February 3, 2020 | Vol. 13 : No. 1
Unless we do things out of the ordinary, beef is a commodity. A commodity is by definition a break-even game, admitted Scott Lake, associate professor and beef extension specialist for the University of Wyoming. To beat that statistic, Lake suggested thinking out of the box for profit potential — implants, ionophores, beta agonists, artificial insemination and even embryo transfer.
Producers seeking to document their added value on Angus feeder calves just got a more cost-effective option. EarthClaims LLC and the American Angus Association have reached an agreement to provide bundled verification services. The bundled service includes certification under the Global Animal Partnership’s 5-Step Animal Welfare Program (GAP) certification from EarthClaims with options for age and source, Angus-sired genetics, non-hormone treated cattle and NeverEver 3 verification by AngusLinkSM, a USDA Process Verified Program. By working together, the companies are able to streamline the enrollment and audit process while offering the programs at a reduced cost.
The value-added concept is not new to the beef industry. For years, value-added beef products that command premium prices, based on quality or specialized production practices, have been jockeying for position in the marketplace. Marketing of fed cattle has changed significantly during the last couple of decades, with a dramatic increase in the percentage of cattle sold through a grid-based marketing system designed to reward carcass merit.
The United States and China completed a Phase One trade agreement Wednesday, Jan. 15, that will eliminate three major non-tariff trade barriers experienced by the beef industry for the last 14 years.
This agreement, which should go into effect Feb. 6, will reopen access to a market of 1.4 billion consumers. While the Chinese market reopened in June 2017, it still carried the non-tariff barriers of bookend traceability requirements, no production technologies allowed, and 30-month age restrictions. These three barriers are removed with this agreement.
The latest monthly trade data for November 2019 were released by the USDA Economic Research Service in mid-January. The report continued the recent trend of lower monthly exports as compared to 2018. After three consecutive years of double-digit increases (2016-2018) in beef exports, current data show January-November 2019 exports to be down 4.6% compared to the same period in 2018. To add to the mix, there are also new and hopeful trade deals with Japan, Canada, Mexico and China. Needless to say, there are plenty of moving parts for 2020.
Marketing is usually the last thing farmers and ranchers think about. Producers have several options where to sell their calves, from sale barns to board sales to video auctions. The sale barn is the traditional marketing method most Midwestern cow-calf producers choose.
Farmers and ranchers continue to seek out a marketing method they feel will pay for all the efforts they have put in to raising a highly desirable feeder calf. During the past few years, several sale barns have added more options to bring in additional bidders.
Stepping to the lectern, Greg Ibach admitted he is glad to get out of Washington, D.C., every so often. Ibach, former Nebraska director of agriculture and current USDA undersecretary for marketing and regulatory programs, was in Mitchell, Neb., for the 26th Range Beef Cow Symposium. He talked a little about trade and other issues of interest to an audience composed of beef cattle producers from Nebraska, Colorado, Wyoming and South Dakota.
