The National Livestock Weekly April 19, 2004 • Vol. 83, No. 27 “The Industry’s Largest Weekly Circulation” www.wlj.net • E-mail: [email protected] • [email protected] • [email protected] A Crow Publication Cheney says BSE meeting a positive — Japanese, USDA City, KS, facility to discuss the proposal further. officials to meet USDA toured the plant, including the newly reno- Packer BSE vated area where the company was planning to col- starting Thursday. lect the specified risk material. Creekstone did not expect USDA to reach a deci- — Resolution unlikely testing sion on their licensing request until later in the until OIE decision. month. However, USDA officials were prompt in By Steven D. Vetter their response and notified Creekstone, on the day WLJ Editor denied of the meeting, that licensing to use rapid tests for BSE in a private market program cannot be grant- Vice President Dick Cheney last By Sarah L. Roen week announced that a U.S. beef WLJ Associate Editor ed at this time. Bill Hawks, USDAUndersecretary for Marketing trade team would be in meetings USDA officials announced they will not approve and Regulatory Programs explained that present- with Japanese officials later this Creekstone Farms Premium Beef’s licensing re- CHENEY ly, the test is only licensed for animal health surveil- week, working toward a resolution quest to test all carcasses for BSE. In response to lance purposes. “The use of the test, as proposed by in the ongoing dispute concerning the announcement, Creekstone decided to challenge Creekstone, would have implied a consumer safety the Japanese ban on U.S. beef be- Japan last Tuesday, said he is hope- USDA, and is currently analyzing their legal options. aspect that is not scientifically warranted,” said cause of BSE. ful those talks could lay the ground- Creekstone Farms submitted a request to USDA Hawks. Cheney, and several USDA offi- work for a resolution to the trade to conduct private testing on February 19, 2004, in This decision came as a disappointment to Creek- cials, were adamant this meeting dispute. Japan and another 50- an effort to reverse embargoes and allow their beef stone Farms, who was also surprised it took USDA was a positive step toward resolv- back into Japan and other export destinations. plus countries banned the import six weeks to respond with a “no.” ing the impasse, however, others Creekstone also held several meetings with USDA, of U.S. beef after the December 23 “We firmly disagree with the USDA,” said John wondered if Japan would be will- discovery of a single case of BSE and on April 8, USDA officials met at the Arkansas ing to listen until the Internation- See Creekstone on page 9 found in a Washington-state cow. al Animal Health Organization (OIE) makes a decision on whether USDAcontinues to refuse Japan- or not to suggest 100 percent BSE ese demands that all U.S. beef testing for international beef sup- bound for export to Japan be test- plies. ed for the disease. Strong market on short supply Japan’s consumers are reeling USDAUndersecretary J.B. Penn will lead a U.S. trade delegation to from high beef prices and, in late Both fed and feeder cattle were ket would be supported by a friend- percent trim markets were at Japan on April 22-23 to reopen March, domestic beef prices hit a significantly stronger last week. ly Cattle-on-Feed report and no $92.03. Both markets are working talks with their Japanese counter- record high due to the prolonged Cattle feeders started the week worse than steady cash trade. their way to new market highs. parts. The entire roster of who will ban which has forced some Japan- with short supplies and asking for Trade volume was extremely The record for 90 percent lean was accompany Penn was incomplete as ese fast food restaurants to remove $90 while packers were thinking light through Thursday. Slaugh- $147.10, set in December of 1989. of press time last week, and the some beef dishes from their menus. $85. Boxed beef prices have been ter levels are struggling to main- Also, the cow beef cutout value is meeting’s agenda had not been for- Negotiations between the two remarkably strong adding incentive tain a weekly average of 600,000 up $5 from a week ago to $110.36. countries broke down earlier this for feeders to force the market high- malized. head. Even though slaughter was Ron Plain, at the University of Cheney, during a symposium in See BSE on page 3 er. According to the packer mar- slightly stronger last week, going Missouri, points out that cow gin index, packers were earning over 600,000 head was question- slaughter continues to run below a $78 a head. able. Thursday was at 519,000 year earlier. For the week ending Cattle traded Wednesday after- head, up 30,000 head from the March 27, cow slaughter was down noon in Nebraska at $144 dressed same point a week ago. 11 percent and for the year, through and $88-89.50 live, with 42,000 the week ending March 27, cow 10.4B corn Currently, wholesale meat prices head moved. Thursday futures are very strong. Light Choice was slaughter was down 14.6 percent. markets saw a sharp sell-off, down bringing $162.34 and light Select About one-third of the decline in $2.50 on the April contract, which $145.40, on moderate trade vol- cow slaughter is said to be due to crop possible stopped any cash trade. The move ume. The interesting story is in the ban on live cattle imports from baffled those in the cattle pits, see- the lean beef markets. The 90 per- Canada. year than last. Leading the way in ing the futures take a plunge at a cent lean market was up $7 from Plain also said that slaughter terms of most total acreage is Iowa time when most thought the mar- a week ago, to $136.58, and the 50 cattle weights for the week ending More with 12.5 million acres, compared March 27 were the same as a year acres, to 12.2 million each of the past two earlier for all cattle. But, slaughter spring years. Illinois, the number two pro- Equipment steer weights were still 11 pounds ducer, is expected to plant 11.2 mil- below 12 months earlier, and moisture lion acres, steady with last year; slaughter heifer carcass weights bode number four Minnesota is expect- appraisals help were one pound below the same well. ed to plant three percent more acres date in 2003. than last year, at 7.4 million; and producers Slaughter cow weights for the Indiana will more than likely plant 5.6 million, steady with last year. week of March 27 were up 18 By Steven D. Vetter By Sarah L. Roen pounds from the same date last The only top-five producing state ex- WLJ Editor WLJ Associate Editor Special year. pected to plant fewer acres is Ne- The April Cattle-on-Feed (CoF) Market analysts have indicated braska, which is expected to be Before producers buy or sell a piece of feature equipment or machinery, it’s a good idea to feature report last Friday, the day after the chances of a record 10.4 billion- eight million, down 100,000 acres know the true value of the item. Obtaining pages 5-8. WLJ is published, was expected to or-more bushel U.S. corn crop in from 2003. an appraisal on equipment or machinery, show the average analyst estimate 2004 are looking pretty good, after Some of the biggest acreage from a reputable company, is an accurate for feeder cattle placements down USDA, projected about 400,000 gains are expected in mid- to small- method for determining this information. 5.6 percent over a year ago, on feed more acres being planted than last er-producing states, particularly Appraisals are used by a variety of industries from real estate to at 101.6, and marketings at 107.9 year. In addition, recent moisture in the Northwest, the Intermoun- construction to agriculture. If performed by an un-biased certified percent of a year ago. Notably, there has inundated the largest corn pro- tain West, and northern Plains. entity, an appraisal can give an accurate market value. This value were two extra marketing days in ducing states raising hopes for According to NASS, the biggest can be used in a number of ways to assist producers, according to the month. record yields this fall. jump is expected to be 15 percent Lamar Bagwell, experienced appraiser and co-owner of AIS Machin- Wayne Purcell at Virginia Tech USDA’s National Agricultural in Washington-state, followed by Ore- ery and Equipment Appraisal International, a national appraisal com- questioned the big discount to the Statistics Service (NASS), in its gon, 12 percent; Utah, 11 percent pany. cash and to the nearby futures in March 31 crop acreage forecast, ex- See Corn on page 16 The first way is to ensure they are paying or being paid for what the June live cattle for weeks, and pects U.S. farmers to plant just the item is worth. “It really does save people money — knowing what would not be anxious to move to over 79 million acres in the popu- the values are,” said Bagwell. short hedges. If the market sees lar feed grain this year, compared The appraisal values determined by AIS and other certified apprais- cash cattle trade in the high $80’s, to 78.7 million last year and almost ers are accepted by most banks, including Farm Credit Bureau.