The National Livestock Weekly November 30, 2009 • Vol. 89, No. 08 “The Industry’s Largest Weekly Circulation” Web site: www.wlj.net • E-mail: [email protected] • [email protected] • [email protected] A Crow Publication INSIDE WLJ Lawsuit threatens planned horse gather TTCFACFA CONFERENCE—TheCONFERENCE Texas Cattle Feeders Association (TCFA) A lawsuit filed last week in the Associated Press last week much in conformance” with the populations in the wild, but also annual meeting last week focused Washington, D.C., Federal District that the lawsuit is “not unexpect- act, which he said requires BLM maintaining federal facilities on the challenges facing the sector. Court may block the planned gath- ed” given the “climate of the whole to manage the herds to appropri- meant to hold horses across the Monte Cluck, TCFA chairman, er of 2,700 wild horses north of wild horse world right now.” ate population levels. “We need to West. The program has been in praised cattle feeders for their per- Reno, NV, next month. The suit, “It is a pretty big management remove some excess animals here. crisis as costs continue to rise, with severance in the face of adversity and reminded the group that they filed by California-based In De- action we need to take in this ar- It just happens to be a lot of excess few viable long-term options avail- have faced tough times in the past fense of Animals (IDA), claims that ea,” he said of the agency’s plans animals,” Shepherd said. able to the agency. BLM has been and survived. PPageage 4 the planned gather is illegal be- to reduce the population. Shep- BLM officials face the difficult considering a number of plans to cause the government uses tactics herd argued the move is “very task of not only managing horse See Gather on page 15 which may “traumatize, injure and kill” some of the horses. IDA lawyers claim that the wild horses are an important part of the ecosystem and should be left to graze on federal lands rather than being shipped to Bureau of Land Management (BLM) holding fa- cilities across the U.S. The current FFEEDINGEEDING CCONDITIONS—FeedingONDITIONS conditions in much of the country BLM management plan calls for have been near ideal for much of the majority of the Calico Complex the past two years. That trend has herd to be captured and sent to led to a sharp improvement in car- holding facilities in order to insure cass grades. Studies of feedlot per- the survival of the remaining ani- formance data compiled over the mals which have overrun their past two years show significant im- provements in cattle performance; native habitat and could face more much of it appears to be weather dire consequences, such as starva- related. PPageage 8 tion, if the population control mea- sure is blocked by the courts. NNATURALATURAL PPREMIUMS—ThereREMIUMS are a number of premiums available for The IDA lawsuit claims that the feeder cattle which have not been planned gather is a violation of the treated with hormones or antibiot- 1971 Wild Horse and Burro Act ics. Capturing those premiums is which prevents the “capture, often difficult, as problems in the branding, harassment, or death supply chain lead to co-mingling of (and that) to accomplish this they those cattle, which dilutes the ad- vantages for cow/calf producers. are to be considered in the area However, there are ways for produc- where presently found, as an inte- ers to take better advantage of the gral part of the natural system of market. PPageage 1155 public lands.” A lawsuit filed by wild horse advocates may prevent the U.S. Bureau of Land Management from gathering horses Alan Shepherd, BLM’s wild IINDEXNDEX from federal lands. If the groups win their case against the government, the agency may find its options for con- Beef Bits ..............................P - 3 horse coordinator in Nevada, told trolling horse populations severely curtailed. Photo courtesy of BLM/WY. Sale Reports ........................ P - 6 Markets .............................. P - 10 Classifieds ......................... P - 12 New packing facility scheduled to open in Arizona Sale Calendar .................... P - 15 Weekly Comprehensive Cutout Value Tri-Western gin on a scaled-down basis while fed cattle. the packing industry, finding the Meat Packing, Inc. employees are trained. Local media reports that Tri- right home for his business has is scheduled to According to Bas Aja, president Western plans to export most of been a challenge. open a new slaugh- of the Arizona Cattle Feeders As- their pork product to Mexico. Meat But despite previous difficulties ter and packing sociation, Tri-Western is not look- from slaughter cows is destined for in other locations, prospects for facility in Willcox, ing to compete against the large Los Angeles, while higher grading Tri-Western in Willcox look good. AZ, approximately packing companies like National meat will be shipped to Texas and City Manager Pat McCourt ex- 80 miles east of and Smithfield, but to supple- Colorado. plained that Willcox is a town that Tucson, AZ. Operation of the facil- ment the large packers by filling David Walker Sr., president of is friendly to the cattle industry, ity, which will be housed in a for- a local niche. The Willcox location Tri-Western, has been in the pack- having at one point been a major mer apple warehouse, is antici- will give Tri-Western access to ing industry 45 years. He has cattle-shipping location. “We’re an pated to begin in three to four feeder pigs at a nearby Hormel- owned several other packing old western town,” says McCourt. Weekly Beef Production months, according to local media. owned pig farm, as well as provid- plants in Arizona, most recently a “In the early 1900s, we used to be Although the plant will be able to ing processing for an area that is facility in Tolleson, AZ, which sold the largest cattle-shipping location handle up to 100 head of cattle and currently lacking a cow kill facil- two years ago. According to Walk- in the country. Cattle are a part of 260 pigs daily, production will be- ity. They also will process regular er, due to the unaesthetic aspect of See Plant on page 11 Demand helps spur Cattle on feed numbers 2008 2007 5 yr Avg feeder prices show increase Cattle feeders started moving cattle early last week and the bulk The Nov. 1 cattle on feed report percent lower than the five-year of the week’s action appeared likely to be complete ahead of the was generally regarded as positive average tally as a result of the Thanksgiving holiday. Trade was called steady to 50 cents higher for the market as it showed only a decline in overall cattle numbers LIVE STEERS DRESSED STEERS CME FEEDER than the previous week at $83-84 live basis in the southern tier 1 percent increase in the number in the U.S., a drop in imported $82.38 $130.95 $92.98 of cattle on feed. According to US- cattle, particularly from Mexico WEEK ENDING: 11-25-09 while Corn Belt trade was reported at $129-130 dressed. Other feeding regions were expected to trade cattle in the established range DA’s National Agricultural Statis- this year, and a decline in demand after sideways trade in the live cattle contract markets on the Chi- tics Service (NASS), there were from domestic and export markets. cago Mercantile Exchange (CME) last Wednesday. 11.1 million head of cattle on feed Sources have also noted that there Boxed beef prices showed signs of improvement last week as re- in the U.S. at the start of the is still a good number of stocker tailers purchased product for planned post-holiday features. There month, indicating that the supply cattle that remain outside feed are signs of some modest improvement in the beef markets, accord- of fed cattle is likely to remain yards in the U.S. this fall as ample ing to retail sources, which has buyers cautiously optimistic that manageable into the first half of supply of forage remains available sales between now and the end of the year might be better than next year. in some regions. After the price for expected. If the early December sales period is strong, it could pave The Nov. 1 number, although feeder and stocker cattle dipped the way for gains into the end of the year for both boxed beef prices higher than last year, remained 3 this year, many producers with and fed cattle trade. Last Wednesday, the Choice boxed beef was trading $1.14 higher at $141.83 while Select increased 76 cents to U.S. CATTLE ON FEED reach $133.45. Sales volume was reportedly light to moderate for 1,000+ Capacity Feedlots the week. Million The holiday was also cutting into beef production which was add- Head 2008 2009 ing to some of the higher boxed beef prices. The total harvest was 12.5 estimated in the neighborhood of 550,000 head for the week. Vet- 12.0 terkind Cattle Brokerage analyst Troy Vetterkind noted that there 11.5 was some good demand in the wholesale market for loin primals while chuck and round cuts were also trading with a steady to firm tone 11.0 Time Sensitive Priority Handling last week. He said that improved demand from the fast food sector 10.5 was also supporting ground beef prices and the cow beef cutout. 10.0 The lower U.S. dollar was helping to spur the grain markets 9.5 higher last week with Wednesday trade in the corn pit moving 15 cents higher at midday after the dollar slipped to new lows against 9.0 foreign currencies.