MCA Executive Committee Issues Statement on the Canadian Border

On January 4, 2005, the United States Department of Agriculture published a final rule which will, if implemented, reopen the Canadian border to live cattle and beef trade.  The Missouri Cattlemen's Association has heard from many members expressing concern and asking for clarification on the rule’s implementation.  MCA members have a number of serious concerns about this rule, specifically:

• The implications of importing meat from Canadian cattle older than 30 months of age.
• The economic impact on cattle producers resulting from resuming trade with Canada without having fully reopened other export markets, specifically Japan, South Korea and Mexico.
• The compliance of the Canadian beef industry with its feed ban and other BSE firewalls.
• The prevalence of BSE in Canada given the announcement on January 2 of a second case of BSE, the announcement on January 11 of a third case of BSE, which is the fourth case of known Canadian origin.
• The impact reopening the border to live cattle will have on US consumer confidence.

First and foremost, MCA is committed to responding to the concerns of our members. This rule is in a period of congressional review and will not become effective until March 7, 2005.  This means the industry has time to take action on its concerns. 

The MCA Executive Committee, after a review of the rule, has called for the USDA to immediately rescind the portion of the rule dealing with importation of beef from cattle over 30 months of age.  We believe including beef from Canadian cattle over 30 months of age is unwise, creates markets distortions and would have an extremely negative economic impact on our members.

We are also calling for full resumption of trade with Japan, South Korea and Mexico before any portion of the rule is implemented.  Without the resumption of our export trade, the resumption of imports can have an exaggerated economic impact on cattle producer members.

We are supporting the current actions of the National Cattlemen’s Beef Association’s Executive Committee and their nine action steps (adopted on January 11).  We applaud the NCBA for its fast, appropriate and reasoned actions.

When available, we will review information gathered by both the NCBA Canadian Trade Team and the FDA review team.  We look forward to a detailed economic impact review as done by NCBA and USDA.  When we have the necessary facts, we will make a decision whether to support a complete delay of the rule or to move forward with other parts of the rule.

The Missouri Cattlemen's Association will immediately communicate our concerns and position to our Congressional delegation, Senators and the Administration.

Progress Made On NCBA Executive Committee Actions Regarding the Re-Opening of the Canadian Border

Following USDA publishing a final rule that would reopen the Canadian border the NCBA Executive Committee took the following actions late last week.  NCBA members have a number of serious concerns about this rule, specifically:

1. Insist that by March 7 trade be re-established with Japan, South Korea, and Mexico through negotiations between the highest levels of government officials or further action will be taken.

Action taken: NCBA President Jan Lyons and CEO Terry Stokes met with officials at the White House on Tuesday, Jan.11.  They reported the meetings were very favorable and a full report will follow in the days to come.

2. NCBA will send a trade team of its members to Canada on a fact-finding mission. 

Action taken: Team members have been appointed and will travel to Canada next week.  See information below for member names and team objectives.

3. Request an FDA audit of Canada's compliance to its feed ban.

Action taken: Request was submitted on Jan. 10 and USDA took action on Jan. 11.  In a statement by Dr. DeHaven on January 11, USDA will expedite sending a technical team to Canada.  He also stated that the results of the investigations and analysis will be used to evaluate appropriate next steps in regard to the minimal risk rule. 

4. Demand that the U.S. not import beef from Canadian cattle older than 30 months of age to prevent a trade imbalance that discriminates against U.S. cow-calf producers.

Action taken: Outlined in Jan. 11 meeting between NCBA President Jan Lyons and CEO Terry Stokes with the White House.

5. Insist USDA clarify the Canadian rule regarding the importation of heifers, age verification, procedures for importation of live cattle, and other issues.

6. Insist on the creation of an international commission from major beef producing and beef consuming countries to establish a science-based protocol for normalization of trade for BSE.

7. Evaluate USDA's economic analysis of trade with Canada.

8. Immediately mobilize our members and state affiliates to notify their congressman, senators, and the Administration of these concerns and action steps.

Action taken: eAlert sent to NCBA members on Jan. 7 and immediate responses to congressional delegates by members and state affiliates followed.

9. NCBA will meet with senior White House officials to strongly communicate these action steps, the concerns of our cattlemen about the economic harm that will occur from the imbalance of trade between exports and imports, and the sense of urgency to achieve results.

Action taken: First meetings conducted on Jan. 11.                                              - NCBA

NCBA Announces Members of the Canadian Trade Team
Producers Travel to Canada to Gather Answers to Questions

Following the actions of the NCBA Executive Committee last week, a fact-finding team has been appointed.  The team will travel to Canada to answer the multitude of questions being raised by U.S. producers surrounding the recent findings of BSE in two cows in Canada.  
 
Members of the Trade Team:
Jamie Willrett, Illinois cow/calf producer and Chairman of the NCBA International Markets Committee
Eric Davis, Idaho cow/calf producer
Homer Buell, Nebraska cow/calf producer
Bill Donald, Montana cow/calf producer
Gene Harris, North Dakota cow/calf producer
James Courtney, Montana cow/calf producer
Don Hineman, Kansas feeder
Dr. Tom Field, Colorado State University Animal Science Professor
Pete Crow, Publisher of the Western Livestock Journal, has also been invited to accompany this team.
 
Goals of the Canadian Trade Team:

▪     Identify the Canadian cattle that would qualify for export under the USDA rule and determine the       

      potential economic impact on cattle producers.

▪     Inspect feed manufacturers and demand Canadian government officials provide a detailed   

      assessment of feed ban compliance.
▪     Inspect border crossings to verify how cattle will be inspected, identified, have their age determined

      and be approved for entry into the United States.
▪     Verify Canadian compliance with BSE firewalls.
▪     Clearly determine the blue tongue and anaplasmosis requirements to export feeder cattle to Canada

      to ensure harmonization of trade.
▪     Evaluate Canada's BSE testing and surveillance program and review all the findings around the

       recent BSE cases.
▪     Address other concerns that may be raised by members.                               - NCBA

Cattle- Fax Market Update

The fed cattle market settled steady to $1 higher last week. The early week news was primarily centered around a widespread winter storm which raised sellers asking prices, future prices and seller resolve. Later in the week, the talk had turned to reduced slaughters by major packers and a lower futures market. The net result was a market that traded at $87 to $88.50, with the bulk at $88. On a dressed basis, sales were collected at $139 to $141, mostly $140. Boxed beef sales were lower on the week, but began to gain ground late as word of reduced production got out. Trade volumes on that side were moderate. Feeder cattle prices were steady to as much as $2 lower, while calves were $1 to $3 lower. Demand was uneven coming out of the holidays, especially when combined with the winter weather.

-To join Cattle-Fax, call (800) 825-7525

Missouri Cattlemen’s Association News

Start Planning County Beef Month Promotions Now

Missouri Beef Industry Council will again be offering up to $500 of checkoff dollars for County Cattlemen's Organizations to promote Beef Month in May.  Some deadlines and guidelines have changed in 2005.  For example, there is promotion planning assistance on the forms in addition to new advertisements that can be seen on-line.  All ads can be personalized and sent directly to your media outlets.  Beef Month forms can be downloaded and ads can be viewed at http://www.mobeef.org/consumers/beef_month.html.  

$500 is the county maximum, (with a cap of $1000 to groups that represent more than one county,) so please be sure you communicate well with other leaders in your County Cattlemen's organization to avoid duplication. With questions, please contact Dawn Thurnau at the Missouri Beef Industry Council at 800-441-6242 ext. 223 or dawn@mobeef.com.                                              - Missouri Beef Industry Council

Missouri Reception Scheduled During Cattle Industry Convention in San Antonio

Headed to San Antonio?  If so, join fellow Missourians at a reception hosted by the Missouri Cattlemen’s Association on Friday, February 4.  Famous Texas brisket, an assortment of snacks and a cash bar will be available for your enjoyment from 7:00 p.m. to 9:00 p.m. in the Alamo Ballroom, Salon D of the Marriott Riverwalk Hotel.  This reception is possible thanks to the support of Joplin Regional Stockyards and MFA.  

April 5-7 Slated for County Leadership Conference

The MCA County Leadership Conference will be held April 5-7 in Columbia.  Each county cattlemen’s group is encouraged to send at least one delegate.  With several important issues in the cattle industry and an updated program, the 2005 County Leadership Conference is an event you don’t want to miss!  For more information, contact McKenzie at (573) 499-9162 ext. 233 or mckenzie@mocattle.com. 

Calendar of Events

Jan. 13              Lewis-Marion County Cattlemen – Palmyra High School Cafeteria, 7:00 p.m.

Jan. 15              Audrain County Cattlemen – Mexico Country Club, 6:00 p.m.

Jan. 15              Howard County Cattlemen – Fayette High School Commons, 6:00 p.m.

Jan. 16              Warren County Cattlemen – Lion’s Club, Wright City, 5:00 p.m.

Jan. 17              Cooper County Cattlemen - Community Building, Pilot Grove, 6:00 p.m.

Jan. 17              Macon County Cattlemen - Lolli Livestock Market, Macon, 6:30 p.m.

Jan. 19              Dallas County Cattlemen - Mennonite School, Prairie Grove, 6:30 p.m.

Jan. 20              Monroe County Cattlemen - Senior Center, Paris, 6:30 p.m.

Jan. 20              Newton County Cattlemen - Crowder College Ag and Science Building, 6:30 p.m.

The Fine Print

This newsletter is a publication of the Missouri Cattlemen’s Association. All rights reserved – this newsletter may not be reproduced, in whole or in part, without permission of the Missouri Cattlemen’s Association. Did someone forward this message to you? To subscribe yourself, send an email to cattleinfo@mocattle.com. 

Do you have questions, comments or suggestions?

Would you like to advertise in our newsletter? 

If so, please contact McKenzie Keedy at (573) 499-9162 or mckenzie@mocattle.com.