GIPSA rule would hurt small beef producers

Colin Wood (left) of the National Cattlemen’s Beef Association (NCBA) participated in a panel at the National Chicken Council annual meeting. Looking on are fellow panelists Pete Thomson of the House Agriculture Committee and Gary Kushner of law firm, Hogan Lovells.

What brings a beef lobbyist to a chicken industry meeting? Common cause in opposition to the proposed Grain Inspection, Packers and Stockyards Administration (GIPSA) rule.
Small- to medium-sized beef producers are opposing the proposed GIPSA rule because it will drive consolidation in the cattle business and take away opportunities for them to participate in branded beef programs, a representative of the National Cattlemen’s Beef Association (NCBA) told listeners at National Chicken Council (NCC) annual meeting.

Beef producers join in opposition to GIPSA changes
“A beef lobbyist in a chicken meeting, and the world is still turning,” quipped Colin Wood, vice president, government affairs, NCBA, who said his organization and its members are working alongside NCC in opposition to the proposed rule.
Wood predicted that under the proposed rule the beef packers would discontinue arrangements that pay premium prices to cattle producers in the branded programs because of the potential for lawsuits for providing preferential pricing. Currently, the packers pay premiums to producers in the branded programs who have invested in livestock with better genetics and adhere to best management practices under the programs.
The branded marketing arrangements, which command premium retail prices in supermarkets, include programs such as Certified Angus Beef, Laura’s Lean Beef and Rancher’s Reserve at Safeway Supermarkets.

More consolidation in beef production to result
An end to producer participation in the branded programs will result in consolidation in the beef production business as producers exit the business when current opportunities for the better returns no longer exist, Wood said.
Under the proposed regulations, packers would no longer be passing part of improved margins back to beef producers in the programs but instead will pocket them, he said.
“I can’t say that I don’t sympathize with the position that packers have told us they will have to take under the proposed rule,” Wood said. “Under this rule, if I were in their position, I would probably undertake to protect myself as well.”

GIPSA would create market disruptions
Wood cited other problems with the proposed GIPSA rule. The proposed ban on packer-to-packer sales of cattle would result in market disruption where some NCBA members own both feeder and packer operations. Also, the rule’s proposed ban on order buyers working for more than one packer would result in there being no buyer representation for packers at smaller sale barns.
“The Obama Administration in this rule took a shot at the packers, but they hit the small- and medium-sized beef producers,” he said.

Russia near to unveil meats importations quotas for 2011

Russia must unveil, by the end of September, only, its proposed quotas for meats imports for 2011. Russian officials, who have met WTO’s member-countries this week aiming at achieving Russia admission to the organism for the year end, already signalized that its proposal on the meat quotas for 2011 will be unveiled only in the next meeting.

Brazil will keep on strengthening the pressure on Russian officials as to get a more benevolent treatment for its meats exports. Five years ago Brazil and Russia signed an agreement which established that Russia would never trim down the Brazilian meats access to that market. However, in 2009, Russia handed down USA and EU the most attractive shares of chicken meat and pork importations quotas. In spite on counting on Brazil’s support to its WTO-admission campaign, Moscow has been struggling to reduce gradually the Brazilian chicken meat and pork imports.

The core idea in the next Russian meat imports quota plan is to cut off by 50% thru 2013 the current importations of 400 thousand tons of chicken meat. For pork they plan to cut off 200 thousand tons from the current 500 thousand tons importation volumes. Russians claim they can reach self-sufficiency in chicken meat and pork production in 3-year time. However, it is hard to believe this is possible as Russia’s producers, inefficient and expensive, have no means to compete with Brazil’s.

Chicken consumers are still confused

In the last couple of weeks I have been asked many times about why processed chickens in the U.S. are so large. They specifically ask about chicken breasts, which seem huge. The questioners really believe that it must be due to some “un-natural” process, such as hormones or antibiotics or something.
The truth is really very simple: genetics. Over the last 50 years, there has been a very strong genetic selection of broilers, which has greatly reduced the amount of time that it takes for a bird to be ready for market. In the case of the U.S. in particular, selecting birds for large breast meat has been a primary focus of the primary breeding companies.
Another reason for the large birds is that in the U.S. birds go to market an average of two weeks later than in many other areas of the world. So, the birds really are much bigger. There are other factors, such as injecting brine into the chicken during processing, a common practice across the world, but which has suddenly come into question in the U.S. It’s primarily genetic selection, however, that accounts for the large chickens. It’s not hormones (which are never used), and not antibiotic growth promoters (which do not directly affect growth, but rather allow for better absorption of nutrients and which are not used by some major U.S. producers).
However, the average consumer is not convinced: they are sure that “something bad” is fed, injected or pumped into chickens to make them get that big. ...Read the full blog on www.animalagnet.com.

IPC annual meeting set in Australia

Dr. Barry O'Neil of New Zealand, former president of the World Organization for Animal Health, will be the keynote speaker at the upcoming annual meeting of the International Poultry Council, held October 29-30 at the Quay Grand Hotel in Sydney, N.S.W., Australia.
Dr. Peter Ben Embarek of the World Health Organization's Department of Food Safety, Zoonoses and Foodborne Diseases, will also be among the speakers at the IPC meeting.
The Australian Chicken Meat Federation will host the event.
Registration fee for the meeting is $500 (350 Euros), which includes lunches, a group dinner and refreshment breaks.
Registration information is posted on the IPC’s website, at www.internationalpoultrycouncil.org. For further details, contact Executive Secretary George Winn or Toby Moore.