International

Beef Exports Face Continued Headwinds

Derrell S. Peel, Oklahoma State University Extension

For the first half of the year, beef exports decreased 4.5% year-over-year. This follows a 14.3% year-over-year decrease in 2023, down from record beef exports in 2022. Beef exports continue to follow current market conditions of declining beef production and higher domestic beef prices. These, combined with a generally strong dollar, have pressured beef exports lower, as expected.

Beef exports in the January–June period were down in most major beef export destinations, but by varying degrees. The top three beef export markets, Japan, South Korea, and China/Hong Kong were down by 1.8%, 13.4%, and 11% year-over-year, respectively. These along with Taiwan, down 8.3% from last year, account for 73.9% of total beef exports in the first half of 2024.

Number four Mexico is an exception, with US beef exports to Mexico up 14.7% year-over-year. This follows a 12.2% yearover-year increase in 2023. Mexico currently accounts for 11.2% of total beef exports. The growth in beef exports to Mexico follows a significant decline from 2020 through 2022. In 2019, Mexico was the number three beef export market with a 14% share of total US beef exports. Beef exports to Mexico have been helped since 2020 by increasing the strength of the Mexican peso to the US dollar. However, since the beginning of August, the peso has weakened against the dollar to the lowest level in more than 18 months, which could temper beef exports to Mexico in the last half of the year. Canada is the number five market for beef exports, down 2.1% year-over-year for the first six months of 2024, and accounting for 8.7% of total beef exports.

Canada and Mexico are also major sources of beef imports. Canada is the largest source, accounting for 22.9% of beef imports. Mexico is the number four beef import source, accounting for 12.8% of beef imports from January to June. This bilateral trade highlights the fact that beef trade flows consist of many different products that move into distinct markets in each country. This is true for all beef exports, with each destination representing demands for specific products. The beef industry produces a vast array of different beef products of differing qualities. Both beef exports and imports enhance the value of US beef production by improving the balance of supply and demand for various beef products in US and international markets.

Canada Adds US Cattle Import Restrictions to Fight HPAI

The Canadian Food Inspection Agency (CFIA) expanded current restrictions on US cattle brought into the country in light of the ongoing cases of H5N1 infections in dairy cows south of the border.

The agency this week imposed rules requiring new certifications for US cattle entering Canada after a stay of fewer than 60 days, including an export certification statement signed by a veterinarian that the cattle has tested negative for influenza A virus. The certification covers cattle entering Canada after spending seven days in the United States in addition to confirming that the cattle have not been on a farm where other animals or birds that have tested positive for exposure to highly pathogenic avian influenza (HPAI), CFIA added. Imported US cattle also must be physically fit for transport and loaded onto clean vehicles or containers under the expanded rules.

Canadian officials implemented import measures for cattle this spring after a series of H5N1 outbreaks among US dairy cattle that so far has spread to 13 states that have reported a total of 192 confirmed cases since outbreaks were first reported in March, according to USDA. No cases of H5N1 infections have been confirmed in dairy cattle in Canada so far, according to CFIA.

China’s Economic Woes Weighing on Pork, Beef Demand

USDA’s Foreign Agricultural Service (FAS) forecasts a decline in pork consumption in 2025 in China and a slowing of growth in beef consumption, as lingering weakness in the world’s secondlargest economy takes its toll.

In a new Global Agricultural Information Network report, FAS’s China staff expects the economy “will continue to face headwinds” next year. The document noted “numerous media reports about high unemployment rates, restaurant closures in smaller cities, and a decline in restaurant spend per person.”

FAS forecasts beef consumption to grow in 2025 “but at a slower rate from previous years. Beef consumption has room to grow as per capita consumption remains much lower than major beef-consuming countries and as consumers have been increasingly exposed to beef on menus and in retail stores. (USDA’s China bureau) expects economic headwinds to remain in 2025, which puts pressure on the hotel, restaurant, and catering industries as well as on retail operations that market beef.”

China’s pork and beef production are both expected to decline. That production gap gives some support for beef imports of some cuts, but pork imports will be flat “because of weak consumer demand in the sluggish economy,” FAS said.

“In addition, industry sources report imported pork has not been moving as quickly through the market as before and traders appear to have adequate inventories,” according to the report.

Changing diets of Chinese consumers have seen pork as a share of total meat consumption decline from 75% in 2014 to an FAS forecast of 68% next year.

“Chinese consumers have started to adapt to a healthier diet in recent years. Pork remains a staple meat, but consumers are increasingly exposed to other animal protein sources such as beef, poultry, and seafood — many of which are perceived as healthier,” the report said. “Over the last 14 years, total meat consumption in China has grown by almost 20% owing to population changes, protein availability, increased purchasing power, improvements in the cold chain, and shifts in consumer preferences that include some shifts away from staple grain consumption. However, pork’s share of China’s meat consumption has declined.” .

CUTTING EDGE

Embryo Surrogacy: The Next Dairy Niche?

by Maureen Hanson, Bovine Veterinarian

From composted manure and beef-cross calves to methanepowered electricity and renewable natural gas, dairies continue to explore paths to garner bonus revenue beyond the traditional cash crop of milk.

The latest idea may be another collaboration between dairy producers and their beef cattle brethren: embryo surrogacy. Or stated another way, renting out uteruses.

“Right now, there are so many more embryos sitting in tanks than sitting in cows,” declared show stock photographer J. Brad Hook of Humeston, Iowa, host of the “Genuine JBH” podcast. Hook lamented that in the beef cattle show stock world, breeders have made remarkable strides in genetic analysis and mating that consistently produce excellent offspring. But what has not kept up with the breakneck pace of genetic progress and embryo development are the recipients in which to put them.

Hook explained that the supply of embryos has far outstripped the availability of beef recipient animals, especially in today’s high-dollar-value beef industry. “Recip” cows currently are extremely expensive to purchase. Custom beef recipient herds are largely booked, and also have increased their prices considerably due to the value of the animals. Today, the average take-home cost of an embryo born to a beef recipient is $4,000–$5,000 per calf, not even counting the price of the embryos.

Enter the humble dairy cow. She has to have a calf every year anyway, and in many cases, she may not be a chosen dam to create a replacement heifer for the dairy. So why not put a beef embryo in her, with a guaranteed price over market value for the calf?

That’s exactly what Lynchburg, Ohio, club calf breeder Jake Osborn is doing. Osborn and his son, Wyatt, are partnering with an 800-cow Ohio dairy to bring to life the overflowing supply of embryos that are sitting in their tanks and others’ across the country. Last year they started with nine embryos that resulted in six live births. But next year Osborn Show Cattle plans to produce about 150 calves via surrogate dairy dams.

“The appealing part about this situation is that the dairy is able to sync up a large number of recips at the same time,” noted Osborn. “You can get a whole string of calves from the same mating, born within just a few days of each other.”

Osborn said the attention to breeding details and readiness of dairy dams also results in considerably higher conception rates at the dairy. “At my place, a 20–30% conception rate on embryos was pretty common, which is not really conducive to making money,” he shared. “Currently, we’re running 55–70% conception in the dairy cows, which is way better on IVF embryos than I’ll ever do at my house.”

And the calves themselves? Hook attested that when he viewed Osborn’s spring sale calf line-up this year, he couldn’t tell them apart from the dam-reared calves in terms of growth and conformation. Osborn noted that the quality of the calves was due largely to the efforts of an excellent caretaker at the dairy. Ultimately, he worked out an arrangement to pay her a bonus on the embryo calves based on their sale price.

Another benefit was the disposition of those show calves. Purchasing families were delighted to take home animals that were broke to lead and tame and ready to go. “You can buy one for your ten-year-old and not have to worry about them getting hurt,” shared Osborn. “They’re a lot different than a calf that has been at the side of a normal recip cow.”

For the dairy, the value lies in the premium price they are paid for the calves, which Osborn said is above the healthy $800–900per-head price they are currently receiving for their own beef-cross calves. The dairy owns the embryo calves until weaning at 60–90 days, then sells them back to the embryo contractor.

In further collaboration with the dairy, Osborn also plans to put embryos into cows identified on the cull list. After dry-off at the dairy, they will be sold at a premium price over cull value and raise their embryo calf, plus a couple more grafted onto them.

Looking forward, Hook and Osborn noted even more related business opportunities, such as custom raisers who would take the embryo calves at birth and rear them specifically into show cattle. The ability of dairy cows to calve out beef embryos also may be an avenue for purebred beef breeders to create more offspring. Plus, it could help rebuild the commercial beef cattle herd in the US, which is currently at its smallest size in more than 70 years.

“Not everyone is going to be good at this,” Osborn stated. “It really takes a special dairy — someone who knows a lot about nutrition and management, and really cares about calves.”

Birdshot in Beef: The Hidden Defect

Mark Z. Johnson, Oklahoma State University Extension Birdshot or shotgun shell pellets have been found and reported in the beef supply since the first National Beef Quality Audit in the early 1990s, and the incidence of this foreign material in the beef we produce is not subsiding. In fact, the opposite may be true.

According to the 2022 National Beef Quality Audit, birdshot is a problem, with 100% of packing plants reporting buckshot/birdshot in beef from market cows and bulls. There are roughly 28 categories of items that are documented each year as foreign material in beef carcasses. Most of those items are found once to 15 times each on an annual basis and consist of large and easily identifiable objects. Birdshot, however, is found around 105 times a year and well over two times the rate of any other foreign object.

For context, if a ground beef processor makes five million ground beef patties each day, a defect rate of 1% would lead to 50,000 patties of wasted beef. A defect rate of 0.1% is 5,000 patties. A single incidence of birdshot found in the processing lines cost $10,000 in lost product and downtime. Why so much? If a pellet made it through the grinder, one pellet may have been sheared into numerous pieces that are barely detectable.

Bottom line: hunters are not causing this problem; there are some out there handling their cattle with shotguns. This is not only poor animal handling, but also inhumane. Buckshot will not bounce off cattle and somehow go away. No matter how stupid or waspy cows and bulls might act, they should not be shot at whether intentionally or by accident.

We need everyone on board to get the message out in producer meetings, educational programming, and word of mouth. If we focus on promoting the Right Way mentality of Beef Quality Assurance, we can make a difference. Ultimately, birdshot, needles, darts, and other foreign objects in beef are a food safety issue. Any abuse of animals is not acceptable, and shotguns are not a cattle handling tool. This needs to stop!

FSIS to Monitor Beef for H5N1

The USDA’s Food Safety and Inspection Service (FSIS) announced it will begin monitoring beef samples for H5N1.

Starting Sept. 16, FSIS workers will add “H5N1 influenza A” monitoring to its existing surveillance of pathogens and chemical contaminants in dairy cow slaughter. “FSIS will leverage its existing National Residue Program (NRP) and conduct H5N1 sampling in the muscle samples of dairy cow carcasses already collected for this program,” the agency’s announcement stated.

FSIS lab personnel will test the samples, and there will be no additional holding time required for carcasses. If a carcass tests positive, FSIS will work with processors to ensure the carcass does not enter the food supply. The new monitoring initiative builds upon previous FSIS testing in May of ground beef, beef muscle, and cooked ground beef.

JBS Sees US Cattle Availability Increasing

JBS expects 2025 to continue to be a challenging year for the US beef industry, with cattle availability increasing to higher levels in 2026, according to JBS USA chief executive officer (CEO), Wesley Batista Filho, in conference calls with analysts.

“We are pretty optimistic about the beginning of (cattle) retention in the US. We see cow slaughtering coming down by 15% year-over-year. We think that is a huge sign of retention starting,” he said. “The moment that is very important for us to watch out for is going to be this fall, and we’re going to see what happens.”

Batista Filho said 2025 should be similar to 2024 for the US beef industry, with cattle availability improving from 2026. He said JBS Beef North America will continue to capture gains from improvements in industrial processes, which should contribute to increasing the unit’s margins in the future. In the second quarter of 2024, JBS USA’s beef margins were pressured by low cattle availability, as cattle prices in the country increased 5% yearover-year, according to the company’s earnings report, citing data from the US Department of Agriculture (USDA).

“Therefore, as cattle prices represent around 85% of the cost of the goods sold and the beef selling price remained stable in the annual comparison, profitability came under pressure in the period,” JBS said in the earnings report.

On Tuesday, JBS SA reported a net profit of BRL 1.7 billion (USD $311.5 million) in the second quarter of 2024 and a record quarterly net revenue of BRL 100.6 billion (USD $18.4 billion), mainly supported by the poultry and pork units’ performance. Around 75% of the group’s EBITDA (earnings before interest, taxes, depreciation of amortization) in the second quarter came from JBS’s poultry and pork operations, primarily Pilgrim’s, Seara, and JBS USA Pork. JBS’s Brazilian and Australian beef units also delivered strong performances.

Study Explores Nutritional Impact of Beef

Scientists at the University of Nebraska–Lincoln aim to shed light on the effects of beef consumption on brain function. Their new study will follow more than 200 college students through a 12-week dietary intervention that varies beef intake. The research will employ advanced brain imaging and nutrient biomarker analysis to assess how different levels of beef consumption influence brain health.

“Nutrition is fundamental to our overall health, and the brain is no exception,” said Dr. Aron Barbey, director of the UNL Center for Brain, Biology and Behavior. “Given the prominence of beef in the American diet, understanding its potential impact on the brain is essential.”

The study — supported by the Nebraska Beef Council, the Texas Beef Council and the National Cattlemen’s Beef Association, a contractor to the Beef Checkoff — is set to begin this fall. .

BULLETINS

Hydrops Update: TraitTrac and a Recommended Marketing Statement

ASA has been investigating a developing genetic condition that causes Hydrops pregnancies in a certain line of Simmental genetics. Here are some updates in relation to this research and ASA’s actions/suggestions:

Hydrops has been added to Herdbook’s TraitTrac with WS All Aboard B80 listed as a documented carrier. At this time there are no genetic holds placed on his descendants as there is not a DNA test available yet. Once there is a test, then Hydrops will follow the same policy as other genetic conditions.

Female progeny who are descendants of or are directly sired by WS All Aboard B80 (ASA# 2852207) are at risk for carrying a genetic abnormality called Hydrops. Daughters may develop a serious condition during late gestation that results in excess fluid in the fetal membrane, which typically causes the loss of the calf and occasionally the dam. There is no current test at this time to identify animals carrying this mutation. Research is ongoing regarding the transmission of the abnormality, and to develop a genetic test. Helping our producers navigate this issue is of the utmost importance to us. Therefore, given that there is neither a full understanding of this condition nor a test, careful consideration should be given regarding the question of whether to breed WS All Aboard B80 descendant females until more information is available to breeders.

For questions regarding established WS All Aboard B80 genetics, Hydrops symptoms, reporting an active case, or additional information, please visit the Hydrops Information Center at www.simmental.org or reach out to Jackie Atkins at jatkins@simmgene.com.

DNA Updates

DNA Research Fee Application

DNA research fees are $1/minute and may apply to parentage rechecks, misidentified samples, or other scenarios involving unusual increase in staff time. Each case is unique, so estimating the final charge is difficult. If there are a significant number of animals not qualifying to a parent(s), please reach out to the DNA Department to discuss a rough estimate of time and cost.

Testing Timeline

Allow 4–5 weeks. Please communicate any deadlines you may be working with to the ASA DNA staff. Expedited and tracked shipping is always recommended when ordering kits and shipping samples to Neogen.

$30 DNA Research Fee

Sample packages sent to the ASA office (with or without paperwork), instead of the lab, will incur a $30 research fee. With the exception of research projects (CHR, CCG, CXP), all samples are to be sent directly to the lab with ASA paperwork.

TSU/Applicator Price Increase

Due to rising costs from the TSU manufacturer AllFlex™, ASA has increased the price of TSU sampling kits to $22 per box. Each box will still include ten individual tissue sampling units. The cost of TSU applicators has also been increased to $90 each.

Semen Sample Fee

There is a $7.20 processing fee for all semen straws and/or semen samples submitted to Neogen for DNA testing.

Check-Off Bonus Program Reminder

While the July 15 deadline to submit all state association program requests seems far away, it’s a good time for state associations to familiarize themselves with the check-off bonus program. Aside from the quarterly check-off money states can receive, state associations are also eligible for additional money in the form of yearly bonus checks if certain activities are completed throughout the year. Examples include hosting a field day with ASA representation and participating in the cost share program. To learn about the check-off bonus program, visit simmental.org and contact Callie Cooley at stateassoc@simmgene.com with any questions.

2024 Year-Letter is M

In accordance with the Beef Improvement Federation guidelines, the year-letter animal identification for 2024 is M, and will be followed by N in 2025, and P in 2026. The letter L was the year-letter designated during 2023. Per the BIF guidelines, the following letters are not used: I, O, Q, and V.

Digital Certificates Available

ASA now offers members the option to download official digital certificates for registered animals. ASA no longer scans and emails or faxes copies of printed certificates, and is encouraging shows, sales, and other events to utilize digital certificates. Digital certificates are the easiest, most reliable way to obtain an official record quickly. To download a digital certificate, search for your registered animal on Herdbook. If you are logged in and the animal is registered in good standing, there will be a button to download a digital certificate. Only the current owner of an animal can access the digital certificate. Please contact the registrations department at simmental@simmgene.com with questions.

DNA Research Programs Continue

The Calf Crop Genomic (CCG) testing project and Cow Herd DNA Roundup (CHR) continue to accept new submissions. The CCG offers a 50% off GGP-100K genomic test including parentage ($25 compared to $50 equivalent test) to participating breeders who test their entire calf crop group.

The CHR program also continues to accept new herds. The project tests females at $25 per sample for a GGP100K genomic test. Members must test 90% of their calving-age cows to qualify for the reduced price. When members submit mature cow body weights and body condition scores or hip heights on 90% of their calving-age cows, they will receive a $5 credit to their account for each reported cow. Cows must be 18 months of age or older when mature cow measurements are taken to qualify for the $5 credit. The $5 credit will only be applied once in an animal’s life. For example, if a member received a credit for the phenotypes in 2018 for that cow, they cannot receive another credit for the same cow with a new weight and BCS in 2019.

The CHR program also continues to accept new herds. The project tests females at $25 per sample for a GGP100K genomic test. Members must test 90% of their calving-age cows to qualify for the reduced price. When members submit mature cow body weights and body condition scores or hip heights on 90% of their calving-age cows, they will receive a $5 credit to their account for each reported cow. Cows must be 18 months of age or older when mature cow measurements are taken to qualify for the $5 credit. The $5 credit will only be applied once in an animal’s life. For example, if a member received a credit for the phenotypes in 2018 for that cow, they cannot receive another credit for the same cow with a new weight and BCS in 2019.

Additional requirements apply for both programs. Please visit simmental.org, and email researchdna@simmgene.com for full program requirements and more information.

Office Holiday Schedule

Thursday, November 28 & Friday, November 29

Thanksgiving Wednesday, December 25, Thursday, December 26, & Friday, December 27