mm,
RDI, Box 83, Port Matilda, PA 16870
Thn Information in this column Is presented by the Pen
nsylvania Cattlsmsn’s Association for those who have an
internet in the cattle industry.
Cattlemen’s
Issues/Developmcnts
When it rains, it pours and
after a period of good to excellent
cattle prices, the good times have
ended temporarily. In addition
to declining prices, there are other
developments that affect the cattle
business. When we are feeding
cattle, sorting calves, or tending to
other details of our business—we
many times forget that there are
state, national, and even interna
tional developments that also
affect our business—and our pro
fitability. Some of these recent
developments are summarized
below.
NAFTA—stands for the North
American Free Trade Agreement,
which is supported essentially by
all of agriculture. The vote is sche
duled for November 17. Although
there are many reasons for Con
gress to pass this legislation and
the NAFTA Agreement, one of
the biggest positives is the con
tinued expansion of beef, veal,
variety meat, tallow, hides, and
live cattle exports. US exports of
beef and variety meats to Mexico
amounted to approximately $260
million in 1992, growing about
$5O million per year since 1989. It
has been calculated that U.S.
exports of beef cattle has added
about $3 per pound to finished
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cattle and only slightly less to
feeder cattle prices. Beef exports
are almost $970 million more than
beef imports, giving us a positive
trade balance for our commodity.
Like most other countries, Mexico
has 10 to 25% tariffs on imported
agricultural goods and has the leg
al right to raise them to 50%.
There are safeguards as far as
unnecessary environmental re
strictions. animal health risks, etc.
that are included in the intent of
the NAFTA legislation. We hope
that if it is not too late, you will
contact your legislators encourag
ing them to vote for die NAFTA.
Right now it does not appear that
NAFTA will pass since the anti-
NAFTA forces have been very
active.
Reduction in USDA’a market
promotion program even
though agricultural exports have
gradually increased and there is an
increasingly large positive trade
balance in all of agriculture, these
funds were reduced in this year’s
budget. Federal dollars earmarked
for market promotion is matched
by private industry including
beef and pork check-off dollars.
Although the amount of funds
committed to export promotion
from private agricultural industry
has increased it is unlikely that
our agricultural organizations and
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private companies can increase
their investment to offset the loss
of federal support Exports from
the US mean many things
including more jobs and more
profits.
A success story; Beef/Veal
Quality Assurance the QA
program has expanded into 43
states, covering 98% of the total
fed cattle marketed and at least
90% of the cow-calf producers.
The beef industry has essentially a
zero violative drag, chemical, and
pesticide rate in fed cattle, and the
level in cull beef and dairy cows is
being reduced. There probably
will be more emphasis on cull
cows, both beef and dairy in the
coming months. The incidence
rate of top sirloin injection-site
blemishes over the past 24 months
has been reduced from 223% to
9.9%. All the "players” veter
inarians, allied industry, market
ing sector, and packing industry
ate giving excellent support. Hie
veal industry, which is closely
related to die beef and dairy indus
tries in many ways, has reduced
violative residues from 33% in
1988 to less than .13% in 1992.
Do voluntary producer-conducted
and producer-funded programs
work? You bet! In Pennsylvania,
the Pennsylvania Beef Council is
providing some fluids to help con
duct needed seminars and produce
educational materials for the
Quality Assurance Program.
Eat beef “anytime” says
Mayo Clink recent Mayo
Clinic health letter contained a
chart outlining guidelines for low
fat, low-cholesterol diet. Foods
are categorized as those that can
be eaten anytime, sometimes, or
seldom mid beef is one of the
“eat anytime” foods provided the
beef is choice or select beef round
steak, sirloin, tenderloin, flank or
ground round and be the basis
of the total diet We can live with
that!
Reinventing government
comments according to NCA,
there are some good points and
bad points in the Clinton admi
nistration reinventing government
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moves. Among the changes
favored is the combination of agri
culture research, .extension ser
vice, and national agriculture
library into a new Agricultural
Research and Education Service.
Another positive is the use of a
science-based plan for food
(including meat) inspection, and
generally reducing federal spend
ing. However, NCA noted that
shifting the Food Safety and
Inspection Service from the jur
isdiction of the USDA would be
an inefficient move and might
damage the ongoing meat inspec
tion reform. NCA and several
other agricultural associations
also took issue with the very nega
tive reference to the E.coli-caused
deaths in the USDA promotion of
mandatory safe-handing labels on
taw meat and poultry products.
Many times the more positive
approach is more effective
especially with all the improve
ments in meat inspection that are
planned. Our meat inspection
program still represents an impor
tant advantage fra our meat indus
tries over other countries.
Beef consumption to rise?
the American Meal Institute is
predicting per-capita beef con
sumption to rise slightly in 1994,
and NCA agrees. However the
increase in consumption reflects
increased production because of
slightly increased cow herd
expansion we sell and eat all
we produce at some price, stated
NCA economists.
Farm-Environmentalists
cooperation urged—representa
tives of the Chesapeake Bay
Foundation (CBF) and National
Cattlemen’s Association (NCA)
recently toured the Waffle Hill
Farm, Churchville, MD, owned
and operated by Lawrason Sayre
and family. The Sayre family were
winners of the NCA’s Northeast
ern Regional Environmental Ste
wardship Award last year. CBF
spokespersons indicated that the
Sayre family had helped to protect
the Bay from overloads of sedi
ment ami nutrients that contribute
to algae blooms and loss of under-
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water gases. CBF and NCA
agreed that farmers and environ
mentalists should work together
and that they need each other. The
1993 Pennsylvania Cattlemen’s
Association nominee for the NCA
Environmental Stewardship
Award was ErReR Hill Farm,
Somerset, PA, owned by Mr. &
Mrs. Sidney Riggs and managed
by Bob Hay.
Spending on food continues to
decrease the share of the aver
age US income spent on food
decreased again—from 11.7% in
1991 to 11.4% in 1992. Hus could
be taken as another indication of
increased efficiency in agriculture
production, but it might also mean
that food is being produced by our
farmers at an ever-decreasing pro
fit margin.
Good reading did ELSIE
choose the parlor? the doc
trine of the animal rightists is
based upon a theory that humans
take advantage of animals by
using them, causing them pain,
suffering, changed behavior, bore
dom, and death was met head
on by Steven Budiansky in his
book "The Covenant of the Wild:
Why animals chose domestica
tion.” Among many other conten
tions, Budiansky suggested a bar
gain, of sorts, was struck between
animals and humanity near the
dawn of time. Simply put today’s
domesticated animals chose to
live along with man. The animals
chose this way of life because they
gained a steadier supply of feed,
shelter, companionship, and care.
Mankind gained food, clothing,
companionship, and all the other
benefits that animals bring with
them. This may sound like an
idealistic argument, but it is, one
that if more people would accept,
perhaps there would be less prob
lems from activists making unsub
stantiated theoretical claims
which affect the amount of animal
products used by P«r citizenry.
For more information: con
tact the Pennsylvania Cattlemen’s
Association, R Box 83, Pott
Matilda. PA 16870. Phone:
814-692-4280.
4 Months
Interest Free
iVi'fi . i.r l]'jm : rred't
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(717)
664 - 4663