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The National Livestock Weekly January 23, 2006 • Vol. 85, No. 15 “The Industry’s Largest Weekly Circulation” Web site: www.wlj.net • E-mail: [email protected] • [email protected] • [email protected] A Crow Publication Consortium to manage animal ID progressing The National Cattlemen’s Beef not serve as any type of adminis- Bassett, NE, bison producer. The said Stott. “The problem is a lot of to determine the source of the Association (NCBA) initially said trator in the process and will not program testing is receiving useful the criticism is coming without a so- funding. the new animal identification data- profit or recover any of their ex- feedback from producers, feedlots, lution. We are open to new ideas. “Funding comes from a variety base would be up and running the penses in the program, according state veterinarians and data serv- This is something we are doing to of places, not yet determined at first part of January. Contrary to to NCBA leaders. ice providers who are involved in get the ball rolling; we know it’s not this time, but it is in discussion as their earlier statements, the system The actual organization, com- the preliminary testing. going to be perfect. I mean, you we speak,” said Stott. “This is not is not yet ready for producers and prised of any industry individual or “Initial feedback was very posi- just don’t educate 1.1 million pro- like a checkoff or brand fee; it will feedlots to utilize in their opera- association that chooses to be in- tive,” said NCBA chairman of the ducers overnight, or in two years, be one time. We just haven’t deter- tions. However, NCBAofficials say volved is called, the United States animal ID commission, Rick Stott. for that matter.” mined if we want to seek funding the time is coming, and producers Animal Identification Organiza- “Our biggest proponents of the pro- Critics of the program are con- from the beginning (producer) or should expect to have full access to tion (USAIO) and encompasses all gram are producers participating cerned about the cost to the pro- the end (processor).” the system later this month. species of livestock, not just cattle. in the beta testing.” ducer, as well as the general fund- As far as the functioning of the The program is still in the test- The organization’s first board meet- However, Stott said like any pro- ing of the program. Stott said a ma- database, Stott said it is quite sim- ing phase, as well and the infra- ing was held Jan. 10, during which gram, it does not come without its jor goal is to make registering an- ple. He said the first responsibili- structure of the organization itself time, members of the board were share of critics. He said criticism is imals inexpensive and he said the ty is for the producer to record and is still being constructed. Although elected. The initial directors are a good thing but it needs to be con- cost is set to be 30 cents per head register all animals. When the ship- NCBA put forth a lot of time and Charles Miller, a Nicholasville, KY, structive. for the lifetime of the animal. How- ment of livestock takes place, the money to see the program to com- cow/calf producer; Rick Stott, Boise, “If everyone was hugging, we ever, critics stand on solid ground feedlot receiving the animals must pletion, they are not handling any ID, beef producer; and Lance Kuck, wouldn’t know how to improve,” on this issue since USAIO has yet also register. Stott said when ani- of the record keeping. They will mals are purchased or sold at auc- tion, the companies may tell the producer not to worry about record- Cattlemen ing the animal, the auction compa- ny will take care of it for them. He compared this transaction to brand in a tough inspection at auction companies. Once the animal is recorded, spot in Stott said no one on USAIO will have access to the information if an Oklahoma See ID on page 15 & Texas S. Korea, — Drought and fires are causing cattle to Singapore flood auctions. Cattle in Oklahoma and & Taiwan Texas are being taken to the auction as a result of devastat- to resume ing droughts and fires scorching the southern U.S. Most of the cattle being unloaded at the Ok- imports lahoma City, OK, and Decatur, Livestock auction companies have been vital to the existence to the cattle industry for decades providing a local market TX, auction companies are be- for producer’s livestock. Although the number of markets has declined, industry leaders see a solid future for the tradi- —Nations agree to ing sold because ranchers can’t tional livestock auctions accompanied by new innovations. — Photo courtesy of Livestock Marketing Association. boneless imports. afford to feed them since their Negotiations between USDA’s grass has been replaced by ash- es. According to Scott Dewald of Feds expected to rise in late trade Deputy Undersecretary of Mar- the Oklahoma Cattlemen’s As- Cattle markets were slightly over last December and placements attributed to a wide array of factors. keting, Chuck Lambert, and sociation, livestock ranchers are higher last week. Fed cattle mar- up about the same. Perhaps the Foremost among those is the inex- Park Hyun-Chool, director gen- left with dry wheat fields as a re- kets were a bit slow to develop with bad news from the C-o-F was going pensive cost of gain being experi- eral of the South Korean Agri- sult of the drought and much of no major trade expected until Fri- to be marketings, somewhere un- enced by cattle feeders across much culture Ministry’s livestock bu- the grass that was available was day of last week after WLJ went to der last year’s levels. of the country, coupled with good fed reau, concluded on Jan. 13, with burned. Since Nov. 1, the fires press. Futures markets remained The boxed beef cutout remained cattle prices. Fair weather and in- a partial victory for U.S. trade. have scorched more than bullish and combined with strength fairly strong despite heavy compe- expensive feed grains are helping South Korea agreed to resume 411,000 acres, destroying more in the boxed beef market having tition from pork and poultry prices. feedlot cost of gain throughout imports of boneless beef from than 250 homes and business- given feeders resolve to ask for Skinless boneless chicken is about much of the traditional cattle feed- cattle under 30 months of age. es, causing two deaths and re- more money for a limited supply of as low as it’s ever been, at 95 cents ing country. One source close to However, Park refused to alter sulting in Oklahoma being de- finished cattle. a pound. One major retailer said several Kansas feedlots said last their stance on the issue of bone- clared a federal disaster area. Northern Plains dressed mar- chicken has the highest margin week many were near 40 cents per in product, such as the beef ribs “Any amount of moisture will kets were up $2-4 on very limited item in the meat case. It seems un- pound on their cost of gain. Despite favored by Korean consumers. help, but we need some signifi- trade at $151-153 dressed. South- likely that beef will see much fea- record high prices being paid for Prior to the 2003 ban by Korea, cant rainfall over an amount of ern Plains live trade was almost turing at the retail case. The Choice feeder cattle, feedlots continue to en- beef ribs accounted for about 60 time to get us out of this nonexistent and it appeared feed- cutout was at $158 last week, Se- joy positive margins. The excep- percent of all trade between the drought,” said information offi- ers were content with show lists lect was at $144, still a nice $14 tion may be for feeders in Okla- two nations. Under the terms cer Tracy Farley of the Okla- and waiting for packers to come up spread between Choice and Select. homa and Texas. Warm and dry of the agreement, variety meats, homa Fire Response command with a little more. Even though beef demand dur- weather across much of the south- an additional 14 percent of U.S. center in Shawnee, OK. With nearby futures at $96, the ern Plains continues to hamper ing the fourth quarter of 2005 will to Korea trade, are also prohib- In addition to high winds and live market should develop some- producers in those areas and a be off a bit, it appears that the ex- ited from the Korean market. unseasonably warm tempera- where in that area for the week. number of cows are being culled port markets are picking up some In addition to those two classes tures, Oklahoma and northern Most analysts expected to see live of the slack. Mexico has been im- and calves sent to town in an effort Texas are more than a foot be- trade $1-2 higher than the prior to stem any additional drought-re- of products, the agreement also porting beef at near 2003 levels on See Imports on page 10 hind their normal rainfall of week’s trade, between $93 and $95. a monthly basis and Pacific Rim lated damage. Livestock market about 36 inches for this time of Packer margins turned positive countries are starting to open their reports in both states report buy- year causing producers to search midweek, to $6.25 a head, based on doors to U.S.

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