Livestock, poultry groups warn House energy committee of Renewable Fuel Standard’s harmful impact

Seven livestock and poultry groups submitted comments to the House Energy and Commerce Committee on the negative effects the federal Renewable Fuels Standard has had on agriculture, including the high cost of feed facing livestock and poultry producers.  The comments answer several questions posed by the Committee on the impact of the Renewable Fuel Standard.
"The RFS has been the major driver in increasing corn use for ethanol production, and causing corn stocks to decline to crisis levels," the comments state. "In a market-driven world, ethanol would be priced competitively with gasoline. That has never been true in the entire history of the industry."
Additionally, the groups submitted a study to support their comments titled "The RFS, Fuel and Food Pricews, and the Need for Reform," completed by Dr. Tom Elam of FarmEcon. The study examined the extensive impact the Renewable Fuel Standard has had on food and fuel prices.
The groups appreciate the work of the committee in seeking input from our producers and look forward to working with the committee on reforming the Renewable Fuel Standard.
The comments and study were submitted on behalf of the American Meat Institute, National Turkey Federation, American Sheep Industry Association, Milk Producers Council, National Cattlemen's Beef Association, National Pork Producers Council and the North American Meat Association.
The documents were presented to Energy and Commerce Committee Chairman Fred Upton, R-Mich., and Ranking Member Henry Waxman, D-Calif. 

Chicken industry opens doors to media at Sanderson Farms in Kinston, NC

The poultry industry is putting its best foot forward April 18 as members of the news media tour the Sanderson Farms chicken complex in Kinston, N.C.
Media representatives from 30 different news outlets will get a look at one of the nation's broiler production and processing operations, as they visit a broiler farm and the hatchery and processing plant at Sanderson's Kinston complex.
The tour is part of the Chicken Media Summit, which got under way Wednesday with a reception and dinner attended by representatives of the chicken industry and the media.
National Chicken Council Chairman Bill Lovette of Pilgrim's Inc. addressed media members, saying, "We are opening up these facilities to you (in the tour) so that you and your readers and listeners can see and understand what we are doing as an industry and how we are doing it.
"I know that your readers and your listeners and your viewers are very interested in where their food comes from. They want to know how animals are raised, and they have a lot of questions about modern agriculture. We want to be part of trying to garner the understanding and help answer some of those questions. So that is why we are taking the approach that we are."
USPOULTRY board member Bill Morris of Morris and Associates reminded the group of the poultry industry's economic importance, saying the industry generates more than 1 million jobs annually with an overall economic impact of $205 billion.
The Chicken Media Summit is sponsored by the National Chicken Council and the U.S. Poultry & Egg Association. 

Organic pork preservation research reported

American research into the preservation of organic pork products using natural ingredients is reported by the Food Safety Consortium in the U.S. Under U.S. government regulations, the organic products are not permitted to contain preservatives such as nitrate or nitrite. Instead, they may contain vegetable products that provide high concentrations of nitrate in a form which is acceptable because it is from a natural source. The vegetable-based nitrate makes the organic pork product look and taste like it was traditionally cured.
However, the organic products, lacking the directly-added nitrite, do not have the same level of built-in protection against pathogens such as Clostridium perfringens, Clostridium botulinum and Listeria monocytogenes.
Researchers at Iowa State University have tested vinegar, lactate and lemon powder after these became available recently in commercial quantities for use as natural preservatives in foods. Testing showed them to be effective against L. monocytogenes and C. perfringens, although not to the extent that nitrite inhibits the growth of certain foodborne pathogens in traditionally cured pork products.

JBS will impact US poultry industry

“Reports this week about the purchase of Pilgrim’s Pride Corp. by the Brazilian beef and pork conglomerate JBS will have an impact on the U.S. poultry industry. If the sale is approved by the U.S. government, it appears to be a great opportunity for both companies,” said Jim Sumner, President USAPEEC, the USA Poultry and Egg Export Council.
“Pilgrim’s Pride is the second-leading poultry processor in the U.S. While it is currently undergoing bankruptcy reorganization, the company expects to emerge from bankruptcy by the end of 2009. Pilgrim’s Pride plays a very important role in our industry and in our organization. Its acquisition by JBS would no doubt be welcomed by the independent family farmers who grow chickens under contract for Pilgrim’s Pride.”
Sumner reiterated that, “The company is under new, dynamic leadership and was reportedly expected to emerge from bankruptcy in a much stronger position than before.”
The U.S. and Brazil are the two top poultry exporting countries in the world, always in a very close race for export leadership. In recent years, Brazil has held the edge. This, 2009, has proved to be a challenging year for exports, especially at the beginning. Things have gotten better in recent months in volume, although not in value.
According to the USDA, cumulative U.S. broiler meat exports for the first seven months of 2009 reached 1,800,907 tons, which is a record and represents a slight gain of just less than 1% over 2008. Export value totaled $1.909 billion, down 2.4% year on year.
Brazil’s cumulative totals from January through August show 2,425,600 tons of broiler meat exports, compared to 2,504,200 tons in 2008, according to ABEF, the Brazilian Poultry Producers and Exporters Association.
Addressing the issue of U.S.-Brazilian export competition, Sumner commented, “In fact, I was in Brazil recently where I met with poultry industry leaders to discuss the possibility that our two industries should work more closely together for our mutual benefit. Perhaps the sale of Pilgrim’s Pride will help make that a reality.”
Read the JBS/Pilgrim's news story with commentary from Paul Aho.
Read the original buyout announcement.

USAPEEC protests China’s anti-dumping action against US poultry

The U.S. Poultry & Egg Export Council has condemned China's move to file an anti-dumping case against U.S. poultry. The move, according to USAPEEC, is in response to the Obama administration's decision to impose tariffs on import of tires made in China.
The council has denied the dumping allegations. As per international trade rules, dumping arises only when a product is sold in a foreign market at a price lower than the domestic price. In this case, U.S. poultry exports to China consisting mainly of chicken feet and paws — commodities highly valued in the Chinese market — are sold at prices ranging from US 60-80 cents per pound. This is much higher than the price prevailing in the U.S. markets where these products are sold for rendering at pennies per pound.
USAPEEC also denied the charge that the U.S. government subsidizes its poultry industry.
The council argued that it has always opposed the anti-China provision included in the recent Omnibus Appropriation Bill and the House version of the 2010 Agriculture Appropriations Bill. The provision prevents USDA from promulgating a proposed rule to allow exports of cooked Chinese chicken to the U.S.
It has further urged the administration not to impose increased tariffs on Chinese tires.
The U.S. exported 451,000 metric tons of poultry — worth $393 million — to China in the last seven months. China has become the top market for U.S. poultry.

Oklahoma receives damages cap

An Oklahoma federal judge determined on July 22 that the state cannot continue to pursue damages in excess of $600 million in its lawsuit against the poultry industry because it failed to properly include the Cherokee Nation.
U.S. District Judge Gregory Frizzell sided with poultry industry assertions that portions of the lawsuit should be dismissed because the state lacks standing to pursue the pollution damage claims on its own. Frizzell's order did not affect the state's claims for injunctive relief related to the use of poultry litter in the Illinois River watershed.
Opponents of the lawsuit, both within the poultry industry and its supporters, hailed the ruling stating their pleasure with the decision and their gratitude that "the court viewed this matter as seriously" as it did.
While the state's claim for injunctive relief was not affected by the ruling, a judge has previously ruled against the state's request for a preliminary injunction barring the spreading of poultry waste in the watershed; a trial is set for September 21.
The state, led by Oklahoma Attorney General Drew Edmondson, sued 13 poultry companies in 2005, claiming that they are legally responsible for the handling and disposal of poultry waste that has damaged portions of the Illinois River watershed in Oklahoma.