“For years, just-in-time inventory was the new thing, and all these years that worked; we just never had a problem,” StuartWhilesaid.adopting ‘just-in-time’ delivery by freight companies was effective pre-COVID, their inability to adapt as demand rose and labor fell proved troublesome to say the least.
The result — “paying more for less” — is draining producers’ pockets and patience.
“We do a few of these regulatory things, we cut total hours down, we overload the supply chain, and we have sick workers unable to work. It was just the perfect storm that broke an already fragile system,” Stuart said.
Last winter and springs’ port congestion also played a role in the global supply chain, tying up containers, ships and dock space. While this was still somewhat due to the combined shock of labor shortages and increased demand, empty shipping containers heading back
Prior to the pandemic, trucking companies struggled to find drivers, partially due to the undesirable nature of being on the road for long periods and away from home.
The COVID-19 pandemic impacted nearly every facet of American industry from healthcare to manufacturing. While some of those impacts have subsided, shortages and supply chain issues continue to plague our nation and particularly the agriculture and food sectors. Like everything else, supply chain concerns escalated early in the pandemic, initially due to outbreaks in the workforce and the residual labor shortages at packing plants, in the transportation and shipping industries, as well as at grocery stores and restaurants. Between sick employees being unable to work and the surge in online purchases from homebound Americans, supply chains were simply overwhelmed by demand and could not keep up. This caused a backlog of goods needing to be shipped to and from the United States and around the country, which grew exponentially when combined with labor shortages in the trucking, shipping and rail industries.
Continued on page 7 CURRENT VS. LAST YEAR MARKET SNAPSHOT 14
The combination of these stricter regulations with the worsening driver shortage and increased shipping demand yielded the service backlog we see today.
Adding to the overall difficulty of the trade, some drivers just don’t want to deal with the numerous regulations within the trucking industry, and the economics are not always enticing to draw more drivers in. Newer federal regulations like the required use of electronic logging devices (ELDs) which track a driver’s daily of hours-of-service (HOS) have also contributed to the problem. The livestock hauling sector has been exempted from the ELD mandate since their introduction due to Congressional action.
This veteran-turned-farmer has a story that caught the attention of national news outlets. 10 WEATHER Drought is present across the globe in Europe and South America.
As beef prices remain high, what to expect from U.S. beef imports and exports. Use these practices to ensure workers are safe when handling and moving cattle. CHECKOFF
More recently, these supply chain issues, along with new challenges like the Russian invasion of Ukraine, have sent the agriculture industry scrambling to distribute commodities like grain that are critical to feeding livestock and people alike. Grain shipments have experienced a particularly challenging choke point in the railway industry. Despite producers’ stockpiles of feed and grain, some are a single missed or late shipment away from running out of feed. According to the American Farm Bureau Federation, rail companies BNSF and Union Pacific have shipped 9% and 14% fewer grain cars in the second quarter than in the first, respectively, not to mention the combined 143,000 additional unfilled orders
From Rangeland to Railyards NCBA Addresses Supply Chain Challenges MARK YOUR CALENDAR HOUSING AND REGISTRATION OPEN OCTOBER 3RD REGISTER EARLY FOR BEST PRICING!
year-over-year. In addition to an increased scarcity of railcars, producer bids for shipping services have increased 552% 1
“Before that, we had trucks on the road 24/7,” Stuart said. “All the sudden, we only have trucks on the road during the day because the drivers shut down at night. It was like we eliminated a third or more of our entire trucking logistics.”
According to Global AgriTrends Co-Founder Brett Stuart, the reason behind the supply chain’s lack of preparedness is due to companies’ desire to increase efficiencies through ‘just-in-time’ inventory deliveries.
CATTLEMENNATIONAL To be the trusted leader and definitive voice of the U.S. cattle and beef industry. STDPRSRT POSTAGEUS PAID MSHATTIESBURG, 142PERMIT ASSOCIATIONBEEFCATTLEMEN’SNATIONAL 300SUITEAVENUE,NICHOLSE.9110 80112COCENTENNIAL, SEPTEMBER 2022 • Vol. 38, No. 12 • NCBA.org SOUTH CENTRAL 500-600 LB. STEERS WEEK OF 8/22/2022 IN THIS ISSUE $195.12 16.3% $167.84 $146.76 17% $125.47 LIVE FED STEERS $264.58 21.9% $338.93 CHOICEBEEFBOXED $7.31 18.9% $6.15 OMAHACORNCASH 4 FARM WORKER SAFETY 15 FEDERATION 5 POLITICAL OUTLOOK Parents pack beef in backpacks as students return to the Expectationsclassroom.forthe2022 election cycle for the Senate and House of Representatives. 8-9 MARKET REPORT
“[Trucking] is a change in lifestyle, and part of it is that people are just unwilling to do that,” Stuart said. “I think too, the COVID-19 stimulus payments raised everyone’s expectations of standard of living, [with people] saying, ‘There are things I don’t want to do that I don’t have to do.’”
1-866-383-7827 | OPERATIONARROWQUIP.COMHEAVY-DUTY CHUTES DESIGNED TO ELIM INATE DOWNTIME INTRODUCING OPERATION ARROWQUIP: EQUIPMENT ABLE TO GET THE JOB DONE, NO MATTER WHAT YOUR OPERATION THROWS AT IT. OFFERING THE SAFEST AND HIGHEST-QUALITY CATTLE EQUIPMENT, ARROWQUIP ANNOUNCES A LINEUP OF TRUE HYDRAULIC CHUTES, DESIGNED WITH EASY-TO-REPLACE PARTS, 24/7 CUSTOMER SERVICE, 24-HOUR SHIPPING ON IN-STOCK PARTS, ALL WITH A 15 YEAR WARRANTY*. OPERATION * The General: OR 250,000 total head of cattle | The Major: OR 150,000 total head of cattle.
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 JohnJillRobinsonJohnson Editor Sarah Drown Contributing Writers Wendy White Hunter Ihrman
youRegardless,youritsitit.youSometimesrecognizeSometimesjustmakeswayintodailylife.are inundated each day with somebody trying to influence what you buy, what you eat, what you wear, how you vote and more. Influence is big business in America which shows just how successful it is as a tool in helping some people make decisions. It is also fueled by some amazingInfluencetechnology.comesat us through many different mediums. Television commercials, radio ads and video ads on your phone are all examples of the daily effort to influence your purchasing decision. In our work as a contractor to the national Beef Checkoff, NCBA is trying to influence consumers and get them to buy more beef. One of the biggest sources of influence these days comes through social media. Now, I realize that not everybody reading this column uses Facebook, Instagram, or the various other social media platforms, but a lot of people do, and social media is powerful. To help put this power in context, think back to the comments Oprah Winfrey made about beef during one of her shows in the spring of 1996. On that show, her guest was an animal activist vegetarian talking about the BSE outbreak in Great Britain. While we were not using the term “influencer” at the time, that is exactly what Oprah was, and still is. If Oprah said she was not going to eat any more hamburgers, then many of her viewers were not going to eat any more hamburgers, either. Modern influencers can have the same impact. Elon Musk can move financial markets by simply Tweeting out his comments or thoughts. The technology that drives influence evolves daily. Television commercials, newspaper ads, radio ads and billboards still have a place in modern influence, but advanced advertising is where we see some amazing opportunities. By now, you are well aware that whatever you search for on the internet results in ads for those products or services showing up in every subsequent webpage you look at. There is even technology that uses your location to tailor ads for nearby stores you might be interested in. That same geo-targeting technology can tell when you get close to the meat case or other part of the grocery store and send you ads for items you would find nearby. My wife and I just purchased our first Google assistant. I did not really want it, but it came as part of the system to have Wi-Fi in our house. I joked that now the people at Google will know more about us than our own families do. I laughed, my wife laughed, Google assist laughed, and Siri laughed on our phones. A bit of an exaggeration, but the point does not miss the mark by much. One way we capitalize on the power of influence is by seeking out and partnering with individuals, organizations and companies that consumers listen to. In the social media world, the individuals who drive discussions and trends are, not surprisingly, called “influencers” and can make a solid living off simply sharing their ideas or opinions. As part of our Checkoff-funded work, we find influencers who are saying great things about beef and promoting our product. Once we identify these influencers, we approach them about becoming partners and sharing even more information about beef. Over the past several years, we have built a network of influencers that range from celebrity chefs to young moms. We take these influencers to cattle operations to expose them to what really goes on in the production of cattle and beef. We bring them to our Denver office to discuss nutrition, food safety, sustainability and we give them cutting and cooking demonstrations in the Checkoff-funded NCBA Culinary Center. When they get back home and start posting about beef, we follow up with additional facts and figures to help them be as influential as they can. These social media influencers have helped change the game for our industry and correct a lot of the misinformation that is out there regarding beef. One Instagram post promoting an easy-to-prepare beef dish for supper can help a lot of consumers decide what they are going to go home and cook that night. The same goes for the Checkofffunded e-commerce work we do with retailers such as Sam’s Club and Kroger. Beef. It’s What’s For Dinner. banner ads showing a steak on a retailer’s website can spark a craving that is only satisfied by purchasing beef. Who or what will influence you today?
The Power of Influence
2022 NCBA Leadership
By Don Schiefelbein, NCBA President
Six months into my tenure as the president of the National Cattlemen’s Beef tothe(NCBA),AssociationIhavehadopportunitytravelandvisit with fellow cattle producers from coast to coast. A couple of months ago at the Florida Cattlemen’s Convention, I had the opportunity to meet fellow cattle producer Kevin Escobar. Kevin mentioned that he had heard me visit with the Florida attendees and that the U.S. Cattlemen’s Association (USCA) officers and I, an NCBA officer, appeared to share so much in common. The following week, Kevin asked if I would be willing to jump on call with three additional USCA officers. We visited for more than an hour and to the surprise of some, we almost unanimously agreed on what the real threats to our industry were. It was on that phone call that the group challenged me to share my thoughts. Like many of you, I come from a family farming, cattle feeding and ranching operation. Our large all-family operation includes my father and mother, their nine sons (I am son number seven), eight daughters in-law, 32 grandchildren and their 15 spouses and 32 great-grandchildren. Our massive family group adds up to more than 80 members. Like any family operation, the key to our success is being able to work together for the benefit of us all. As a family operation, we would not survive if we focused on the issues that cause disagreement in our family.
Contact NCBA: 9110 E. Nichols Ave., Suite 300, Cen tennial, 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 adver tising 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 promot ing 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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These social media influencers have helped change the game for our industry and correct a lot of the misinformation that is out there regarding beef.
By Colin Woodall, NCBA CEO
www.NCBA.org NATIONAL CATTLEMEN 3 THE OFFICIAL PUBLICATION OF NCBA
Don’t Focus on Wedge Issues
The Enemy Within Our Industry
Let’s Focus on the 90% of Issues Where We Agree There’s no shortage of issues that pose real and immediate danger to the long-term success of our industry. While our enemies remain focused on the wedge issues that divide us, large issues are quietly growing and are not being addressed proactively, like foreign animal diseases and cell-cultured fake meat. If COVID-19 taught us anything, we should have learned that in the face of a disease crisis, our government can overreact and substantially disrupt the marketplace. Imagine if a cattle virus hit our nation. You can be assured that overnight our export market would cease, along with it, the loss of at least $500 of value per head of every fed beef animal processed. You could also anticipate that the enemies of our beef industry would take advantage of this terrible situation by attempting to completely shut down our domestic market. The result would be a disruption so large that it could cripple ourAnotherindustry.huge, looming issue is cellcultured fake meat. This is not the fake meat we see in the store or on a menu. Cellcultured fake meat is grown in a petri dish. I am concerned that the beef community has been lulled to sleep with the recent failures of fake meat companies. While not perfected yet, estimates suggest a product rollout within the next five years of cell-cultured fake meat that may mimic the look, texture and even the flavor of our beef. Our industry cannot afford to lose focus on this potential game changing product. Now is the time to work together to put into place effective safeguards to preserve our future. Foreign disease and cell-cultured fake meat are just a couple of issues our beef community faces. Our industry routinely defends producers on taxes, WOTUS, environmental overreach, death tax, endangered species, burdensome regulations, etc., etc., etc. For the sake of the future of our business, we must work together as an industry. As leaders, we need to find common ground on the 90-plus percent that will likely determine our long-term fate and avoid the death trap of wedge issues that place our industry groups in the circular firing squad where we inflict damage to each other as our enemies gleefully watch. Just as my father reminds our family, our industry needs to heed that same advice — the only way we lose is by attacking each other BUT if we stand united together, we are unstoppable.
Anthony Barnes Emma Mulvaney Creative Director Don Waite Graphic Designer Dancinee Jennings
As a family operation, we would not survive if we focused on the issues that our family is not in agreement on. The term I use to describe these non-consensus items is “wedge” issues. Every industry and every family has wedge issues. These are typically complex subjects where smart people on both sides simply disagree. Typically, these wedge issues bring about strong emotions and, if truth be told, the solutions are neither obvious nor easy. In our current beef business, a few of these wedge issues include price discovery, use of Checkoff funds and mandatory country of origin labeling. In each of these sensitive issues, good cattlemen disagree. On the wedge issue of price discovery alone, our industry invested almost two years of precious time, spent lots of valuable dollars and groups on both sides of the issue used a tremendous amount of political clout. No consensus was reached… just lost opportunities.Similarly,on the critical issue of the national Beef Checkoff and state beef council-led Checkoff programs, our industry spent millions of dollars fighting amongst ourselves in court only to have the Supreme Court affirm the legality of the Beef Checkoff and affirm that USDA has appropriate oversight of the state beef councils and Checkoff programs. Our Enemies Win The only winners on these wedge issues are the lawyers and those who want to put us out of business. Our enemies have figured out that the best way to take down the beef industry is not by attacking us directly but by fostering hatred and disagreement within our ranks. It should not come as a surprise to anyone that a huge sum of the litigation expense against the Beef Checkoff was gladly funded by the likes of allies and partners of the Humane Society of the United States (HSUS), an organization with the primary goal of eliminating animal agriculture. As well, you should be alarmed to learn that Senator Cory Booker, a vegan who is not a friend of agriculture, has now become a member of the Senate Ag Committee and routinely supports the introduction of bills that further wedge our industry.
For ad sales contact Summer Johnson 303-8503346, Shannon Wilson 303-850-3345, Lindsay Clark 303-850-3339, Kate Ramsey 303-850-3321 or Jason Jerome 303-850-3313.
Ritchie Industries Inc. www.ritchiefount.com Roto-Mix www.rotomix.com Zoetis Animal Health www.zoetis.com
Lallemand Animal RaboNorbrook,NationwideNutritionInc.AgriFinanceRAMTrucks ALLIED INDUSTRY PARTNERS 44 Farms ADM Animal Nutrition, Inc. Agri-Pro Enterprises of Iowa, Inc. AmericanAlltech,AgriWebbInc.NationalInsuranceArrowquipA.T.FerrellCompanyInc.BankofAmericaBarenbrugUSABassProShops/Cabela’sBehlenManufacturingBimedaBioZymeBushHogInc.CargillAnimalNutritionCaseIH CEAT Specialty Tires CME HyundaiFeraFarmersENDOVACDATAMARSGroupLivestockDellTechnologiesDiamondVAnimalHealthBusinessNetworkDiagnostics&BiologicalsCorpFoodSafetyNetServicesFurst-McNessCompanyGallagherGravely,anAriensCompanyGreeleyHatWorksGrovTechnologiesGrovivHaydenOutdoorsRealEstateConstructionEquipment IMI InternationalGlobalStock Food International Genetic Solutions Jorgensen Land and Cattle Kent Nutrition Group Krone Kubota Tractor Corporation Kunafin “The Insectary” Laird Manufacturing Meat & Livestock Australia, Ltd. Micronutrients National Corn Growers Association Neogen New Generation Supplements Newport Laboratories, A Vaxxinova Company Noble Research Institute Novus SouthRoper/Stetson/TinRedPriefertPhibroPBSParkerInternationalMcCroryAnimalHealthAnimalHealthPneu-DartRanchEquipmentQualiTech,IncQualityLiquidFeedsAngusAssoc.ofAmericaR&RMachineWorksRFD-TVHaulApparelandFootwearDakotaStateUniversityStoneManufacturingSuperiorLivestockSupremeInternational Syngenta Tarter Farm and EquipmentRanch The Hartford Livestock Insurance The Vit-E-Men Co. Inc./Life ZinproTransProductsOvaGeneticsU.S.PremiumBeefVermeerVitalixVytelleWestwayFeedsWildRiverY-TexPerformanceMinerals
A healthy operation cannot continue to do business without healthy farmers and ranchers. Mental health is directly related to physical health. Remember to take care of your mind while you take care of your body. In the need of immediate and effective support services for farm families experiencing crisis, please call 1-800-FARM-AID.5 Or visit farmstateofmind.org for state-specific resources. For additional resources for handling cattle safely during hauling, encourage your local law enforcement to go through the Bovine Emergency Response Program (BERP).
GOLD LEVEL SPONSORS (Minimum
3. Wear personal protective equipment such as close-toed boots, masks, goggles and gloves when around poorly ventilated areas, using pesticides, for biosecurity purposes and for general safety around large animals.2
6. Effectively communicate needs and instructions between all individuals before and while handling cattle. Doing so reduces the risk of injury to both humans and cattle.2 7. Apply basic sanitation practices to equipment, vehicles and clothing to decrease the chance of microbial contamination.2 8. Maintaine all vehicles and trailers used to transport cattle to ensure the safety of personnel and cattle during loading, transporting and unloading.3
3. Beef Quality Assurance. Manual Resources, BQA Transportation National Manual. https://www.bqa.org/resources/manuals. (Accessed August 15th, 2022).
5. Farm Aid. Our Work. https://www.farmaid.org/our-work/. (Accessed August 15, 2022). on
Animal Health International www.animalhealthinternational.com
The third week of September is National Farm Health and Safety week, and bringing awareness to the importance of human safety on any operation is critical because every day approximately 100 agricultural workers suffer a lost-worktime injury.1 In 2019, 410 farmers and farm workers died from a work-related injury, resulting in a fatality rate of 19.4 deaths per 100,000 farm workers.1 While many efforts for improving safety and health on farms and ranches are focused on the cattle, it is just as crucial to keep those working and handling the cattle safe and healthy.When working with large animals and large pieces of equipment, there is always the opportunity for potential harm. Understanding the animals as well as the best handling practices and how to use equipment properly keep those who handle cattle safe. Below is a list of actions to consider doing or avoiding when handling or hauling cattle.
INDUSTRY COUNCIL
9. Before transporting cattle, check the weather and route to ensure a safe and uneventful trip.3 Do Not’s 1. Risk human safety for the safety of cattle.2 2. Leave exposed animal health products in open areas on your farm or ranch. Always store them in a designated area that meets product-label storage requirements like a refrigerator or climate-controlled closet that minimizes light.2
In addition, consider the younger farm hands, children and grandchildren that help raise cattle. Youth family members that help on a cattle operation should consider going through the Think F.A.S.T. program offered by the American Farm Bureau Federation. The free program is tailored to a 14- to 17-year-old audience and focuses on general safety, leadership and critical thinking skills. There are 10 modules, and each takes 10 minutes to complete. This program is offered online, and there are downloadable, in-person training materials for educators.4
4. Read the label on any animal health product you are administering and know how to properly dispose of needles and animal health product containers.2
Worker Safety Considerations
CORPORATE MEMBERSHIP DIRECTORY
the Ranch and While Hauling Cattle SHOP THE NCBA STORE NCBA is excited to announce an online NCBA apparel and merchandise store! Purchase a variety of merchandise for the ENTIRE FAMILY including HATS, SWEATSHIRTS, T-SHIRTS, SHORTS, BAGS and much more. Visit the store by scanning the QR code or by logging to your NCBA.org account and find the shop under “Benefits & Promotions”.
4 NATIONAL CATTLEMEN www.NCBA.org
5. Develop an Emergency Action Plan for your operation and have multiple copies in your office and where employees are frequently working.2
“The Bovine Emergency Response Program is about training first responders on how to handle Livestock in an emergency,” said Steve Boyles, BERP trainer and Ohio BQA state coordinator. To improve stockmanship on your farm, consider attending a Stockmanship and Stewardship Tour in your area. To learn more visit stockmanshipandstewardship.org. The Beef Checkoff-funded Beef Quality Assurance (BQA) program has many tools to train employees and improve human and animal safety. To learn more about worker safety on cattle operations and during cattle hauling, visit bqa.org. 1. Center for Disease Control. Agricultural Safety. https://www.cdc.gov/niosh/topics/ aginjury/. (Accessed August 15, 2022).
Micro Technologies www.microtechnologies.com Moly Manufacturing www.molymfg.com New Holland Agriculture www.newholland.com
$100,000 Investment) PRODUCT COUNCIL American Foods Group Cargill Meat Solutions Certified Angus Beef DardenCulver’sRestaurantsempiricalFarewayStores,Inc.FiveGuys McDonald’s Corporation National Beef Packing Omaha PreferredPerformanceSteaksFoodGroupBeefGroupTysonFreshMeats
3. Move cattle through facilities that are not conducive to human safety.2 4. Euthanize an animal with a firearm unless you are trained and understand how and where to properly utilize this tool to carry out euthanasia.2 5. Open an overturned cattle trailer. Be sure to always check the safety of humans first.2 6. Operate heavy equipment unless you are trained and experienced to use the equipment.2 7. Haul cattle if you are fatigued.3 8. Stand in between a gate panel and swinging gate. Always give yourself adequate room to exit the space to avoid becoming trapped.3
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
2. Beef Quality Assurance. Manual Resources, BQA National Manual. https://www. bqa.org/resources/manuals. (Accessed August 15th, 2022).
Do’s 1. Renew your BQA certification every three years to stay up to date with the most recent worker safety information.2
Boehringer Ingelheim Animal Health Inc. www.bi-vetmedica.com/species/cattle.html
2. Consider human safety first when handling cattle.2
4. American Farm Bureau Federation. Think F.A.S.T. https://www.fb.org/programs/ safety-health/thinkfast/. (Accessed August 15, 2022).
ALLIED Bayer FarmCHRSciencesEnvironmentalHANSENCreditCouncilHuvepharma,Inc.
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.
Caterpillar www.cat.com Central Life Sciences www.centrallifesciences.com
Purina Animal Nutrition LLC www.purinamills.com/cattle
www.NCBA.org NATIONAL CATTLEMEN 5 Fall Political Outlook: View from NCBA ©2022 Purina Animal Nutrition LLC. All rights reserved. Everyone wants reputation cattle. Amplify your operation’s efforts to earn that distinction with the over 125 years of excellence the Purina ® brand is recognized for. Wean with quality nutrition and time-tested health protocols to deliver calves the market values. Partner with Purina. To get started, PRECEDESREPUTATIONYOURENSUREpurinamills.com/purinaplusvisitCALVES’THEM PC_PurinaPlus_PHASE2_5.1x15.65_0822.indd 1 8/11/2022 5:23:58 PM
According to the Cook Political Report, five Senate seats are considered “tossup” including Arizona, Georgia, Nevada, Pennsylvania and Wisconsin.
“We’re extremely grateful for those cattle producers who answered the call to serve as Leaders of the PAC,” Lane said. “To make sure that NCBA-PAC is a leading voice in Washington, we need support, not just in this election cycle, but year after year.” Beyond Leader of the PAC, NCBA is focused on increasing political engagement from all members.
NCBA-PAC Taking Action While pundits and pollsters make election projections, NCBA-PAC is hard at work. This year alone, the PAC has raised hundreds of thousands of dollars through generous contributions from cattle producers.Newthis year, NCBA-PAC launched the Leader of the PAC program to encourage long-term giving. For a commitment to contribute $1,000 per year for 10 years, cattle producers receive special benefits such as private political briefings, custom clothing, special gifts and more.
Currently, 188 seats are considered “solid Republican” versus the 162 “solid Democrat” seats. While each party is tied on “likely” and “lean” seats, 34 seats are considered “toss-up” where either party could win. Of these toss-up seats held by Democrats, many are in areas of the country that are more suburban where moderate fiscally conservative, but socially liberal voters live. “The Republicans who are likely to come into Congress this November will be fiscal hawks. That will shift our conversations in Washington towards federal spending and away from environmental topics,” Lane said. Senate While polling heavily favors Republicans in the House, the Senate is more mixed. Currently, the Senate is evenly split with 50 Republicans and 50 Democrats. The Vice President of the United States is also the President of the Senate and casts the tie breaking vote for the Democrats. Unlike the House, only a portion of senators are up for reelection. Republicans only need to win one seat to retake control, but they are defending 21 seats while Democrats only have 14 seats in play.
“If every NCBA member gave $25 per year, NCBA-PAC would have over $1.25 million in each election cycle. That is a massive war chest to defend the cattle industry,” Lane said. For further information about NCBAPAC, please visit policy.ncba.org or contact PAC Director Anna Lee (alee@beef.org). (303) 539-9300
With two months to go until the midterm elections, political campaigns are in full swing. While election outcomes are never truly certain until the polls close, NCBA has been monitoring political trends and polling while engaging in key races to support candidates who back the cattle industry. “NCBA-PAC, or political action committee, is the arm of this association that engages in political races across the country,” said Ethan Lane, NCBA vice president of Government Affairs. “While NCBA staff are focused on advocating for producers on Capitol Hill, in the White House, or in federal agencies, NCBA-PAC is raising money for the candidates who will defend cattle producers. Political campaigns are extremely expensive to run, but NCBA-PAC can provide the additional resources to help candidates purchase advertisements, print literature, buy yard signs, and take all the necessary steps to win.” House of Representatives Every two years, all 435 members of the U.S. House of Representatives are up for election. Democrats currently hold a slim majority and Republicans only need to win four more seats to take power. With rising inflation, high gas prices and low polling numbers for President Joe Biden, a Republican takeover of the House seems extremely likely. The Cook Political Report estimates that 29 to 35 House seats could flip from Democrat to Republican. If this occurs, Republicans will have the largest majority since 2014.
CATTLE INDUSTRY CONVENTION & NCBA TRADE SHOW ERNEST N. MORIAL CONVENTION CENTER FEBRUARY 1-3, 2023 MONDAY, JANUARY 30 8:00 a.m.-7:30 p.m. ANCW Meetings TUESDAY, JANUARY 31 8:00 a.m.-7:30 p.m. ANCW Meetings 10:00 a.m.-12:00 p.m. NCBA Executive Committee Meeting 1:00 p.m.-3:00 p.m. D.C. Issues Update 3:00 p.m.-7:00 p.m. Cattlemen’s College Demo Sessions & Reception 3:30 p.m.-5:30 p.m. Regional Meetings 6:00 p.m.-9:00 p.m. Cattle Feeders Hall of Fame Reception, Banquet & Awards WEDNESDAY, FEBRUARY 1 8:00 a.m.-12:00 p.m. ANCW Meetings 8:00 a.m.-12:30 p.m. Cattlemen’s College Sessions & Lunch 8:00 a.m.-3:00 p.m. Policy Committee Meetings 1:00 p.m.-2:30 p.m. CBB Executive Committee Meeting 3:00 p.m.-4:30 p.m. Opening General Session 4:30 p.m.-8:30 p.m. NCBA Trade Show Welcome Reception 7:30 p.m.-8:30 p.m. Environmental Stewardship Award Reception 8:30 p.m.-10:30 p.m. NCBA-PAC Reception & Live Auction THURSDAY, FEBRUARY 2 6:30 a.m.-7:30 a.m. BEEFit 5K Fun Run/Walk 8:00 a.m.-10:00 a.m. General Session II – CattleFax 2023 U.S. & Global Protein & Grain Outlook Seminar 9:00 a.m.-6:00 p.m. NCBA Trade Show 10:00 a.m.-12:00 p.m. Checkoff Highlight Session & LRP Update 10:00 a.m.-12:00 p.m. Policy Committee Meetings 12:00 p.m.-4:00 p.m. CattleFax Board of Directors Meeting 12:30 p.m.-2:00 p.m. Sustainability Forum 2:00 p.m.-4:00 p.m. Checkoff Committee Meetings 4:00 p.m.-6:00 p.m. NCBA Trade Show Reception 5:30 p.m.-8:00 p.m. Various NCBA & Affiliate Receptions 5:30 p.m.-9:00 p.m. CattleFax Board of Directors Reception/Dinner 6:30 p.m.-10:30 p.m. Thursday Night Event FRIDAY, FEBRUARY 3 8:00 a.m.-9:30 a.m. General Session III 8:00 a.m.-10:00 a.m. Checkoff Committee Meetings 9:00 a.m.-4:00 p.m. NCBA Trade Show 10:00 a.m.-12:00 p.m. CBB Board Meeting 12:00 p.m.-1:30 p.m. CBB Luncheon 1:00 p.m.-3:00 p.m. NCBA Board of Directors Meeting 3:00 p.m.-4:00 p.m. NCBA Trade Show Reception – Pups & Suds Yappy Hour 4:00 p.m.-5:30 p.m. Closing General Session 5:30 p.m.-8:00 p.m. NCBA First Call Pre-Party 8:00 p.m.-1:00 a.m. Cowboy Concert Series & After-Party Schedule at a Glance TE XT BEEF TO 87 7-319-2142 FOLLOW US ON SOCIAL MEDIA InvolvedGet • Talent Round-up • National Anthem Contest • Scholarships • Internships Learn more here: Get Jazzed for CattleCon23! JOIN US FOR #CATTLECON23 IN NEW ORLEANS, LOUISIANA! CattleCon23 is THE event for anyone in the cattle business! The Cattle Industry Convention & NCBA Trade Show is agriculture’s premier event where the industry comes together to get down to business for the cattle industry. Cattlemen and women from across the country will gather in for 3.5 days of education, fellowship, networking, business, and a whole lot of fun! Visit convention.ncba.org for more information. PLAN TRIPYOURTOCATTLECON23TODAY! Cattle Industry Convention attendees are eligible to receive 5% discounts on all published airfares on United Airlines. Thank you to oursponsors! Tentative as of 8/25/22
Within the trucking space, which is vital to the movement of cattle, NCBA has long-focused on exempting livestock haulers from hours-of-service (HOS) and (ELD) regulations. We have been able to exempt livestock haulers from current HOS regulations when hauling fully loaded due to an Emergency Declaration from the Federal Motor Carrier Safety Administration (FMCSA) which (as of this writing) currently ends on August 31, 2022. NCBA has continuously advocated to extend this exemption due to the ongoing supply chain issues we are still experiencing. “Hauling livestock is not like hauling toilet paper. You cannot pull over 30 minutes from your destination and stop fully loaded and rest for 10 straight hours because you have run out of drivetime,” said NCBA Executive Director of Government Affairs Allison Rivera. “Livestock haulers must be mindful of the welfare of the livestock they are moving, as well as the safety of others on the road, and in order to maintain that high level of safety, they need flexibility within hoursof-service.”Whileit may take some time for our supply chains to fully recover and to get caught up with the backlog of goods and commodities, Stuart said they will likely be more resilient. Even as the supply chain concerns continue, NCBA works towards advocating for policies that support our cattlemen and women and relieves some of the pressure.
“Rail Order Delays, Empty Exports and Equipment Shortages – Transportation Disruptions Persist.” American
1. Farm Bureau Federation - The Voice of Agriculture, American Farm Bureau Federation, 11 July 2022, shortages-transportation-disr.fb.org/market-intel/rail-order-delays-empty-exports-and-equipment-https://www.
www.NCBA.org NATIONAL CATTLEMEN 7 overseas with no U.S. agricultural products only exacerbated an already tough situation. Citing an imbalance of goods coming into the U.S. from markets like China with goods going out, shipping companies justified this action as a logistical reality, regardless of the consequences. The shortage of drivers to move goods from the ports in a timely manner only made this situation worse, and containers began piling up until they simply ran out of room. A pileup of containers also meant a pileup of ships waiting to dock and offload. The cumulative impacts of these unique problems led National Cattlemen Beef Association (NCBA), along with a vast group of impacted stakeholders, to support legislation to address backlogs at ports. Those efforts were successful and led to President Biden signing the Ocean Shipping Reform Act into law earlier this year. The bill grants additional authority to the Federal Maritime Commission to investigate complaints about ocean carriers and increases transparency. While most cattle operations in the U.S. are not relying on ocean shipments every day, our trading partners abroad rely on ocean shippers to receive exports of American beef and are essential to the health and function of the overall supply chain. To address these concerns, cattle producers recently adopted policy directing NCBA to focus on ways to alleviate these supply chain disruptions. While we no longer haul cattle by rail, producers are very much reliant on the movement of much-needed inputs that the railroads move daily. Through new railroad policy, NCBA was able to support the Freight Rail Shipping Fair Market Act. This legislation would reauthorize the Surface Transportation Board and allow for further oversight and much needed transparency within the rail industry, much like the Ocean Shipping Reform Act did in the ocean shipping space.
Supply Chain Challenges 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. 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. 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! VIRTUAL REGISTRATION IS FREE! 9:00 AM - 5:00 PM CENTRAL TUESDAY, NOVEMBER 1 For more information stockmanshipandstewardship.orgvisit
8 NATIONAL CATTLEMEN www.NCBA.org
By Katelyn McCullock Director of Livestock Marketing Information Center
The first six months of trade data hit the books at the beginning of August, showing that exports in 2022 have more than kept pace with the record high volumes seen last year. This year is 7% ahead of 2021, with several destinations up year-overyear. The largest one is China, boasting a 36% increase over the first half of 2021, followed by Taiwan, up 27%, Vietnam, up 9% and South Korea up 4%. The biggest story in beef exports has been the overwhelming success in U.S. beef into China, and to that extent 2022 looks to be the first year since 2017 where U.S. into China will not see triple digit increases. Still, a 36% increase is a fantastic one, but the rate of change is slowing. Last year, on average, China bought 45 million pounds per month on a carcass basis, compared to 10 million pounds in 2020, and the six-month average for 2022 is 52 million pounds. So far that’s a 16% increase in the monthly average. Other countries, which have increased the average monthly include Taiwan, having an 18% rise to its monthly average purchases this year and Vietnam, up 47% on an average monthly basis. The seasonal pattern for China has not yet emerged until several more years’ worth of data is available. In 2021, the peak month was August, coming in just shy of 60 million pounds. The three previous years, highs for the year were set in the fourth quarter in December or November. This year, exports have reached last year’s high in June. China has emerged as a top 3 U.S. beef destination and bought the equivalent of 18% of 2020’s total export volume in 2021. This year beef exports to China will continue to represent a large proportion of total export volume. This year is on pace to set a new record for U.S. beef shipped overseas. High U.S. beef prices, a strong U.S. dollar and a waning global economy are all headwinds, but have not slowed exports, at least for now. China has been a large driver in the last couple of years, and if there are any signs of pull-back, could signal the U.S. will fail to hit those high volumes again this year. LMIC has the annual total exports up 2.6% from 2021 numbers and a 3 to 6% drop in 2023 from beef export volumes. Relatively high beef prices in the U.S. have also opened the door for larger beef imports which are up 18% on the first half of 2021. Brazilian beef has been the major driver but strong increases from Argentina and Mexico are also factors. Brazil is up 145% from 2021, Argentina 53% and Mexico 23%. Australia, Canada, and Nicaragua also shipped larger volumes compared to a year ago. New Zealand and Uruguay are the only two other large suppliers that have seen a decrease in exports to the U.S. Most of the beef imported from Brazil is likely frozen, lean trim product. Fresh 90% lean trimmings prices have maintained a high price for about a year between $270 and $290 per cwt. Early August was the first week in more than a year the fresh 90% lean trimmings price fell below $270 per cwt in over a year. High beef prices have helped incentivize lean beef product to come to the U.S. and has done so despite ample U.S. cow slaughter providing domestic product availability. High imports may have helped edge 90% lean beef trimming prices lower. Cow slaughter is expected to slow next year, and if the U.S. has a similar domestic demand portfolio, 90% fresh product could easily breakthrough the $290 level that it has failed to breach in 2021 and 2022.
Although U.S. beef prices are expected to remain high, imports seem unlikely to keep pace with this year’s strength as domestic policies shift to combat inflation in their own countries. There may be some non-market limitations placed on the world beef market as global inflation is expected to continue. This could be a double-edged sword, but LMIC expects the 90% trim price to exceed levels seen this year unless the recession-impacted consumer shifts away from beef at the grocery store. LMIC forecasts have imported product up 5.5% in 2022 more than 2021, but expects some pullback in 2023 of 3 to 6%. Macroeconomic factors are expected to be a major unknown in trade, geopolitics and impacts on the beef market.
U.S. Beef Trade Remains Hot 4.03.53.02.52.01.51.00.50.0 2004 2007 2010 2013 2016 2019 2022 Bil Pounds U.S. BEEF AND VEAL EXPORTS Carcass Weight, Annual Data Source: USDA ERS & USDA FAS, Compiled and Forecasts by LMIC Livestock Marketing Information Center 08/10/22 4.03.53.02.52.01.5 2004 2007 2010 2013 2016 2019 2022 Bil Pounds U.S. BEEF AND VEAL IMPORTS Carcass Weight, Annual Data Source: USDA ERS & USDA FAS, Compiled and Forecasts by LMIC Livestock Marketing Information Center 08/05/22M-P-2408/10/22310290270250230210190 JAN APR JUL OCT Cents Per Pound WHOLESALE BONELESS BEEF PRICES Fresh, 90% Lean, Weekly Avg. 2016-20 2021 2022 Data Source: USDA AMS Livestock Marketing Information Center
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Videos: Expensive or Just More Valuable?
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www.NCBA.org NATIONAL CATTLEMEN 9
By Patrick Linnell Analyst, CattleFax The world is looking brighter for the cow-calf producer with calf prices on summer videos mostly $35-$40 higher than last year. The cow-calf sector needs these kind of prices after years of cyclically low prices and recently surging input costs. However, these prices are also running well above what a simple breakeven against the deferred live cattle futures implies the cattle are worth. How does that work? Part of the answer is that boxed beef quality grade spreads are generating larger premiums for high grading fed cattle. Average grid premiums have been as large as $67 per head this summer due to wide premiums for Choice, Upper 2/3rd Choice and Prime products in the boxed beef complex. Average grid premiums have been trending higher for years as demand for quality grows and increasing grade means more cattle are capturing the benefit of those premiums. If buyers can have confidence that calves will grade well and net premiums on a grid, that value will likely show up in bids. For example, a grid premium of $60 per head is worth $10 per cwt on a 600lb. calf, all else equal. On top of quality grade, there is additional value if the cattle will be sold on a carcass basis and can be expected to yield with a superior dressingFurthermore,percentage.cattle with better expected feeding performance can be penciled in with lower costs of gain. Grain prices have come off their highs and appear to be settling into a range but are still much higher than recent years. This higher grain environment means larger differences in feeding costs for high performers versus low performers. Last and certainly not least, it is hard to ignore the lengthy list of “buttons” for natural, NTHC, GAP, and other programs on some calves. The number of fed cattle actually marketed under those programs remains at or below 5% of fed slaughter according to CattleFax estimates, but those programs nonetheless generate additional value at the fed cattle level. That translates to more purchasing power for those buyers and adds another potential bidder for program-eligible calves.There is one common thread in the discussion above: differences in expected or perceived downstream value for calves. It’s well known that many calves selling on the videos are at least in the upper half of the nation’s cattle genetics. If they really are, that means those calves should have more value than “industry average.”
Bottom line: The video sales have been stout overall but the price ranges and premiums for top selling calves have been just as astounding. It comes down to expected value further down the supply chain. Between higher input prices and stronger demand for high-quality beef, cattle that are expected to stay healthy, gain efficiently and perform on the rail should continue to receive additional benefit at the auction block.
Let us not put the cart ahead of the horse just yet. The odds of El Niño in the Spring of 2023 are still low, well below that of a neutral pattern. However, there is a lot of warm water in the western Pacific Ocean just waiting to move east, representing a swing to El Niño. Once that change occurs, our global weather patterns will begin to change too.
Drought, Not Only a Problem for the U.S.
2. Garreaud, Rene & Boisier, Juan P. & Rondanelli, Roberto & Montecinos, Aldo & Sepúlveda, Héctor & Veloso, Daniel. (2019). The Central Chile Mega Drought (2010-2018): A Climate dynamics perspective. International Journal of Climatology. 40. 10.1002/joc.6219. NCBA August ad NEW.pdf 1 19/08/2022 17:20
The chance to radically change the overall pattern to that favoring long-term moisture is quite low at this moment. However, we see the potential for a shorter-term shift away from La Niña coming at the end of the year and into 2023. This gives the chance to allow El Niño some time to develop. Over the last several months, we have discussed how unlikely it is for La Niña to let go of 2022, and that is still the case. Data indicates we will be in La Niña or neutral conditions through winter. Data into 2023 show increased odds of El Niño.
Between forecast modeling and historical cycles, the odds of neutral and El Niño conditions increase in the spring of 2023. As it stands now, the probability of El Niño increases ahead of La Niña – and it has been quite some time since that has been the case.
By Matt AtmosphericMakens,Scientist We have focused on the drought hitting the U.S. previously, but it is not just a problem here, as several drought areas are plaguing the Rememberworld.around the holidays when production worries started in South America due to drought in Brazil, Paraguay and Argentina. This summer, the drought across Europe has grabbed the world’s attention. Before we have perspective on those areas, I need to update you on the drought across the U.S. from what I wrote in the October 2021 issue of the National Cattlemen. In last year’s article, I wrote: “The last time in recorded history we saw a drought like this was in the 1500s (reliable drought data can go back thousands of years). Within that period of record, we can find several very long-term droughts, i.e., megadroughts. Most megadroughts on record last between 20 to 40 years. A 50-year drought has occurred, and that drought of the 1100s was the worst of the past millennium.” We have another year’s worth of data to add to our current megadrought, and the drought picture has not changed its historical significance as we are closer to rivaling that drought of the 1100s. Using 2000 as the starting year for our current drought period, this is the driest 23-year period in the U.S. since the 1100s. (This is based on summer-time drought data for categories abnormally dry through exceptional drought.) When it comes to isolating just the exceptional drought conditions (the most extreme drought level), research has shown the drought severity from 2000–2021 was the driest 22-year period since at least 800.1 Across North America, Canada has recorded improving drought conditions since the start of the year. However, the U.S. and Mexico’s drought conditions have remained since the beginning of the year, with the driest conditions expanding from Mexico across Texas and the U.S. Southern Plains. Most recently, we have heard about the issues across Europe, from extreme temperatures to the lack of moisture. Andrea Toreti, a senior researcher at the European Drought Observatory, said a drought in 2018 was so extreme that there have been no similar events in the last 500 years. He announced during an online press conference in August that this year’s drought is worse than that of 2018. Across South America, the so-called Chilean Megadrought is one of the longest durations in a thousand years.2 Attention across the continent has shifted recently, however. This is the worst drought period in several decades for parts of Brazil, Paraguay and Argentina. It is also worth mentioning that the drought for the Horn of Africa is the worst in 40 years, and livestock losses are significant. What’s driving this? We certainly see a connection to drought depending upon the phase of ENSO (El Niño Southern Oscillation) as well as other long-term ocean conditions such as those in the North Pacific and the Atlantic Ocean. Many other oscillations, or climate drivers, exist in various parts of the world. Imagine a set of gears of varying sizes and speeds, applying energy to one of those gears to see how all others react. Only in this case, nature will change the size and speed of gears — they are not fixed. North America and Europe’s “gear ratios” changed not long ago. Right around 2000 there was a shift in the pattern associated with the Atlantic Ocean. The Pacific Ocean has been set in a particular pattern, too; the patterns in these oceans can last several decades and will either work together to bring moisture or drought. For the U.S., this Elswingdurations,country.muchmoisturedroughthigherwilltermchangeOceanUntildroughtleadscombinationcurrenttoincreasedfrequency.theAtlanticisreadytoitslong-pattern,weremaininachanceofversusacrossoftheOvershorterwebetweenNiñoandLaNiña
In your Fall Directions magazine, I will show you how this pattern change could impact your area. That will be in the winter and spring outlook. In the meantime, I will have any drought and climate updates during the weekly Cattlemen to Cattlemen airings on RFD-TV.
10 NATIONAL CATTLEMEN www.NCBA.org
conditions every couple to a few years. Since 2000, we have been in La Niña conditions more frequently than El Niño. La Niña will lead to drought conditions more often than not. Excessive heat can coincide and be reinforced during these dry patterns, and the two have indeed worked together to expand drought in many parts of the world.
1. Williams, A.P., Cook, B.I. & Smerdon, J.E. Rapid intensification of the emerging southwestern North American megadrought in 2020–2021. Nat. Clim. Chang. 12, 232–234 (2022). https:// doi.org/10.1038/s41558-022-01290-z
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Food Retail: Grocery Trips Decline, and Average Basket Underperforms Inflation In-person purchases at grocery stores in June decreased 5% compared to the same month in 2021, when COVID-19 restrictions were still in place. Warehouse clubs and discounters have received increased visits in recent months as consumers look for value in the current inflationaryCommonenvironment.knowledgehas long stated that inflation leads consumers to more frequent, lower-ticket purchases — similar to gas stations, as filling up the tank becomes a higher expenditure at current record-high gas prices. Numbers indicate that we still don’t see this behavior in most grocery purchases. Average grocery baskets were 6% higher in June, which is substantially lower than inflation in the same period (food at home: 12.2%). As seen in restaurant spending, reduced/flat traffic and inflation above the increase in average basket represent overall contraction in total expenditures. Consumers are worried about spending, and numbers may indicate trading down to lower-priced items and brands and an increased focus on bargain hunting. This is corroborated by the change in where consumers shop: discount grocers led the basket-size increase throughout Q2 — 7%, 8%, and 9% in April, May, and June, respectively.Anotherindicator of consumer focus on value can be found on the other end of the grocery value spectrum: premium and natural stores. Despite double-digit inflation, premium and natural stores lost basket size throughout the year and were sustained mainly by an above-average increase in transactions. Loyal consumers for this premium segment have likely behaved like the gas station example. To sum up the changes in shopping trips and basket sizes, discount grocers and warehouse clubs emerged as the winning categories in Q2’s inflationary environment. It is remarkable, though, how spending dropped monthly in that quarter.Meanwhile, online grocery — the pandemic’s rising star — kept steady at 2.80 orders/month/active client in the past 12 months. However, average order growth has been at low single digits (Figure 5), being eaten up by inflation that translates into decreased real spending.
Consumers have started shifting their habits amid persistent inflation in both foodservice and food retail. Despite rising prices and deteriorating consumer sentiment, consumers kept spending in all food channels in the first five months of the
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Expect More Careful Spending
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stores,andrestaurantsspendingconsumerchangesTorentfromwalletsimpactsincreasinglyInflation—gastotofood.measureiningrocerywe
Consumers are more careful with their overall spending; consumer sentiment reached its lowest point since measuring began in the 1940s. Employment and income indicators remain strong, but consumers have started tapping into savings to cover basic needs. However, we should not underestimate the summer’s power to keep people out of their homes. The season is expected to sustain spending on everything foodrelated for a bit longer, and industry players can use that period to adapt to upcoming times of austerity in shopping carts and restaurant orders with an increased focus on affordability.
Foodservice: Less Spending as Summer Starts Consumers are eating out less. Restaurant transactions decreased 10% year over year in June 2022, following a 5% year over year decline between March and May (Figure 1). This contraction results from the inflation in the foodaway-from-home category (7.7%) and dropping discretionary income. The steep drop was felt along all foodservice subcategories. The coffee shop and bakery café and fast-casual subcategories performed better in Q1, as breakfast and lunch routines resumed with more in-person work. Casual dining’s growth trajectory, on the other hand, has inverted.Despite the 10% reduction in restaurant visits and high single-digit inflation, the average spending per transaction was only 7% higher year over year in June, in line with the average for the first half of the year. In real terms, it represents flat restaurant checks with less frequentAcknowledgingvisits. that restaurant checks are comprised of various dynamics (volume, product mix, and inflation), casual dining becomes a particular case. Checks in this category have increased the least (6%) despite full-service restaurants — in which casual dining is included — having printed the largest inflation (8.9%) and decreased the most visits (-14%). Lower checks in real terms are likely an effect of consumers opting for lower-priced menu items, skipping drinks and additional courses (appetizers or entrees, for instance), or both. In any case, it points toward consumers becoming more conscious of spending at full-service restaurants as prices increase and discretionary incomes slim.
observed in June to become more the rule than the exception.
By FrossardJP looked at data powered by Earnest Research (www.earnestresearch. com) to flag changes in both food service and food retail. At restaurants, consumers started cutting down diningout frequency and order sizes in June. Similarly, visits to grocery stores became scarcer, except for retailers that provide value and bargains, such as discounters and wholesale clubs.
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In fact, CNN even published an article titled “Inflation-exhausted Americans: Let’s just go out for steak.” 1 Despite inflation impacts, consumers expressed a strong desire to cook and eat beef, proven by a reach of 484 billion of stories about the topic.1
The beginning of fire season in the western U.S. and stories of cattle producers suffering from persistent drought were featured in national outlets.1 Media largely focused on the efforts of producers to protect their cattle from natural disaster.1 GOOD NEWS FOR BEEF
4. U.S. Department of Agriculture, Agricultural Research Service. FoodData Central, 2019. https://www.fdc.nal.usda.gov/fdc-app.html#/food-details/170208/nutrients
Industry subject matter experts discussed the topic of a climatarian diet, stating that reducing meat consumption is not the answer.1 GOOD NEWS FOR BEEF
American Academy Family Physicians, Contemporary Pediatrics, Journal of the American Academy of Physician Assistants and Healthy Children Magazine. Articles written by fellow health professionals also shared information about how beef’s iron matters in the first two years and how meat helps make every bite count. For consumers, recipes were developed with early-years eaters in mind to make it easy for families to serve dishes everyone at every age can enjoy. The recipes were included in a special section of the Checkoff-funded www.BeefItsWhatsForDinner.com website as well in materials shared with consumers. New videos, social posts and display ads were also developed to reach parents with information about family-friendly meals and the health benefits of beef. A partnership with popular parenting website, Cubby, provided creative ways to incorporate beef into kids’ diet as well as other beef-centric information over a six-week social campaign and newsletter sponsorship. Rural consumers were also specifically targeted through YouTube video ads and native advertising. In addition, four states extended the message at the local level with their investments. The messaging reached more than two million consumers in rural areas across the country. Feeding babies beef at six months of age is still a relatively new concept for both pediatricians and consumers. Providing these audiences with information about beef’s role as an early complementary food influences how health professionals talk about beef with their patients and drives demand for beef. Overall, the successful Early Bites With Beef campaign generated more than 76.5 million impressions, including 6.5 million digital video views and 9.5 million audio ad listens. Learn more at BeefItsWhatsForDinner.com/nutrition/beef-in-the-early-years or by scanning the QR code.
1. American Academy of Pediatrics. Pediatric Nutrition Handbook. 7th ed. Elk Grove, IL: American Academy of Pediatrics, 2014.
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Peer to peer education efforts were further enhanced with a live webinar featuring Katie Ferraro, MPH, RDN, CDE. The Self-Feeding from Baby’s First Bites event reached nearly 3,000 attendees including pediatricians, registered dietitians and other health professionals. Following the event, 93% of attendees agreed that beef can safely support babies’ developmental needs and serve as the foundation for lifelong healthy eating patterns. Based on what attendees learned during the webinar, 70% indicated that they would make changes to their nutrition practice.
NEWS
New beef recipes were plentiful in July, featured in outlets like Tasting Table, Mashed and Delish.1 GOOD NEWS FOR BEEF
Beef sustainability reached consumers nearly 25 billion times in July.1
# 081522-17 1. National Cattlemen’s Beef Association. (2022). Traditional and social media listening dashboards Retrieved from Meltwater: www.meltwater.com
COOKING & EATING BEEF BEEF SUSTAINABILITY
Advertisements promoting beef as an early complementary food were placed in publications targeting health professionals including American Academy of Pediatrics,
Marvin Frink, an Army veteran and cattle producer in North Carolina, is an open book, willing to share his story of pain, mental health and perseverance not only with other producers, but also with consumers. His service and advocacy efforts were initially highlighted in the November 2021 Federation page of National Cattlemen. What started as a story to honor cattle producers who served in the military, Frink’s message of hope and healing through cattle has now made it to mainstream newsstands. In May, Marvin and his wife, Tanisha, welcomed a dozen veterans with Post Traumatic Stress Disorder (PTSD) to their farm for a weekend to experience what Frink calls “agri-therapy,” working with the land and animals to help heal invisible wounds. A reporter for People magazine made the trip as well, documenting Frink’s work for a story featured in the July 25, 2022, issue.In addition to the print circulation of 2.5 million readers, People online has a potential reach of more than 45 million. People also posted a link to the story on their Twitter page where they have more than 7.7 million followers.
Media remained interested in new technologies to boost beef industry sustainability, such as the use of methane as a power source.” 1
State beef councils from coast to coast also shared the article with their followers, and the story received more engagement than other posts typically receive. Wounded Warrior Project posted a link to the People story on their Facebook page where they have more than 3 million followers. More than 5,400 Wounded Warrior Project Facebook followers “liked” Frink’s story. This is an example of how one producer makes a powerful impact by sharing what he does with others to help his country, his family, his fellow veterans and his industry. Read the People magazine article by scanning the QR code.
Producer’s Story Comes Full Circle Early Bites With Beef
Beef is an important complementary food for infants and toddlers during the first few years of life when rapid growth and development occur. Health authorities like the Dietary Guidelines for Americans, World Health Organization and the American Academy of Pediatrics recommend animal source foods, like beef, to ensure nutrient needs — such as iron and zinc — are met. Proper nutrition is critical during this time, particularly since by six months of age, iron stores are depleted, and breastmilk alone can no longer meet all the infant’s nutrient requirements.1-4 Introducing meats, like beef, has a purpose beyond simply meeting essential nutrient needs. Beef offers new and different flavors and textures which not only supports oral and motor development, but also enhances discovery and learning, helping toddlers accept new and healthy foods as they grow and develop healthy eating habits. To educate both health professionals and parents about beef as an early complementary food, the National Cattlemen’s Beef Association (NCBA), a contractor to the Beef Checkoff, continued the Early Bites With Beef Campaign in 2022. Campaign goals included advancing awareness and increasing health professional recommendations that beef can (and should) be a safe complementary first food for babies starting at around six months of age and continuing throughout childhood and providing consumers with information about how to effectively and safely feed babies beef.Funding from the Federation of State Beef Councils and individual states extended outreach efforts to health professionals nationwide. More than 3,000 toolkits, complete with posters, fact sheets and newsletters, were distributed to pediatric health care offices in 32 states. Health professional response to toolkits was very positive with nearly 9 in 10 professionals recommending or intending to recommend beef to parents and caregivers. In addition, 75% of respondents reported being more knowledgeable about beef as an early complementary food after receiving the information. On the consumer side, half of respondents reported that receiving the information from their pediatric professional made them more likely to feed beef to their child.
2. Dietary Guidelines Advisory Committee. 2020. Scientific Report of the 2020 Dietary Guidelines Advisory Committee: Advisory Report to the Secretary of Agriculture and the Secretary of Health and Human Services. U.S. Department of Agriculture, Agricultural Research Service, Washington, DC. 3. Schwarzenberg SJ, et al. Advocacy for improving nutrition in the first 1000 days to support childhood development and adult health. Pediatrics 2018;141:e20173716.
Combine People’s outreach with Beef Checkoff-funded Beef. It’s What’s For Dinner. social networks, and Frink’s message is reaching consumers across the country. The Beef. It’s What’s For Dinner. Facebook page has more than 980,000 followers, and the post about Frink’s story received the second most engagement of any post this year. The post has been “liked” more than 515 times and shared more than 160 times.
TRENDING IN FOOD & MEDIA
NATURAL DISASTERS Drought, extreme heat and fire that affected regions across the U.S. caused a 141% increase in traditional media stories in July.1
THE FEDERATION OF STATE BEEF COUNCILS
nutrition by developing a recipe and marketing strategy for a product of their choice. In this hands-on experience, students were exposed to the versatility of beef and safe food handling practices while also learning about the multitude of agricultural careers and skills it takes to develop a recipe. Students created beefcentric recipes that their fellow students might enjoy from the school cafeteria. They were challenged to work with their school’s foodservice teams to learn about how schools procure their food, the budget limitations that exist, and the nutritional requirements that should be followed. Students filmed their own commercials, created logos, and wrote morning announcements to market their products.
The Beef Certificate Program (BCP) is a Beef Checkoff-funded reimbursement program through the Kansas Beef Council (KBC) that helps provide high-quality beef in classrooms. BCP is offered to Family and Consumer Sciences (FCS) and ProStart programs for use in classes and teaching labs. The program helps ensure that students learn accurate information about beef’s role in a healthy and balanced diet while providing teachers the resources they need to succeed in the classroom. BCP includes a variety of resources in addition to beef reimbursement for teachers. Resources include lessons about the beef lifecycle, sustainability, beef in the diet and many more. The lessons are designed for FCS programs; however, they all include STEM ties to help teachers make connections across curricula. Teachers who participate in BCP also have the potential to gain continuing education hours through the Raw Truth About Beef curriculum and in-person professional development trainings. In the 2021-2022 academic year, 101 Kansas high schools and middle schools across 44 counties participated in BCP. This resulted in more than 16,000 students being reached through the program. For more information, visit www.kansasbeef.org.
Bringing Beef into the Classroom
The New York Beef Council (NYBC) partners with New York Agriculture in the Classroom to sponsor the annual Top Cut Beef Contest for elementary, middle and high school students. In 2021, 67 classrooms competed to develop a beef recipe of their choice that could be served in their school cafeteria, while also working with their school’s beef3-12teacherslunch.balancedandprocuring,thepersonnelfoodservicetoidentifyprocessofpreparingprovidingaschoolStudentsandingradeslearnedaboutproductionand
www.NCBA.org NATIONAL CATTLEMEN 15
To add context and provide students with the necessary information for the contest, classrooms were invited to attend four live, virtual field trips where they learned how beef gets from the farm to their cafeteria trays. The virtual field trips included an “in the field” experience at Lucky 13 Beef Farm, “in the kitchen” at South Lewis Central School, a guide to making intoStudentsforhotCompanytripwithcharcuteriesandwichesbeef-basedandboardsNYBC,andatoSmithPackingtoseehowdogsaremadeschoolcafeterias.alsodivedfoodsafetyandhoned their cooking skills with pre-recorded videos made by the NYBC. Entries from across the state were judged by a panel of beef producers and industry experts and were evaluated on the product, market analysis, marketing plan and the beef nutrition analysis. The first-place classroom in each division received $250 and a barbeque grill for their classroom courtesy of the NYBC. For more information, visit newyork.agclassroom.org and www.nybeef.org.
Building beef demand by inspiring, unifying and supporting an e ffective state/national Checkoff partnership. Beef. It’s What’s For School Lunch. Back to school already? Kids and parents alike are wondering what happened to those lazy days of summer. With school back in session, beef is on cafeteria menus and in classroom curricula. Fill up backpacks with supplies and tummies with beef to get the school year started off right.
Lunchroom Posters Promote Beef as a Power Protein
The Missouri Beef Industry Council (MBIC) supports the Mo Beef Kids program, which connects schools and their foodservice professionals to cattle farmers and ranchers to “beef” up school lunches. The goal is to provide beef more often in the lunchroom while implementing food and nutrition education in the classroom. This powerful partnership highlights the message and journey of food and nutrition, while adding important protein to a student’s diet. Missouri farmers and ranchers make donations at local participating sale barns. For every dollar raised, five school lunches can include beef on the plate. Since the program’s inception in 2017, nearly 50 schools have participated, and more than 35,000 beef lunches have been served. In addition to increasing beef consumption in lunchroom,the the program agricultural10-weekprogram,beeffifth-gradeincludingresourceseducationaloffersaeducationeducation program and a beef in the classroom program, which reimburses high schools the cost of beef used in beefrelated classroom lessons. The program supports the efforts of junior and senior high school instructors facilitating lessons on beef selection, storage, preparation and nutrition. For more information, visit www.mobeef.org.
The Georgia Beef Board shares the beef message with teachers and students through the Beef for the Classroom (BFTC) program. BFTC reaches new minds and educates students about beef through a variety of resources. Teachers can apply for grants that can be used to purchase beef to use in lesson plans created to educate their students about the beef industry in Georgia. The program reaches 4,000 students in grades K-12 in schools across the state.School lunchrooms in Georgia also feature beef nutritional messaging via posters. The “Beef is a Power Protein” posters include information about beef’s top nutrients and show students what beef can do for them as they are enjoying their meals at schools. For more information, visit www.georgiabeef.org.
Beefing Up School Lunches
Annual EncouragesContestStudents to Get Creative With Beef
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