Diamond Ring Ranch Sale Presented By: for the Quarter Is up About 4.8 Broadcast Live 1.03 Percent from a Year Ago
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The National Livestock Weekly December 29, 2003 • Vol. 83, No. 11 “The Industry’s Largest Weekly Circulation” www.wlj.net • E-mail: [email protected] • [email protected] • [email protected] A Crow Publication BSE suspected in Washington-state cow — Final test bovine spongiform encephalopa- sure actions are quick and effec- chain, USDA conducts surveillance the food chain. There is no threat results awaited thy, also known as BSE or mad-cow tive,” she said. “We have a triple testing and has a five-year-old ban to human health and safety.” disease, according to USDA offi- firewall in place to protect our (na- on the use of ruminant-derived Veneman said all CNS tissue from British lab. cials last week. As of presstime last tional) herd and consumers from meat and bone meal (MBM) in ru- from the suspect cow, except for — Meat enters food Wednesday, final test results on the spread of the disease. None of minant feeds. samples collected for disease test- the “presumptive positive” cow the ‘at risk’ material got into the USDA food safety officials indi- ing, were sent to rendering where chain; USDA says were being awaited from a British (human) food chain.” cated meat from the suspect cow they were more than likely risk ‘minimal.’ lab. At risk material is central ner- was more than likely distributed processed into dog food, pig feed, or U.S. Agriculture Secretary Ann vous system (CNS) tissue, partic- through the human food chain, but poultry feed. None of that materi- — Trade partners Veneman said her agency was ularly the brain and spinal cord, fears about the disease should be al would have found its way back ban U.S. beef. working from the premise the dis- which carries the agent scientists minimal. into the ruminant or human food By Steven D. Vetter ease would be confirmed by the say is responsible for the trans- “Science has shown the agent re- supply. WLJ Editor British lab, and efforts to quickly mission of BSE to cattle and of vari- sponsible for BSE is not carried “This was a non-ambulatory an- and efficiently exterminate the ant Creutzfeldt Jakob Disease within muscle cuts of beef,” said imal showing clinical signs of a Preliminary tissue tests from a spread of the disease were under (vCJD) to humans. Elsa Murano, undersecretary for neurological disorder,” said Vene- “downer” Holstein cow in Wash- way. In addition to removing CNS tis- food safety programs for USDA. man. “Because of that, the animal ington state came back positive for “We are working hard to make sue from entering the human food “None of the risk material got into was designated for testing and all precautions were taken to elimi- The fall 2003 bull nate at risk material from entering sale season offi- the human and ruminant food sup- Central cially came to an ply.” end the second The cow was said to be a third calf America week of December. cow, between four and four-and-a- The stronger fed half years of age, and was said to and feeder cattle be showing symptoms of paralysis trade pact markets translat- normally associated with calving ed into better difficulty. unveiled prices being paid The suspect cow came from a for seedstock, both 4,000 head, two premise dairy op- — Agreement bulls and females. See BSE on page 6 A large majority disliked by U.S. sug- of the sales were ar, produce entities. helped out by ex- cellent weather al- — Congressional lowing buyers an Disease action needed ample opportuni- before Aug. recess. ty to look over cat- tle offered for sale. forces By Steven D. Vetter — Photo by WLJ Editor Jerry Gliko market A recent trade agreement be- tween the U.S. and four coun- freeze tries from Central America has been warmly received by a large On-feed: — Only 8,000 head portion of U.S. livestock and traded before USDA meat industry organizations. announcement. However, the U.S. sugar in- dustry and a shortened con- Data better than expected Trade was slow to get start- ed last week, and then was to- gressional session could ham- — Marketings well from last year. However, that fig- “Although the marketing figure per efforts to get the trade pact tally suspended after USDA an- above expectations. ure was six percent better than the looks small as a percentage of a nounced the “presumptive pos- ratified and implemented next average pre-report estimate, out of year ago, it’s large when heifer and itive” case of bovine spongiform year. a range of 78-85 percent of last steer slaughter declined 19 percent — Light cattle encephalopathy (BSE) Tuesday. On December 17, Robert Zoel- year’s figure. during November,” said Dan dominate placement Packers refused to even con- lick, with the office of the U.S. Vaught, analyst with A.G. Edwards Placements totaled 1.93 million template buying more fed cattle Trade Representative (USTR), numbers. & Son, in St. Louis, MO. head, according to USDA. That fig- until the extent of the fallout announced the completion of a Bob Wilson, analyst with By Steven D. Vetter ure was three percent below last from the announcement was trade arrangement with Hon- WLJ Editor year’s figure, and was less than the HedgersEdge.com, concurred, and duras, Guatemala, Nicaragua, known. A “doom-and-gloom” scenario was average analyst guess of 99.5 per- said, “The steer and heifer slaugh- and El Salvador that would open Early trade volume wasn’t ex- projected by several market ana- cent. The range of pre-report esti- ter was 81 percent versus the mar- up the U.S. borders to more sug- keting number of 89 percent. Nev- pected to be very large last week lysts prior to the December 19 re- mates was 96-108 percent of last due to packers having a holi- ar from those countries and al- year. er in our data has the spread be- low the U.S. more access to those lease of USDA’s December 1 Cat- tween those two day-shortened kill week and still countries’ meat markets. tle-on-Feed Re- been so large.” trying to put themselves on the Under the Central America port. However, USDA Cattle on Feed Last month’s positive side of the financial ledger. After 8,000 head were re- Free Trade Agreement (CAF- when the num- Total U.S.; December 1 marketing rate bers came out, the portedly moved in northern feed- TA), the four countries could in- ——-Number (in 1,000 head)——- 2003 as % of kept the number crease sugar exports to the U.S. report was called of cattle on feed ing areas Monday afternoon and 2001 2002 2003 2001 2002 early Tuesday morning, at most- by 85-90,000 tons the first year friendlier than On feed November 1 11,863 10,742 11,038 93 103 120 days or more, of implementation. After that, originally antici- as of December 1, ly $90-92 live, packer buyers re- November placements 1,908 1,977 1,926 101 97 fused to even entertain offers exports would be allowed to in- pated, with some November marketings 1,800 1,731 1,537 85 89 10-12 percent be- crease two percent annually. near-term market low last year’s fig- from prospective sellers once November disappearances 80 90 97 121 108 the BSE news broke. Currently, the four countries support possible. ure, and 2-3 per- On feed December 1 11,891 10,898 11,330 95 104 All other market indicators, can ship up to 111,000 tons, cu- Better than ex- cent below the See Markets on page 8 mulatively, into the U.S. on an pected market- five-year average. annual basis. ings and fewer placements last While the December 1 on-feed Lance Zuhrmann, M&Z Live- In return, the U.S. would be month had cattle feeders more cur- figure was four percent higher than stock Analytics, indicated cattle allowed more open access to the rent than originally thought, ac- a year ago, at 11.3 million head, an- feeders ability to stay current will high quality meat markets in all cording to market analysts. That alysts had thought the figure could help them maintain some market four countries, and a reduction “currentness” could help keep the be as much as six percent higher leverage through the early part of in tariffs on lower quality prod- near-term fed market in the high- than 2002. next year, particularly if beef de- uct. Both pork and beef are part $80s, worst-case scenario, through Analysts called the November mand returns to levels seen during of the new agreement. January. marketing figure “shocking,” par- most of this year. See CAFTA on page 4 November marketings were ticularly when compared to No- “Beef demand was extremely called 1.54 million, down 11 percent vember slaughter figures. See C-o-F on page 7 INSIDE WLJ UPDATES — Subscribers are WETLAND REGS. — A Bush ad- CANADA — The province of INDEX (priority handling) Happy urged to check in with the WLJ ministration promise to remove Manitoba has turned down the Beef Bits . .P-3 (priority handling) Website at www.wlj.net for up- isolated and seasonal water opportunity to join a federal pro- Markets . .P-8 dates on the ongoing BSE situa- sources from the auspices of the gram designed to compensate Sale Calendar . .P-12 tion and any other news of inter- Clean Water Act will not come to cow/calf producers for culling their Classifieds . .P-13 est concerning the U.S.