E6—Lancaster Farming, Saturday, January 9,1982
Lou
UNIVERSITY PARK - The
economy has slipped into another
recession, recovering only slightly
from the 1980 recession. The
housing and automobile industries
have been the hardest hit, and the
ripple effects have bumped most of
the remaining parts of the
economy, including agriculture.
Approximately 8 percent of the
labor force is unemployed, and
unemployment is expected to
reach 9 percent as the new year
gets under way. Consumer pur
chases of many items have
dwindled. Many have adjusted to
lower-priced foods.
This is particularly true in the
red-meats area, as purchases of
beef and pork seem to have
dropped since October, reports
Penn State agricultural economist
Lou Moore.
Red Meat Production
Beef and hog prices should have
strengthened in October, because
red meat production dropped 4
percent from October 1980. Beef
production dropped 3 percent and
pork output was off 6 percent. Less
meat and a somewhat larger
consumer population than a year
ago should have pushed cattle and
hog prices up.
Instead, prices of both have
fallen sharply and stabilized at the
lower level. Hog prices at the
major markets are averaging $4l
to $42 perliundredweight, about $5
less than last year’s unprofitable
price. Slaughter cattle are
averaging $6O to $6l per hun
dredweight, down $3 to $4 from a
year ago. The beef and hog in
dustries have in general been
without profit for longer than 2
years.
Feed Grain Prices
Sharply Lower
Beef and hog producers have
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Moore looks at livestock economy
been able to weather the lower
prices for livestock only because of
sharply reduced feed costs. Com at
about |2.62 per bushel at Chicago is
$1.07 below a year ago. Soybean
meal may be purchased for about
$75 per ton less than was the case
in December 1980. Despite low
livestock prices, many grain
producers believe that feeding
their grain makes more sense this
fall and winter than does
marketing of grain for cash.
Feed prices, under the pressure
of bumper crops, are likely to
remain sharply below the levels of
a year ago. The com crop
nationally is forecast at a record
8.1 billion bushels, 22 percent
greater than last year’s drought
reduced crop and about 200 million
bushels larger than the previous
record set in 1979. Domestic feed
use and exports of feed grains will
increase moderately during the
marketing year, but the carryover
next October 1 will be 40 percent
greater than this year.
Next October’s carryover of corn
will be about 1.5 billion bushels,
compared to about a billion bus
hels this past October. The
prospects of such heavy carry
over will be a burden on the
markets, preventing substantial
price recovery, unless the Soviets
would buy an additional 10 to 15
million tons of gram above the 15 to
18 million tons they are likely to
purchase. It is this bleak prospect
for grain price improvement which
has encouraged many to plan to
feed their gram to their own
livestock in the months ahead.
Interest Rates
and Feeder Cattle
The economic environment, with
its extremely high interest rates, is
of great concern to the livestock
industry, particularly cattle
producers. Even though theprime
interest rate has fallen to ISk
percent, the placement of animals
into feedlots does not seem to be
quickening. The cash-flow position
of many •feedlot operators has
approached zero. It is the banker
who will be decidmg. whether some
producers will or will not be
feeding cattle this winter.
The decreased demand tor
feeders and the resulting low price
have made many cow-calf
operators reluctant to sell f
Shipping fever cases increase
GETTYSBURG - "We are
experiencing an unusually large
number of shipping fever cases in
this area of the state, reports John
Schwartz, Adams County
Agriculture agent.
Beef producers should take steps
to minimize exposure to this
complex of respiratory disease, he
advises.
Shipping fever is not a single
disease, but a group of respiratory
infections. Organisms that cause
shipping fever or pneumonia m
clude Pasteurelia spp.
Haemophilus somnus, IBR vinn
and PI3 virus. Other bacteria ami
viruses in combination with other
organisms will cause shipping
fever.
Stress is an important factor in
determining whether shipping
fever will occur. Stress includes
weaning, vaccination, handling for
tagging, castration, implanting,
shipment, exposure to new cattle,
change of feed and change of
water.
In Pennsylvania, the most
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cattle. Many have been in the
position to keep extra cattle
because of excellent fall pasture
conditions and a good 1981 hay
crop. Price advances for feeder
cattle are in the next fe.w months
likely to be limited to minor
seasonal increases, even though
prices of 500- to 600-pound feeder
cattle are currently $l3 to $l4 per
hundredweight less than a year
ago.
common cause of shipping fever is
Pasteurelia hemolytica. This
bacterium causes a severe in
flammation in lungs of stressed
cattle. The bacteria is usually
resistant to one or more of the
commonly used antibiotics.
“The only sure way to identify
the type of bacterium and its
sensitivity to various antibiotics is
to culture samples taken from the
throat or lungs of an affected
animal. These samples may be
taken at autopsy or by special
sampling techniques which your
veterinarian may perform on live
animals. Consult your veterinarian
for treatment,” recommends
Schwartz.
To reduce the risk of shipping
fever on your farm, follow as many
of these steps as possible:
—Know your feeder calf sup
plier;
—Buy direct from the farm;
—Buy calves that have been
weaned at least 2 weeks before
shipment;
—Buy calves that have been
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Economy Calls Shot
Economic prospects will play a
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key role in shaping the livestock
economy m 1982. The supply of red
meat and poultry continues to
be more than ample. Poultry
supplies were up 10 percent last
summer and continue at 1 to 2
percent above the high levels of a
year ago. Consumer demand is not
expected to increase substantially
until the economy begins to im
prove, which may not occur until
mid-1982. Continuation of belt
tightening for the livestock in
dustry is expected for several
more months.
vaccinated at least 2 weeks before
shipment against IBR-RI3, and
Pasteur ella; f
—Avoid handling cattle more
than is absolutely necessary the
first 3 weeks after arrival on the
farm;
—Provide clean feed and water
where cattle can easily find it on
arrival;
—Provide good quality hay and
moderate amount of grain on
arrival;
—Check pens at least twice a day
for the first 3 weeks;
—Separate sick calves for
diagnosis and treatment;
—Work with your veterinarian
on diagnosis and recommended
treatments. Using the wrong drugs
is a waste of time and money:
—Have dead calves autopsied.
“We are concerned with animals
going to the Farm Show,” admits
Schwartz. “We would highly
recommend a booster injection of
IBR & BVD and Pasteurella,
especially if the injection was
given more than 30 days prior to
the moving of cattle to the show.
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