News Update
Jan. 28, 2009

The 2009 Cattle Industry Annual Convention and National Cattlemen’s Beef Association (NCBA) Trade Show has begun in Phoenix, Arizona. For cattlemen not able to attend the event, Angus Productions Inc. (API) is providing coverage at www.4cattlemen.com. You can browse past releases and new releases posted in the Newsroom. The site also includes links to other Cattle Industry Links, as well as API topic links, and archives for past Cattle Industry Conventions. Be sure to check back daily to keep track of the latest happenings from the convention in Phoenix.

Posted today on www.4cattlemen.com:

• New Online Resources Aim to Aid in BVDV Control — BVDV Symposium producer session, Jan. 27, 2009
• Producers Want Other Cattlemen to Recognize BVD is ‘Real’ — BVDV Symposium producer session, Jan. 27, 2009
• BVDV Control Requires Integrated Approach — BVDV Symposium producer session, Jan. 27, 2009.

University Study Says Wyoming Predator Management Program Cost Effective

Wyoming’s predator management program relating to livestock is cost effective, according to an analysis by the University of Wyoming’s College of Agriculture.

There is a $1.60 to $2.30 benefit to livestock producers in Wyoming for each dollar spent controlling coyotes and other predators that prey on sheep and cattle, said David “Tex” Taylor, a professor in the Department of Agricultural and Applied Economics and a community development specialist with the UW Cooperative Extension Service.

The result is annual net benefits of $3.5 to $7.9 million to Wyoming’s agricultural producers, he said.

The team examined the death loss from predation on the profitability of a typical Wyoming cattle ranch, Taylor said.

Using a 4% calf loss as the average, ranch profitability declines by 20% if the loss increases to 6%. With an 8% loss rate, profits decline by 40%, while a 10% loss rate results in a 65% decline in profitability.

“The numbers at the upper end were surprising,” said Taylor, who explained that as predator losses mount, profitability declines sharply because fixed costs for the ranches remain constant.

The Wyoming Animal Damage Management Board (WADMB) awarded the department $33,000 to conduct the first phase of a two-year project.

Phase one focused on various aspects of predator control relating to livestock, while phase two, scheduled for completion later this year, will examine the benefits of the predator management program in relation to wildlife.

Phase two will also examine other aspects relating to livestock predation, including effects on ranch profitability and how local economies are affected. The WADMB awarded the Department of Agricultural and Applied Economics $34,300 to complete the second phase of the study.

Conducting the analyses are Taylor, Associate Professor Roger Coupal, Assistant Professor Ben Rashford and Associate Research Scientist Tom Foulke of the Department of Agricultural and Applied Economics.

They are working closely with state Predator Management Coordinator Kent Drake with the Wyoming Department of Agriculture’s Division of Technical Services.

“It is good to see that, historically, predator control has been effective for Wyoming livestock producers,” Drake said. “We look forward to seeing the second-year study results regarding predator control relationships with wildlife and community economics.”

In phase one, the UW team examined trends in sheep and cattle losses to predators from 1965 to 2006 using the Wyoming Agricultural Statistics. Taylor said the losses fluctuated widely, from a low of 5% for lambs in 1968 to a high of approximately 16% for lambs in 1993 and 1994. Losses have since declined.

Though the team wasn’t able to determine possible reasons for annual increases or decreases in livestock losses due to predators, Taylor said, it may indicate increased efforts to manage predators in Wyoming are effective. His team’s report states coyotes remain the primary predator for sheep and lambs in the state, accounting for 65% to 80% of the total loss.

— Release provided by the University of Wyoming.

KLA Testifies on Bills Affecting Livestock Producers

Kansas legislators were focused last week on how and where to cut $180 million from the 2009 state budget. The Kansas House and Senate are expected to debate and vote on current fiscal year budget cuts this week. A bigger challenge, after the 2009 budget actions, is to reach consensus on how to close the estimated $1 billion deficit in the 2010 budget.

Thus far, very few bills of interest to Kansas Livestock Association (KLA) members have been introduced. KLA staff did testify on two bills last week. The House Energy and Utilities Committee conducted a hearing on House Bill (HB )2013, which eventually would require 20% of a public utility’s portfolio to be generated from renewable energy resources or technologies. KLA testified against this proposal based on member policy opposing government mandates for energy production.

The House Taxation Committee held a hearing on HB 2028, which would repeal the phaseout of the franchise tax. The franchise tax currently is scheduled to be eliminated by 2011, but HB 2028 would amend the law to keep the franchise tax at the 2008 rate. KLA also provided testimony against this bill.

The House Taxation Committee will hold a hearing on HB 2047 this week. This bill would eliminate the current phaseout of the Kansas estate tax. HB 2047 would lock the estate tax rates at current levels for future years. KLA will testify against this bill.

Several bills relating to eminent domain authority for acquiring water rights will be considered this session. Last week, SB 65 was introduced to clarify public water agencies, state institutions and groundwater management districts cannot acquire water rights through the use of eminent domain. KLA policy supports SB 65.

— Release provided by KLA.

Beef Exports Near 2003 Levels

According to the U.S. Meat Export Federation (USMEF), 2008 beef exports are on pace to reach 94% of the 2003 value. Nearly 11% of U.S. beef and beef variety meat production was exported in January through November 2008. Export value equated to $134.83 per head of steer and heifer slaughter. For comparison, in 2003 about 13% of production was exported, equating to $136.46 per head.

Total beef exports of 2.01 billion pounds (lb.) from January to November 2008 were up 29% and valued at $3.37 billion, an increase of 40%. Beef and beef variety meat exports were up 37% and18% from 2007 levels, respectively.

“Global protein supplies remain tight, with the exception of a few situations in key countries where stocks of imported red meat are weighing on the market, specifically in Korea and China,” said USMEF economist Erin Daley. “As currencies and prices stabilize, inventories will decline and demand for U.S. red meat will likely continue at a relatively strong level.”

— compiled by Mathew Elliott, assistant editor, Angus Productions Inc.