FDA Putting the Brakes on Antibiotic Use NEWS
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“The Industry’s Largest Weekly Circulation” The National Livestock Weekly AprilA 16, 2012 • Vol. 91, No. 28 website: www.wlj.net • email: [email protected] • [email protected] • [email protected] A Crow Publication INSIDE WLJ FDA putting the brakes on antibiotic use REPUTATION DEFENSE—In a cri- sis where ag is involved, attention will be on you, the involved pro- The U.S. Food and Drug Admin- important drugs and phasing in that veterinarians can authorize ensure the drugs they need to ducer. The public, activists, your istration (FDA) announced last veterinary oversight of therapeutic the use of certain animal drugs in protect the health of their animals neighbors, your business partners week that it would take steps with uses of these drugs. feed, which is important to make are still available.” and others will look to you for its final Guidance 209 and a draft • A draft guidance, open for public the needed veterinary oversight “USDA worked with the FDA to answers and judge you by your proposed rule on veterinary feed comment, which will assist drug feasible and efficient. ensure that the voices of livestock actions. How you weather a crisis depends heavily on the strength of directives to limit the use of anti- companies in voluntarily removing “It is critical that we take action producers across the country were your reputation with the public. biotics in animal production. production uses of antibiotics from to protect public health,” said FDA taken into account,” said Dr. John Page 9 The three pieces FDA published their FDA-approved product labels; Commissioner Margaret A. Ham- Clifford, USDA chief veterinary in the Federal Register last week adding, where appropriate, scien- burg, M.D. “The new strategy will medical officer, “and we will con- included: tifically-supported disease preven- ensure farmers and veterinarians tinue to collaborate with the FDA, • A final guidance for industry, The tion, control, and treatment uses; can care for animals while ensur- the American Veterinary Medical Judicious Use of Medically Impor- and changing the marketing status ing the medicines people need re- Association and livestock groups tant Antimicrobial Drugs in Food- to include veterinary oversight. main safe and effective. We are to ensure that the appropriate Producing Animals, that recom- • A draft proposed Veterinary Feed also reaching out to animal pro- services are available to help make mends phasing out the agricul- Directive regulation, open for pub- ducers who operate on a smaller this transition.” tural production use of medically lic comment, that outlines ways scale or in remote locations to help See Antibiotics on page 8 EQUIPMENT ISSUE—Inside this week’s issue of WLJ you’ll find the special equipment showcase. The section features stories on equip- ment selection, new product pro- files, and fuel efficiency. Also included is advertising from many equipment dealers featuring new products and equipment for your ranching needs. Page 10 LFTB WAR STILL ON—The pub- lic-relations war over lean finely textured beef (LFTB) continued last week as students joined state political leaders to slam what they called poisoned media coverage against a safe beef product. In a sign that the public-relations battle is far from won, family-farm activ- ists and consumers criticized the supporters. Page 19 INDEX Beef Bits .....................................P-3 Sale Reports ...............................P-4 Corn planting began Feb. 24, 2012, in a field near Eudora in Chicot County, Arkansas. (University of Arkansas System Division of Agriculture photo Markets .....................................P-15 by Gus Wilson.) Classifieds ................................P-16 Sale Calendar .......................P-18 EPA issues new runoff permit Shrinking global crops Idaho Cattle Association (ICA) if they want a new one. and Idaho Dairymen’s Association Wyatt Prescott, executive vice (IDA) executives say feedlot op- president of ICA, which has about support grain prices erators in the state need not wor- 800 members, said his organization ry about the U.S. Environmental would not recommend many, if any, USDA’s account of all South American crops continued to shrink Protection Agency (EPA) issuing cattle producers in the state file for leading up to last week’s Crop Production and World Agricultural a new permit regulating water the new EPA permit because, real- Supply and Demand Estimates (WASDE) report, with news of runoff and pollution. istically, cattle producers and Con- smaller and smaller harvests in key areas. Those smaller supplies Only those who actually dis- centrated Animal Feeding Opera- have supported U.S. prices even as we have seen record-large in- charge runoff into nearby surface tions in the state are permitted tended corn acres and the planting season get off to an abnor- waters need the new permit. In the under an Idaho plan. mally early start, according to CME. previous regulations, permits were “I’ve yet to review the entire But as the South American crop gets smaller, according to the required for those even proposing permit. We’ve been working on this WASDE report, U.S. feed grain balance sheets for 2011/12 re- to do so. for several years,” Prescott said. mained unchanged this month, despite trader’s expectations. The new permit requires EPA “The main point, unless you intend The projected ranges for the season-average corn and sorghum to publicize nutrient management to discharge, is I wouldn’t concern farm prices are both narrowed 10 cents on each end to $6 to $6.40 plans of producers who must re- myself for a permit.” per bushel and $5.90 to $6.30 per bushel, respectively. The bar- port manure production volumes, Idaho is one of a few states that ley and oats farm price ranges are both narrowed 5 cents on each how the manure is treated, and does not have primacy over its end to $5.25 to $5.45 per bushel and $3.40 to $3.50 per bushel, how it is applied on fields. Feedlot water, he said. “We have primacy respectively. operators who have had their over air, but not water. … The The report cut Brazil and Argentina’s soybean production, as existing permits extended will EPA and Army Corps of Engineers most analysts expected, and trimmed domestic soybean and wheat LIVE STEERS DRESSED STEERS CME FEEDER $125.33 $199.09 $151.50 have 90 days after May 9 to apply See EPA on page 19 ending stocks. WEEK ENDING: 4-12-12 Corn used to produce ethanol in 2011/12 is projected at 5 billion bushels, unchanged again this month. The latest monthly data from the Energy Information Administration (EIA) indicates that Rallies in cash and futures average daily ethanol disappearance fell to a 23-month low in January, pushing ethanol stocks to a new record high. The cash fed cattle gained $1-2 week, the downward trend contin- Weekly EIA ethanol production data suggest average daily on a midweek rally supported by ued to midweek. ethanol production during February and March has continued to strong boxed beef trade. Futures Wednesday afternoon and fall hitting, its lowest level since early last fall. saw a significant increase mid to Thursday morning saw significant Projected 2011/12 corn feed and residual use is unchanged at 4.6 late week and the overall tone upward gains, however. Due large- billion bushels. March 1 stocks indicate a September-February was optimistic. ly to the larger volume of boxed feed and residual disappearance 238 million bushels lower than South Plains cattle started beef sold, near-term futures went during the first six months of the 2010/11 marketing year. Wednesday steady at $119-120 up roughly $1.50-2 to $118.37 for Prospects for feed and residual disappearance during the re- but closed the day trading at April and $115.05 for June by close mainder of 2011/12 will be limited by an improving outlook for $122. North Plains saw steady on Wednesday. summer wheat feeding and the potential for 2012 new-crop corn selling at $122 with Nebraska Thursday saw even more dra- use during August. Prospects remain favorable for a large year-to- and Iowa seeing slightly higher matic increases. April and June year increase in winter wheat production with planted area up 1.1 live prices than the rest of the futures opened at $120 and million acres and crop condition ratings substantially improved north, as high at $123.50, and $116.23, respectively. By midday, from last spring at this time, particularly in the hard red winter dressed prices at $194-195 with both had increased spectacularly wheat states. Larger expected supplies and competitive prices for a few instances of $196. to $121.30 and $117.30, respec- wheat relative to corn suggest an increase in summer wheat feed- Time Sensitive Priority Handling As with the cash fed markets, tively. Deferred futures were also ing compared with last year. The quick start to corn planting this near-term futures started the on the increase with August at spring and more intended acres across the South raise the poten- week trending down, but rallied $120.18, October at $126.48, and tial for a substantial increase in new-crop corn use before the Sept. significantly by mid to late week. December $128.75. 1 start of the new marketing year. April futures started the week Choice and Select cutout values Global coarse grain supplies for 2011/12 are projected 4.3 million supported at $116.65, and June at were mixed and indecisive, but tons lower mostly on a 4 million-ton reduction in corn beginning $113.90, both trending down from trending down from the prior See WASDE on page 18 See Market on page 15 NEWS: the prior week.