Tyson Foods reduces its beef production capacity

Tyson Fresh Meats, a subsidiary of Tyson Foods is reducing its beef production capacity due to a continued lack of available cattle. Effective August 14, Tyson will permanently cease beef operations at its plant in Denison, Iowa, to better align its overall production capacity with current cattle supplies.
"This was a very difficult decision because it affects the lives of our people, their families and a community that has supported this plant for more than 50 years," said Steve Stouffer, president of Tyson Fresh Meats. "However, the realities of the beef business have changed and we must continue to change with it to remain successful.
"The cattle supply is tight and there's an excess of beef production capacity in the region," he said. "We believe the move to cease beef operations at Denison will put the rest of our beef business in a better position for future success."
The by-product rendering system at the Denison plant will continue operations. It will process by-products from other Tyson locations and will employ approximately 20 people.
The 400 workers affected by the end of beef production at Denison are being given an opportunity to apply for jobs at other Tyson locations. The company is offering financial incentives to hourly workers who qualify for production openings at the company's Lexington, Nebraska, beef plant.
Even though they will no longer be on the job, eligible displaced workers will receive 60 days of pay, as required by the Worker Adjustment and Retraining Notification (WARN) Act.
The company will invite state workforce officials to the plant so they can tell affected workers what type of unemployment benefits and retraining opportunities are available.
The Denison beef plant has a long, rich history in the meat industry. It opened in 1961 as the first plant operated by Iowa Beef Packers (IBP), a start-up company that grew to become one of the world's leading beef processors. IBP was acquired by Tyson Foods in 2001 and renamed Tyson Fresh Meats.
Tyson Fresh Meats' other beef plants are located in Amarillo, Texas; Dakota City, Nebraska; Finney County, Kansas; Joslin, Illinois; Lexington, Nebraska and Pasco, Washington.

West Liberty Foods diversifies by adding beef operations

West Liberty Foods, a company owned by members of the Iowa Turkey Growers Cooperative, has diversified its product line with the startup of beef cutting operations at its location in Bolingbrook, Illinois.
In its initial phase of operation, the facility is producing value-added hand-cut and machine-cut steaks such as t-bones, ribeyes, Kansas City strips and New York strips, reported the Muscatine Journal. The Bolingbrook facility, which the company acquired in 2014 when it acquired the assets of bankrupt Quantum Foods, is also producing hamburger, pork chops and boneless, skinless, flavored chicken breasts.
“The startup of this beef operation at Bolingbrook is significant for our continued growth and product diversification,” said Ed Garrett, president and CEO of West Liberty Foods.
The Bolingbrook facility has added 25 employees and numerous production lines.
West Liberty Foods’ marketing efforts will target the retail, home delivery, food service and fast casual foods segments
Mostly known as a turkey company, West Liberty Foods slaughtered 221.51 million pounds of live turkeys in 2014, an increase of 5.2 million pounds or 2.3 percent. In addition to being a leading turkey producer, West Liberty Foods is a private-label manufacturer and foodservice supplier of sliced deli meats and frozen meat products. The company in December 2014 announced plans to build a 160,000 square foot cold storage distribution center with room for further expansion in Bolingbrook.

Weaning calves early has benefits during drought, says USDA

Weaning calves early when severe weather conditions such as drought affect cattle production has its benefits, according to U.S. Department of Agriculture studies.
Working with local ranchers, Montana State University scientists and American Simmental Association collaborators in Bozeman, Mont., animal scientist Richard Waterman at the Agricultural Research Service Fort Keogh Livestock and Range Research Laboratory (LARRL) evaluated the early weaning of beef calves and its impact on cow, heifer and steer performance. Calves at two locations in Montana - Judith Gap and LARRL - were weaned early at 80 days of age and at the more traditional age of 215 days. Cows that weaned a calf early weighed more and were in better body condition at the start of winter. As a result, the amount of harvested feedstuffs required for cows to maintain satisfactory body weights and condition throughout winter was reduced.
Waterman confirmed that early weaning is a viable management option, presents fewer problems and allows producers to better control their production environment. He also demonstrated that early weaning increases the likelihood that heifers will become pregnant on time in the following breeding season.
Additional studies showed that early-weaned steers reached maturity sooner than traditionally weaned steers when body weight gain, feedlot performance and carcass traits were measured. Waterman noted that management of early-weaned steers can directly impact how they grade at harvest. In some cases, early-weaned steers had poorer USDA yield grades because carcasses were too fat. However, Waterman demonstrated that producers can maximize carcass value of early-weaned steers if animals are identified before they enter the feedlot and then harvested at an earlier age.

Merck suspends Zilmax sales after Tyson poses animal safety concerns

Merck Animal Health has temporarily suspended the sale of animal supplement Zilmax in the United States and Canada, the company announced on August 16. The decision comes one week after Tyson Foods stopped buying Zilmax because it suspected a link between Zilmax and cattle at Tyson facilities with difficulty walking.
In a statement, Merck said it has suspended Zilmax sales in the United States and Canada, pending a five-step scientific audit. The audit, which Merck will conduct in conjunction with independent experts, will monitor the process of feeding of Zilmax, and will follow identified cattle from the feedyard to the packing plant to determine potential causes of mobility issues during feeding, transportation, offloading and staging at the processing facility. The audit will also include a thorough review of other potential factors-such as nutrition, transportation and receiving facilities.
The company stated the suspension of sales should allow sufficient time to establish valid study protocols, identify feeders and packers to participate in the audit, and creation of a third-party team to oversee the process and validate its results.
K.J. Varma, head of  Merck Animal Health research and development, said the company is standing by the safety of Zilmax as the audit gets under way.
"We remain confident in the safety of the product, based on our own extensive research and that of regulators and academic institutions, and are committed to the well-being of the animals that receive it," Varma said. "This important step demonstrates our commitment to providing our industry partners with data that will reaffirm confidence in Zilmax. We sincerely regret that this situation creates business challenges for our customers, but it is critical to ensure that this process is conducted appropriately and with rigorous scientific measures."
The results of the audit will be shared publicly after it is completed, Varma said. 

Cattle prices drop through May, global outlook remains mixed

The Rabobank's Global Cattle Price Index continued to fall through May, down 6 percent relative to the first quarter of 2013 on the back of a downtrend in cattle prices across the globe, notably in two of the most important export countries, Australia and Brazil. The strengthening United States dollar also contributed to pushing global cattle prices down. However, according to Rabobank, the broader picture for demand indicates consumers are becoming increasingly reluctant to continue paying high prices for beef.
"Industry performance has been mixed across the globe," explained Rabobank analyst Albert Vernooij. "The broader picture for demand still points to tempered consumer appetite to paying high prices for beef as increases in disposable income worldwide appear to be slowing and threats of inflation continue across the globe. The relative value proposition for beef has diminished as beef prices have risen relative to chicken and pork.
"We maintain the view that global beef supplies will remain near 2012 levels with a bias towards a minor increase driven by the Southern Hemisphere," added Vernooij. "This will be led mainly by Brazil, Australia, Argentina, Uruguay and New Zealand — coupled with continued liquidation in U.S. beef supply given the ongoing drought —induced cow herd liquidation. In addition, exports from India have moderated considerably."

• European Union: In the EU, prices continued to increase as a result of a combination of the higher demand for beef — as many players have had to replace horsemeat with "real" beef — and tight supply. This is possibly one of the reasons behind Brazil`s growing exports to the EU this year — up 42 percent to 25.5 thousand tons on the year to May. Prices are expected to remain elevated for the remainder of 2013, but the strong increase experienced since February is expected to level off over the summer.
• United States: The outlook in the U.S. remains gloomy. Feedlots are still being hit by the continuation of strong feed grain prices exacerbated by adverse weather and an insufficient decline in feeder cattle costs. However, packers have been posting improved margins since May. Cash prices have recently traded at a seasonal low of $120 and are expected to maintain a narrow sideways trading band in the short term, before recovering to the mid-$130 level in the third and fourth quarter.
The outlook for the rest of the global beef industry is mixed:

• Latin America: Companies located in South America, particularly in Brazil, should continue benefiting from the herd recovery and brisk exports, which are receiving an additional lift from the depreciation of the Brazilian real. However, rising Brazilian inflation along with declining pork and poultry prices may limit Brazilian players from obtaining higher prices in the domestic market. Even so, the general landscape for processors' margins is still positive.
• Australia & New Zealand: Cattle prices have continued to decline due to increased marketing driven by drought. While this is bad for ranchers and feedlots, the packing segment is benefiting from this environment in the short term.
• China: Although production has been flat, prices have surged. Rabobank expects the value of China's beef market to grow in excess of 10 percent annually over the next three years. High beef prices in China combined with recent signs that the country will open its doors to the global beef market suggest continued growth in imports. This scenario may also trigger interest from Chinese beef players in exporting companies and countries.

Diamond V products improve beef performance, according to study

Feedlot managers gained confirmation of the role of Diamond V Original Products in feedlot performance and quality grade. Diamond V supplies nutritional fermentation products used to optimize digestive function.
John Wagner, Professor of Animal Science, Colorado State University, conducted a beef research meta-analysis and found a beneficial effect on average daily gain, feed efficiency and carcass quality grade when Original Product was fed throughout the entire feeding period. The meta-analysis evaluated the effects of fermentation products on feedlot performance and carcass traits based on results from 28 feedlot studies. The data consisted of 67 treatments means from 234 pens and 7,660 feedlot cattle.
Methodology
Data analysis used mixed model procedures. Fixed class variables included Diamond V Original Product, monensin, tylosin and implants, in addition to gender. The days on feed were included as a fixed continuous variable, when statistically significant. "Study" was included in all models as a random class variable. The analysis was weighted by pen replicates per treatment mean.
According to Wagner, the meta-analysis found cattle fed Original Product had 2.8 kilograms heavier final bodyweight, achieved greater average daily gain of 1.42 kilograms versus 1.38 kilograms per day and gained 3.0 percdent more weight per kilogram of dry matter intake (gain: feed ratio) versus control cattle. Dry matter intact was similar between the control and Original Product.
Receiving Period
An analysis of receiving period data included 11 studies with 31 records, 104 pens and 1,066 cattle. When the Original Product was compared to a control, Wagner found statistically significant trends for increased final bodyweight of 1.2 kilogram, increased ADG of 1.27 kilogram versus 1.21 kilogram per day and improved gain: feed of 4.4 percent. Daily dry matter intact was not influenced by supplementation with Diamond V Original Product.
Finishing Period
For the finishing period, Wagner reported a statistically significant trend, based on 28 records, 108 pens and 1,906 cattle, of a 2.5 percent improvement in gain: feed for the Original Product versus a control.
Carcass Data
Wagner said his carcass data analysis of the research that was statistically significant revealed an increase in the percent Choice and Prime combined — 66.5 percent versus 54.8 percent — and a reduction in the percent Select carcasses of 28.7 percent versus 40.9 percent for the Original Product versus the control.

Cow-calf stage significant contributor of greenhouse gases

The cow-calf stage is the most significant contributor of greenhouse gases during beef production, according to a paper for the Journal of Animal Science which showed that overall beef production has a carbon footprint ranging from 10.7 kg to 22.6 kg of carbon dioxide equivalent per kg of hot carcass weight.
In the cow-calf phase, the cow gives birth and nurses the calf until the calf is six to 10 months old. During this time, the cow eats rough plants like hay and grasses. The methane-producing bacteria in the cow's gut thrive on these plants. "The more roughage is in the diet of the ruminant animal, the more methane is produced by the microbes in the gut of the ruminant, and methane comes out the front end," said study co-author Frank Mitloehner, an associate professor in the Department of Animal Science at UC Davis. In feedlots, by contrast, cattle eat mostly corn and grains, which the methane-producing bacteria cannot use as effectively.
Greenhous gas emissions are something the beef industry has been paying close attention to in recent years. "We are doing a lot to measure and mitigate our impact," said Chase Adams, director of communications for the National Cattlemen's Beef Association. In a 2011 paper for the Journal of Animal Science, researcher Jude Capper showed that the beef industry today uses significantly less water and land than 30 years ago. The industry has also reduced its carbon footprint by 16.3 percent per billion kilograms of beef produced.
According to Mitloehner, beef producers can further reduce their carbon impact by using new technologies like growth promotants. However, consumers are often uncomfortable with these methods, and they choose organic beef or beef with reduced amounts of growth promotants. "The technologies many consumers are critical of are those that help us receive the greatest environmental gains," said Mitloehner.

Increased energy content in feed may cut beef grading losses

Under-finished animals are causing beef farmers to lose up to £51 per beast due to poor forage quality, but this could be rectified by increasing the energy content of the diet, according to Martin Smith of Ufac-UK.
“The latest report from Northern Ireland’s Livestock and Meat Commission shows a continuing trend for carcasses to be under-finished — with a six percent reduction in steers classified in fat classes 4 and 5 with a six percent increase in classes 1 and 2,” said Smith. Dropping from U3 to U2 potentially reduces carcass value by 6p per kilogram, or 22p per kilogram if the beast drops to U1.
Energy levels in forage — due to the poor growing season throughout the UK in 2012 — have been significantly down and cereals have also suffered from lower bushel weights affecting the energy from starch.
“This report confirms the effect that diet quality is having on carcass grading," said Smith. But energy levels of the diet can be boosted by adding a fat supplement, such as a Ufac product, Megajule, he said. “Assuming a 12 kg dry-matter intake and a 1 MJ/Kg deficit per kg there would be a need to replace 12 MJ," said Smith. "This could be supplied by feeding 600 g (1.25 lb.) of the supplement per day for the 50-day finishing period. At around £16.50 per animal this is highly cost-effective, giving a return on investment of over 3:1.”

Codex Commission adopts global ractopamine standards

The Codex Alimentarius Commission has adopted global food safety standards for animal feed ingredient ractopamine hydrochloride, setting out an Acceptable Daily Intake and Maximum Residue Levels for pig and cattle muscle, fat, liver and kidney.
Codex global food safety standards are designed to ensure that public health is protected and to facilitate the fair trade of safe food products by providing international food safety reference points for all countries, according to Codex. “These standards provide an international food safety reference point that helps assure consumers that their food is safe," said Elanco President Jeff Simmons. Elanco sells ractopamine under the product names Paylean and Optaflexx. "Codex standards for ractopamine are a significant step towards enabling sustainable meat production, fulfilling the increased demand for animal protein and therefore addressing worldwide hunger.”
The commission's decision will become official when the report is finalized on July 7.

Montana ranchers need hay after fires destroy crops

Montana ranchers are in need of hay donations to feed their livestock to help offset the 300,000 acres destroyed in recent fires, according to reports.
Calls have been sent out to the surrounding areas by disaster and emergency services, but responses have been sparse so far. “We’ve been so dang dry, we haven’t had much of a hay crop,” said Chuck Lee, Fallon County Disaster and Emergency Services coordinator in Baker County, Montana. “Anyone who has any hay is hanging on to it in case they need it.” In addition, say coordinators, those affected may not yet know what or how much they need.
The Farm Service Agency is putting together a letter to the state Farm Services Office asking for assistance. From there, the request will be sent to Washington, D.C. The committee is likely to seek implementation of the Emergency Conservation Program, which will allow the use of land in the Conservation Reserve Program by victims of the fire. Conservation Reserve Program lands are generally marginal lands that farmers are paid not to use, even for grazing.

US fed cattle prices reach record levels in first quarter

U.S. fed cattle prices traded at record levels in the first quarter of 2012, with an average year-to-date price of $1.26 per pound and a peak price of $1.30 per pound in the first week of March, according to Rabo AgriFinance's Quarterly Beef Outlook.
Cattle on feed numbers remain strong, with a 1 percent to 3 percent increase over 2011. During this time, federally inspected slaughter ran 6 percent below 2011 levels, and 5 percent below the five-year average. “Prices for U.S.-fed cattle should remain near $1.15 through mid-summer, before posting a sharp price recovery for the second half of the year,” said David Nelson, global strategist with the Rabobank Food & Agribusiness Research and Advisory group. “Restricted supplies and seasonal considerations should drive the price recovery.”
Steer carcass weights have been abnormally high, holding at 20 to 21 pounds over the same period in 2011, and the five-year average. Despite the increase in steer carcass weights, U.S. beef production was down 3.4 percent from 2011 numbers, as of mid-April. Globally, once the larger supply of Brazilian cattle plays itself out in the second quarter, cattle prices should recover. Following that short-term supply bulge, Rabobank expects most beef-producing countries to go through liquidation, a retention cycle or weather-related problems.
“Global meat protein, especially beef supplies, will continue to hamper profit and herd growth in important emerging markets,” said Nelson. “This will support prices, while raising volume and cost risks to processors and price risks to buyers.”

China to support beef, mutton production

China's Ministry of Agriculture has released a nationwide development plan for grain-saving animal husbandry through 2020. According to this plan, by 2020 the country's beef production must reach 7.4 million tons, its mutton production must reach 4.7 million tons and its milk production must reach 64 million tons. To achieve the set goals, the Chinese government will give more support to grain-saving husbandry by promoting pilot insurance and a subsidy program, and will reward regions productive in beef and mutton, according to reports.

Rising hay prices causing Texas ranchers to sell cattle

A year-long drought has caused hay prices to rise to as much as $115 per 800-pound bale as of mid-October (compared to $60 during the same time in 2010), causing some Texas ranchers to sell off or abandon their cattle as they can no longer afford to maintain their herds.  
The drought, which has caused wildfires and cost Texas agriculture some $5.2 billion so far in damages, is the costliest on record, according to the Texas AgriLife Extension Service. Total hay production in Texas is expected to reach 5.9 million tons in 2011, roughly half of what the state produced in 2010.
Some farmers are getting hay from out-of-state or even moving their herds to other states, adding transportation costs, finder's fees and taxes to already high hay prices. “Hay to our livestock industry is equivalent to milk and bread to everyday families,” said Todd Staples, the state’s agriculture commissioner. “We’ve seen many producers sell out everything. Because there was no hay, no pasture. Many of them have vanished. Literally, gone up in dust.”
The Texas Agriculture Department has set up a hay hotline where ranchers, transporters and landowners from 42 states make connections to buy, sell or donate hay. The federal Farm Service Agency is also available to help farmers and ranchers purchase hay during droughts.

Japan radiation-contaminated animal feed troubles spread

Nearly 1,500 cattle in nine Japanese prefectures are thought to have been fed straw contaminated with radioactive caesium as a result of the Fukushima Daiichi plant nuclear crisis, resulting in a spreading problem as the contaminated meat has been shipped throughout the country, according to reports.
Radioactive readings in the straw are at 43 times the government limit, according to local authorities. Shipments of Fukushima beef are now banned, and Tokyo has pledged to compensate farmers for losses as consumer confidence has dropped.

Merck Animal Health expands Netherlands vaccine plant

Merck Animal Health (formerly Intervet/Schering-Plough Animal Health) is expanding its Netherlands vaccine manufacturing unit at its Biosciences Center Boxmeer campus, which will result in a doubling of the capacity of its Tissue Culture Department, one of the departments where antigens for viral and parasitological vaccines are manufactured for international markets.
The $18 million investment, which is scheduled to be complete by early 2013, has been designed to operate with optimal efficiency and takes into account the anticipated globally growing demand for veterinary vaccines. In addition, the increase of the manufacturing capacity that will be realized anticipates for large-scale emergency production of veterinary vaccines when extensive amounts are needed within a short time period such as during outbreaks of emerging diseases.
The Tissue Culture Department Boxmeer is an EU-GMP licensed facility and produces viral and parasitological antigens that are used as active components of veterinary vaccines. The department specializes in complex biotechnological production processes that require high flexibility, using roller bottles, cell factories and other suitable cell and virus culture and purification systems. In 2010, the department produced 12 different antigens, totaling almost 300 million vaccine doses for cattle, horses, dogs, cats, fish and swine.

South Korea estimating foot-and-mouth losses at $1.8 billion

South Korea's swine and cattle industries, which have been fighting an outbreak of foot-and-mouth disease that has resulted in the culling of 3.15 million pigs and 150,000 cattle, may lose more than won2 trillion ($1.8 billion), according to the government.
Domestic pork prices in South Korea have skyrocketed, according to Korea Meat Import Association Secretary-General Bo-Hee Lue, combining with fears of safety to lead consumers to imported pork.
“It’s possible some consumers who bought domestic pork will try buying imported pork because of price-competitiveness,” said Lue.
The country's original pig and cattle herds numbered 10 million and 3 million, respectively. On Dec. 25, Seoul ordered the inoculation of all remaining animals to help contain the disease, a move which could cost the country won100 billion ($89 million) annually to maintain.

USDA plans to improve humane handling enforcement

The USDA's Food Safety and Inspection Service announced several measures that will better ensure the humane treatment and slaughter of all cattle presented for processing at FSIS-inspected facilities.
"Under this administration, we have significantly strengthened our ability to enforce the Humane Methods of Slaughter Act, but we have more work to do and must continue to look for ways that ensure the safe and humane slaughter of animals," said Under Secretary for Food Safety Dr. Elisabeth Hagen. "That is why we are taking concrete steps to address outstanding humane handling issues, ranging from enhanced employee training to clearer guidance on existing rules."
The agency is pursuing the following new measures:

1. Issuing procedures to inspection personnel to clarify that all non-ambulatory mature cattle must be condemned and promptly euthanized to ensure they are humanely handled, regardless of the reason for the animal's non-ambulatory status.
2. Responding to and soliciting comments on petitions from the Humane Society of the United States and Farm Sanctuary.
3. Appointing an Ombudsman in the Office of Food Safety, designated specifically for humane handling issues.
4. Requesting the USDA Office of Inspector General audit industry appeals of noncompliance records and other humane handling enforcement actions by FSIS inspection program personnel.
5. Delivering enhanced humane handling training to give inspection personnel more practical, situation-based training.

For more information, visit the USDA-FSIS website.

Cow-calf symposium set

The University of Tennessee and the Beef Reproduction Task Force will hold the Applied Reproductive Strategies in Beef Cattle symposium Aug. 5-6 in Nashville. The event is aimed at giving producers information on ways to get the most from their operations.
Industry experts will present on topics such as improving herd productivity and decreasing costs to learning how to improve overall reproductive management skills. Find more information and registration details at the event website.