Carroll County

Beef Markets & News You Can Use

Virginia Cooperative Extension

By Webb Flowers

Agriculture & Natural Resources

December 4, 2010

Guys and Ladies,

√ Virginia Stockers sold $3.50 Higher & Feeders sold $1.00 Lower this week compared to last week. For a more current Virginia Cattle & Crops Report, visit this link on Mondays after 5:00 P.M.: http://vdacs.virginia.gov/marketnews/pdffiles/cc.pdf

√ Cash Fed Cattle Prices/cwt. for South Central Plains sold $2.50 Higher compared to last week: 12/3/10 $104.00, 11/26/10 $101.50, 11/5/10 $97.50, 6/4/10 $95.00, 12/4/09 $82.50

√

Cash Dressed Cattle Prices/lb. for North Central Plains sold $2.50 Higher last week: 12/3/10 $163.00, 11/26/10 $160.50, 11/5/10 $154.00, 6/4/10 $154.00, 12/4/09 $130.00

√ U.S. Boxed Beef Prices, Choice Sold $2.00 Higher and Select Sold Steady this week: Choice: 12/3/10 $164.00, 11/26/10 $161.85, 11/5/10 $158.56, 6/4/10 $160.45, 12/4/09 $137.17 Select: 12/3/10 $152.61, 11/26/10 $152.34, 11/5/10 $150.20, 6/4/10 $152.41, 12/4/09 $130.92

√

Current Feed-yard Close-Outs were $28.03 Higher this week: 12/3/10 $47.14/hd, 11/26/10 $19.11/hd, 11/5/10 $1.30/hd, 6/4/10 $69.62/hd,

√

12/4/09 ($132.50)/hd

Feeder Cattle Futures and Live Cattle Futures were Steady to $1.00 Higher this week compared to last week

√ Dow Jones Industrial Average Gained 290.69 Points for the week on December 11382.09, 4:04 pm ET Open: 11361.88 Volume: 149,221,366 High: 11388.87 Avg Vol: 200,000 Low: 11255.85 Mkt Cap: 0 As compared to 11092.00 on November 26, 2010

Firm and Steady week!

1

Last Week's Markets NATIONAL FEEDER & STOCKER CATTLE SUMMARY - WEEK ENDING DECEMBER 3, 2010 RECEIPTS: This Week Last Week Last Year

Auctions 300,100 129,200 291,800

Direct 71,700 41,500 34,300

Video/Internet 14,300 20,800 32,800

Total 386,100 191,500 358,900

Compared to last week‘s light holiday offering, as most markets after Tuesday were closed in observance of Thanksgiving, many markets this week are compared to two weeks ago. Feeder demand was very good this week as buyers came back from Thanksgiving ready to buy feeder cattle at higher prices. Most auctions called feeder calves 5.00-10.00 higher, with feeders weighing over 700 lbs mostly 2.00-4.00 higher. Several auctions that were compared to last week had calves mostly 2.00-5.00 higher. Tight inventories of beef cattle have seduced buyers and cattle feeders to shrug-off fears of high feed cost as they want to get possession of feedlot replacements while numbers are running good this week and weather is still mild. Escalating price levels on light-weight calves under 450 lbs keep climbing above the 150.00 range at many auctions with many top quality steers weighing over 800 lbs selling with very good demand in the Northern Plains as in Presho, SD two pot loads averaging 906-965 lb steers sold for 120.35 an 120.50 while in Ogallala, NE two pot loads of steers weighing 822 lbs averaged 124.00. With fed cattle prices breaking through the 100.00 resistance level last week and not retreating this week had meat packers paying what was required to buy cattle on Tuesday of this week as feedlot trade had impressive cash business. This week‘s fed cattle prices were mostly 1.00-3.00 higher trading from 102.00-104.00 their highest levels since 2003. Dressed prices were 5.00 higher in Nebraska at 165.00. On Tuesday of this week cattle futures rose sharply and live cattle future prices for next spring were approaching the 110.00/cwt price level, which provided feedlots with a good hedging opportunity. Even with high corn prices many cattle feeders are very bullish buying feeder cattle when fat cattle are trading well above the century mark. Part of the reason for the bullishness in fat cattle is the strong boxed beef prices are remaining aggressive, given the ability to move beef at higher prices as it closed at 164.00 on Friday afternoon. This is running almost 25.00 higher than a year ago at this time. When looking at year ago prices for feeder cattle, fat cattle and boxed beef all are running 20.00-25.00 higher than a year ago. With Christmas and New Year celebrations fast approaching it is not unusual for beef prices to move higher as demand for high quality cuts of beef improve. Also the latest results of the Restaurant Performance Index was at its highest level since the fall of 2007 and well off the lows established in late 2008 and 2009. Another factor having positive effect on live cattle prices are the by-product values which are sharply higher as hide prices have seen sharp increases. This is positive news for meat demand going forward into 2011 with expected tight beef supplies and a growing global demand for protein. Feedlot managers will be focused next week on trying to maintain levels through the second week of December as another week of aggressive cash expectations will no doubt remain. The end of the week saw corn prices sharply higher on Friday pressuring live and feeder cattle futures and will have to wait and see if this creates a pullback in feeder cattle prices. This week‘s reported auction volume included 35 percent over 600 lbs and 42 percent heifers.

2

Beef Markets Week Ending December 3, 2010 Cash Stocker Steers

Cash Feeder Steers

3

Hay, Fertilizer and Farm Diesel Fuel Markets

USDA Alabama, Illinois and Virginia released hay market reports this week. Current and archived reports for all three states are here.

USDA Alabama and Illinois released fertilizer and farm diesel fuel cost reports this week. Click here for current and archived reports for both states.

Until Next Week, Market Briefs,

Webb Flowers

Virginia Tech APS Livestock Update The December issue of Livestock Update was released this week. IN THIS ISSUE: Dates to Remember December Beef Management Calendar Dr. Dan Moser Featured Speaker for VT Beef Webinar January 11 2010 – 2011 BCIA Southwest Bull Test Season Begins Video Clips of Culpeper Senior Bulls Available Highlights of the 2010 Hokie Harvest Sale Ewe Management Tips: Mid and Late Gestation Shepherd‘s Symposium scheduled for January 15, 2011 Evaluation of three commercial mycotoxin inhibitors added to deoxynivalenol-contaminated corn diets for weanling pigs 4

Virginia Cooperative Extension: Classes, Publications, Meetings, Sales, Videos, Webinars, Workshops The annual Virginia BCIA Culpeper Senior Bull Sale is scheduled for Saturday, December 11 at 12 noon at Culpeper Ag Enterprises. Selling will be performance-tested Angus, Gelbvieh, Gelbvieh Balancer, and SimmAngus bulls. For an on-line or downloadable catalog and further details please visit the BCIA website here. Two features on the web page may be of particular interest. Individual videos of each bull can be viewed, and you can access an Excel spreadsheet with all the bull data, which you can sort.

Ohio BEEF Cattle Newsletter The December 1 issue of the newsletter is posted here, as well as an archive link. IN THIS ISSUE:    

Tips to winterize your cow herd Forage Focus: Cattle Rations, Percentage or Pounds? More on Cattle Numbers, Beef Production and the Future of the Beef Industry Weekly Roberts Agricultural Commodity Market Report

National Weather

5

Looking Ahead For Weather Author: Rich Tinker, NOAA/NWS/NCEP/CPC The next two weeks can be summed up as abnormally cold across the eastern half of the country outside New England, extending through northern portions of the West early in the period, while warmer than normal conditions cover the southwestern quarter of the United States. In the wake of the recent storm that swept through the East during the first day of this period, near to above normal precipitation is anticipated in the Northwest and New England while below normal precipitation seems likely across a broad section of the country covering the Southwest, the central and southern Rockies, the central and southern Plains states, and in areas along and south of the central Mississippi Valley, the lower Ohio Valley, and the midAtlantic states. The views expressed below are not necessarily the views held by any representatives of Virginia Cooperative Extension, Virginia Tech University or Virginia State University. The items are provided to stimulate critical thinking for Carroll County Cattlemen's Exchange members about current issues facing agriculture producers and agriculture industry. Webb

National Economic News Source: The Cattle Range Job growth unexpectedly stalled in November, the Labor Department said Friday. Total nonfarm payrolls increased a slim 39,000 in November, much lower than the 155,000 gain expected by Wall Street economists. The unemployment rate moved up to higher to 9.8% in November from 9.6% in the previous month. Economists forecast the unemployment rate to hold steady at 9.6%. This is the highest unemployment rate since April. Average hourly earnings were essentially unchanged at $22.75. Economists had been expecting a 0.2% gain. Earnings are up 1.6% in the past year. The average workweek was steady at 34.3 hours. An index of U.S. consumer confidence rose to 54.1 in November, reaching the highest level since June, with consumers more optimistic about future business conditions and job prospects, the Conference Board reported Tuesday. Economists had expected a reading of 53. "Hopefully, the improvement in consumers' mood will continue in the months ahead," said Lynn Franco, director of Conference Board's consumer research center, in a statement. Confidence for October was revised to 49.9 from a prior estimate of 50.2. A barometer of consumers' expectations rose to 74.2 in November - the highest level since May -- from 67.5 in October, while consumers' assessment of the present situation ticked up to 24 from 23.5. The Conference Board's index helps analysts compare fluctuations in confidence, with a reading of 100 for the base year of 1985. Generally when the economy is growing at a good clip, confidence readings are at 90 and above. Private-sector employment rose 93,000 in November, the largest gain in three years, according to Automatic Data Processing Inc.'s employment report released Wednesday. Employment in the service-producing sector gained 79,000, while the employment in the goods-producing sector rose 14,000. On Friday the government will report on employment for November, and economists expect a gain of 155,000 for nonfarm payrolls, and for the unemployment rate to remain at 9.6%. A blue-ribbon panel created by President Obama is calling for a sweeping overhaul of the federal government and how it spends its money in an effort to reverse America's growing national debt and make the U.S. economy more competitive. Among its many suggestions, a draft of the 6

bipartisan report calls for reforms in Medicare and Social Security, a simplified tax code, higher gas taxes, lower agricultural subsidies, hard caps on government spending and a long-term reduction in the federal workforce. "After all the talk about debt and deficits, it is long past time for America's leaders to put up or shut up," the report says. "The era of debt denial is over, and there can be no turning back.‖ Crude-oil futures on Friday rallied to a fresh 2-year high, overcoming early weakness triggered by a disappointing U.S. jobs report, and getting a boost from a tumble in the U.S. dollar. Oil for January delivery ended up $1.19, or 1.4%, to $89.19 a barrel on the New York Mercantile Exchange, the highest close since early October 2008. For the week, it's gained 6.5%. January gasoline ended less than a penny lower at $2.35 a gallon but surged 8.8% for the week. Heating oil futures rallied more than 6% during the week. A gauge of pending sales of homes rose 10.4% in October due to "excellent" housing affordability conditions, but activity needs further improvement to reach a healthy level, the National Association of Realtors reported Thursday. The association's pending-home-sales index rose to 89.3 in October from 80.9 in September. Pending sales reflect contracts signed between home buyers and sellers, and closing a sale usually takes a few months. A reading of 100 equals the average level of contract activity during 2001. "The housing market clearly is in a recovery phase and will be uneven at times, but the improving job market" will help, said Lawrence Yun, NAR's chief economist, in a statement. In October pending home sales rose in three of four regions: up 27.3% in the Midwest, 19.6% in the Northeast, and 7.1% in the South. The index fell 0.4% in the West. Nationally, the index is down 20.5% from last year.

By Steve Meyer and Len Steiner

Vol. 8, No. 230 / November 29, 2010

Last week’s holidayshortened slaughter runs for cattle and hogs saw a continuation of recent patterns with cattle slaughter exceeding year-ago levels by 8.4% and hog slaughter 1% higher than during the same week last year. FI cattle slaughter numbered 582,000 head, sharply lower, of course, than the week before but significantly larger than last year. U.S. hog plants processed 2.064 million head, 11.3% fewer than last week. Dressed weights for slaughter hogs were equal to last week, continuing a recent pattern that indicates that the pork industry may finally be at least keeping up with performance levels in getting hogs moved to slaughter. Slaughter weights normally peak about now so we expect them to begin to decline during December — but not by much. The factors that caused performance to improve sharply this fall — good quality, palatable corn and cool temperature — are still in place. And as 7

a producer remarked to us last week ―It is still easier to heat a barn than it is to cool a barn.‖ That means that producers can keep temperatures at optimal levels barring any extremely severe weather or snowfall and thus keep these hogs growing at a rapid pace. Any ―pulling forward‖ of marketings this fall is likely to continue. The chart on the previous page shows Saturday slaughter for the past two years and the average for 2004-08. Last week‘s Saturday total is the highest ever for the U.S. pork industry, and last Saturday‘s slaughter even exceeded that of 1998 in both absolute number (366,000 to 308,000) and capacity utilization rate (84% to 77%). Those large Saturday runs were quite persistent in 1998 and early 1999 but the winner to-date on persistent high winter supplies was 2007-2008 when high numbers of pigs came to market as the result of the widespread availability of porcine circovirus vaccines the previous summer. Saturday slaughter exceeded 200,000 head in 18 of 21 weeks between Labor Day 2007 and the end of January 2008. Five weeks saw more than 300,000 head on Saturday, including weeks that now rank 2nd and 3rd on the all-time list. That may or may not be the case for cattle, of course, since the vast majority of them are fed in open lots. Cold temperatures impact feed intake and conversion rates but it is usually snowfall and wind that cause the biggest problems for feedlot operators. We have seen little unusually severe weather yet but rare is the winter that does not deal a few weather episodes to major feedyard areas. Saturday slaughter operations are the “shock absorber” for U.S. livestock slaughter firms. Plants cannot shift easily (or at all) from single to double-shift operations to handle extra animal numbers. Plants usually do no have enough slack in either coolers or freezers to handle the extra product and additional labor is not available on a short-run basis. Daily operations can be extended to 9 or 10 hours per shift but the best way to handle high supplies is to operate on Saturdays. Nowhere is that more apparent than in the hog slaughter sector at Thanksgiving. The combination of a weekday holiday and seasonally high hog supplies almost always results in the largest Saturday slaughter run of the year. And the fact that the Saturday total is almost always well short of a normal weekday total sets up the week after Thanksgiving (usually the first week in December) as the typical highest weekly hog kill of the year. Saturday slaughter is important in the cattle industry as well — but at a MUCH different time of year. The reason, of course, is the sharply different seasonal pattern for cattle slaughter owing to far more seasonality in calving and in the placement of cattle in feedlots. The cattle slaughter peak almost always occurs the week following the U.S. Memorial Day holiday with less pronounced peaks after Independence and Labor Day holidays. 8

By Steve Meyer and Len Steiner

Vol. 8, No. 231 / November 30, 2010

Market Comments USDA released on Friday its monthly production statistics for the US livestock industry. The poultry data was released last Wednesday. The supply numbers will inform the revisions to the annual estimates for 2010 and they also feed into the broader statistics for US beef, pork and poultry consumption. Below are some of the highlights from the latest release: 

Total US commercial cattle slaughter in October was reported to be 2.866 million head, about 20,200 head or 0.7% smaller than a year ago. However, keep in mind that there were only 21 slaughter days in October 2010 compared to 22 slaughter days a year ago. When adjusting for this (i.e. considering head slaughtered per slaughter day) cattle slaughter was up 4% compared to a year ago. Steer slaughter in October was 1.343 million head, 17,400 head or 1.3% smaller than last October. Heifer slaughter was 854,000 head, 15,300 head or 1.8% smaller than a year ago. Again, the one less slaughter day had an impact and when adjusted for it, both steer and heifer slaughter were up compared to last October. The monthly statistics also confirmed that US cow slaughter rates continue to trend well above year ago levels, a point we have made repeatedly in recent updates. Total US cow slaughter in October was 558,000 head, 11,500 head or 2.1% higher than a year ago. Beef cow slaughter for the month was 326,000 head, 6,200 head or 1.94% higher than a year ago. Dairy cow slaughter was 231,000 head, 4,200 head or 1.85% higher than last year. When adjusted for the one less slaughter data, US cow slaughter for the month was up about 11% compared to year ago levels. Total US commercial beef production in October was reported to be 2.237 billion pounds, 37.9 million pounds or 1.7% smaller than in October 2009. For the 9

period Jan - Oct 2010, total US beef production is now reported to be 21.808 billion pounds, 6.7 million pounds or 0.03% smaller than a year ago. 

Hog slaughter in October was sharply lower compared to a year ago, in part because of one less slaughter day available. Total hog slaughter in October was reported to be 9.733 million head, 585,700 head or 5.7% less than a year ago. When adjusting for the one less slaughter day, October hog slaughter was down 1.2% compared to a year ago. Sow slaughter was reported to be 258,000 head, 31,900 head or 11% lower than a year ago. In October, sow slaughter comprised 2.75% of overall slaughter, compared to 2.93% a year ago. Total production for the month, however, was 2.003 billion pounds, 86.1 million pounds or 4.12% smaller than a year ago. It is somewhat of an odd statistics considering the sharp rise in hog weights. The monthly data was skewed by the fact of one less production day in 2010. When adjusting for that factor, pork production was up 0.4%.

By Steve Meyer and Len Steiner

Vol. 8, No. 232 / December 1, 2010

Market Comments Live cattle futures rose sharply in yesterday’s session and cattle prices for next spring are now approaching the $110/cwt. level, providing feedlots with good hedging opportunities. The surge in live cattle futures and a corn market that is well off its highs, has supported strong gains in feeder cattle values. The CME Cash Settled Feeder Cattle Index was quoted on September 29 (last reported data) at $116.39, almost 25% higher than a year ago while the nearby feeder cattle contract on Tuesday briefly broke above the $120 mark, a new all time record. Futures prices do not make a market, supply and demand does that, but they are the best gauge of current conditions as assessed by people willing to risk actual money in the process. If the current indicated live cattle prices do materialize, they would represent new all-time record levels, eclipsing the cattle prices achieved in the fall of 2003, just before the market collapsed following the finding of a BSE infected cow in Washington State. Part of the reason for the bullishness in the live cattle complex is due to high beef prices paid in the wholesale market. On Tuesday, the choice beef cutout closed at 10

$162.6/cwt., $21/cwt. or 15% higher than year ago levels. The select cutout closed at $151.8 /cwt., $18.4/cwt. or 13.2% higher than a year ago. It is not unusual for beef prices to gain ground into the holidays as demand for high quality cuts, such as ribs and loins, tends to improve. Foodservice establishments benefit from all the year end holiday parties while retailers diversify some of their offerings, including more rib roasts and steaks in preparation for the Christmas and New Year celebrations. Even in 2008, a year that saw a lot of economic uncertainty, cutout values spiked in mid-November in response to the seasonal demand. As the top chart shows, cutout values in 2010 have followed mostly 2009 trends...albeit at a much higher price point. The pie chart shows the contribution of each primal to the overall increase in the choice cutout value (the picture for the select cutout is fairly similar). For instance, of the $21 increase in the overall choice cutout, higher rib primal values contributed about $5/cwt. or 23%. As you can see, higher rib and loin primal values account for almost half of the overall increase in the value of the cutout. The question for wholesale prices going forward is how the consumer actually responds to them once all the holiday cheer is over. In order for packers to pay $110 for cattle next spring, we will need strong prices not just for chucks and rounds but also some of the more expensive cuts. And that will be a difficult proposition given much more competitive prices for pork and especially chicken as well as still very high rates of unemployment.

By Steve Meyer and Len Steiner

Vol. 8, No. 233 / December 2, 2010

Market Comments Our report yesterday focused on the impact that higher prices for beef at the wholesale level are having on live cattle prices. But that is only part of the story since muscle cuts and grinding products make up only a portion of the live animal sold in the open market. By-product values, also known as drop values, account for a good portion of the value that packers derive from slaughtering livestock. Hides, offal, bones and all other such products are sold in the domestic and export markets. The latter is particularly important since particular items (hearts, livers, etc.) trade at a premium in world markets. Hide values also are important. The near death experience of the US auto industry in 2008 caused a sharp decline in demand for leather, which in turn directly impacted the value of cattle going to slaughter. Now that the auto industry has recovered, hide prices also have bounced back and so far in 2010, average hide prices are up some 80% compared to 2009 levels. The charts below show the ten year history in byproduct values for steers and hogs as well as the ratio of byproduct values to the value of the live animal.. In the case of hogs, we calculated an implied live hog price value based on the lean hog carcass IA/MN price and a 74% yield. Live steer byproduct values are currently reported at $12.0/cwt., $2.4/cwt or 25% higher than the comparable week a year ago. Live steer prices (USDA reported 5-day moving average) currently are trading some $17.6/cwt or 21.3% higher than a year ago. But while by-product values for steer are currently trading near all-time record highs, keep in mind that overall steer values are near record highs as well. Indeed, steer by-product values now account for about 12% of the live steer prices, about the same as they were 10 years ago. Hog by-product values also have trended higher although they remain below the all time records established in the summer of 2008. For the week ending November 26, the pork by-product value was quoted at $4.58/cwt, 6 cents or 1.3% lower than the comparable week a year ago. While byproduct values in steer have contributed about 1/6th of the overall gain in live steer prices, drop values in hogs have offered 11

little help to the overall hog price. This helps explain to a certain extend why hog values have not appreciated as much even though prices for specific pork cuts remain well above year ago levels. The lack of gains in pork drop values will remain a concern for the pork complex going forward. Exports are clearly an issue as shipments of pork variety meats in period Jan – Sep were slightly lower than a year ago. Beef variety meat exports in the same time frame were up 15% from 2009 levels.

12

By Steve Meyer and Len Steiner

Vol. 8, No. 234 / December 3, 2010

Market Comments The latest results of the Restaurant Performance Index offered an encouraging statement about the state of the US foodservice industry. The overall index in October was pegged at 100.7, the highest level since September 2007 and most components of the index showed gains compared to the previous month and they are currently well above last year‘s levels. We have noted this index in the past but as a refresher for those readers that have not come across it, the index summarizes the results of a broad survey of restaurant operators from various segments of the industry. The survey covers both current conditions and expectations about the next six months. The current conditions portion tries to assess same store sales compared to the previous year, foot traffic, labor and capital spending. The expectations component looks at the outlook for sales going forward, labor situation, expected capital spending and outlook for business conditions. Both these components are weighted equally in the composite index. We do not have access to the exact methodology for putting the index together but suspect it is some variation of a diffusion index, with values above a certain point (100 in this case) point to growth while values below that point indicating contraction. One of the more encouraging points in the latest release was the same store sales component. As the top chart to the right shows, restaurant operators indicate that same store sales have posted two months of solid growth and this component of the overall index currently stands at 101.8, 1.2 points higher than the previous month and at the highest point since June 2007. It 13

remains to be seen if current same store sale growth rates are sustained but it appears that the foodservice industry is currently well off the lows established in late 2008 and 2009. The bottom chart shows how respondents from various foodservice concepts assess current conditions vs. a year ago. Based on this survey, the quick casual segment is the best performing, with 62% of the respondents indicating higher sales compared to a year ago while only 30% of the respondents pointed to same store sale declines. The quick casual or fast casual restaurant concepts is a bit of a confusing segment and various groups that research the industry have their own definitions as to what‘s considered part of this segment. Basically, the quick casual (or fast-casual) concept is a combination of limited service (otherwise known as ‗fast food‘) and casual dining. Customers order from a counter but the atmosphere is more upscale and there are more customization options than a regular fast food. Panera bread is a good example of this concept. Also encouraging in this latest release was the pickup in business in the family dining segment, with 56% of respondents indicating lower sales than a year ago. Overall, the survey was positive news for meat protein demand in 2011. It is particularly important to view this pick up in demand in the context of expected tight protein supplies and growing global demand for US protein.

MeatingPlace News: HHS sets new 10-year goals for food safety By Tom Johnston on 12/3/2010

The U.S. Department of Health and Human Services unveiled Healthy People 2020, the nation‘s new 10-year goals and objectives for health promotion and disease prevention, the American Meat Institute reported. One area of focus is food safety, including updated goals to reduce infections by key foodborne pathogens. The 2020 targets aim for a specific percent reduction for the pathogen based on the average cases of illnesses from 2006 to 2008 reported to FoodNet. The targets for 2020 and comparisons to the 2010 targets and the most current FoodNet data from 2009 as illnesses per 100,000 population are as follows:

Campylobacter E. coli O157:H7 Listeria monocytogenes Salmonella

2009 - Actual

2010 Target

2020 Target

13.02 0.9 0.34 15.19

12.3 1.0 0.24 6.8

8.5 0.6 0.2 11.4

For the first time, HHS added health objectives to reduce the number of outbreak-associated infections specific to food commodity groups, specifically related to E. coli O157, Campylobacter, Listeria or Salmonella. The targets represent a 10 percent reduction of outbreak cases reported to the National Outbreak Reporting System, Centers of Disease Control and Prevention and state-level public health agencies from the baseline years of 2005 to 2007.

14

The 2020 targets and the baseline numbers as cases per year are as follows:

Beef Dairy Leafy Vegetables Poultry Fruit and Nuts

Baseline Data 200 786 205 258 311

2020 Targets 180 707 185 232 280

Other food safety goals in Healthy People 2020 include:    

improving food safety practices in foodservice and retail establishments increasing the proportion of consumers who follow key food safety practices preventing an increase in the proportion of nontyphoidal Salmonella and Campylobacter jejuni isolates from humans that are resistant to antimicrobial drugs and reducing severe allergic reactions to food among adults with a food allergy diagnosis.

For more information on Healthy People 2020, click here. USDA raises beef, pork export forecast, drops poultry By Rita Jane Gabbett on 12/1/2010 USDA raised its export forecasts for beef and pork in the fiscal year ending Sept. 30, 2011, but lowered its poultry export forecast in its Outlook for U.S. Agriculture Trade report. USDA raised its forecast for livestock, poultry, and dairy exports by $1.2 billion to $23 billion, with gains in all but poultry in its quarterly report compared to its previous forecast issued in August. Beef exports were forecast at $3.7 billion, up $500 million on higher unit values and volumes. Despite lower beef production, strong Asian demand is expected to foster more shipments, USDA reported. Pork exports were forecast to reach $4.6 billion, up $100 million, on higher unit values as demand remains firm in major markets. Modest gains are expected in hides and skins, raised $300 million, as improving global economic conditions bolster demand. Escalating unit values for feed and lower cattle slaughter should support higher animal fat values, forecast $300 million higher. Poultry product exports were forecast down $300 million from the August forecast to $4.7 billion, primarily on lower broiler meat unit values as domestic production expands. Imports USDA lowered its forecast of beef and veal imports to $3.1 billion from $3.3 billion forecast in August. That is still a more than $200 million rise in U.S. beef imports in 2011 over 2010, in part due to tight supplies of domestic processing beef. The forecast for cattle imports for 2011 at 2.1 million head, was 2 percent lower than in 2010 due to decreased cattle inventories in Canada and Mexico. Overall, livestock and meat imports are projected to increase by $550 million in 2011. 15

JBS adopts video auditing at U.S. beef plants (UPDATE) By Tom Johnston on 12/2/2010 JBS USA‘s beef division said today it is installing remote video-surveillance camera systems at all of its eight beef plants to enhance food safety, product quality and animal handling. John Ruby, head of technical services for JBS USA‘s beef division, said in a news release the system helped the company improve the accuracy of its auditing within weeks of implementation. JBS uses the system to measure the performance of its workers and give them immediate feedback, ultimately helping to improve its food safety systems. JBS says it will install the technology at all its beef plants in 2011, which makes it the first major meatpacker to implement the program system-wide. Among other meatpackers to have adopted the technology is Cargill, which announced the move in March of 2009. Ag groups urge estate tax reform on Capitol Hill By J'nai Gaither on 12/1/2010 Thirty-one agricultural groups including the National Cattlemen‘s Beef Association (NCBA), American Farm Bureau, and National Pork Producers Council (NPPC), sent a letter to President Obama urging estate tax reform, and held a press conference on Capitol Hill on Tuesday as President Obama met with Republican leaders on the same topic. The Economic Growth and Tax Relief Reconciliation Act of 2001 raised exemption amounts to a maximum of $3.5 million with a maximum tax rate of 45 percent. These rates are set to expire on January 1, 2011, when estate tax would revert to its prior exemption levels of a 55 percent rate on property above $1 million. Many families would like to keep their farms in their families and transfer the assets to their progeny, but these organizations said that it‘s nearly impossible to do if current higher estate tax exemptions are allowed to expire. ―With a $1 million exemption and a 55 percent tax, we would need to sell most of our assets just to keep part of the operation in the family. This is a death sentence to family farms, ranches and small businesses,‖ said Scott Bennett, a junior at Virginia Tech University representing the National Cattlemen‘s Beef Association. ―If the estate tax isn‘t fixed, my son could be facing a huge tax bill when he inherits my property and other assets…Congress needs to significantly reduce the estate tax burden or eliminate it so that family farms like mine can remain in the family,‖ said NPPC President, Sam Carney. Executive Director of the Public Lands Council Dustin van Liew said that, ―[farmers and ranchers] will be dealt a blow they wouldn‘t be able to survive,‖ and that taxing farmers would wreak havoc on local economies Senate approves Food Safety Modernization Act By Dani Friedland on 11/30/2010 The U.S. Senate today approved the Food Safety Modernization Act by a vote of 73 to 25. The legislation gives the Food and Drug Administration more authority, including the power to compel the mandatory recall of a contaminated food product and suspend a facility‘s registration

16

if a reasonable probability exists that the food it produces could cause serious health consequences or death. It also increases the number of FDA inspections at food facilities and enhances surveillance systems for food-borne illness outbreaks. The bill also calls for the creation of a pilot project to test methods for quickly tracking and tracing food during food-borne illness outbreaks. The bill also increases funding for the FDA, requires importers to verify the safety of imported food and calls for a national strategy to protect the food supply from terrorism. Producers who sell directly to consumers and have less than $500,000 in annual sales will be exempted from some of the new regulations. These producers would still be subject to local and state food safety regulation, and the FDA would be able to withdraw the exemption if the farm or facility was associated with an outbreak of food-borne illness. ―For too long, we‘ve allowed trips to the grocery store to be a gamble for American families,‖ Sen. Tom Harkin (D-Iowa), chairman of the Committee on Health, Education, Labor and Pensions and one of the bill‘s sponsors, said in a statement. ―The bipartisan bill passed by the Senate today will give our citizens some long-overdue peace of mind in the supermarket aisles, establishing tough new protections against contaminated food.‖ Sen. Amy Klobuchar (D-Minn.) said in debate earlier this month that the last substantial change to FDA food law was made in 1938. Sen. Richard Durbin (D-Ill.) introduced the legislation on March 3, 2009. The House of Representatives passed similar legislation in July 2009. (See ―House passes food safety bill‖ on Meatingplace, July 31, 2009.) Now the Senate and House must reconcile their versions of the food safety reforms by the end of the session. Some Democrats in the House would consider passing the Senate version to speed up the process, according to The New York Times. The meat industry has been watching this legislation with great interest. Even though most of its regulation comes from USDA, some meat industry lobbyists believe the passage of these sweeping changes to FDA regulation could spawn calls for similar reforms at USDA. Secretary of Agriculture Tom Vilsack praised the Senate action, saying, ―As a co-chair of President Obama‘s Food Safety Working Group, I commend the Senate on today‘s passage of the food safety bill. There is no more fundamental function of government than protecting consumers from harm, which is why food safety is one of USDA‘s top priorities. The bill addresses longstanding challenges in the food safety and defense system by promoting a prevention-oriented approach and providing the Federal Government with appropriate tools to prevent foodborne illness.‖ It's a small world after all: Cutting to the Chase By: Raoul Baxter November 25, 2010 Phew. The comment period deadline for the GIPSA rule has come and gone, and despite the hard-to-comprehend changes that the agency is proposing, the world is still turning. As it turns, we are seeing many changes, particularly overseas. That means newer and stronger competitors, all while governments around the world continue to create non-tariff trade barriers and create arbitrary access rules. To put it plainly, I‘m very concerned about America's ability to successfully compete in this rapidly changing world for meat and poultry. While we seem to be trying to find ways to 17

dramatically add costs and straight jackets to our meat industry, very good competitors are licking their chops at the added opportunities. Enter Brazil. The U.S. has just granted a geographical exemption to the southern state of Santa Catarina in southern Brazil. Brazil was on a banned list for fresh meat because of a number of outbreaks of FMD. Either the whole country was clean or the whole country was de-listed. Now we have the real world of geographical exemption. The idea is sound, which is that within many countries there are natural physical barriers to disease, like mountain chains or deserts. I spent a lot of time all over Brazil about 6-7 years ago. At the time we had a joint venture with a Brazilian company to raise hogs. The farms were very modern and the swine genetics were American. Regardless of what happened with grain or pork markets, the Brazilian farms were always $5-6/cwt lower in cost than the best farms in the U.S. Brazil is an amazing agricultural power. It has half of the world's water supply, crops can grow almost all year and trees, for example, grow three times faster than anywhere on Earth. In the last 20 years, coming out of years of military rule, Brazil got very serious and very good at growing things. It is now a super power in corn and soybean production. It has about the second largest cattle herd in the world. It is also focused on the opportunities of the world. Now, from a distance competitors tend to look like either supermen or morons. They are seldom either. Brazil has some major issues, but they are facing them. The population of Brazil is about 180 million. Historically it was composed of the very rich and the very poor. For many years it was estimated that 100 million Brazilians were not able to buy a branded product. Ninety percent of the population lived within 200 miles of the Atlantic Coast. Brazilian infrastructure was sorely lacking. Perhaps the greatest stimulus to Brazil's economic growth was the establishment of effective and solid government systems -- a known legal system, a known justice system and, yes, even a known tax system. Without these no country can be stable, let alone grow economically. The tragic history of South America has been one of violent and frequent revolutions. Without these solid government systems there is no way it could have adapted to the election of Luiz Lula, a former radical. However, Lula was savvy. He knew the only way money could flow to the masses was to encourage foreign investment and to be constantly aggressive in pursuing world trade: Exports. The EU puts up all types of barriers because it has the highest agriculture costs in the world. Europe is filled with very smart people. However, they have been around as organized countries for over 1,000 years and have built up laws that are just choking them. Their solution is to try and keep competition out. We get angry at that, but then we are no Snow Whites either. The world no longer wants our TVs or ice boxes. They do want and need our agriculture products. Our ever-astute government keeps adding costs and restrictions to our agribusiness. Now, whether you have three ducks, two cows and a pig, the export markets are vitally important to you. We have about 300 million people and the rest of the world has over 4 billion. In the last 20 years many of these have become not only competitors but also consumers. The EU and America have some of the highest agriculture subsidies in the world. Brazil does not. Brazil has natural advantages from climate and geography. They also have some truly remarkable business people who are not afraid of the world. Brazil's primary cattle states are in the central and northern part of Brazil -- FMD zones. Rightly so, we will not approve areas that inoculate for FMD because you will still get outbreaks. The U.S. has given the state of Santa Catarina geographic exemption. The EU will follow our lead. There is at least one other southern state that will get an exemption shortly. 18

America does not have the God-given right to be the dominant agricultural power in the world. It has to be earned every day. We have to focus on improvements in the economics of what we do. Tragically, watching our political situation the past few years, I think I would as soon take my chances with the Four Horsemen of the Apocalypse. 76 million food borne illnesses last year. Really?: Food (Safety) Fight By: Richard Raymond November 22, 2010 I have blogged on this before, but those politicians pushing for a change in food safety keep stating that ―Last year, 76 million Americans were sickened by a food borne illness and 5,000 died‖ and that ―our food safety system is a threat to the public‘s health‖. They seem to be following the premise that to create change, first you must create a sense of urgency, as explained in John Kotter‘s book, ―Leading Change‖. As long as they keep trying to create that sense of urgency with shaky numbers, I will keep blogging away with some facts: First Fact: Their numbers come from an article in the CDC‘s ‖Emerging Infectious Diseases‖ journal published in September, 1999 and used data from FoodNet gathered from 1996-1998. That‘s a fact. Second Fact: In the CDC‘s own ―Morbidity and Mortality Weekly Report‖ (MMWR) of April 2010, they report that when comparing food borne infection rates from the same reporting time period as noted in the first fact, (that is: 1996-1998), to 2009, infection rates for Yersinia were down 53 percent, Shigella had decreased by 55 percent, Campylobacter was down 30 percent, Listeria 26 percent, Salmonella down by 10 percent, and our nemesis, E coli O157:H7, was down 41 percent and food borne illnesses from the O157 STEC were below the goal set in Healthy People 2010. And these are facts. Third Fact: In the same MMWR report, the following statement is made: ―In 2009, a total of 17,468 laboratory confirmed cases of infection were identified.‖ Period. This, too, is a Fact. It is necessary to point out these were the total cases of lab confirmed food borne illnesses indentified in the FoodNet surveillance population located in ten states and totaling 45.5 million people, or 15 percent of the US population. But even if we take 17,468 and multiply it times 6.6 to account for the other 85 percent of us, we still would only have 115,088 ―laboratory confirmed illnesses‖ identified. And that is a long way from 76 million. BTW, the 76 million is NOT a fact. It is a mathematical theory. Lastly, I have blogged before about the fuzzy math that gets us from 100,000 laboratory confirmed victims to 76 million ill and how we get from 2,000 deaths from known pathogens to 5,000 deaths from food borne illnesses. But there two other quotes regarding the number of deaths that I want to leave you all to ponder, and they are the following statements made by CDC in the ―Emerging Infectious Diseases‖ article of 1999 that is so often misrepresented by those wanting change: ―Like illnesses and hospitalizations, deaths are also underreported.‖ (I do not portray this as a Fact). The authors go on to say ―first calculating the number of deaths among reported cases, then doubling this figure to account for unreported deaths..‖ Say what?

19

It has been awhile since I hung a stethoscope around my neck, but way back then we were still reporting every single death by filling out a death certificate that included the cause(s) of death. I am not implying we cannot nor should not change, but let‘s make the changes based on facts, not political double speak. Who is correct -- the Right or the Left?: Food (Safety) Fight By: Richard Raymond November 08, 2010 Having spent 6 ½ years working for a conservative republican governor, and then 3 ½ years for a conservative republican president, most would assume my view of the Right would be fairly clear. But right now it is very fuzzy when I look to the Right, while the view to the Left is very clear. Nah, I am not talking political views here. This is just what is left of my Fourth Cranial Nerve palsy that gave me double vision. It spontaneously cleared on Saturday, Oct. 16, and the prisms were removed. But I still have some double vision when looking to the far Right. Seriously, though, I did experience two dramatically different views from the Right and Left the last two weeks. I was traveling to two separate meetings with two industry giants in food safety and meat production. I went to listen, to learn, to ask questions, to offer suggestions and to get back into plants as a refresher. The industry views, without even naming who I was meeting with, are probably fairly well known when it comes to politics. To have something to read on the plane, now that I can read without headaches, I picked up a book at the local library here that sounded interesting: ―Meatpackers and Beef Barons: Company Town in a Global Economy” by Carol Andrea, published in 1994. The book is about Greeley, Colorado, and the small, family owned Monfort plant that subsequently grew exponentially and evolved into a division of ConAgra. The book ends before JBS Swift, the current owner, took over the reins. I had a pretty good idea of what I would be reading and what the content would be, but since the slaughter facility is just ten miles from my house, and because I have been in it twice, I thought it might be an interesting and historical read, a modern day ―The Jungle‖. I don‘t think anyone will be confusing Carol Andreas with Upton Sinclair. But it does cause one to think, and made my day in a slaughter facility last week one where I looked at things with a bit different perspective than when food safety was my number one emphasis. But only when I got to the very last paragraph of the book on the flight home did I realize just how far Left the author was. Here is a quote from her last paragraph: ―Capitalism‘s triumph is a catastrophic event….Workers and their allies are faced with a new challenge to unite in a larger-than-ever struggle for life and liberty.‖ A former boss once told me I could never win a big election because I always tried to find middle ground and satisfy everyone. Hard to do when dealing with polarizing issues like gun control, pro-life vs. pro-choice, taxes and, yes, even the meat industry.

20

Hopefully we will never quit trying, though. Workers rights are important, but so are innovation, technology and sustainability if we are to succeed in our efforts to feed the world a safe and affordable product. And we must succeed, or else children will continue to go to bed hungry and malnourished. None of us should want that on our conscience. So tell me how we get the Left and the Right to develop a clear vision we can all agree upon? Globalization -- it’s a big hassle: View from Across the Pond By: John Strak November 24, 2010 In 2001, I gave a presentation to a large group of Canadian pork producers in the beautiful city of Vancouver. It was entitled, ―Globalisation: c‘est toute une histoire!‖ That was my attempt to get the Quebec contingent on side. I was a guest of the Canadians who treated me very well and my presentation is on record. One key message I gave to the audience was that ―globalization was an experiment‖ and that rushing in was no guarantee of success. At the time this was a slightly controversial (and probably rather miserable) message as ―globalization‖ was THE fashion. It was the ―must have‖ economic policy that would liberate us all. Let me stress at this point that I was not then, and I am not now, suggesting that free trade was a bad thing. But I was saying that complete and rapid liberalization of capital movements and physical trade was, I use the word again, an ―experiment‖, the likes of which had not been seen in the world before. Now, flash forward to 2010. Canada‘s pork producers are not such a large group any more (but they are resilient), the world‘s financial system is almost in ruins, and a very large proportion of our manufactured products are made in China and the Far East. The last two of these aspects of the modern world are putting huge strains on the economic and political systems of Western society. The Canadian pork sector has suffered because its exchange rate against the US dollar has made one aspect of their trade (live pigs) uneconomic (and that weak U.S. dollar was probably an unintended consequence of globalization). We have all suffered as the transition from a sound financial system to one that looks like a basket case has happened in the space of a decade. Free movement of capital has, it seems, put the system under huge pressure. Ordinary guys and families (of which I count myself one) who deal with physical production and trade have been left to pick up the pieces as the bankers cannot now, apparently, distinguish between sound businesses dealing with real products and the get-rich-quick merchants who sell bits of paper with fancy titles to whomsoever will listen to them. This phenomenon is now coupled with an unparalleled movement of goods across the world (cheap manufactures from China) and it has left the industrial structures of the West with nowhere to go – just like the Canadian pig farmers. The results of the globalization experiment are now apparent and they don‘t look pretty. How should we react to this? Rush to the barricades; legislate for all bankers to wear sack cloth and ashes; or just vote in another government (with no more credentials for fixing the problem than the last one)? 21

I think that most people will recognize that none of these options provide a complete answer. I don‘t know the way forward but from my observations and soundings around the world I am coming to the view that the reaction of most people and the next ―experiment‖ will be a significant modification of globalization - and it will come from the grass roots: groups of citizens, civil society and business people. I will call it ―localization.‖ Localization does not mean a retreat to protectionist measures or a rejection of capitalism. It does mean, however, that businesses and communities are now less inclined to believe in bits of paper and ―virtual‖ projects. Communities and networks will grow based on tangible physical production and trade which is less dependent on bankers, media spin and the latest ―fashion‖. Global trade and production will still happen but its pace will be qualified by the extent and strength of the local network that is involved in that trade. In other words, we have now recognized that globalization can be a hassle and that we need to guard against the impression that it will deliver all we need without question. Another investigation gone astray (Part I): Legally Speaking By: Shawn Stevens November 18, 2010 We recently highlighted a large-scale foodborne illness outbreak in which an innocent company fell victim to a poorly managed investigation. The purpose was to demonstrate how critically important it is for food companies to engage investigators when they find themselves under health department scrutiny. A faulty investigation can lead to expansive recalls, deflated consumer confidence, lawsuits and bankruptcy. In this next series, we will outline the facts surrounding yet another investigation gone astray. A national chain restaurant, innocent of any wrong-doing, similarly fell victim recently to mistaken conclusions issued prematurely by various state and local health departments. In this particular outbreak, the state was investigating numerous illnesses scattered across multiple counties. Although widely dispersed, all of the cases were ―suspected‖ to be linked to a single restaurant outlet. And, as it turned out, although the restaurant was under new ownership, the previous owners had a poor track record with the local health department. In an attempt to rapidly ―solve‖ what was a growing state outbreak, state investigators quickly focused their scrutiny on the single restaurant at issue. What they did not realize, however, was that the emerging state outbreak was only a small subset of an emerging national outbreak. The CDC, along with other health departments throughout the country (some as far away as Alaska and Hawaii), were independently investigating a series of seemingly unconnected national cases which shared the same genetic PFGE strain. Once involved, we immediately requested investigative materials authored by state and local health departments, as well as those agencies involved nationally. It is critical to gather these materials because, although formal press releases and reports are drafted to appear technically sound, investigative communications and other materials can illuminate potential inconsistencies, inter-agency discord and possible investigator bias. The records in this case revealed that the restaurant had become the early focus of the investigation, mostly through happenstance, before any sound epidemiologic conclusions could be drawn. And, although the state eventually issued a final report which nevertheless suggested a connection, we eventually discovered disagreement between the state and other agencies as to whether the specific products served at the restaurant could have really been involved. 22

Next week we will detail the additional information we obtained, and how we used it, to disprove the mistaken conclusions which faulted a restaurant for illnesses it never caused. Corporate Social Responsibility: Safety Zone By: James Marsden November 15, 2010 Several people have suggested that I am overly pro-regulation and in favor of increasing the regulatory burden on meat processors. The fact is nothing could be farther from the truth. I believe the best way prevent regulations is for industry to address issues proactively. Recently, I have seen evidence that companies across the meat industry spectrum are doing just that. Here are some examples: Smithfield Foods has implemented an initiative on Corporate Social Responsibility. The program has elements to address animal welfare, food safety and quality, employee and community relations and sustainability. The company has established goals and measureable targets. Recently, Smithfield published a Corporate Social Responsibility Report for 2009/10 that highlights their progress in meeting their identified goals. Cargill was recently named as the recipient of McDonald‘s USA‘s 2010 U.S. Sustainability Award. McDonald‘s cited Cargill for:     

Managing and proactively improving animal handling practices in the company's red meat business using remote video auditing Managing administration of research that will be conducted with the Coalition for Sustainable Egg Supply. Promoting science-based animal welfare programs through the North American Food Animal Well-being Commission Sponsoring, with McDonald's, the World Wildlife Fund (WWF) Global Conference on Sustainable Beef. Establishing 2015 environmental goals for Cargill in energy efficiency, greenhouse gas intensity, renewable energy use, and freshwater efficiency.

The Beef Marketing Group (BMG) is a Kansas based cooperative that operates several beef feedlots. The company has implemented programs to address animal welfare, sustainability and food safety. Their food safety systems include HACCP at the feedlot with interventions designed to reduce the risk of pathogen contamination on cattle. BMG‘s programs are 100% voluntary. There is no USDA regulatory requirement for HACCP in beef feedyards or other pre-harvest sites. These and many other efforts on the part of US food companies and technology providers preempt the need for federal regulations and allow businesses to address important social issues in ways which are efficient and cost-effective. In addition, big companies don‘t have a monopoly on social responsible initiatives. Small businesses have also initiated innovative programs on animal welfare, worker safety, sustainability and food safety. Over the weeks ahead, I will profile what other companies, big and small are doing to get in front of these issues. 23

NCBA News: Return of Estate Tax Looms Ending the uncertainty over extending Bush-era tax cuts may rest on resolving a decade-long debate over death and taxes. The federal levy on estates is set to increase the most of all as tax cuts expire Jan. 1, jumping from zero to 55 percent for fortunes worth more than $1 million at death. President Barack Obama and Democrats in Congress barely mention it as they spar with Republicans over whether to keep income-tax reductions for top earners. A new tax on multimillion-dollar estates may emerge as the final hurdle to a deal that preserves most or all of former President George W. Bush's tax cuts, analysts said. Congress has unsuccessfully sought at least a half-dozen times to resolve the issue since 2000, including an abandoned effort last December to prevent the estate tax's expiration. With Obama planning to meet with bipartisan congressional leaders at the White House tomorrow, three main factions have formed in the Senate, none of which has the 60 votes needed to advance an estate-tax proposal. One includes Republicans such as South Carolina's Jim DeMint who favor permanent repeal. Another is led by Democrats including Majority Leader Harry Reid who support a top rate of 45 percent that would apply after a $3.5 million tax-free allowance. A third faction, led by Arizona Republican Jon Kyl and Arkansas Democrat Blanche Lincoln and embraced by Republican leader Mitch McConnell of Kentucky, backs setting the top rate at 35 percent after a $5 million exemption. Opponents criticize the estate tax as an unfair levy that destroys family businesses while proponents of the tax, who include billionaires Warren Buffett and Bill Gates, view it as essential to preserving meritocracy in U.S. society. That argument has gained steam this past year with the deaths of at least five U.S. billionaires, including New York Yankees owner George Steinbrenner. NCBA News: Korea, U.S. to Hold Talks Top trade officials of South Korea and the United States will hold additional talks on a bilateral free trade deal this week to hammer out differences in auto and other touchy issues, Seoul's trade ministry said Sunday. The two countries concluded the free trade agreement (FTA) in 2007, but parliamentary ratification has been put on hold in each country due to U.S. demands that Seoul open its auto and beef markets wider. South Korean Trade Minister Kim Jong-hoon is scheduled to meet with U.S. Trade Representative Ron Kirk in Columbia near Washington on Tuesday and Wednesday in a bid to find middle ground, the ministry said. Earlier this month, Seoul and Washington held week-long talks in attempts to reach a compromise on their free trade deal, but they failed to narrow differences on auto- and beefrelated trade issues.

24

South Korea imports beef only from cattle less than 30 months old due to fear of mad cow disease. The U.S. reported three cases of the disease between 2003 and 2006. In response, Seoul banned imports of U.S. beef in 2003 before resuming them in late 2008, which led to months of street rallies. U.S. beef exports to South Korea reached US$216 million last year, making South Korea the fourth-largest importer of U.S. beef products, according to industry statistics. From Yonhap News. NCBA News: UK Committee Reviews Cloned Meat A committee of the UK's Food Standards Agency (FSA) has offered its opinion that the meat and milk of conventional animals, clones or their progeny is unlikely to present any food safety risk. The committee was asked to consider whether the available evidence on clones and their offspring provides a sufficient basis for the evaluation of meat and milk from such animals under the Novel Foods Regulations. It was the view of the committee that any potential differences between conventional cattle and the progeny of a clone were unlikely to exist from the second generation onwards. In addition to determining that products made from cloned animals was theoretically safe, the committee also considered that the current evidence on the composition of meat and milk is limited, and further evidence is required on how the rearing of animals in different environments may affect the meat and milk. The committee thought that consumers may want to see effective labelling of products from clones and their offspring.

You Decide! Thanks, Webb Flowers ANR/Animal Science Agent Carroll County VA Extension 205 Oak St. Suite 102 Hillsville, VA 24343 276-730-3113 c 276-733-0597 mailto:[email protected]

Carroll County Agriculture and Natural Resources (CC ANR) web page

25