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SPRING

NATIONAL CATTLEMEN • The Journal for America’s Cattle Producers

Volume 26 • Issue 2

8 12 Reproductive efficiency is the most important trait in the success of any cow-calf operation. In this article, we give you a summary of a special Applied Reproductive Strategies in Beef Cattle Workshop held during the 2010 Cattle Industry Annual Convention and NCBA Trade Show.

15 STOCKING RATE CRITICAL TO GRAZING MANAGEMENT

Learn some management tips to match your ranch’s forage resources to your cow numbers by reading this article that summarizes a popular Pfizer Animal Health sponsored Cattlemen’s College ® session held during the 2010 Cattle Industry Annual Convention.

16 FINDING BEEF’S “DIAMONDS IN THE ROUGH”

Researchers have found new ways to add value to the chuck and the round. Cattlemen’s College® attendees had an opportunity to learn about some of these exciting innovations during the 2010 Cattle Industry Annual Convention.

20 SETTING THE RECORD

STRAIGHT ON ANTIBIOTIC USE It’s time that lawmakers had the facts about this issue.

NCBA coordinated two well-attended briefings in Washington, D.C. in February to make sure that the right information is getting to the right people.

ABOUT THE COVER Cope Farms in Aurora, Mo.

6 LEADERSHIP & SOLUTIONS Meet Bruce Hafenfeld, a California rancher and current NCBA policy division chairman, and learn more about his priorities for NCBA in the coming year.

8 AROUND NCBA The 2010 Cattle Industry Annual Convention and NCBA Trade Show marked a significant time in the future of NCBA. Be sure to read about some of the highlights that will help steer the course for an association ready to take the bull by the horns.

10 MEMBER SPOTLIGHT

DEPARTMENTS

COMPLEXITY OF FERTILITY

FEATURES

12 UNDERSTAND THE

20

Kris and Becky Vincent are two of the hardest working NCBA members you’ll meet.

Learn more about this Ohio couple and their commitment to NCBA’s mission.

18 CATTLEFAX The experts at CattleFax give you insight into the changing size of the national cowherd.

22 ALLIED INDUSTRY AND PRODUCT COUNCIL DIRECTORY NCBA appreciates the generous support of its Allied Industry and Product Council members and encourages you to support these partners by purchasing their products and services.

www.NationalCattlemen.com Th is address takes you to National Cattlemen online.

National Cattlemen’s Beef Association reserves the right to refuse advertising in any of its publications. National Cattlemen’s Beef Association does not accept political advertising in any of its publications. National Cattlemen’s Beef Association does not accept advertising promoting third-party lawsuits that have not been endorsed by the board of directors.

4

Spring 2010 National Cattlemen

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LEADERSHIP & SOLUTIONS 6

Straight Talk

B

ruce Hafenfeld is the their livelihoods,” he says. current NCBA policy “The current administration division chairman has been difficult to get and when you talk to to know and it’s been this California producer, challenging finding ways to it’s evident he’s got the work with them, but recent personality and experience events indicate that tide may for the job. A no-nonsense be changing.”

Bruce Hafenfeld individual, he’s always direct Secondly, making NCBA NCBA Policy and clear on where he stands a stronger organization is a Division Chairman on the issues. major priority for Hafenfeld Hafenfeld runs an as he continues in his role integrated cow-calf operation based in as policy division chairman. “For our the Kern River Valley near the town of industry to be profitable, we have to be Weldon, Calif. in partnership with his careful to not segment ourselves. It is my wife Sylvia and son Eric and daughterhope that the changes being considered in-law Jamie. The Hafenfelds retain within NCBA will be bring us back to ownership on their calves and market our strength, which is that of a unified them through a branded beef alliance. grassroots organization,” says Hafenfeld.

They also run an extensive stocker “We have to be proactive, not reactive operation and and we need utilize both the financial private and capacity public lands and staff to to support accomplish their ranch. that goal,” “I know the he adds. “I pitfalls and the think a lot opportunities of folks have that exist in all recognized facets of cattle this and that’s production, why the dues whether it is increase that at the cowwas also calf level or at considered the feedlot level, because I’ve learned during convention passed without through my own personal experience,” any dissent.” says Hafenfeld. This former Marine has And while Hafenfeld is firm in his served in numerous leadership positions beliefs, he also understands that an open both within the California Cattlemen’s dialogue is important.

Association, including past president, Whether it be with an elected official as well as NCBA. “I hope I can bring on the other side of an issue, a non what I’ve learned about the industry NCBA member or even to understand and my involvement in a state and differences of opinion within the national association and focus on the organization, it is important to keep job at hand.” the lines of communication open to For Hafenfeld, that job is first and accomplish positive change. foremost to focus on what NCBA does “We always have to ask ourselves for its members in Washington, D.C. “I how we can fix what we’re doing really think that’s the most important wrong and how we can do better to be thing we do, is fight for our members accountable to our own industry and and affiliates on the issues that impact create value for our members.”

We have to be proactive, not reactive and we need the financial capacity and staff to accomplish that goal.

Spring 2010 National Cattlemen

NATIONAL CATTLEMEN The Journal for America’s Cattle Producers

SPRING 2010 VOLUME 26, ISSUE 2 2010 Officers President President Elect Vice President Federation Division Chairman Policy Division Chairman Chief Executive Officer Publishing Team

Steve Foglesong Bill Donald J.D. Alexander Scott George Bruce Hafenfeld Forrest Roberts Walt Barnhart Kristina Butts Holly Foster Tod Kalous Jacque Matsen Don Waite

To Learn More About NCBA Call 1-866-BeefUSA (1-866-233-3872) or visit www.BeefUSA.org.

To receive e-mail updates from NCBA, contact Sheryl Slagle at sslagle@beef.org.

How To Contact National Cattlemen’s Beef Association: P.O. Box 3469, Englewood, CO 80155 (303-694-0305); Washington, D.C.: 1301 Pennsylvania Ave. N.W., Suite 300, Washington, D.C. 20004 (202-347-0228).

National Cattlemen is a publication of the National Cattlemen’s Beef Association.

Published by Naylor, LLC 5950 NW 1st Place Gainesville, FL 32607 Phone: 800.369.6220 | Fax: 352.331.3525 Web site: www.naylor.com Naylor Publisher Kathleen Gardner Naylor Editor Elsbeth Russell Project Manager Ray Goodwin Publication Director John O’Neil Advertising Sales David Evans, Robert Shafer, Paul Woods Marketing Associate Erin Sevitz Advertising Art Elaine Connell ©2010 National Cattlemen’s Beef Association. All rights reserved. The contents of this magazine may not be reproduced by any means, in whole or in part, without the prior written consent of the National Cattlemen’s Beef Association.

HUNDREDS OF CUSTOMER SUGGESTIONS. ONE REMARKABLE ACHIEVEMENT.

The all new John Deere D-Series. What do hundreds of customer suggestions look like? At John Deere they look like innovation. Nine new skid steer and CTL models including two new sizes, all with amazing attention to details suggested by the people who use them all day, every day. Things that make a productivity difference like 3 different control options and more fuel capacity. Even little things like adding a rearview mirror and a longer, easier to reach dipstick. Proving once again, the difference is in the D-tails. See it at your dealer or call 1-800-503-3373.

Learn more about special incentives for NCBA members: visit www.JohnDeere.com/NCBA

YOUR NCBA

Around NCBA New officers elected during 2010 Cattle Industry Annual Convention More than 6,000 cattle producers traveled to San Antonio to attend the 2010 Cattle Industry Annual Convention and NCBA Trade Show. Steve Foglesong, owner of Black Gold Ranch in Illinois, was officially elected to succeed Gary Voogt as NCBA’s new president. Foglesong encouraged NCBA members to join him in leading this great industry—and the association—to an even stronger future, by getting engaged in the issues and telling their story to the public, as well as lawmakers in Washington, D.C. “Our industry has a great story to tell,” said Foglesong. “Our numbers may be small, but when each of us engages and makes our voice heard, we are a force to be reckoned with.”

Former Vice President Bill Donald of Montana was confirmed as the new president-elect, and former Federation Division Chairman J.D. Alexander of Nebraska was elected to succeed Donald as vice president.

Other newly-elected officers include: Scott George, Wyoming, federation division chairman; David Dick, Missouri, federation division vice chairman; Bruce

Dues increase will fuel progress During the 2010 Cattle Industry Annual Convention, the NCBA Board of Directors voted unanimously to approve a dues increase to help ensure the association continues to stay on sound, sustainable fi nancial footing.

Cow-calf, stocker and seedstock producers will now have a base dues fee of $100. Feeder assessments increased from 10 cents to 12.5 cents per head.

The Allied Industry Council also expressed confidence in NCBA, voting during its meeting to increase member dues from $17,500 to $25,000.

Leading up to the approved increase, members, state affi liate organizations and producer leaders

8

Spring 2010 National Cattlemen

Hafenfeld, California, policy division chairman; and Bob McCan, Texas, policy division vice chairman.

Foglesong shared his outlook for 2010 with convention attendees. Despite the very real challenges facing the industry, he said he’s optimistic about the year ahead.

“We must help our lawmakers, our media and our nation understand why agriculture is vital to our economy and the health of our people. NCBA is the association where we come together to get that done.”

across the country provided their input and in San Antonio showed across-the-board support for the increase. NCBA is now working with state affi liates to ensure a smooth implementation.

“We all want to have a say in how and where we drive the truck, but membership dollars are the gas in the tank, and without those, we won’t get far,” said Bill Donald, president-elect of NCBA and a producer from Montana.

New governance concept adopted by wide margin In an effort to be a more efficient and agile organization, the NCBA Board of Directors voted in San Antonio to adopt a restructuring recommendation from the Governance Task Force

that will significantly streamline the association, while maintaining grassroots input from members.

Meeting at the 2010 Cattle Industry Annual Convention and NCBA Trade Show, the board adopted the Governance Task Force recommendation by a 20113 margin. The new governance structure features a smaller NCBA Board of Directors and a new House of Delegates that will include the organization’s state affi liates, state beef councils, industry/breed organizations and product/allied industry councils. The Federation of State Beef Councils would be housed within the House of Delegates, and continue to conduct its federation duties as specified in the Beef Promotion and Research Act and Order.

“This is an important step in making our industry more responsive to the challenges it faces,” said Jan Lyons, a Kansas beef producer, past president of NCBA and co-chair of the Governance Task Force.

Working groups have been formed to further develop the bylaws, investment schedule and transition timeline for the new structure. Bylaw changes will be considered by the board at the Summer Conference in Denver this July.

For more specifics about the recommendation, visit www.beefusa.org.

California family recognized for environment stewardship Leavitt Lake Ranches of Vina, Calif., has been named the 2009 National Environmental Stewardship Award winner. The operation was honored during the 2010 Cattle

Industry Annual Convention and NCBA Trade Show for making environmental stewardship a priority.

The Environmental Stewardship Award is sponsored

by Dow AgroSciences, the USDA Natural Resources Conservation Service (NRCS) and the U.S. Fish & Wildlife Service, and is administered by NCBA and the National Cattlemen’s Foundation (NCF).

For more information about Leavitt Lake Ranches and the regional finalists, visit www.environmentalstewardship.org.

Coming in the next issue The Summer edition of National Cattlemen will feature “Directions,” an annual snapshot of the beef industry that is compiled exclusively for NCBA by the expert team at CattleFax. Th is in-depth analysis of industry movers and shakers will also include profi les of some of the leaders in the beef industry and their outlook for the coming year. “Directions” will help you understand where your operation fits within the industry and how you can better align with partners throughout the chain. As you get ready to market this year’s calf crop, this edition will be key to understanding issues that affect your bottom line.

It’s time for our industry to BOUNCE BACK. It’s time for us to BRAND and to CREATE our own DESTINY. Beefing up demand: Adding value while reducing costs!

Achieving differentiation through branding quality: Alltech Angus model of success Cow-calf operation – The story of Irish beef going into the Italian market: How that industry took charge of its destiny Traceability we can build on: Lessons from some of the industry’s worst recalls

26th Annual International Animal Health and Nutrition Symposium MAY 16 - 19 | LEXINGTON, KENTUCKY, USA For more information, or to request an invitation, please contact your local Alltech representative, visit www.alltech.com/symposium or email us at symposium@alltech.com.

Delegates who are members of ARPAS and AAVSB will be able to earn CEUs

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9

MEMBER SPOTLIGHT

Top Hands from Canton, Ohio

“Y

ou need an organization like NCBA working for you if you want to be in the cattle and beef business,” says Kris Vincent, who along with his wife Becky runs a fourth-generation family farm that includes cattle and hogs, a direct sale meat business, and all while they both hold down full-time jobs off the farm.

Both Becky and Kris work hard to help non-members recognize the value of NCBA. “If people don’t see the value in belonging, then they won’t want to spend the money to join,” says Kris. “A lot of people are aware of the issues confronting our industry, but they don’t realize we have an NCBA staff to help us fight those battles. I feel like it’s my job to explain that when I’m trying to get someone to join. I always tell them in a joking manner that if they give us the money, we’ll do the work,” he adds.

“It was through my employment with an animal health product distributor that I first became aware of NCBA and the benefits that it offered to its members,” says Becky.

“Our goal as recruiters has been to make other people aware of the organization and what it can do for their farm and ranch businesses.”

Both Becky and Kris have been active in leadership roles, with Kris representing the Ohio Cattlemen’s Association on the NCBA Board of Directors and also serving on the Joint Nutrition and Health Committee.

Becky has been active in the Ohio Cattlemen’s Association and Ohio CattleWomen, as well as serving in various capacities in the NCBA Allied Industry Council.

Both Becky and Kris say they have gained just as much as they have taken away from their involvement in NCBA. Becky recently finished up the Master’s of Beef Advocacy (MBA) courses and says the experience was extremely helpful during Ohio’s ballot initiative fight last fall to create a Livestock Care Standards Board.

“I wrote letters to the editor and took part in a variety of activities to support the effort,” says Becky. “I probably wouldn’t have done those things had I not participated in the MBA program,” she adds.

“Our kids are actively involved in our operation and want to see it continue,” says Kris. “We want to make sure our kids have that opportunity and NCBA is helping us accomplish that goal.”

Win a FREE Bottle of Cydectin® Pour-On! Existing members can take advantage of this great program by recruiting a new or reinstated member (has not had an active membership for at least three months), and receive a free bottle of Cydectin ® Pour-On. New NCBA members who join between now and May 31, 2010, will also get a free 500 mL bottle of Cydectin ®Pour-On. If your new recruit also joins a state affiliate, he or she will get a second bottle of Cydectin ®Pour-On. This offer is only good while supplies last, so act now to take advantage of this great opportunity from Boehringer Ingelheim Vetmedica, Inc. (BIVI). For more information, contact NCBA at 866-BEEF-USA.

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YOUR BUSINESS

Understand the Complexity of Fertility

By Holly Foster

T

here is no question reproductive efficiency is important to the commercial cattle business.

To help producers better understand this complex topic, NCBA offered a special Applied Reproductive Strategies in Beef Cattle workshop during the 2010 Cattle Industry Annual Convention and NCBA Trade Show.

Most of the sessions focused on utilizing artificial insemination (AI) and estrus synchronization protocols, but one offered a review of

12

Spring 2010 National Cattlemen

the management factors important to fertility in both synchronized and natural breeding programs.

When cows do not become pregnant during a defined breeding season, it can have a major economic effect on a beef cow operation according to presenter George Perry, Ph.D., South Dakota State University. “The goal of any breeding program, whether it be AI or natural service, synchronized or not, should be to maximize the number of females that become pregnant,” says Perry.

In reviewing the various factors affecting fertility and conception rate, Perry recommends using the “equation of reproduction,” which includes: 1) Percentage of animals detected in standing estrus and inseminated; 2) Inseminator efficiency (either a bull or an AI technician); 3) Fertility level of the herd; and 4) Fertility level of the semen.

In a natural service breeding program, the first component of the equation might seem simple—it’s the bull’s job. However, according to Perry, there are differences in bulls. “Libido is thought to be a highly heritable trait with a value ranging as high as 0.59,” says Perry. “It is important to remember that scrotal circumference, semen quality and physical conformation—those traits evaluated in a breeding soundness exam—are not related to libido.”

Rather, a practical evaluation of libido can occur by simply watching a bull after introducing him to a cowherd and determining his desire to detect cows in estrus.

Bull libido in a natural service mating program is critical, as it has a direct affect on pregnancy rate, and can influence the entire breeding season, according to Perry.

In an AI breeding program, the technician must take the place of a herd bull and thus, accurate estrus detection is just as important. A study evaluating 500 cows demonstrated that almost 56 percent initiated standing estrus between the hours of 6 p.m. and 6 a.m. For this reason, estrus synchronization becomes an important management consideration as it allows you to manipulate the estrous cycle of cows or heifers to cause them to exhibit standing estrus at the same time.

YOUR BUSINESS Th is greatly reduces the amount of time and labor involved with estrus detection.

Some estrus synchronization protocols are capable of inducing puberty in heifers or shortening the anestrous postpartum period in mature cows, and as a result, can enhance the percentage of cows having a chance to become pregnant during the first few days of the breeding season.

In natural service breeding programs, efficiency is influenced by the ability of a bull to service a cow.

That’s why breeding soundness exams that evaluate bulls for not only semen quality and quantity, but also structural soundness, disease and injury are so important to conduct prior to turn-out. In artificial insemination, efficiency is

influenced by semen handling and the ability of the technician.

According to Perry, fertility level of the herd may be the hardest factor to evaluate in

When cows do not become pregnant during a defined breeding season, it can have a major economic effect on a beef cow operation. the equation. “Cycling status, embryonic mortality, body condition and plane of nutrition, as well as any disease conditions

affecting the cows can all impact herd fertility.”

Fertilization rates are usually between 90 percent and 100 percent if semen is present in a cow’s reproductive tract at the time of ovulation. “While fertilization usually takes place, conception rates, which are the number of animals that conceive divided by the number of animals that were inseminated, are usually around 60 percent to 70 percent,” says Perry.

Some natural occurrences such as poor oocyte quality, disease or genetic abnormalities can lead to embryonic mortality, but stress, especially heat and shipping stress also can be detrimental to embryonic survival.

An embryo doesn’t fully attach to a cow’s uterus until day 42 after fertilization, according to Perry.

If a stressor such as extreme heat or shipping occurs prior to that point in time, increases in stress hormones can impact the uterine environment

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13

YOUR BUSINESS and complicate maternal recognition of pregnancy and uterine attachment.

The embryo is still in the oviduct and not susceptible to changes in the uterus until the fifth day after fertilization. However, research has demonstrated that a stressor such as shipping between day five and 42 can cause as much as a 10 percent decrease in pregnancy rates.

Unfortunately, heat stress can have an impact even prior to fertilization,

Differences in seminal traits have been researched for decades in an effort to predict reproductive success. and cows that experience heat stress as much as 40 days prior to breeding can have lower pregnancy rates.

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Changes in a cow’s body temperature by as little as 2°F can result in decreased embryonic development. Research also has demonstrated that heat can change follicular waves resulting in reduced oocyte quality.

Differences in seminal traits have been researched for decades in an effort to predict reproductive success.

According to Joe Dalton, Ph.D., University of Idaho, there are certain traits that affect a sperm’s ability to reach the ovum, bind to and penetrate the zona pellucida of the egg that are considered “compensable” traits.

Consequently, reduced fertility may be overcome or minimized by increasing the sperm dosage. Th is, however, is only one of many important factors in AI programs.

“Uncompensable” seminal deficiencies result in suppressed fertility regardless of sperm dosage. These traits are related to the ability of sperm to actually complete fertilization and sustain early embryonic development. “If a bull has unacceptably high levels of abnormal sperm, he should not be collected as an AI sire,” says Dalton.

Reproductive efficiency and fertility are the drivers in the commercial cattle business. The factors influencing ©2010 CRI A2371-020 fertility can be complex, but as James Lauderdale, Ph.D. of Lauderdale 2/12/10 1:02:24 PM Enterprises said during his remarks • Prevents Livestock Crossings at the workshop, “In the absence of • Permanent or Portable • Withstands Any Traffic reproduction, there is no cow-calf enterprise. So, you better pay attention.”

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Spring 2010 National Cattlemen

Holly Foster is a fourth-generation cattle producer and freelance writer based in California.

3/5/09 8:21:24 AM

YOUR BUSINESS

Stocking Rate Critical to Grazing Management

By Walt Barnhart

W

hen it comes to raising cattle, increased herd size doesn’t necessarily mean increased profitability. Proper stocking rates on grazing land can play a huge role in your overall bottom line.

Larry Redmon, state forage specialist with the Texas AgriLife Extension Service, made the case for appropriate stocking at a Cattlemen’s College® session sponsored by Pfizer Animal Health during the 2010 Cattle Industry Annual Convention and NCBA Trade Show in San Antonio in late January. He said the importance of using the appropriate stocking rate can’t be overstated.

“Many of the operations I work with are overstocked,” he said. “The most critical aspect of livestock management is using the appropriate stocking rate.”

If you’re using the same rate that your father or your grandfather used, you may need to make some adjustments. In your grandfather’s day, cows ate 21 pounds of dry matter per day and weighed 800 pounds. In your father’s day, they ate 26 pounds of dry matter per day and weighed 1,000 pounds. Today, they eat 31 pounds of dry matter per day and weigh 1,200 pounds. That means fewer cattle may be able to thrive on the acreage, even if it’s in better shape.

While there is no universal “best stocking rate,” Redmon has some good suggestions for determining what the appropriate stocking rate for a ranch should be: Put it in writing. While Redmon recognizes that written plans “can be boring,” he says “you have to monitor your operation.” According to Redmon, agricultural economists have it right when they say “you can’t manage what you don’t measure.”

Get a soil test. If you are using introduced forages, this is one of your best investments, Redmon says. You may be overapplying expensive fertilizer on your land, or underapplying needed nutrients. And you definitely need to have a consistent application of nitrogen. The only way to have the proper fertilizer is to base it on a soil test. And with the cost of fertilizer sure to go up, that’s crucial, he says.

Determine your best forages. If your cattle are grazing on bermudagrass today, it may be difficult to pencil out a profitable operation—especially if you’re applying fertilizer on at $40-$45 an acre and selling cattle for $600.

Scrimping on the fertilizer isn’t the answer, either. If you don’t fertilize bermudagrass, it won’t remain bermudagrass for long, with increasers and invaders eventually taking over. If plant composition changes, “it’s usually in a direction that you will not be happy with,” Redmon says.

Maximum Net Return Occurs Here High

Gain/animal Net Return/acre

Gain/acre Zero Very light

Light

Moderate Heavy

Increasing Stocking Rate Consider other forages if bermudagrass becomes unsustainable. Depending on where you are in the country, other forages to consider could include bahiagrass, kleingrass and specific Old World bluestems. If you are in the south, these forage species can persist with little-to-no fertilizer inputs.

In addition, many people today are interested in native prairie restoration. Native forages are adapted to the environment, offer the beginning of improved wildlife habitat and may be more economically viable even with the reduced stocking rate required for them.

Manage the brush. Brush encroaching on grazing land can have a tremendous effect on stocking rate. “Brush sneaks up on you,” says Redmon, and eventually may take over an operation. “Don’t let it.”

Be aware of animal behavior. Stocking rate must be adjusted for acreage located more than a mile from the nearest water source. When cattle have to travel more than a mile to find water, forage utilization is less. They will also avoid areas with excessive rock cover, which is usually more than 30 percent of the surface area. A slope of more than 10 percent can have an impact too, so adjust for topography. In other words, says Redmon, stocking rate isn’t just the acreage; it’s the amount of grazeable acreage the cattle can and will use. That becomes the effective stocking rate for the operation.

Be prepared for drought. Most producers will experience drought at some point, Redmon says, so adjust your stocking rate accordingly. If you stock your operation at 75 percent of the optimum rate, “things will look a lot better in the pasture and in your pocketbook in the event of a drought,” he says.

www.NationalCattlemen.com

15

YOUR BUSINESS Be aware of the environment. Environmental issues, such as water quality are important in your overall management scheme. Look to your local extension agents or assistance from agencies such as the Natural Resources Conservation Service (NRCS) to stay abreast of environmental issues specific to your area.

Document your progress. Put a digital camera on a t-post in the middle of your property and take photos from it facing north, south, east and west. Compare those images to photos you take a year later. Is your plan working? The photos are an easy way to chronicle your progress, Redmon says, although “written records are hard to beat.”

Get advice. Your extension office or NRCS will be helpful, no matter what your level of knowledge or needs.

And there’s no substitute for getting advice from your successful neighbors and peers.

Finally, Redmon says cattlemen should not be reluctant when it comes time to reduce herd size or move

their cattle. While no cattleman likes to give up their good cows or see their pastures empty, sometimes you have to recognize that what is best for the land and the forage base is also best for the cattle and the operation.

That can be one of the hardest things for some cattlemen to accept, Redmon says—especially if the cattleman has invested a lot in his genetic program.

When weather or other conditions compel it, though, choices become limited. “If genetics are that important to you, load them up and take them somewhere else,” he says.

With costs increasing faster than profits these days, it’s critical that cattlemen carefully manage all aspects of their operations, Redmon says. Keeping pastures appropriately stocked is a strategy that will pay dividends for years to come.

Walt Barnhart is owner of Carnivore Communications and has been writing about the beef industry for 35 years.

Finding Beef’s “Diamonds in the Rough”

By Holly Foster

T

oday’s tough economy means that consumers are more price-conscious than ever. A session at the Pfizer Animal Healthsponsored Cattlemen’s College ® at the 2010 Cattle Industry Annual Convention and NCBA Trade Show demonstrated how years of checkofffunded research have culminated in new steak options that meet consumer demands for quality and economy.

“The chuck and the round represent more than two-thirds of the beef carcass, but for years, they continued to lose value as people moved away from traditional roasts and cooking methods,” said Bridget Wasser, NCBA director of product enhancement, during the presentation.

Using checkoff dollars, NCBA worked with university researchers to characterize 39 muscles from the chuck and round for palatability characteristics. What they found were several “diamonds in the rough,” or underutilized muscles that if fabricated in less traditional methods, could be marketed as steaks or singlemuscle roasts. Commonly referred to as Beef Value Cuts, these new steak

16

Spring 2010 National Cattlemen

Bridget Wasser demonstrates how new alternative cuts are fabricated from the chuck roll. options achieved the goal of offering more options to consumers at a more moderate price.

“The flat iron, petite tender and ranch steak that are fabricated from the shoulder clod have been a boon to the industry, especially during this economic downturn,” said Jim Ethridge, director of new product industry partnership for NCBA. “By merchandising these cuts as

alternatives to rib and loin steaks, both retailers and foodservice operators have been able to continue to offer their customers high-quality steaks, but at a more economical price.”

According to Technomic, Inc., a data research fi rm, in 2008, foodservice sold approximately 83 million pounds of fl at irons versus 25 million pounds of porterhouse and 51 million pounds of T-bone steaks.

CattleFax estimates that the Beef Value Cuts that have already been introduced in the marketplace have added $50 to $70 per head in carcass value.

There’s still more room for growth as NCBA’s Beef Innovations Group (BIG) is now working on commercializing cuts from the chuck roll, such as chuck eye steaks and boneless country-style beef chuck eye ribs. Another option, the Denver cut, is being developed from the under blade and is the fourth most tender muscle in the carcass. “It is our goal that these new cuts gain as much traction as the Beef Value Cuts from the shoulder clod and that we continue to add value to the chuck and the round,” added Wasser.

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CATTLEFAX

YOUR MARKET UPDATE

U.S. Cowherd Trends: A More In-Depth View

By Tod Kalous

L

ooking at beef and dairy cow numbers by state and region shows some interesting trends over the past decade.

The state that has seen the largest decline in terms of total beef cow numbers since 2000 is Texas, down 290,000 cows. This fact probably is not surprising considering the drought that Texas producers have experienced over the past several years. However, from a regional perspective the north Plains region (Montana, North Dakota, Nebraska, South Dakota, Wyoming) has actually experienced the largest decline over the past decade, down 621,000 beef cows.

Of the ďŹ ve states included in the north Plains region, Nebraska has had the largest decline, down 193,000 cows, which is the second largest decline nationwide. The Southeast region (Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia) is second in line, down 468,000 cows, followed by the south Plains (Colorado, Kansas, New Mexico, Oklahoma, Texas) down 358,000 cows. The Midwest (Iowa, Illinois, Indiana, Michigan, Minnesota, Missouri, Ohio, Wisconsin) inventory is down 334,000, the Northwest (Idaho,

,IVINGSTON !VE s 2OSELAND .EW *ERSEY s INTERVETUSA COM s s s ____________________________________________________________________ 2EVALOR 83 IS PROPERTY OF )NTERVET )NTERNATIONAL " 6 OR AFl LIATED COMPANIES OR LICENSORS AND IS PROTECTED BY COPYRIGHTS

TRADEMARK AND OTHER INTELLECTUAL PROPERTY LAWS #OPYRIGHT Š )NTERVET )NTERNATIONAL " 6 !LL RIGHTS RESERVED

18

Spring 2010 National Cattlemen

Oregon, Washington) down 229,000, the Southwest (Arizona, California, Nevada, Utah) down 187,000. The Northeast (Connecticut, Delaware, Massachusetts, Maryland, Maine, New York, New Hampshire, New Jersey, Pennsylvania, Rhode Island, Vermont) inventory actually increased 27,000 head since 2000.

On the dairy side, states in the Midwest, Northeast and Southeast regions have experienced most of the decline over the past decade while states in the West and south Plains regions have grown. Wisconsin, New York and Pennsylvania declined the most, down 269,000 cows combined since 2000. California, Idaho and

YOUR MARKET UPDATE New Mexico increased by 570,000 cows since 2000.

Just looking at the change in the dairy cowherd in the past year indicates there were 36 states that decreased in numbers, eight were flat and six showed an increase.

Interestingly, with the unexpected 2 percent increase in dairy replacement heifers, there were 24 states that contributed to the increase.

Only 14 states saw a decline in replacement heifers.

The U.S. beef cowherd has declined 12 out of the past 14 years and although some regions have declined more than others over this time-frame, all regions of the United States have shared in the decline. This is likely the result of increasing costs and declining prices, which has lead to very narrow profit margins for operations in all parts of the country. The dairy cowherd, although smaller due to the dairy

40

0

30

-100

20

000 Head

000 Head

100

-300 -400 -500 The combined change in beef cow numbers since 2000 is a decline of near 2.2 million cows.

-600 -700

Tod Kalous is a market analyst with CattleFax, a member-owned market information organization serving producers in all segments of the cattle business.

Change in Dairy Replacement Heifers from 2009 to 2010

Change in Beef Cows by Region from 2000 to 2010

-200

buyout programs in 2009, may not have a lasting impact due to the increased number of replacement heifers. The dairy cowherd will likely be larger by 2011 unless a large dairy cow slaughter occurs this year.

The 10 states with the largest increase in dairy replacements from 2009 to 2010 combined for a total increase of 153,000 females.

10 0 -10 -20

The 10 states with the largest decrease in dairy replacements from 2009 to 2010 combined for a total decrease of 82,000 females.

-30 -40

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N. East

CA TN ND IL OK SD VT FL MT CT KS MO CO MI MN WA ID WI PA TX Source: USDA

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19

YOUR CAPITOL CONCERNS

Setting the Record Straight on Antibiotic Use

By Kristina Butts

A

nimal health and wellbeing are top priorities for cattle producers across the country. Without healthy animals, we do not have a healthy industry.

Cattlemen utilize important tools like vaccines, antibiotics, nutrition, herd management and genetic selection to prevent, control and treat disease, which benefits cattle wellbeing and the safety of the food supply. Ongoing activist and media reports, however, suggest that the use of drugs in animal agriculture is often inappropriate and is poorly controlled. Misleading statements such as these threaten to undermine the science-based approval process currently in place for these products.

NCBA’s Government Affairs team has seen an increased interest in restricting antibiotic use from the new administration, as well as Congress, primarily driven by concerns about antibiotic resistance.

A bill commonly referred to as PAMTA (Preservation of Antibiotics for Medical Treatment Act) that has been introduced in both the U.S. House and U.S. Senate would ban the use of antibiotics in livestock.

The legislation doesn’t recognize that animal drugs already are required to go through a rigorous, sciencebased testing process before they are approved for use. Nor does it recognize that the Food and Drug Administration (FDA), the U.S. Department of Agriculture (USDA), veterinarians, animal health companies, producer organizations and other stakeholders have implemented several layers of human health protections to reduce any risks associated with antibiotic use in animals.

20

Spring 2010 National Cattlemen

Educating decision makers For more than a year, NCBA has organized an educational briefing series known as “Beef 101” to educate decision makers on Capitol Hill. Topics have included: basics about the beef industry, cattle health and wellbeing and the industry’s commitment to safety.

NCBA has organized four Beef 101 educational briefings on the science behind the industry’s responsible use of antibiotics and the antibiotic approval process.

Most recently, NCBA coordinated two briefings to educate Congressional staffers about why and how antibiotics are used in the beef and livestock industry. The first briefing was beef-focused and held on Feb. 3. NCBA invited Dr. Michael Apley, a veterinary clinical pharmacologist with Kansas State University (KSU), to Washington, D.C. to educate lawmakers and their staff about the beef industry and how cattle producers and veterinarians use antibiotics. More than 70 agriculture and healthcare legislative assistants attended from both the House and the Senate.

During his visit, NCBA and Apley also met personally with Representatives Louise Slaughter (D-NY) and Leonard Boswell (D-IA) to discuss NCBA’s concerns with PAMTA or H.R. 1549, Representative Slaughter’s bill to ban the use of antibiotics in livestock.

Congressman Boswell also shared his concerns about the bill with Representative Slaughter.

“We appreciate Congresswoman Slaughter taking the time to visit with us. I’m encouraged by her willingness to sit down for an open discussion

and that she has extended an offer for us to be involved in the discussions moving forward,” said Apley.

“It’s extremely important that a data-driven review and analysis be the guiding force behind every decision that affects the care of our animals and the safety of the food we eat.”

The second session was a two-part educational briefing for both House and Senate lawmakers and their staff and was held the last week of February. Th is briefing included industry scientists and experts representing the beef, dairy, poultry and pork industry to educate lawmakers and their staff on the use of antibiotics in each sector.

The briefings were hosted by NCBA, the National Chicken Council, National Pork Producers Council, National Milk Producers Federation, National Turkey Federation, American Meat Institute and National Meat Association.

Additionally, U.S. Representatives David Scott (D-GA), Randy Neugebauer (R-TX), Zack Space (D-OH) and Roy Blunt (R-MO) co-hosted the House briefing and Senator Tom Harkin (D-IA) was the honorary host for the Senate Briefing.

Congressmen Boswell, former chairman of the House Livestock, Poultry and Dairy Subcommittee and David Scott (D-IA) moderated and participated in the House briefing.

Presentations were given by a number of animal health experts, including Dr. Guy Loneragan, an epidemiologist and associate professor at West Texas A&M University who represented NCBA and the beef industry.

“Prompt and judicious use of efficacious antibiotics is critical for

YOUR CAPITOL CONCERNS

Dr. Guy Loneragan speaks to attendees at a briefing about antibiotic use in livestock held in Washington, D.C. the successful treatment and, at times, control of specific bacterial diseases in cattle,” said Loneragan.

“Certain FDA-approved antibiotics also enable us to significantly improve the efficiency of beef production.

Maintaining access to FDA-approved safe and effective technologies, including animal health products, helps ensure both the health and resource efficiency of U.S. herds and flocks.”

About 160 people total—including hill staffers, members of Congress, agriculture industry representatives, and even folks who oppose NCBA’s position on PAMTA—were in attendance at the joint livestock industry briefings.

NCBA will continue these outreach efforts to not only educate decision makers in the Congress, but also administration officials within FDA. FDA’s Center for Veterinary Medicine (CVM) is responsible for ensuring that animal drugs are safe, effective and manufactured to the highest quality standards. The agency is also responsible for reviewing, approving, monitoring antibiotic and other medications used in beef production. Every drug is subject to a safety assessment, efficacy assessment, and quality or manufacturing assessment before it is approved. This rigorous approval process was made more stringent in 2003 when FDA finalized an additional safety measure requiring an antibiotic resistance risk assessment for all new and existing antibiotics known as Guidance 152 (Guidance for Industry Part 152).

NCBA actively participates in numerous livestock coalitions in Washington, D.C. to continually educate lawmakers and agency officials about who the beef industry is and how we utilize new technologies to produce the safe, nutritious and affordable beef products. As an NCBA member, be assured that your voice is being heard not only on Capitol Hill and within the Obama administration but also internationally as NCBA actively participates in the

Codex Alimentarius Task Force on antimicrobial resistance.

The real story Antimicrobial resistance is not a black and white issue. It is multi-faceted and extremely complex topic. A solution cannot be solely focused on the use of drugs in animal agriculture. Unfortunately, animal agriculture has been a primary target in this fight, with little or no consideration given by the public to the use, misuse, and mishandling of human drugs by the general population. To ensure that the issue of antimicrobial resistance is properly addressed, it is imperative that we continue to gather accurate, appropriate, and complete data to identify any problems and all contributing factors.

There has never been a better opportunity for you as cattle producers to be involved in federal issues that will impact your livelihoods. If you’d like more information on how to get involved or to learn more about the Beef 101 educational series please visit www.beefusa.org. For background information and fact sheets please visit www.ExploreBeef.org.

Kristina Butts is director of legislative affairs for NCBA.

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Allied Industry Directory These are companies that have teamed with NCBA as allied industry members, demonstrating their commitment to the beef industry. Their involvement strengthens our future. NCBA members are urged to support these partners in turn by purchasing their products and services. Those who would like to become allied industry partners with NCBA (securing a premium booth placement at the next annual convention and trade show), please call the association marketing team at 303-694-0305.

GOLD LEVEL SPONSORS

ALLIED INDUSTRY PARTNERS

(Minimum $100,000 Investment)

AgriLabs www.agrilabs.com Bayer www.bayer-ah.com Boehringer Ingelheim Vetmedica, Inc. www.bi-vetmedica.com

Nova Microbial Technologies

Agriculture Engineering Associates

Nutrition Physiology Co., LLC

Alltech, Inc.

Phibro Animal Health

American Live Stock Inc.

Plain Jan’s

AniPro

Priefert Manufacturing Company

Bank of America Merrill Lynch

Quali Tech, Inc.

Dow AgroSciences, LLC www.dowagro.com

Beef Magazine

Rabobank International

Caterpillar

Ridley Block Operations

Intervet/Schering-Plough Animal Health www.intervetusa.com

Certified Angus Beef

Ritchie Industries Inc.

Certified Hereford Beef

Roto-Mix

Croplan Genetics

SmartLic Supplement Feed In A Drum

John Deere www.deere.com

Destron Fearing

Stone Manufacturing

Merial www.merial.com

Faegre & Benson, LLP

Temple Tag

Grow Safe Systems, Ltd

Teva Animal Health

Micro Beef Technologies www.microbeef.com

Hartford Livestock Insurance

Tru-Test

IMI Global, Inc.

U.S. Premium Beef, Ltd.

Pfizer Animal Health www.pfizer.com

Kent Feeds, Inc.

US Bank

Kunafin “The Insectary”

Varied Industries Corp.

Purina Mills, LLC www.cattlenutrition.com

22

ADM Alliance Nutrition, Inc.

Lallemand Animal Nutrition

Vigortone Ag Products

Lextron, Inc.

The Vit-E-Men Co. Inc./Life Products

Meat & Livestock Australia, Ltd.

Vitalix

Midwest PMS, Inc.

Walco International, Inc.

Miraco/Gallagher

Western Farm Credit Association

ALLIED INDUSTRY COUNCIL

Moly Manufacturing

WW Livestock Systems

New Holland

Z Tags North America

Allflex USA, Inc. Alpharma Barenbrug Cargill Animal Nutrition Central Life Sciences CME Group Elanco Animal Health Leo Burnett USA Monsanto Novartis Animal Health U.S., Inc. Novus International Pioneer, A DuPont Business Y-Tex Zinpro Corporation

Noble Foundation

Spring 2010 National Cattlemen

PRODUCT COUNCIL MEMBERS American Foods Group Beef Products, Inc. Booker Packing Company Cargill Meat Solutions Darden Restaurants DuPont Qualicon Gilroy Foods & Flavors H.E.B IEH Laboratories JBS Kraft Foods/Oscar Mayer

Lobel’s of New York McDonald’s Corporation National Beef Packing Outback Steakhouse Same Kane Beef Processors Smithfield Beef Group, Inc. Tyson Fresh Meats United Food Group Wal-Mart Stores Wendy’s International

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