July 2022 - National Cattlemen

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N A T I O N A L CATTLEMEN

To be the trusted leader and definitive voice of the U.S. cattle and beef industry. JULY 2022 • Vol. 38, No. 10 • NCBA.org

MARKET SNAPSHOT WEEK OF 6/20/2022

CURRENT VS. LAST YEAR SOUTH CENTRAL 500-600 LB. STEERS

$182.92

$162.39

12.6%

LIVE FED STEERS

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17.0%

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CHOICE BOXED BEEF

$329.72

18.6%

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OMAHA CASH CORN

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32.7%

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IN THIS ISSUE 4

PARASITE CONTROL

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MARKETING ONLINE

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REGION ll REPORT

NCBA’s experts give practical advice to manage parasites in the summer. There are many ways for producers to market their cattle. Online options are becoming more popular.

Region II is taking regulatory action and increasing processing capacity.

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MARKET MATTERS

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CHECKOFF NEWS

Calf slaughter numbers remain similar to 2021, and beef demand remains steady despite economic obstacles.

Health professionals are an important part of increasing the awareness of beef’s great benefits.

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FEDERATION

NATIONAL CATTLEMEN’S BEEF ASSOCIATION 9110 E. NICHOLS AVENUE, SUITE 300 CENTENNIAL, CO 80112

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State Beef Councils take advantage of increased travel after COVID-19.

NCBA Fights Against Overreaching SEC Climate Rule Founded after the wild stock market drops of the 1920s, the U.S. Securities and Exchange Commission (SEC) is the federal agency tasked with regulating publicly traded companies and major investors. From the days of stockbrokers shouting on the floor of the New York Stock Exchange to the rise of digital investing, the SEC has always been a Wall Street watchdog, but recently the SEC reached beyond its authority by proposing a rule that will impact private companies, including agricultural operations. In March, the SEC proposed a sweeping climate rule that would indirectly require private businesses, like family farms and ranches, to collect and report GHG emissions data. “The SEC is far beyond their statutory jurisdiction by proposing a rule that could impact thousands of small businesses, farms and ranches across the United States,” said NCBA Environmental Counsel Mary-Thomas Hart. “The SEC has no sense of how this onerous rule will burden farmers and ranchers.” The proposed rule would require publicly traded companies to report their scope one, scope two and scope three emissions. Scope one emissions are direct greenhouse gas emissions, like those coming from factories, stores or trucks. Scope two emissions count energy and electricity use. Scope three emissions count emissions from each step of a company’s supply chain — scope three is where cattle producers are at risk. “Picture a steakhouse serving beef or a grocery store stocking the meat counter. Those companies would need to report not only their direct emissions from the restaurant or store, but also the emissions from every producer who sold them beef, including cow-calf operators, stockers, backgrounders and feeders,” said Hart. “The entire cattle industry could be impacted by this rule.” Measuring emissions from individual operations is already difficult, if not impossible, and estimates will likely be incorrect. This also poses another risk in the form of legal liability. If publicly traded companies or their shareholders feel that farm-level emissions data is incorrect, producers could be liable to lawsuits. On average, publicly traded companies are spending more than half a million dollars on climate disclosures according to a survey of companies conducted by the SustainAbility Institute by ERM.1 As investors and activists push companies to provide more climate data, the cost to comply with these requirements is only expected to rise. These costs are vastly higher than what producers can afford, and compliance requires attorneys and consultants to understand complex climate disclosure rules. “With producers facing rampant inflation and soaring input costs, another complicated, expensive climate rule is unaffordable. NCBA has urged policymakers in Washington to focus on addressing the real issues hurting producers

now, rather than try to craft massive new environmental rules,” said Hart. Since the rule was first announced, NCBA has taken swift action to push back on the SEC. NCBA submitted comments on the proposed rule urging the SEC to limit the rule to only direct and energy emissions from publicly traded companies and completely remove the scope three (supply chain) requirement that emissions from cattle operations would be counted under. NCBA also highlighted that the federal government already collects industrywide emissions data through the Environmental Protection Agency’s (EPA) annual Greenhouse Gas Emissions inventory and U.S. Department of Agriculture (USDA) Life Cycle Assessments. This data is how we know the cattle industry is sustainable because the data continually shows that greenhouse gas emissions from cattle account for just 2% of total U.S. emissions. “This existing data should more than satisfy any emissions reporting requirement from the cattle industry,” said Hart. Adding to the list of problems with this rule is its impact on farmer data privacy. Previous Supreme Court cases like American Farm Bureau Federation v. EPA solidified the idea that producers have the right to keep operational data private. Cattle production varies widely between regions and even between neighboring operations, and producers should be able to keep their practices private to keep producing high-quality cattle. The SEC rule would force the release of personal business information, placing privacy at risk. With the many issues this rule would pose to the cattle industry, ensuring the SEC heard directly from individual cattlemen and women was a top priority. NCBA launched a grassroots campaign that provided a way for producers to submit comments directly to the commissioners of the SEC and members of Congress. In just a few short weeks, more than 6,700 messages were sent to policymakers, sending a strong message that this overreach proposal is harmful to agriculture. “Hearing from grassroots cattle producers — the people who would be impacted every day — is incredibly important,” said Hart. “The people writing these rules spend their day behind a desk in Washington and don’t understand the day-to-day realities of life on the farm or ranch. Sharing your story is essential.” NCBA will always lead the fight against overreaching regulations and ensure that cattle producers have the freedom to thrive and build successful operations. 1. https://www.erm.com/news/survey-reveals-costs-andbenefits-of-climate-related-disclosure-for-companies-andinvestors/


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NATIONAL CATTLEMEN 3

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Capitalizing on Strong Global Demand for U.S. Beef

Summer Grilling Season is in Full Swing

By Don Schiefelbein, NCBA President

By Colin Woodall, NCBA CEO

Summer members to advocate for scienceis one of my based, rules-based, and market-based favorite times terms of trade that ultimately removed of year. For those unfair barriers and opened the me, summer door for us to build our brand with provides a break global consumers. The results speak from the cold northern winters, and it for themselves. In 10 years, U.S. beef gives my family plenty of opportunities exports have nearly doubled from $5.5 to fire up the grill and enjoy steaks billion in 2012 to $10.6 billion in 2022. and burgers. Let’s face it, American Without question, strong demand is a consumers love high-quality beef, and key driver in our success, but it would nobody comes close to competing be very difficult to meet that demand with U.S. beef in our domestic market. without effective trade policies that But when was the last time you sat made market access a reality. down to a nice dinner of tongue or liver? If you’re like NCBA worked diligently on behalf of our most American consumers, members to advocate for science-based, it’s probably been a while. rules-based, and market-based terms of A top priority for NCBA is trade that ultimately removed those unfair increasing producer barriers and opened the door for us to profitability. One build our brand with global consumers. important way to achieve that goal is through beef exports. Certain cuts NCBA works closely with the U.S. like tongues, lips, hearts, short plate Department of Agriculture, the Office and chuck rolls are less popular with of the U.S. Trade Representative, U.S. consumers but fetch a premium the U.S. Department of State, and in foreign markets. By exporting these the U.S. Congress to identify trade cuts to locations with greater demand, opportunities and provide technical you benefit as a cattle producer. advice related to trade, beef products, Approximately 85% of U.S. beef is cattle production and emerging issues consumed domestically, but global like sustainability, animal health and demand for U.S. beef is stronger than animal welfare. NCBA also meets ever, and that should bode well for U.S. regularly with representatives of cattle producers. foreign governments who represent In 2021, U.S. beef export sales consumers that want greater access shattered the 2018 record by more to U.S. beef and want to gain a better than $2 billion, finishing just shy of understanding of how our cattle are $10.6 billion. Our record sales were produced. Our industry is not always driven in large part by strong demand portrayed in a positive light by media in Asian markets like Korea, Japan, in some of these markets, and it is up China, Hong Kong and Taiwan that to us to correct the stigma of “factory accounted for $7.5 billion cumulatively. farming” created by inaccurate and Asia is home to some of the fastest biased reporting. Sometimes these growing economies in the world, discussions can be difficult, but NCBA and consumers in those markets are will continue to be a strong proponent incorporating more protein into their of science-based production practices, diets at increasing rates. Fortunately and we will work with our government for U.S. cattle producers, 2022 sales and other governments to promote have already exceeded $4 billion scientific standards over politically through April, the equivalent of motivated standards. roughly $478 per head. Altogether, The Biden Administration has strong global demand and tight global proposed new trade platforms (not protein supplies are setting the stage trade agreements) such as the Indofor another record-breaking year for Pacific Economic Framework, the U.S. beef exports. Americas Partnership for Economic Many of us remember a time when Prosperity, and the U.S.-Taiwan our export opportunities were limited Initiative on 21st-Century Trade. These to Canada, Mexico and a handful of proposals are still in early stages, and smaller markets. A decade ago, we while they currently do not contain faced a 40% tariff in Korea, 38.5% market access provisions, NCBA will tariff in Japan, and we had little-tolook for opportunities to engage as no access to Taiwan, Hong Kong or more information becomes available. China. Many of the trade barriers we International trade will continue to faced were not based on science, and be a priority for NCBA as we seek to they were protectionist measures diversify and increase our marketing that unfairly targeted U.S. beef. NCBA opportunities. worked diligently on behalf of our

2022 NCBA Leadership President Don Schiefelbein President-Elect Todd Wilkinson Vice President Mark Eisele Treasurer Joe Guild Federation Division Chair Brad Hastings Federation Division Vice-Chair Clark Price Policy Division Chair Buck Wehrbein Policy Division Vice-Chair Gene Copenhaver Immediate Past President Jerry Bohn Chief Executive Officer Colin Woodall Senior Editors THE OFFICIAL PUBLICATION OF NCBA

Editor

John Robinson Jill Johnson Sarah Drown

grilling commercials seen on many of your favorite Food Network shows. Beef. It’s What’s For Dinner. advertising is about getting more consumers to recognize the brand and realize that eating beef is the only way to satisfy that instant craving that overcomes them when they see the ads. This year, you will notice a new face behind summer grilling. Tony Romo is serving as spokesperson for the grilling campaign, and it is the first time there has been a named spokesperson since the likes of James Garner and Cybill Shepherd. So, why did we go for a spokesperson? Advertising research shows that utilizing a well-known spokesperson consistently drives increased sales, stronger brand awareness, attraction of new customers and credibility in advertising campaigns. Tony has built a career as a trusted, authentic and credible broadcaster, and his presence is bringing even more attention to the iconic Beef. It’s What’s For Dinner. brand. Tony is highly recognizable by all consumer demographics. He made a name for himself as the quarterback Summer grilling season, though, gives us a for the Dallas Cowboys, and chance to puff our chest out and be proud has increased his recognition that we are the king of proteins, and to and popularity as a NFL game remind ourselves that it just would not be analyst on CBS. He has millions summer in America without us. of followers on his social media accounts and is seen as a downmore than nine times per month — an to-earth type of guy. The summer increase over previous years. Given grilling commercials have been wellthe economic challenges we are all received thus far and are performing facing, this is a win for us as cattle and better than our ads did during last year’s beef producers. Every holiday during summer grilling campaign. It is a fresh the summer belongs to beef because approach to our advertising, and more nothing beats the sizzle, aroma and importantly, it is driving consumers to taste of beef cooking outdoors. Not beefitswhatsfordinner.com to check out surprising is the fact that ground beef recipes, “Tony’s Playbook” and to learn accounts for 51% of fresh beef sales. Hamburgers rule! more about beef production. As part of summer grilling season, These days, it seems that everything the Beef. It’s What’s For Dinner. brand but the kitchen sink is being thrown is operating across all types of media. at us. Drought, diesel prices, fertilizer Websites, Facebook, Instagram and prices, cattle prices, hay prices, other digital forms of media are inflation and more give us plenty to carrying the beef grilling message. be concerned with. Summer grilling As you look around at your own season, though, gives us a chance to families, I am sure you recognize that puff our chest out and be proud that entertainment comes in many forms these days. Beef. It’s What’s For Dinner. we are the king of proteins, and to remind ourselves that it just would not has done a great job of staying ahead be summer in America without us. So, of the media trends to ensure that get out your grill, grab your friends consumers of all ages are seeing the and family, crack open your drink logo, the sizzle and the sight of beef on the grill. We are also proud to once of choice, and take part in summer again be back on broadcast television grilling season. Your taste buds will with the Checkoff-funded summer thank you. By now, there is no doubt you have had your grill or smoker fired up and pumping out some great beef meals. It is summer grilling season, and most Americans are doing the same. We kicked off grilling season with National Beef Burger Day on May 28, and we will keep the consumer focused on their outdoor culinary adventures through Labor Day. Gathering around the grill with friends and family is just a way of life during the summer. In fact, it IS summer. It is also another time of year for us to shine and keep the consumer craving beef. Even with the current economic challenges, consumers are still choosing beef and using their steaks, hamburgers, fajitas and other beef dishes to try and escape from things like high gas prices. As a proud contractor to the Beef Checkoff, we conducted consumer research to see what they were planning on eating for the summer. We discovered that consumers are likely grilling twice a week or more, and the average American is grilling

Contributing Writers Creative Director Graphic Designer

Wendy White Hunter Ihrman Don Waite Dancinee Jennings

For ad sales contact Shannon Melcher 303-8503339, Shannon Wilson 303-850-3345, or Jill DeLucero 303-850-3321. Contact NCBA: 9110 E. Nichols Ave., Suite 300, Centennial, CO 80112 (303-694-0305); Washington D.C.: 1275 Pennsylvania Ave. N.W., Suite 801, Washington, D.C. 20004 (202-347-0228). 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

any advertising promoting third-party lawsuits that have not been endorsed by the board of directors. ©2022 National Cattlemen’s Beef Association. All rights reserved. The contents of this magazine may not be reproduced by any means, in whole or part, without the prior written consent of the National Cattlemen’s Beef Association.

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Practical Parasite Control and Prevention of Resistance By Julia Herman, DVM, MS Beef Cattle Specialist Veterinarian, NCBA, a contractor to the Beef Checkoff Summer brings new challenges to the cattle herd as temperatures and humidity increase. One influence of this weather change is parasite growth and its potential effects on all classes of cattle. Parasite management does vary by region with differences in climate, environmental conditions, host susceptibility, and farm/ranch management practices. With proper nutrition and grazing management plans, many parasites can be controlled through environmental management. What does not vary by region is the concern about potential anthelmintic resistance, where internal parasites are no longer effectively controlled by available anthelmintic products. Anthelmintic resistance has been recognized in small ruminants for many years, but the beef industry is not immune. Resistance in intestinal worms of cattle have been documented for more than 20 years1, and resistance has been documented in cattle from multiple regions across the United States2. Livestock producers can learn about potential resistance issues in their region by talking to their extension offices or veterinary diagnostic labs. John Gilliam, clinical professor and food animal veterinarian at Oklahoma State University, realizes the beef cattle industry needs to recognize that anthelmintic resistance is present and is becoming more of a concern. He, along with colleagues at OSU, recently conducted a survey of Oklahoma beef cow-calf herds in which 13 of 16 herds had evidence of anthelmintic resistance (data not yet published). More studies are needed to understand this trend in other states and regions. Most producers have a parasite control program, but most do not assess the efficacy of their program. Gilliam reminds producers there is no way to know if your herd has resistance without looking for it. This is where the Fecal Egg Count Reduction Tests (FECRT) can play a key role3. These tests can be run as a screening test with the help of your veterinarian and are designed to measure the efficacy of the anthelmintic treatment. The FECRT requires collecting fecal samples from a group of animals at the time of treatment followed by a second sampling 10 to 14 days after treatment2. A fecal egg count (FEC) is performed on each sample. Anything less than 90% reduction in FEC between pre- and post-treatment samples is indicative of anthelmintic resistance. This test can be used for any oral, injectable or pour-on anthelmintic products. Labor and cost will need to be evaluated for each operation since cattle will need to be handled at least twice for sample collection and potential treatment. Testing around 20 randomly selected animals within the herd has been shown to be a representative sample for detecting resistance at the herd level. If a herd has less than 20 animals, all the animals would need to be tested. The use of composite sampling for FECRT has been evaluated4 and appears promising for assessing anthelmintic efficacy at the herd level. Gilliam and colleagues also evaluated composite sampling and found the results encouraging (data not yet published). Composite sampling has only been evaluated by a few studies so more work is needed but it may be a way to significantly reduce the cost of FECRT. Performing FECs on a subset of animals may also be a way to monitor parasite burdens and help determine the need for deworming. Depending on geographic location and climate conditions, deworming may not be needed for some classes of cattle in some years. It is important to remember that parasite burdens between animals vary significantly so sampling a very small set of animals may give an inaccurate representation of the parasite burden for the herd. Promotion of resistance comes from repeated use of the same products or misuse of the products available. There are a few simple ways that producers can ensure proper use of anthelmintic products and help slow the development of resistance. • When groups of animals are dosed to the average weight of the group, approximately half of the group is under dosed which can select for resistant worms. If animals cannot be dosed individually, dose to the weight of the heaviest in the group. • If possible, weigh animals prior to treatment to ensure proper dosing. If weights have to be estimated, add a little buffer to the estimated weight to ensure that the animals get a therapeutic dose of medication. In most circumstances, anthelmintics

are quite safe so harm from a mild overdose is unlikely. Follow product labels for dose and application instructions carefully and completely. Pour-on products are particularly prone to misuse (Squirting cattle with dewormer as they run by in an alley, for example). • Only use anthelmintic products for parasites listed on the label. Do not use products intended for worms for other parasites such as flies. • Utilize proper grazing management techniques such as rotational grazing. This can be a useful tool to improve pasture health and provide solid nutrition which improves overall animal health. More overgrazed pastures increase the risk of parasite problems since larvae from parasite eggs will contaminate overgrazed pasture and then are ingested by susceptible animals. As discussed in the Beef Checkoff-funded Beef Quality Assurance (BQA) Program, proper dosing to bodyweight of the animal plays a role in effectiveness of any medication. While much focus is placed on withdrawal times for antibiotics, do not forget that most anthelmintic products have withdrawal periods as well. Producers and veterinarians are responsible for using these anthelmintic products conscientiously, so the products continue to be effective. Parasite prevention programs are an essential part to the herd health plan and should be re-evaluated on an annual basis. The significance of considering the cattle’s entire environment — from optimizing nutrition, having a solid herd health program, using low-stress handling, and other management tools to provide the foundation for strong immune systems and healthy cattle — cannot be emphasized enough. Working closely with your herd veterinarian is strongly recommended for all animal health concerns. Reviewing the BQA principles will help cattle producers focus on these preventive practices that will improve animal health, optimize productivity, and reduce management costs. 1 Gasbarre 2014. Anthelmintic resistance in cattle nematodes in the US. Vet Parasitology 204 (2014) 3-11. https://doi.org/10.1016/j.vetpar.2014.03.017 2 Gasbarre et al. 2015. Effectiveness of current anthelmintic treatment programs on reducing fecal egg counts in United States cow-calf operations. Can J Vet Res (2015) 79:296-302. PMID: 26424910; PMCID: PMC4581674. 3 American Consortium for Small Ruminant Parasite Control. Fecal egg counting. https://www.wormx.info/fecal-egg-counting. (Accessed June 9, 2022). 4 George et al. 2017. Utilization of composite fecal samples for detection of anthelmintic resistance in gastrointestinal nematodes of cattle. Vet Parasitology 240 (2017) 24-29. https://doi.org/10.1016/j.vetpar.2017.04.024 •

CORPORATE MEMBERSHIP DIRECTORY

These are companies that have teamed with NCBA as corporate 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 corporate members with NCBA (securing premium booth placement at the annual convention and trade show as well as other membership benefits), please call the Corporate Relations team at 303-694-0305.

GOLD LEVEL SPONSORS (Minimum $100,000 Investment)

Animal Health International www.animalhealthinternational.com Boehringer Ingelheim Animal Health Inc. www.bi-vetmedica.com/species/cattle.html Caterpillar www.cat.com Central Life Sciences www.centrallifesciences.com

ALLIED INDUSTRY COUNCIL Bayer Environmental Sciences CHR HANSEN Farm Credit Council Huvepharma, Inc.

Lallemand Animal Nutrition Nationwide Norbrook, Inc. Rabo AgriFinance RAM Trucks

PRODUCT COUNCIL American Foods Group Cargill Meat Solutions Certified Angus Beef Culver’s Darden Restaurants empirical Fareway Stores, Inc. Five Guys

McDonald’s Corporation National Beef Packing Omaha Steaks Performance Food Group Preferred Beef Group Tyson Fresh Meats

Corteva Agriscience™ www.corteva.com Elanco Animal Health www.elanco.com John Deere www.deere.com Merck Animal Health www.merck-animal-health-usa.com

Micro Technologies www.microtechnologies.com Moly Manufacturing www.molymfg.com New Holland Agriculture www.newholland.com Purina Animal Nutrition LLC www.purinamills.com/cattle

Ritchie Industries Inc. www.ritchiefount.com Roto-Mix www.rotomix.com Zoetis Animal Health www.zoetis.com

ALLIED INDUSTRY PARTNERS Parker McCrory 44 Farms Tarter Farm and Ranch CEAT Specialty Tires International Stock Food PBS Animal Health ADM Animal Nutrition, Inc. CME Group International Genetic Solutions Equipment Phibro Animal Health Agri-Pro Enterprises of Iowa, Inc. DATAMARS Livestock Jorgensen Land and Cattle The Hartford Livestock Insurance Pneu-Dart AgriWebb Dell Technologies Kent Nutrition Group The Vit-E-Men Co. Inc./Life Priefert Ranch Equipment Alltech, Inc. Diamond V Krone Products QualiTech, Inc American National Insurance ENDOVAC Animal Health Kubota Tractor Corporation Quality Liquid Feeds Arrowquip Farmers Business Network Kunafin “The Insectary” Trans Ova Genetics Red Angus Assoc. of America A.T. Ferrell Company Inc. Fera Diagnostics & Biologicals Corp Laird Manufacturing U.S. Premium Beef R&R Machine Works Bank of America Food Safety Net Services Meat & Livestock Australia, Ltd. Vermeer RFD-TV Barenbrug USA Furst-McNess Company Micronutrients Vitalix Bass Pro Shops/Cabela’s Gallagher National Corn Growers Association Roper/Stetson/Tin Haul Apparel and Footwear Behlen Manufacturing Gravely, an Ariens Company Vytelle Neogen Bimeda Greeley Hat Works New Generation Supplements South Dakota State University Westway Feeds Stone Manufacturing BioZyme Grov Technologies Newport Laboratories, A Wild River Vaxxinova Company Superior Livestock Bush Hog Inc. Hayden Outdoors Real Estate Y-Tex Noble Research Institute Supreme International Cargill Animal Nutrition Hyundai Construction Equipment Novus International Syngenta Case IH Zinpro Performance Minerals IMI Global


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NATIONAL CATTLEMEN

Cattle Producers Have Many Choices When it Comes to Selling Cattle Cattle producers take pride in the way they raise and care for their animals, prioritizing health, utilizing new genetics, and implementing new production practices. However, deciding the best method to market cattle can be a challenge for cattle farmers and ranchers. There are many different avenues for marketing cattle, and within that last five to 10 years, online marketing and auction markets have exploded. Marketing cattle online is not a new concept, but a method that is growing in popularity — fast. Clint Berry from Superior Livestock Auction said that it is a personal preference for producers to buy cattle online. “It depends on the comfort level of individual buyers, but each year more and more buyers purchase online,” Berry said. “It’s just more convenient and cost effective with the higher prices of fuel, food and lodging.” The online format simplifies the process for buyers and sellers alike, Berry added. “At Superior Livestock Auction (SLA), the majority of buyers are online, with the balance bidding live in the room or on the phone live with one of our staff. We even have buyers sitting live in the room at the auction, placing their bids online from their laptop,” he said. Berry has seen numerous benefits to marketing cattle online, primarily the overall convenience and expanding the pool of potential bidders. In 1987, the concept of delivering cattle direct from seller’s ranches and farms to the buyer’s facilities was, and still is, a major selling point. As technology has advanced, the ability to expose the consignors’ cattle to the maximum number of potential bidders is the driving

factor for moving online. “Reducing the reliance upon buyer attendance at an in-person event, giving buyers access ahead of the sale with our online catalogs and time schedules so that they can plan their day around when they need to be tuned-in to bid, and the flexibility to bid remote or from their office is paramount in today’s busy world.” This year’s Seedstock Producer of the Year, awarded at the annual Beef Improvement Federation Symposium, B.R. Cutrer, Inc. has sold their purebred Brahman cattle online for more than 10 years. Their decision to sell their cattle online came at the request of one of their buyers. “The buyer said he had been bidding in online sales of some other ranches, and he liked the convenience of doing it. We listened to him and from our first online sale, we were very happy with the results,” said Rachel Cutrer. Cutrer shared some of the most important considerations for anyone considering marketing online. “If you’re going to sell online, having high-quality video is going to be the most important thing,” she said. “You need to accurately depict the quality of the cattle and be able to showcase that to the buyers.” Adequately plan ahead to have time to promote the sale and get the word out. Contrary to what some may think, Cutrer added, an online sale isn’t easy. While the sale day might be simpler, the two to three weeks preceding that take a lot of time, focus and attention to the detail to make a successful online sale. Cutrer encourages producers to try online sales at least once or twice, but

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variance in weights within each sex, coat colors and age of calves (shorten calving windows). Vaccination Programs - Health is the cornerstone to everything in the cattle business. Sick/dead cattle lead to losses for the seller and the buyer and almost always guarantee a buyer will never bid on those cattle again. Work with your local veterinarian to build a strong herd health program that starts with vaccinating the cow herd and includes deworming

Ticks – What Are They? How They Can Affect Your Livestock, and How to Effectively Manage Them

PRODUCER EDUCATION

U.S. DEPARTMENT OF AGRICULTURE

ultimately believes it is a personal decision. “Just to get your name out and get the exposure will definitely bring you new customers,” she said. “We have been doing online sales for nearly 10 years now. For us, we felt like it was time to do something different.” After 10 years of selling their heifers online, Cutrers returned to selling in-person. They received feedback from some of their customers and decided that was the best method for them at the time. For producers selling truck load lots of cattle, Berry advises sellers to focus on uniformity and sort cattle based on sex. He broke down what management practices producers can focus on to increase the value of their cattle. “I always tell my customers to remember price per pound is not profit per head. While they can walk hand-in-hand, one does not always equate to the other. I always urge that marketing should complement the management, not the other way around. The gains in productivity and reduction of overhead costs — specifically labor — must always be considered,” Berry said. What works for one operation, may not work for another. This must be analyzed on an individual basis, but in general here are some very consistent practices Berry recommends that build value: 1. Consistency - Uniformity is always in demand. Concentrate on decreasing the variables — breeds of sires,

ARS

Learn more under the Producers tab at NCBA.org.

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strategies throughout the year. Genetics - Utilize breeds of cattle that are in demand by the buyers (feeders), because those cattle fit the demands of their buyers (packers). Then dig deeper and utilize EPDs and DNA technology to help make progress with the bulls you buy, as they are the herd’s genetic progress. By stacking sires (Bull A’s daughter, bred to bull B, bred to bull C, etc.), you can quickly increase your herd’s genetic merit. And remember, while profit starts with the cow herd (maternal traits), your feeders (approximately 75-80% of every calf born) will end up in the feedyard and then as a hanging carcass by the time they’re 1.5 to 2 years of age. Therefore, looking at profit drivers beyond the ranch/farm gate leads to post weaning gain and carcass quality. You don’t have to select for extremes; however, you should take a balanced approach in trait selections while avoiding genetics that are inferior. The indexes most breeds provide, along with EPD percentile

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rankings (top 15%, bottom 80%, etc.) can help greatly with making your choices. Don’t be afraid to ask for help from your seedstock provider. Weaning - This is a balancing act for each ranch as they juggle available forage, labor and cash flow. In general, a calf weaned 45 days or more, has greater value each year, so long as the producer can keep them gaining weight during the weaning phase. You must decide if this is right for your operation. Value-Added Programs - These are generally a third-party verified type of program, and vary greatly as to their efficacy, values and demands upon producers. But each producer should evaluate the value-added programs to see which already line-up with their existing practices, as well as determining what management practices they might want to adapt to meet the third-party verified program’s requirements. Speak with a marketing professional and the third-party verification company for more information.

From the feedyard perspective, David Trowbridge, feedyard manager of Gregory Feedlots in Iowa, observes that certain types of cattle perform. “Producers that pay attention to genetics, use due diligence when purchasing, and make us aware of their expectations for the product are set apart,” Trowbridge said. Documented health programs that have oversight by a veterinarian; a complete program for herd health from conception to marketing; marketing programs that evaluate the market, the cattle and the risk; and honest evaluation of each of these will increase the value of every producer’s cattle. When deciding which online auction to use, Berry explained that there are many options available. “I would urge a producer to search out companies with a proven history of results, along with a strong reputation and a representative(s) that builds your confidence in their own knowledge, while exhibiting an openness to be a resource for questions about the topics we’ve discussed,” Berry said.

No one can be an expert at everything, but your marketing professional should be able to help direct you to the people and answers that you need, Berry added. Berry also expressed the importance of being BQA certified and keeping thorough records. Retain and organize records, specifically, past weights and head counts by each sex. Record the specific product labels on all vaccines, dewormers, implants and/or medications, as well as date(s) of administration. Retain the registration numbers of the bulls in your bull battery and/or any AI sires utilized. Also, producers see increased value for their product if they are BQA certified and keep it up to date. “These details help define your management and your cattle, while building confidence in bidders,” Berry said. Producers have many options today on how they can market their cattle. Online sales and auctions are an option to consider, whether you are marketing seedstock or feeder calves, there can be benefits for each sector of the industry.

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Producer Voices Heard at WOTUS Roundtable In June, the Kansas Livestock Association (KLA), an affiliate of the National Cattlemen’s Beef Association (NCBA), hosted a Waters of the U.S. (WOTUS) roundtable with representatives from the Environmental Protection Agency (EPA) and Army Corps of Engineers. This roundtable was one of 10 accepted by the EPA and Army Corps. In July 2021, the EPA announced that rather than facilitate public engagement — the typical course of action for major rulemakings — the agency would instead ask private organizations to entirely plan and propose a roundtable with representatives from agriculture, conservation groups, developers, water and wastewater managers, industry, Tribal leadership, environmental justice groups, and state and local governments. “Cattle producers are grateful for the opportunity to share their perspective on WOTUS and explain how rules crafted in Washington will impact the daily operations of farms and ranches across the country,” said NCBA Environmental Counsel Mary-Thomas Hart. “To be successful in their operations, cattle producers need a clear, limited WOTUS definition that finally provides much-needed certainty after years of shifting rules.” Producers in Kansas also voiced a similar perspective on the need for regulatory certainty. “We supported the Navigable Waters Protection Rule, particularly because it gave some bright, bright lines for our producers to decide, do I need to talk to EPA, or do I need to talk to the state regulatory agency,” said KLA Vice President of Legal and Government Affairs Aaron Popelka. Another key point that roundtable participants made was the need for voluntary incentives rather than regulation. “Changes in practices, whether it’s adoption of new management strategies, are much better incentivized by education rather than regulation,” said Shawn Tiffany, a Kansas producer and KLA president-elect. Dan Meyerhoff, executive director of the Kansas Association of Conservation Districts agreed and said, “If we increase regulations and make things more stringent, it’s going to hinder the voluntary conservation efforts that I think are very successful in here.” While this roundtable was not directly tied to the EPA’s ongoing WOTUS rulemaking, a common theme among participants was the need to pause rulemaking while the Supreme Court considers the case of Sackett v. EPA, a direct challenge to the EPA’s authority under the Clean Water Act.

“If we write a rule now, finalize it, and then get the Sackett ruling from the Supreme Court, we are just going to drag out this uncertainty. I think we are better off waiting until the Sackett decision is made and then move forward with a final rule,” said Gary Mason, the former deputy secretary for environment of the Kansas Department of Health and Environment. This roundtable is just one of many ways NCBA has engaged on WOTUS. In addition to filing a brief before the Supreme Court in the Sackett case, NCBA launched a grassroots campaign that provided more than 1,700 cattle producers with the opportunity to submit a letter to the EPA. As we wait for the EPA to continue the WOTUS rulemaking process, NCBA will be a steadfast advocate for cattle producers.

Rancher Resilience Grant The Rancher Resilience Grant is designed to support cattle producer attendance at impactful education events. This program awards funds for registration and hotel costs for educational cattle industry events across the country via reimbursement.

Register Today! To receive funds, you can head to NCBA. org, under the “Producers” tab and click “Rancher Resilience Grant”. There is a short application and some additional steps to complete. We hope it’s an opportunity you take advantage of! The grant is made possible by a partnership between the National Cattlemen’s Foundation and Cargill Protein and is administered by the National Cattlemen’s Beef Association.

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Protecting Your Bottom Line Through Fly Control Those pesky flies buzzing about are more than annoying — they are biting into your bottom line. As animals twitch their tails, stomp their feet and toss their heads, they are expending valuable energy that instead could be converting forage into profitable products like beef. Increased stress and discomfort caused by pests hinder performance and production, therefore it is important to have a fly control plan in place. During a recent NCBA Cattlemen’s Webinar Series event, speakers from Central Life Sciences discussed how managing flies can maximize herd efficiency and improve revenue potential. Flies may be small pests, but they cause huge problems for producers. According to Casey White, senior director of technical services and innovation at Central Life Sciences, the horn fly is North America’s most pervasive and costly external cattle parasite and costs the beef industry more than $1 billion every year. The horn fly has an efficient cutting and digging mechanism that delivers a painful bite to its host. These biting flies stay on cattle day and night and take 35-40 blood meals every day. With potentially hundreds or thousands of horn flies per animal, these pests cause serious irritation, aggravation as well as significant blood loss. In addition, horn flies feed on easily accessible teats resulting in scabs that can be colonized by mastitis-causing bacteria. The horn fly isn’t the only culprit for poor performance caused by flies. Face flies feed on facial secretions and can transmit diseases such as pinkeye, and bloodfeeding stable flies attack the legs resulting in excessive kicking and stomping. This fly avoidance behavior is hard on the animal as well as the producer. White cited a study conducted in Nebraska showing stable fly populations of 50 flies per animal reducing weight gain by 0.20 lbs per day and reducing feed efficiency by nearly 13% for calves fed a growing ration. Double the flies per animal to 100 and daily gains are reduced by 0.50 lbs. Looking across a pasture, it is easy to identify where a fly control plan is in place. When flies are effectively mitigated, cattle spread out and graze while those bothered by flies bunch in groups and spend their time swatting and twitching rather than eating. Integrated Pest Management (IPM) is one method for mitigating impacts from flies and other pests. IPM is an effective and environmentally sensitive approach to pest management that relies on a combination of industry practices. “Contrary to what others may say, there is no ‘silver bullet’ for fly control,” White said. “An IPM program should be developed to fit each operator’s unique needs and environment.” The three phases of IPM include planning, implementation and evaluation. Planning helps producers understand the extent of the insect problems and chart a course to address issues proactively instead of being reactive. Implementing insect control tactics reduce infestations using a multi-method approach, and evaluating the program’s effectiveness provides the information needed to make future decisions. When planning, producers should first inspect the operation to find areas with heaviest insect populations then learn the most economical means for minimizing insect infestations and damage through various control measures. Next is to set a threshold where insect populations and environmental conditions dictate that action must be taken. And finally, educate employees about the plan, and train them on the best mix of tactics in the most important target areas for maximum control. To deliver

the best results, White recommended using an all-encompassing approach to insect control that utilizes cultural, physical, biological and chemical control efforts. Cultural control efforts include using best sanitation practices in daily operations, particularly relating to manure management, to limit the habitat for flies to lay eggs. Depending on the operation, this may include regularly harrowing pastures to break up manure pats, moving round bale feeders to manage spilled hay, and maintaining weeds and tall grass. Maintaining a healthy dung beetle population to compete for manure and prey upon horn fly larvae is also important. Physical control includes maintaining structures and facilities to deny flies entry and minimize shelter opportunities. Biological control incorporates naturally occurring fly enemies to keep populations in check. Beneficial pests, such as predatory beetles, mites, parasitic wasps, and fly pathogens, can be introduced to maximize fly-control efforts with no adverse effects to animals or humans. Finally, chemical controls include conventional products such as topicals and insecticidal ear tags for adult fly control and biorational such as feed-through products to prevent adult flies from emerging. For adult fly control, White suggested sticking with one mode of action for the fly season, documenting what is used, and switching to different a mode of action (not just different product or ingredient) the following fly season. “It is best to have three different modes of action and rotating different classes of chemistry every three years,” White said. “This system can help prevent resistance development.” Insect growth regulators mimic biochemicals which are responsible for “telling” the insect to stay in its immature stage. Exposure to biochemicals tricks the insect into staying in its immature stage and not transitioning or going through metamorphosis to become an adult. Use of feed-through products should start early in the spring, 30 days before flies begin to appear, and continue until 30 days after the first frost. Evaluating the fly control plan’s success is a critical part of mitigating pests. It is important to track fly population results and understand the economic threshold, rotate products and active ingredients to prevent resistance and document progress, making changes as necessary. Through careful planning, implementation and evaluation, annoying and costly flies can be effectively managed, resulting in healthier animals and a more profitable bottom line.

Online Modules Now Available for Calf Care and Quality Assurance Program Farmers and ranchers raising calves now have access to the free Calf Care and Quality Assurance (CCQA) program online at www.calfcareqa.org. CCQA promotes a way of thinking that prompts calf raisers to approach management decisions with thoughtfulness and an appreciation for the responsibility they have to their animals, consumers, the environment and the broader cattle industry in the United States. “Healthy calves are the cornerstone of every beef, dairy and veal facility,” said Trey Patterson, Wyoming rancher and chair of the Beef Quality Assurance Advisory Group. “Committing to calf health management is the right thing to do for calves, producers and consumers, and completing CCQA’s online modules is an easy way to demonstrate that commitment.” The program was developed with an understanding of the diversity of calf-raising enterprises, being science and outcomes based while maintaining facility type and size neutrality. While the practices identified in the animal care reference manual are not the only practices that can meet the desired outcomes, the program provides a framework that serves as a resource for anyone working in the calf-raising industry. In addition to the manual, online modules and self-assessment tools, CCQA will

release an audit tool later this year. Completion of the CCQA online modules provides certification equivalent to Beef Quality Assurance certification. Certification through CCQA helps ensure optimal calf health and welfare and is the first collaborative educational tool that provides guidelines for calf raisers. The CCQA program is a joint initiative led by NCBA’s Beef Checkoff-funded Beef Quality Assurance (BQA) program and the National Dairy Farmers Assuring Responsible Management (FARM) program, managed by the National Milk Producer’s Federation (NMPF) with support from the Dairy Calf and Heifer Association, and the Beef Checkoff-funded Veal Quality Assurance (VQA) program. “Certification programs such as CCQA establish guidelines and standards that help earn the public’s trust, demonstrating that beef and dairy producers share their values and are committed not only to quality animal care, but also to ensuring safe, wholesome meat and milk,” Patterson said. For more information, visit www.calfcareqa.org.


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This Year’s Monsoon and the U.S. Moisture Outlook Through Summer By Matt Makens, Atmospheric Scientist The North American Monsoon is a seasonal weather pattern developing a persistent wind flow. That pattern brings tropical moisture into Mexico, Arizona, New Mexico, Utah, Colorado and parts of Texas. A well-developed monsoon can spread beneficial rains from the Southwest to the Central and Northern Rockies and can even help the Northern High Plains. The monsoon development begins, on average, in early to late June across Mexico. From there, moisture increases across the Four Corners region throughout July — on average. The arrival of the monsoon means increased humidity and, therefore, a rainier pattern. We will also typically see imagery of the giant dust storms (haboobs) across the deserts as thunderstorm activity increases and the storms’ wind drives that dust. For the southwestern U.S., the monsoon’s development is critical for yearly moisture totals. For example, for parts of Arizona, Colorado and New Mexico, an average monsoon is responsible for one-third to one-half of the total annual precipitation (based on climatology from 1981 to 2010 using PRISM precipitation data). Therefore, the Southwest is in a critical time of year for rain. Further, parts of the southwest remain in exceptional drought conditions (highest rated drought level https://droughtmonitor.unl.edu/), so the monsoon needs to be strong to temper and improve water resources in this part of the country. Recently, this pattern has been a disappointment; the past several years have not seen the monsoon develop strongly enough to bring that much-needed water and has contributed to the dire water situation across the West. This map below indicates precipitation received since 2016 during an extended monsoon season (picking 2016 to start with is arbitrary for this example). The outlook for the monsoon in 2022 looks promising for parts of Arizona. However, it remains unfavorable that we will see a well-established pattern capable of spreading rainfall across a broad region, similar to the past several years. Without a strong monsoon, it is unlikely the West sees a significant benefit from a drought perspective, although locally, scattered areas in Arizona may see drought improve quite a bit. The drought covering the West is part of the La Niña pattern we have been in for some time. The evolution of La Niña calming into neutral conditions is the most likely scenario for the late fall. There is not much data to support an El Niño forecast any time in 2022. However, there is a bit of data that suggest El Niño is possible into 2023. With that said, an El Niño pattern is what we will need to see considerable drought reduction for the Southwest, despite temporary improvements we may see during this year’s monsoon. Per region, this is the scenario through the end of summer:

Northwest:

If we break this region into two smaller pieces, say from the coast to the Cascades and then the Cascades to the Rockies, we will have two different patterns for summer. The western portion will have moisture and cooler temperatures relative to the eastern zone. Along the coast, precipitation of 110% to 130% of normal with near normal temperatures are projected based on an analog year basis. The eastern areas of this region will have less than 90% of the normal moisture, with temperatures several degrees warmer than average.

West:

As has been the case, drought continues this summer with hot and dry conditions overall. Moments of monsoonal moisture may move into Southern California and southern Nevada to bring some temporary relief, but by in large, precipitation well below average with temperatures well above normal continue.

Northern Rockies and Plains:

Temperatures will be warmer than average across the board. Occasional wind events may further evaporation, which will keep the drought in place, if not expand even more. There will be moments of moisture to keep some areas nearer average, but overall, the region is drier than normal. The timing of precipitation will be critical to crop and pasture conditions.

Southwest:

As to the point of this article, we are hoping monsoon conditions through August and into September provide enough moisture to help the drought. However, this year’s monsoon is not likely to be strong enough to beat the drought across the Four Corners, although we may see it improve quite a bit in parts of Arizona. Temperatures will remain warmer than normal throughout the period, which is a significant factor in continuing the drought despite any moisture the monsoon may provide.

South: First, an active hurricane season is expected, and that may involve the states in this region. Putting the tropical element aside, those in South and East Texas to Mississippi surpass 110% of their normal precipitation. Temperatures will remain near normal to slightly cooler than average over the long run, but do look for occasional hot outbreaks to impact us between rain chances.

Upper Midwest: Not only hot but also drier than the average for the region. The better chances for moisture will be to the east, driest to the west. Temperatures will run several degrees warmer than average throughout, too. I expect the drought to increase in the western areas of this region. Timing will again be critical for the crops here.

Ohio Valley: Cooler and wetter conditions are possible for the south, meanwhile warmer and drier to the north. Another region to watch for residual hurricane impact, but excluding that activity, the region ends near normal in precipitation and warmer than average for temperatures, especially the farther north.

Southeast: Hurricane activity aside, precipitation will be near normal to above, and the temperatures will be near normal, too. Parts of the region remain in drought early in the summer, but I expect most drought areas to improve here through the next few months.

Northeast: Overall, near-to- and drier than average, with warm temperatures for the remainder of summer. Wetter weather may begin to move in as we close out the season and head into fall, but for summer, it will be drier toward Maine and wetter for the south. Temperatures for all will be warmer than normal this summer.


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Region ll Report Region II is composed of the states of Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee. Region II cattlemen’s associations are committed to their member producers to create an environment where they can be profitable and sustainable, especially the cowcalf producer.

Legislative and Regulatory Actions

The state of Florida reports that they won sales tax exemption on trailers used in agriculture and eliminated sales tax on post and wire used in agricultural fencing. In addition, they defeated a change in the veterinarian practice regulations that the veterinarian’s association was against and which would have resulted in negative consequences for ranchers. In addition, the association supported and was able to achieve the budget needs of the land grant University of Florida — an increase to $1 million for the Cattle Enhancement Board to be used for the betterment of the cattle industry in Florida and $300 million for conservation easement projects. The association has been successful in working with Florida Fish and Wildlife conservation commission and water management districts to avoid undue regulations and better educate their boards on the value of ranchlands to the environment and water quality. The state of Tennessee reports expansion and clarification in the sales tax exemption for farmers in Tennessee during the last session of the general assembly. The 2022 legislative session in Georgia was a great year for Georgia Cattlemen’s Association and for agriculture. HB 1150, the Freedom to Farm bill, was created to help provide protection from nuisance lawsuits aimed at agricultural producers. This bill was needed due to past court case precedent where the judge had ruled that the “people” had always lived around a farm, there was no changed condition with urban encroachment that would provide the protection from a nuisance claim. This was particularly concerning since the court cited language that was almost exactly like Georgia’s Right-to-Farm law. The Freedom to Farm bill language removed the change condition which before had been the basis for filing suit. The Mississippi Cattlemen’s Association was able to protect all agricultural tax exemptions as part of a state income tax reduction plan that was passed in the last legislative session. Another important achievement was a successful codification of the eminent domain law that prohibits giving private land to public entities/persons. The state of Mississippi plans to host a policy committee meeting in the month of July. Alabama and North Carolina report that in the last legislative session no legislation was passed that would have a negative impact on the cattle industry in their states. The state of North Carolina adopted its first formal policy book for North Carolina Cattlemen’s Association that will be revised annually to keep up with changes the cattle industry faces in North Carolina.

Local Beef Production Issues and Processing Capacity Increases

The state of North Carolina reports that in order to meet the demand for local beef, the North Carolina Department of Agriculture has provided grants from COVID-19 relief funds that allowed many plants in North Carolina to increased capacity by 50%. The South Carolina Cattlemen’s Association spent a great deal of time working to increase small-scale beef packing capacity around the state to meet the rising demand for local-grown beef since the COVID-19 pandemic and to relieve the backlog

created by the limited current processing capacity. They are currently working with elected officials to remove the red tape encountered by people seeking to join the beef processing community. Tennessee has seen an increase from 12 to 24 USDA inspected processing facilities in the last two years. A lot of that investment is due to grants from the CARES Act that was funneled to meat processing grants for those interested in building processing capacity in the state. Jack Daniels provides a significant byproduct for cattle feeding from the whiskey making process. They have announced that they are building a “digester” that will convert some of the grain byproduct into natural gas to use as a power source for their facility. These digesters are used in the whiskey making facilities in Ireland because of the increased environmental scrutiny and some of these concerns are being felt by Jack Daniels. This change will cut the amount of byproducts available for farmers in Tennessee by half when completed in two years. In addition, more farmers are selling or leasing land for solar panel facilities in Tennessee, and when combined with urban expansion, there is concern about land for future cattle operations in Tennessee.

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Membership Activities

Mississippi is hosting their 31st Junior Cattlemen’s Youth Camp for junior high to college age youth this month and making plans for the annual convention which will be on a new date — December 2-3, 2022. Florida’s annual convention, held on June 14-16, sold out all trade booths and hotel rooms. Gov. Ron DeSantis and NCBA President Don Schiefelbein attended the convention. In Alabama this summer, six regional membership meetings will take place for members to attend for Alabama Cattlemen’s Association updates and a beef dinner. Membership is strong for the year so far, showing an increase of about 900 members. The Association’s goal is to surpass 10,000 members for 2022. Alabama has been involved with other agricultural groups in the state to launch a collaborative year-long, consumer-facing campaign about sustainability called “Down to Earth”. Alabama serves as a co-chairman for this group and has been instrumental in its launch and success thus far. At the North Carolina Cattlemen’s Association annual conference there was an emphasis to present programs that help producers to enhance their bottom line by selling local beef. In addition, there continues to be emphasis on BQA, grazing management and local beef production. Louisiana Cattlemen’s Association is excited to have the opportunity to get out and visit its local parishes, as many haven’t had meetings and events in two years because of COVID-19. A new program provided to members that are selling cattle, hay, or farm-to-table beef private treaty allows listing in its website, ads run for them on social media, and in its magazine. In May, Louisiana hosted its first annual Cattle First Health Summit. It included a two-day educational event on everything cattle health, with classroom talks, hands-on workshops, a dance and a crawfish boil. By staying true to the core value to represent the producers in the marketplace, our associations seek to add value to the lives of our producers. By moving forward with courage to affect positive change, our associations and NCBA will secure commitments from members to pursue the core purpose of helping producers be profitable and sustainable.

FINAL TOUR DATE

AUGUST 12 – 13 Auburn, AL

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Fed Market Outlook: Steady as She Goes By Patrick Linnell, CattleFax Analyst Lance Zimmerman, CattleFax Director of Research & Protein Market Analysis The whiplash in cattle markets has been harsh so far in 2022. But despite all the shocks and uncertainty, the fed cattle market has performed surprisingly close to initial expectations. And the outlook is not fundamentally different from here forward. The CattleFax Outlook at the Cattle Industry Convention and NCBA Trade Show in early February laid out a forecast for a fed cattle market averaging near $140 in 2022, with a practical range of $130 to $155. The expectation was for a non-expansion seasonal pattern where the market rallies to a spring high, breaks into the summer, and rallies into an annual high in the fourth quarter. Certainly, the market flush caused by the invasion of Ukraine cut short the potential of the spring rally. However, fed steer prices still achieved a high of nearly $144/cwt on a U.S. average basis, more than $20 better than last year’s spring high. Prices in the north found highs a few dollars higher yet. The current decline in fed prices has been highly seasonal and is consistent with the risk levels long outlined. That being said, with a fed trade in the South at $135 this week, prices have entered an area of strong support. Sure, summer risk to near $130 still exists, but it is far from a given. June and August live cattle futures appear to have rejected the $130 area after trading there on Tuesday. Many recent conversations have surrounded beef demand concerns as the consumer feels the pinch of inflation. The risk is important to acknowledge, however, even a softer summer beef market than previous expectations implies little risk to fed prices less than $130 due to a leverage situation that has fully recovered to prepandemic levels. More likely for the nearterm is a fairly rangebound market in the mid-$130s with a firming trend into late summer and fall. Seasonally declining fed cattle supplies and beef production, plus further leverage gains, should drive the market to a new annual high in the fourth quarter near $150. Larger drought-driven placements, yearto-date, have dampened the fourth quarter expectation compared to initial forecasts, and demand concerns also exist. However, an even more significant leverage shift could also make the case for additional upside. Beef Demand: Lower, More Consistent Beef demand was destined for a course correction this year, and so far, it has delivered on that promise. Supply chains are normalizing, and consumer traffic is slowing, largely due to skyrocketing inflation and stagnating income growth. The daily USDA composite cutout is adjusting to a narrower — and more normal — trading range as well. Last year, the cutout traded from $204 to $343/cwt. In 2020, the range was $199 to $472. This year the cutout is on track to trade from $245 to $280/cwt. The boxed beef cutout is forecast to decline $10 in 2022 — averaging $265/cwt. That implies an 11% loss in annual demand — the largest year-over-year reduction in 30 years. While that is significant, there are several factors at play in the recent correction and perspective is helpful. Wholesale demand charged to 30-year highs last year on exceptional retail traffic, growing exports and renewed foodservice interest. While the 2022 cutout forecast represents lower demand, it is still the second highest since the 1998 lows, and the third-highest mark in the last 30 years.

Calf Slaughter Holds Last Year’s Lows By Katelyn McCullock, CALF SLAUGHTER Director of Federally Inspected, Weekly Thou. Head the Livestock 12 Marketing 11 Information 10 Center 9 Commercial 8 calf slaughter last year was 7 the lowest 6 on record 5 coming in at 4 392 thousand JAN APR JUL OCT head, a 14% Avg. 2016-20 2021 2022 drop from the Data Source: USDA-AMS & USDA-NASS prior year. This Livestock Marketing Information Center year has been very close to 2021’s monthly 55% would have equaled about 5.2 totals, implying million animals, 2 million more than that calf slaughter will look very the proportion would have been similar to last year. Calf slaughter is predominately channeled toward the back in the 1980s. The practice of optimizing veal market which has seen declining non-replacement calf values on consumption levels for several dairies can add incredible value, decades. The majority of these but particularly when beef calf animals are dairy-bred calves. prices are high, the value of cross The importance of smaller calf breeding increases. Dairies have fineslaughter is the implication that tuned using the reproductive tools those dairy-bred calves are landing available to them to help boost the in the fed cattle market instead of dairy bottom line through different the veal market. Last year, dairy cow calf marketing channels and those inventory exceeded 9.5 million head, tools have improved over the last the largest herd size since the midtwo decades. More bull options 1990s. Through the 1970s and early for using sexed semen and greater 1980s, calf slaughter was equivalent offerings in composite breeds have to roughly 30% of the size of the made those decisions both easier U.S. dairy herd. After the midand more attractive. 1980s, that proportion continued to From a beef perspective, we hear decline and was closer to 13% from a lot about how temperamental the 1990s through the mid-2000s. feeding dairy-crosses can be, and Commercially available sexed semen there are health considerations as hit the market in 2004 dramatically well, but this aspect of the beef changing the ability for dairy farms production system is here to stay to tailor their calf crops to produce and will likely continue to improve better milk cows and achieve as more research is done. Calf prices genetic gains faster. Calf slaughter and a downward trajectory in the has represented less than 10% of cow herd suggests cattle supplies the annual dairy herd number since will be tight for the short and 2004 and in 2020 and 2021 was less medium term, which will incentivize than 5%. The dairy herd in 2022 is more dairy calves into the beef currently showing about 100,000 system than into the veal system. head less than 2021. Commercial calf Veal production has also made slaughter through April is 1% lower adjustments by adding weight to than 2021 or about 1,000 head. smaller calf slaughter numbers. The remainder of calves that The average dressed weight for do not enter veal production end calves in the month of May was 163 up as replacement animals as part pounds compared to 143 pounds of the breeding herd or go to beef production. Dairy herd turnover rates last year. Nearly halfway through the year, calf dressed weights have are close to 30 to 35%. If we assume averaged 2% higher than 2021. about 40% of calves are held for The veal production system in the replacement and another 5% are past has used weights to provide for veal production, that leaves 55% flexibility and fill needs, a trend headed for feedlots. They may be a that will likely continue with less terminal cross with beef genetics or dairy cows in the herd and high calf full dairy bred animals. The point is prices incentivizing other options that proportion headed to the beef for those calves. system has gotten larger. In 2021, C-S-32 06/14/22

Market participants have better adjusted to pandemic realities and so have American consumers. There are fewer beef supply disruptions as COVID-19 immunity has grown throughout the country, and less demand shocks exist as Americans have adjusted to a routine once again. Furthermore, retail and foodservice increased beef prices throughout the pandemic to ration limited supplies. Now, they are hesitant to lower prices as wholesale values stabilize. The USDA allfresh retail beef price in April was at $7.37/ lb. That is 15 cents below the all-time highs in October 2021. Energy and labor costs are increasing, and end-users recognize tighter beef, pork and poultry supplies are a threat to margins going forward due to prolonged drought and higher feed costs. Short term, that has created a more sluggish beef market as consumers are overwhelmed with inflation hitting them from seemingly all directions. Processors are adjusting to new realities as well. A more current fed cattle supply has resulted in quality grade declines. Yet, demand for higher-quality items remains. Packers have leaned harder into steer and heifer slaughter to fill those higher quality orders, but simultaneously created additional lower-quality product to move. Short-term export challenges have also hampered global beef demand. COVID-19 lockdowns in China and a higher tariff on U.S. beef being sold to Japan also slowed beef shipments in recent months. Bottom Line: Volatility and uncertainty has been tremendous in recent months. Most of margin shock in the fed cattle market has come from feed and inputs rather than significant deviations in the fed market itself. Some of these beef demand setbacks — like processing overruns and export slowdowns — are likely short-term obstacles. Other headwinds — such as inflation and consumer sentiment — will take longer to navigate through the markets. Regardless, tighter supplies will be more supportive to cattle and beef prices going forward, even if demand stagnates. The outlook for the remainder of the year remains largely unchanged, with summer risk fairly limited from today’s levels and a recovery expected into the fall and winter. As contraction further works its way through the system, cattle producers will benefit by receiving a larger share of the consumer’s beef dollar.

CALF DRESSED WEIGHTS Federally Inspected, Weekly

Thou. Head 180 170 160 150 140 130 120 110 100

JAN

APR

JUL

Avg. 2016-20 Data Source: USDA-AMS & USDA-NASS Livestock Marketing Information Center

2021

OCT

2022 C-S-35 06/14/22


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The Dance of Pricing Passthrough from Suppliers to Retailers

By Tom Bailey Senior Analyst - Consumer Foods Taking Price in Today’s Inflationary Environment Broadly speaking, producer price indices for food - Producer Price Index (PPI) - have seen their costs increase from 10% to 30% , since late 2021. These cost increases are due to myriad factors in the supply chain such as weather events, high energy prices, high fertilizer prices, labor shortages and elevated shipping costs. There is a mix of pricing pass-through to consumers that have occurred, as manufacturers increase their prices to retailers and restaurants. Retailers and restaurants have accepted higher prices from some of their suppliers, while other suppliers have not yet been able to fully pass through their higher prices. This results in some discrepancies and delays in Consumer Price Index (CPI) pricing compared to PPI, see figure 1. It is not new for retailers to take a slow and steady approach to price increases. After all, it is rare for prices to decline at the retail and restaurant level. Once prices go up, they typically stay up. Often the retailer does not immediately pass pricing through, it is done more gradually over time. A dance between the Consumer Price Index (CPI) and Producer Price Index (PPI) historically brings them to parity over time. Due to the continued challenges across most steps in the supply chain, we estimate that consumer food prices will need to remain elevated above long-run average levels well into 2023 and possibly even into 2024 to make up the gap left between manufacturing and distribution costs and retail prices. Commoditized consumer products

have managed to pass prices through with great speed while consumer brands in more fragmented categories have seen a delay in customers taking price increases. What we have found is that commoditized consumer product categories such as beef, eggs and milk have seen retail prices rise relatively rapidly, increasing 15% or more so far in 2022. Such commoditized product categories can pass costs through the supply chain with greater speed. Suppliers often have agreements with retailers that are commoditylinked, so there is less need for pricing negotiation. Less commoditized products with a strong brand presence have seen a much wider range of rate of pricing action. In such categories, there is often no clear commodity benchmark, so pricing is more dependent upon negotiation for price management. Based on our preliminary analysis, categories that are consolidated with one or two clear leaders appear to have had greater success in passing prices through to retailers with greater ease. Of course, there are discrepancies in underlying costs across categories, but generally speaking, most have seen double-digit inflation, and clearly not all product categories are seeing doubledigit price rises at the retail level. Any supplier who is yet to pass prices through to retailers faces a great challenge. By not allowing rising costs down the supply chain, end users may inadvertently drive consolidation, which longer term is likely to create future headaches. Such potential future headaches include lower prioritization of supply and/or collaboration on manufacturing and pricing. Supply chain security and product assurance remain a critical challenge for the food industry after the disruptions seen throughout the pandemic, and now in the rapidly bifurcated global trade system as the war in Ukraine persists and tensions with China and the West rise. Having a functional supply chain with collaboration between suppliers and their customers is more critical than ever as any buyer who is out of stock can attest to. Consolidation of supply could remove power from customers who typically benefit from optionality in the supply chain. *Bureau of labor statistics “BLS”, Rabobank, 2022

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Figure 1: General CPI equals PPI as an average from 2001 to 2019 PC_PurinaPlus_Ad_JNCBACattlemen_10.38x7.825_0622.indd 1

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NATIONAL CATTLEMEN

NEWS Training Helps Beef Advocates Blaze New Trails The Trailblazers program, developed by the National Cattlemen’s Beef Association (NCBA), a contractor to the Beef Checkoff, takes advocacy to an unprecedented level by giving participants the tools and training they need to promote beef to new audiences while addressing and correcting myths. In April, the inaugural group of 10 Trailblazers from six states traveled to NCBA’s office in Denver for a three-day orientation training event to prepare them to serve as industry spokespeople over the course of the coming year. The multi-day training provided the new Trailblazers with resources, information and engaging activities that would equip them to become expert communicators, excel in media interviews, and understand how to build confidence in beef-related practices when talking to consumers. During the three-day training, Trailblazers focused on actively working to acknowledge the importance of connections outside our industry, discovering new ways to connect with consumers and defend the work of the Beef Checkoff in their own communities back home. As a group, the Trailblazers worked together to broadcast one’s message beyond the echo chamber of their reach on social media by participating in a teams-based social media and culinary challenge. Trailblazers were grouped into teams of two to create a beef centered dish in 30-minutes or less, while sharing resources on social media in a unique and creative delivery format. The Trailblazers quickly put their skills to use by sharing their experiences and knowledge with followers on Instagram, Twitter and Facebook. From this single social media and culinary challenge, more than 15,000 views, comments and likes were received across multiple platforms. Taking their preparation one step further, each Trailblazer spent considerable time refining their approach while completing mock media interviews over a two-

day period. The Trailblazers were able to coach one another, receive feedback from subject matter experts on staff at NCBA, and watch their peers complete interviews with a focus on contentious Trailblazers representing six state beef councils are issues facing the beef (from L to R): Marya Haverkamp, Kansas; Kacy Atkinson, community. Wyoming; Jaclyn Wilson, Nebraska; Jonathon Black, Throughout the West Virginia; Markie Hageman, California; Shaye Koester, year, Trailblazers will Nebraska; Haley Ammann-Ekstrom, Minnesota; Natalie receive additional Jones, Nebraska; Brianna Buseman, Nebraska; Sebastian training from subject Mejia Turcios, California. matter experts, learning how to effectively engage on various social media platforms, interact with the media, and enhance their public speaking skills. Trailblazers continue to meet monthly, both online and in-person to foster constant growth and refinement of skillsets when speaking about beef. For more information on Shaye Koester and Jaclyn Wilson of Nebraska the Trailblazers program, contact Chandler Mulvaney getting ready to plate their beef-centered dish during the social media and culinary challenge. at cmulvaney@beef.org.

Finding New Ways to Educate Health Professionals About Beef Keeping up to date with the latest research and medical information can be overwhelming — especially for health professionals working in the field. With their busy, fast-paced work schedules, many medical professionals struggle to find time to attend conferences, workshops or even live virtual events like webinars. Health and medical experts, such as physicians, registered dietitians and even credentialed fitness professionals, are required to participate in a specific number of continuing medical education hours annually in order to maintain their licenses and/or credentials. Historically, health experts have stayed up to date on research and earned their continuing medical education credits through all-day or multiple day conferences and symposia. While this remains an important method for reaching this audience, health experts are also in need of options that include shorter, easily accessible online education, and the increasing popularity of podcasts may be just what the doctor ordered. Podcasts are audio recordings that can be listened to via the internet on a smartphone or computer. Listeners can access podcasts at any time, on demand, which gives healthcare providers a flexible way to gain a new perspective on health and nutrition focusing on topics of specific interest to them. The National Cattlemen’s Beef Association (NCBA), a contractor to the Beef Checkoff, recently partnered with board-certified general pediatrician, Candice Jones, MD, to develop the “Making Every Bite Count” podcast series that explored the importance of feeding beef in the early years to support infant and childhood development. In this four-part podcast series — accredited for medical doctors, physician assistants, nurse practitioners and registered dietitians — Jones interviewed pediatric nutrition experts to discuss the value of introducing nutrient-dense foods, like beef, to infants around 6 months of age. By tuning in, health and medical experts gain continuing medical education hours for listening and learning from the podcast. Since the series was released

in October 2021, more than 2,800 participants have listened to the episodes, Soundbites Podcast with 85% of these listeners, such as physicians, nurses and physician assistants, having direct contact with MyCME Series Podcast patients. In another podcast supported by the Beef Checkoff, Shalene McNeill, PhD, RDN — NCBA’s executive director of nutrition science, health & wellness — joined the SoundBites podcast, a leading nutrition podcast hosted by Melissa Joy Dobbins, MS, RDN, CDCES. McNeill discussed current meat consumption trends and shared nutrition recommendations for including beef in a healthy diet. This podcast episode highlighted information on beef’s distinct nutrient profile, the availability of lean cuts, sustainability efforts within the cattle industry supporting the environment, the recommendations in the Dietary Guidelines for Americans, and resources for more information on nutrition research, recipes and ranching. The podcast episode has been downloaded more than 4,000 times and used by health professionals to gain continuing medical education credits while broadening their knowledge about beef nutrition. Podcasts are just one of the ways NCBA provides educational resources and continuing medical education opportunities to health professionals. The success of this cost-effective effort demonstrates the value podcasts have in our continuing health education efforts targeted to health professionals and confirms the importance of sharing beef’s nutritional message in new ways.

TRENDING IN FOOD & MEDIA COOKING & EATING BEEF Coverage of cooking and eating beef increased nearly 60% this month, with warming temperatures causing people to break out their grills and search for light, fresh recipes.1

GOOD NEWS FOR BEEF

Outlets like Yahoo! News, TODAY and

The majority of articles that mentioned beef this month focused on cooking and eating beef.1

for consumers to enjoy.1

BEEF PRICES & INFLATION Stories about beef prices and inflation reached 40% more people this month.1 Some outlets predict rising prices throughout the summer, though meat alternatives have yet to reach price parity.1

GOOD NEWS FOR BEEF Although major outlets covered the issue, consumers still searched for ways to enjoy beef with new recipes.1

PLANT-BASED DIETS & ALTERNATIVES Plant-based diets were a main topic of conversation for beef consumers this month.1 Many outlets covered celebrity and athlete transitions to a plant-based diet, though the stars received some criticism for their choices.1

1.

GOOD NEWS FOR BEEF Some consumers have questions about the healthfulness of plantbased alternatives.1

# 060722-12 National Cattlemen’s Beef Association. (2022). Traditional and social media listening dashboards. Retrieved from Meltwater: www.meltwater.com


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T H E F E D E R AT I O N O F S TAT E B E E F C O U N C I L S Building beef demand by inspiring, unifying and supporting an effective state/national Checkoff partnership.

On The Road Again… With Beef It’s time to pack up the kids and hit the road for summer vacation. Whether visiting friends, enjoying the great outdoors or checking out roadside attractions, the classic road trip is always a family favorite. Along America’s highways and byways, the billboard provides advice for the next great place to eat, stay or play, and in many states beef is the star of outdoor advertising. And, if you are already gearing up for ski season, don’t be surprised to find beef advertised on the slopes too.

Beef Gets a Lift The Colorado Beef Council experienced remarkable success with on-mountain advertising at three Colorado ski resorts in Steamboat Springs, Winter Park and Telluride. Innovative technology allows ski resorts to have interactive digital screens on the ski lifts, giving advertisers a captive audience as skiers and riders get a lift to the top of the mountain. These screens give information on the mountain conditions, runs that are newly groomed, weather conditions and even a local traffic report. Advertising is limited, and beef is the exclusive protein advertised on the lifts. Additionally, larger screens across the resorts feature beef ads.

The ability to track success is a big part of the outdoor digital campaign. Once vacationers leave the resort, they are served additional beef ads if they are within Colorado’s boundaries. This ensures that Coloradans who visited one of the three resorts receive an extra beef ad on social media or on the web once they return home. The beef ads have resulted in more than 2.2 million impressions. For more information, visit www.cobeef.com.

Local Billboards Seen by Millions

During 2021, the Iowa Beef Industry Council (IBIC) placed 44 billboards statewide promoting beef to drivers on major throughways resulting in more than 28.2 million impressions. Billboards were placed in rural and urban communities with concise messages and images of hamburgers and steaks to keep beef top of mind among Iowans and outof-state travelers.

Because billboards have an extended post time, it allows the messaging to reach regular travelers on multiple occasions. IBIC’s collective investment resulted in 2,211 days of installed Iowa Beef assets with visibility throughout the state. Some boards tallied “added value” days where the initial post period expired but the message remained since a new advertisement hadn’t been booked, resulting in an additional 5.3 million views. IBIC’s 2022 billboard campaign began in April with roughly 40 digital and static billboards throughout the state. For more information, visit www.iabeef.org.

Beef Billboards Pack a Punch The Oklahoma Beef Council (OBC) placed outdoor ads celebrating beef across the state in FY22. The effort included a mix of digital boards in the Oklahoma City and Tulsa metropolitan areas and static boards in rural areas. So far, these billboards have garnered 19 million total impressions. The digital boards reached a large consumer audience and were placed in strategic areas and times that corresponded with producer events such as the Oklahoma Youth Expo, Cattlemen’s

Congress, Oklahoma Farm Bureau Convention and the Oklahoma Cattlemen’s Convention. The static boards were placed in locations that lead into or out of several livestock markets in the state. “Our outdoor ad campaign is a one-two punch that accomplishes goals under our consumer marketing and producer

communications tactics,” said Heather Buckmaster, OBC executive director.

For more information, visit www.oklabeef.org.

Outdoor Advertising Promotes Beef Year-Round The Georgia Beef Board (GBB) uses outdoor advertising in urban areas to encourage consumers to choose beef. A new static billboard located in Macon celebrated Beef Month in May. The GBB also advertises on two digital boards in Tifton along the busy I-75 corridor. Messaging on these billboards changes seasonally to keep beef top of mind with consumers year-round. For more information, visit www.georgiabeef.org.


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