine global dairy markets under the guise of protecting its farmers. The EU’s market-distorting practices are harmful enough during normal operations. If used in the wake of the COVID-19 pandemic, which has dramatically eroded dairy prices, they would be disastrous to the world dairy market by prolonging the current crushing economic conditions. Global buyers of SMP and butter will have little incentive to bid up prices as long as the EU Government holds significant quantities in Intervention.

“It’s critical that the EU act now to put a long-term plan into place regarding how to handle its government-incentivized stockpiling given that the EU has a demonstrated history of dumping intervention purchases in a way that disrupts the world dairy market. The EU intervened in 2016-17 and held the equivalent of 16 percent of the global SMP market in government storage. It subsequently released the product on the world market over the next two years, unfairly undercutting international prices and harming the global dairy industry.”

“Farmers and dairy processors in our countries and many others around the globe are already in the fight of their lives, working hard every day to help keep the world well-nourished through this crisis. We are all dealing with great enough challenges already in our own markets. If the EU does not commit to avoid distorting global markets by dumping their excess intervention stocks onto the world market just as dairy sectors begin to recover, the more farmers and processors outside the EU could be forced to close their doors. We encourage the EU to implement policies that support greater utilization of dairy products with the goal to increase consumption, particularly with the consumers impacted most by the covid-19 outbreak.”

Groups issuing the statement from the United States include:
International Dairy Foods Association (IDFA)
National Milk Producers Federation (NMPF)
U.S. Dairy Export Council (USDEC)



Leathers, Smith and Saltman elected to NIAA board of directors

Members of the National Institute for Animal Agriculture (NIAA) recently elected board members. Newly elected board members are Joe Leathers, 6666 Ranches; Justin Smith, DVM, Kansas Department of Agriculture; and Roger Saltman, DVM, RLS Management Solutions. The re-elected board members are Fabian Bernal, DeLaval; Lucas Pantaleon, DVM, Egormix/Pantaleon; and Leonard Bull, Ph.D, Logical Solutions Consulting.

“I am excited to welcome our three new members and to continue to work with Fabian, Lucas and Len. These individuals will be outstanding members as NIAA addresses challenging topics within animal agriculture,” says Kevin Maher, VetMeasure, Inc. and chairman of the board. “We also greatly appreciate the leadership and knowledge that our retiring board members have brought to our organization.”

Retiring board members are Carl Heckendorf, DVM, Colorado Department of Agriculture; Rick Keith, Producers Livestock Marketing Association; and Rick Sibbel, DVM, Executive Veterinary & Health Solutions.

NIAA’s board of directors represents the depth and breadth of animal agriculture as does its membership. Leaders representing state and national associations, private practice and government veterinarians, extension specialists, educators, researchers, state and national government regulatory personnel, farmers and ranchers, and allied business professionals come together to advance topics that affect multiple species and aspects of animal agriculture.

As a member-driven non-profit, the National Institute for Animal Agriculture works to unite and advance the aquatic livestock, beef, dairy, equine, poultry, small ruminant, and swine sectors that, collectively, form animal agriculture.