Livestock

Good Chance to Get NAFTA Deal This Month, Mexico Envoy Says

The U.S., Mexico and Canada have a good opportunity to reach a Nafta agreement this month, and getting there will depend on the political flexibility of the Trump administration, according to the top representative for Mexico’s private sector. Mexican Economy Minister Ildefonso Guajardo plans to travel to Washington on Wednesday for meetings with U.S. Trade Representative Robert Lighthizer, their fourth set of talks in as many weeks, said Moises Kalach, the trade head for the national business chamber. Teams have advanced significantly on areas including content rules for cars and intellectual property, said Kalach, who is part of a group that receives regular, closed-door updates on the process. The press office of the Mexican Economy Ministry didn’t immediately respond to a request for comment on Guajardo’s schedule. U.S. and Mexican negotiators have been working to reach a Nafta cars deal that would allow Canada to rejoin talks and move toward resolving the toughest issues that affect all three nations. Canada hasn’t attended meetings in the past three weeks, and Trump administration officials have been more publicly optimistic about talks with Mexico. Kalach said he expects Canada to rejoin the talks in the coming days, and both Canada and Mexico have reiterated that they want and expect Nafta to remain a three-nation agreement. ‘Window of Opportunity’ "I think it’s feasible to get a deal; the teams are working very hard," Kalach said in a phone interview Tuesday. "There’s a big push to close an agreement. Whether that happens or not depends on the will of the White House." The nations are pushing for a deal by the end of this month in order to allow sufficient time for U.S. President Donald Trump and his Mexican counterpart, Enrique Pena Nieto, to sign the pact before President-elect Andres Manuel Lopez Obrador takes office Dec. 1. That would take the pressure off Lopez Obrador and allow him to focus on other priorities. "If we don’t take advantage of this window of opportunity, it will close towards the end of the month, and the push would lose force and we’d need to look at another calendar" for getting a deal, Kalach said.
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Checkoff Legal Battle May Expand To 13 New States

The beef checkoff faces new challenges in 13 states as opponents have expanded their legal campaign following a Montana injunction last year. The Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America (R-CALF USA) has asked District Court Judge Brian Morris, Great Falls, MT, to expand the injunction to include checkoff funds in Hawaii, Indiana, Kansas, Nebraska, Nevada, New York, North Carolina, Pennsylvania, South Carolina, South Dakota, Texas, Vermont and Wisconsin. R-CALF’s latest action has heightened concern among state beef councils across the country, and brought further warnings from checkoff supporters who claim R-CALF’s efforts are supported by the Humane Society of the United States (HSUS). That claim is tied to the fact R-CALF is represented by Public Justice, an organization that has represented HSUS in the past. “It is very disappointing that R-CALF, supposedly an organization representing the interests of cattle producers, would team up with an activist group with close ties to the Humane Society of the United States, a sworn enemy of animal agriculture,” says Kansas Livestock Association president Lee Reeve, Garden City, Kan. “If successful, this lawsuit will silence producer voices and stifle the demand-building programs directed by cattlemen and cattlewomen who volunteer to serve on the Kansas Beef Council Executive Committee.” The current injunction against the checkoff was upheld by the 9th Circuit Court of Appeals in April, and only applies to Montana. Under the injunction, the $1 beef checkoff is still collected, and the money is sent to the Cattlemen’s Beef Board. Montana ranchers who wish for half of their dollar to go to the Montana Beef Council must complete a producer consent form, and the CBB then sends the money back to Montana. Montana Beef Council executive director Chaley Harney told Drovers the injunction has dramatically reduced the organization’s revenue this year. “We expected $1.7 million to be collected by the checkoff (in Montana),” Harney said. “Half of that, or about $850,000, would stay in Montana. Since the injunction we’ve received less than $200,000.” R-CALF and other opponents to the beef checkoff say they object to their money being used to “fund private speech with which they disagree and cannot influence.” In a statement, R-CALF CEO Bill Bullard says the “checkoff program has weakened the U.S. cattle industry,” and that his group’s objective is to stop “USDA from forcing (producers in the additional 13 states) to fund private speech that undermines their financial and economic interests.” The national Cattlemen’s Beef Association (NCBA), however, says it is fully committed to the Beef Checkoff Program and the “state beef councils who carry out necessary demand-building programs on behalf of the industry.” In a statement issued last week, NCBA said the “attack by R-CALF and its activist partners on 13 additional state beef councils is nothing more than an attempt to broaden the damage they have caused in Montana. There they have already weakened the producer-directed programs that support beef demand and divided neighbors in a manner that undermines the best interests of the entire beef community.” NCBA also said that while it is not a party to the litigation, “the association’s support for the Beef Checkoff is unwavering. We will stand with the state beef councils and help defend them against the attacks being orchestrated by R-CALF and its activist allies, who are aligned with the Humane Society of the United States and other anti-agriculture organizations.”
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China Faces Negative Market Impacts from African Swine Fever Outbreak

More than 8,000 hogs have been culled so far, as China continues emergency inspections at pig farms and livestock markets to control the country’s first African swine fever case, announced this past Friday in the Liaoning province. The outbreak, in a major hog production area, poses a major threat to the Chinese pork industry, reports the Liaoning Daily. “China has approximately half the pigs in the world and this is a pig-dense region of China where this was found,” James Roth, an Iowa State University professor of veterinary medicine, who has helped develop an emergency preparedness plan for the pork industry, told KUNC. Market impacts began to show on Monday, as Bloomberg reports stocks of the top pork producers Muyuan Foodstuff Co. declined 8.7%, Guangdong Wens Foodstuffs Group Co., 6.3% and Tangrenshen Group Co., 4%. Hong Kong-based WH Group Ltd., retreated 2.1%. Japan closed access to heat-treated pork imports from China Monday, as well as imports of sausage casings and heat-treated rice straw to use for bedding for pigs – which could be contaminated if coming from an outbreak area. Japan also tightened quarantine operations at airports and seaports, especially for travelers from Shenyang and Dalian, near where the infection was found. Liaoning also ordered the temporary closure of all live hog markets and slaughterhouses in the Shenbei district, where the outbreak was discovered. The provincial government has asked local authorities to launch emergency inspections at all pig farms, hog markets, slaughterhouses and harmless treatment sites in the province. They also request reports be made of any cases of pig deaths due to unknown reasons, slaughtered pigs found with splenomegaly or splenic hemorrhage and immune failure among pigs after receiving swine fever vaccines, the paper reported, citing the animal health bureau. African swine fever is a hemorrhagic disease that is highly contagious and isn’t limited by age. It’s not a threat to humans, but mortality rates for hogs can be as high as 100% and there is not a vaccine. Containment and eradication are the only way to control the disease. If the virus enters the feral swine population, the disease could be extensive, experts warn, as the virus can survive for a long time in the environment.
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Tremendous First Half for U.S. Beef Exports; Pork Ahead of 2017 Pace

Strong June results capped a huge first half of 2018 for U.S. beef exports, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). June pork exports were lower than a year ago for the second consecutive month, but first-half volume and value remained ahead of last year’s pace. Beef muscle cut exports set a new volume record in June of 90,745 metric tons (mt), up 15 percent from a year ago. When adding variety meat, total beef export volume was 115,718 mt, up 6%, valued at $718.4 million – up 19% year-over-year and only slightly below the record total ($722.1 million) reached in May. First-half exports set a record pace in both volume and value as international customers bought a larger share of U.S. beef production at higher prices, indicating strong demand. Export volume was up 9% from a year ago to 662,875 mt while export value was just over $4 billion, up 21%. In previous years, export value never topped the $4 billion mark before August. "It's remarkable to think that as recently as 2010, beef exports for the entire year totaled $4 billion, and now that milestone has been reached in just six months," says Dan Halstrom, USMEF president and CEO. "This should be a source of great pride for the beef industry, which has remained committed to expanding exports even when facing numerous obstacles. And with global demand hitting on all cylinders, there is plenty of room for further growth." June exports accounted for 13.4% of total beef production, up from 12.8% a year ago. For muscle cuts only, the percentage exported was 11.3%, up from just under 10% last year. First-half exports accounted for 13.5% of total beef production and 11% for muscle cuts - up from 12.8% and 10%, respectively, last year. Beef export value averaged $313.56 per head of fed slaughter in June, up 19% from a year ago. The first-half average was $316.94 per head, up 18%. After setting a new record in April, pork export volume has trended lower the past two months, mainly due to lower exports to the China/Hong Kong region. June exports totaled 191,303 mt, down 4.5% from a year ago, despite a slight increase in muscle cut exports (to 153,083 mt). June export value was $510.4 million, down 3%. For the first half of 2018, pork export volume was still 2% ahead of last year's record pace at 1.27 million mt, while value increased 5%to $3.36 billion. For pork muscle cuts only, first-half exports were up 6% year-over-year in both volume (1.02 million mt) and value ($2.78 million). "Pork exports - and especially variety meats - face a very challenging environment in China/Hong Kong due not only to retaliatory duties but also because of increasing domestic production in China," Halstrom explained. "On the positive side, exports are achieving solid growth in most other markets and reached new heights in destinations such as Korea and Latin America. So there is no time to dwell on factors the U.S. industry cannot control - we must continue to find new opportunities in both established and emerging markets." On April 2, the import duty on U.S. pork and pork variety meats entering China increased from 12 percent to 37 percent. On July 6, the rate increased to 62 percent. Mexico imposed a 10 percent retaliatory duty on U.S. pork muscle cuts (variety meats are excluded) on June 5 and increased the rate to 20 percent on July 5. Pork sausages and prepared hams entering Mexico are subject to duties of 15 percent and 20 percent, respectively, which took effect June 5. First-half export results reflect the first round of duties imposed by China and Mexico, but not the higher rates that took effect in July. June pork exports accounted for 26.4 percent of total production, down from 27.1% a year ago, but the percentage of muscle cuts exported increased from 22.2% to 22.8%. First-half exports equaled 27.3% of total pork production (down from 27.8% a year ago) and 23.6% for muscle cuts (up from 23.1%). Pork export value averaged $55.13 per head slaughtered in June, down slightly from a year ago, while the first-half per-head average increased 2% to $55.18 per head.
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88 Cattle Confiscated in Texas After Being Malnourished, 18 More Dead

Authorities in Texas have confiscated 88 cattle that were in poor body condition after at least 18 other cattle from two different ranches had died. While the two cases were not related it reveals a possible problem of animal neglect during a widespread drought in Texas and nationwide. The Williamson County Sheriff's Livestock Unit responded to a complaint of neglected cattle on July 18. The deputies found nine cow carcasses in what was described as a "boneyard" in a 180 pasture. Deputies returned to the ranch located between Bertram and Liberty Hill, Texas on July 31 where they found seven sick and emaciated cattle. One was trapped under a barb wire fence and was unable to stand. A warrant was issued to for a search and seizure, but by the time the authorities got back to the scene the cow trapped in the fence had died bringing the death toll to at least 10 head. In all 46 calves, 35 cows and a bull were gathered from the ranch in Williamson County and hauled to the Cameron Auction Barn for veterinary treatment, feed and water. In a post on Twitter, Williamson County Sheriff Robert Chody shared photos of the emaciated cattle and thanked his livestock deputies. "The role of a livestock deputy goes unnoticed quite often until events like this occur. Large herd seized by civil order for protection of animals. Many who helped to protect those without a voice," Sheriff Chody shares. There is currently an animal cruelty investigation underway in Williams County that will determine if charges need to be filed. Another, unrelated case of neglected cattle near Corsicana, Texas, resulted in the death of at least eight cattle. Navarro County Sheriff Elmer Tanner believes the cattle in his county likely died because they were "starved from water." "Anytime you go on a premises and locate a number of animals and there are more animals deceased on the property than there are alive - then you’re dealing with a critical situation," Sheriff Tanner says. "It doesn't take a rancher to realize there's some abuse taking place here." Six cattle were rescued from the pasture in Navarro County on July 31 and are currently in the care of a veterinarian. Photos of the case shared on Facebook by the sheriff's office show severely malnourished cattle, along with pictures of a dry pond and empty water tanks. An investigation is currently underway in Navarro County to determine if animal cruelty charges are warranted. More cases of cattle neglect are popping up in the news with widespread drought across various parts of the country. Last month police in Utah reported a 15-20 cattle starved to death in Capitol Reef National Park likely because of drought conditions. There are currently 11 states that are experiencing extreme drought according to the latest Drought Monitor released on Aug. 2. The states include: Arizona, California, Colorado, Iowa, Kansas, Louisiana Missouri, New Mexico, Oklahoma, Texas and Utah. In the three recent death loss cases only Garfield County, Utah was in "extreme drought." Navarro County, Texas is in "severe drought" for half the county and "moderate drought" for the rest, while Williamson County, Texas is classified as being in moderate drought.
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Senate Passes One-Year ELD Extension for Livestock Haulers

An amendment added to the Senate’s “minibus” spending bill would grant livestock haulers another year-long extension to implement Electronic Logging Devices (ELD). The amendment was proposed by Senator Deb Fischer (R-Neb.) to delay implementation of the ELD mandate until Sept. 30, 2019. Fischer says the legislation is important because livestock haulers face different challenges from other transporters who are currently using an ELD under regulations from the Department of Transportation. “With this extension, we will have more time to bring common-sense to these rules and provide additional flexibility,” Fischer says. There is currently an extension in place for ELD implementation that expires at the end of the fiscal year on Sept. 30, 2018, that was authorized through an omnibus spending bill signed by President Trump in March. Placing a further extension will give regulators from Federal Motor Carrier Safety Administration (FMCSA) time to work with livestock transporters and producers to find a resolution to the hours of service (HOS) mandate that is reinforced through the ELD. Livestock groups like the U.S. Cattlemen’s Association (USCA) were thankful to Senator Fischer for moving the legislation forward. USCA Transportation Committee Chairman Steve Hilker says the HOS rules as currently written do not offer enough flexibility for hauling live animals. “This one-year delay is needed because we still have not received the flexibility we have asked for from the Department of Transportation's FMCSA. We have the solution already drafted and introduced in Congress,” Hilker says. The solution he refers to is the Transporting Livestock Across America Safely Act (TLAASA) proposed by Sen. Ben Sasse (R-Neb.), a bill that would extend HOS for livestock haulers. “We need the one-year delay to secure the final passage of this bill,” says Hilker, owner of Steve Hilker Trucking Inc., in Cimarron, Kan. At the House level a similar extension amendment made its way through committee to be considered on the House floor when the appropriations bill goes to vote. There is a chance that the minibus appropriations bill fails even if approved by the Senate and House. President Trump has said there needs to be funding for a wall along the southern border with Mexico for him to sign. Similar threats of a shutdown over border security spending were made by President Trump when the omnibus spending bill was passed in March. As of right now livestock haulers can continue to use paper logs until Sept. 30, 2018, when the omnibus spending bill amendment expires.
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Trump's USDA Wants Changes To WHO Antibiotic Guidelines

U.S. Department of Agriculture officials are openly criticizing the World Health Organization (WHO) guidelines on antibiotics issued last November. USDA is reportedly developing alternative options to the WHO guidelines which limit the use of antibiotics in food animals. The WHO guidelines called for an end to the use of medically important antibiotics routinely used for growth promotion or to prevent disease. The WHO said the drugs should only be administered to sick animals or healthy ones being raised near them, in the same flock, herd or fish population. Even then, drugs “critically important for human medicine” should not be used. The guidelines were crafted after two years of work by experts in infectious disease, veterinary medicine and microbiology. USDA, however, has called the guidelines shoddy science and that the U.S. and other countries should have helped develop. U.S. policy bans antibiotics to promote growth in food animals, but allows the drugs to be used to prevent disease with a veterinarian’s approval. “The WHO guidelines are not in alignment with U.S. policy and are not supported by sound science,” said Chavonda Jacobs-Young, USDA’s activing chief scientist. According to a Bloomberg report, U.S. officials currently are involved in a working group that is developing guidelines that are weaker than the WHO recommendations. A draft of the guidelines for farmers and the WHO-related agency Codex Alimentarius allows antibiotics to be used in healthy animals to prevent disease and offers the potential for use to promote animal growth, which currently is illegal under U.S. law, the report added. Codex offers standards for international trade to ensure food safety and quality, which are implemented by specific member nations, rather than more general guidelines released by WHO. The Bloomberg report said the Trump administration “has made little secret of its disdain for international institutions and regulations,” and “seems to be pursuing its agenda with particular vigor.” Yet the Bloomberg story noted, “the extent that antibiotic use in farm animals affects human health remains open to debate, as does how best to address the problem.”
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Hope Surfaces About Trade Deal with Mexico; Pork, Corn Could Benefit

Navigating NAFTA 2.0 progress has been a game of “wait and see.” After several rounds of discussions among the three countries, a new North American Free Trade Agreement (NAFTA) is still in limbo. Now, leaders from both Mexico and the United States say they may be ready to strike a deal without Canada. According to Farm Journal Washington correspondent Jim Wiesemeyer, Mexico’s president-elect, Andrés Manuel López Obrador, said he is ready to start a new stage in U.S.-Mexico relations and seeks a “common path” on trade, migration, economic development and security. “Everything is ready to start a new stage in our societies’ relationship based on cooperation and prosperity,” said López Obrador in a letter to President Donald Trump. Wiesemeyer reported the letter was handed to a delegation of cabinet-level U.S. officials who visited Mexico City on July 13 and met with López Obrador. That letter- and some details - were made public Sunday, just ahead of another round of NAFTA discussions set to take place on Thursday. Those talks are scheduled to occur in Washington D.C. and include the three NAFTA nations. Wiesemeyer said Mexico’s Economy Minister Ildefonso Guajardo, who is the country’s chief negotiator, is ready to speed up talks and try to strike a preliminary deal with the U.S. by the end of August. As commodity prices continue to see a cloud of trade uncertainty over the markets, the NAFTA news could be just what the market ordered to encourage higher prices. “Pork is probably a bigger beneficiary of that [a trade deal with Mexico],” said Dan Hueber, of The Hueber Report. “Mexico is 9 percent of our export business in the pork market. I think it would really give the pork that stabilization it needs.” “When you have December hog futures down in the mid $40s, you need something to help this market,” said Mark Gold of Top Third. “I don’t think a NAFTA agreement isn't going to happen as a NAFTA agreement, but I think we're going to get one done with Mexico, and then I think we'll turn our attention to Canada. Hopefully that puts a little pressure on China to come to the table as well.” Mexico retaliated against the U.S. steel and aluminum tariffs, hitting U.S. pork exports with a 20 percent tariff. Nearly 22 percent of U.S. pork is exported, and Mexico has the largest appetite by volume. However, since the double whammy of tariffs from China and Mexico hit the U.S. pork market, the U.S. Meat Export Federation shows pork exports dropped 2 percent in June, with fewer variety meats leaving the country. The tariffs continue to pressure exports and weigh on pork prices and impact sales. It’s more than just pork in search of some good news to help prices, the corn market is also struggling to find footing that could come from a bilateral trade deal with Mexico. “It's a strong market and any positive news - as we're coming out of this- will certainly give the market another push,” said Gold. Mexico was the top buyer of U.S. corn, but after trade tensions started in 2017, Mexico bought fewer bushels from the U.S. and more corn from Brazil. Mexico purchased more than 583,000 metric tonnes of corn from Brazil in 2017- a 970 percent jump from 2016. Mexico is a major market for U.S. agriculture, as the country purchased $19 billion in sales last year, eating up everything from corn and pork to dairy and soybeans. All four commodities are suffering from falling prices in recent months.
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24 Million Pounds of Pork Lost At JBS Marshalltown Plant After Tornado

Iowa residents and businesses are still cleaning up after tornados last week left severe damage in it’s wake. Farmers were especially concerned with damage to JBS’s Marshalltown facility that forced the plant to close for three days and Vermeer’s hay equipment facility. The Marshalltown facility reopened Monday with a revised schedule, as seen on their Facebook page. Tuesday’s shifts would also have changes. As the cleanup continues, damage estimates are also rolling in. At the JBS facility, more than 24 million pounds of pork will have to be disposed of, after damage to the distribution center and processing line. The Marshalltown Times Republican says winds tore out insulation and panels on the east and west sides of the building. The freezer in the distribution center was damaged. Trailers and rail cars were also flipped in the storm. Despite the challenges, Iowa Pork Producer Association president Pat McGonegle told KCRG-TV that JBS worked quickly with local producers on rerouting pig shipments to other processing plants. (Source: KCRG-TV) Local leaders say initially were some concern if the city landfill would be able to handle that much waste product, as well as all the other cleanup trash. This large volume of pork would equal about half of the landfill’s yearly intake. Meanwhile, JBS employees, Iowa Select Farms and Iowa Pork Producers Association teamed up to offer free hot meals for the Marshalltown community at the town’s YMCA parking lot. Grilled hot dogs and burgers helped re-fuel local residents, some who said they haven’t had meat since the storm, reports KWWL. The JBS Marshalltown pork processing facility, distribution center and warehouse provides fresh, quality pork products to domestic and international customers under the brands Swift Premium All Natural Pork, Swift Premium Fresh Pork and La Herencia. The plant employs more than 2,200 people and partners with more than 500 pig farmers.
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Cattle on Feed Up 4%

USDA’s July cattle on feed report showed 11.3 million head in U.S. feedlots with a capacity of more than 1,000 head. The inventory totaled 4% more than the July 1, 2017 estimate. This is the highest July 1 inventory since the series began in 1996. The inventory included 7.13 million steers and steer calves, up 2% from the previous year. This group accounted for 63 percent of the total inventory. Heifers and heifer calves accounted for 4.15 million head, up 8 percent from 2017. Placements in feedlots during June totaled 1.79 million head, 1% above 2017. Net placements were 1.74 million head. During June, placements of cattle and calves weighing less than 600 pounds were 400,000 head, 600-699 pounds were 345,000 head, 700-799 pounds were 385,000 head, 800-899 pounds were 378,000 head, 900-999 pounds were 185,000 head, and 1,000 pounds and greater were 100,000 head. Marketings of fed cattle during June totaled 2.01 million head, 1% above 2017.
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