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3/17/2006 5:51:00 PM
R-CALF: More Than 100 New Members Join During Iowa Meetings
South Central Iowa – R-CALF USA CEO Bill Bullard recently toured south central Iowa and spoke to more than 360 producers about factors affecting the U.S. cattle market and what action they should take to ensure a profitable and viable live cattle industry long into the future. More than 100 participants took the opportunity to become members of R-CALF USA.
Bullard pointed out that producer profits ought to be going through the roof because of 2005's decreased slaughter numbers and the overall increase in beef demand.
"In addition, our industry is experiencing the largest spread between domestic production and domestic consumption in 40 years, yet, prices are falling because packers cast a cloud over the industry by closing plants in January and by following these plant closings with an absence from the cash market for a two-week period," Bullard explained. "Packers are again using their captive-supply cattle to stay out of the market for extended periods, particularly in the Kansas and Texas markets.
"Canadian cattle are adding to those captive supplies by entering the U.S. at a rate of 100,000 head per month and these cattle have been selling for well under U.S. prices, at $76 cwt to $78 cwt for Select Grades 1 and 2," he noted. "Once again, access to cheaper imported cattle and unlimited access to captive-supply cattle have given packers control over the price of your cattle, and they're using this control to drive your prices down.
"As long as cattle producers stand by and say nothing, packers will continue to manipulate the market and push USDA and Congress to expedite free trade agreements with as many cattle-producing nations as they can," Bullard continued. "Packers will push to lower current health and safety standards in the U.S. so that countries with lower standards may export their beef and cattle to us, and packers will procure as many cattle as they can through captive-supply arrangements in order to stay out of the cash markets as much as possible."
Bullard said independent U.S. cattle producers immediately must take steps to rebuild and compete for their share of the domestic market, and that R-CALF USA's four-step plan could help them survive in this highly competitive beef industry.
"First, we must implement Mandatory Country-of-Origin Labeling (M-COOL), so you will have the tools to compete in the global market," Bullard pointed out. "Secondly, we must limit the packers' use of captive-supply cattle, thereby removing the tools they are using to interfere with your competitive market.
"Third, we must ensure that special rules and safeguards are included in trade agreements that recognize the perishable and cyclical nature of your industry, and finally, we must work to maintain the highest health and safety standards in the world to protect your industry from the introduction of foreign animal diseases and to ensure the highest quality and safest product for your customers," concluded Bullard.
A team of five R-CALF USA Iowa members worked to make the meetings in Lamoni, Creston and Russell a huge success: Monte Akers, of Kellerton; Terry Barnes, of Lamoni; Charles Beck, of Kellerton, Iowa; Tom Osborn, of Grand River; and, Jim Werner, of Diagonal. Creston Livestock Auction, Iowa State Savings Bank, and First National Bank sponsored the meal served at Creston. Russell Sale Co. hosted the Russell meeting and also sponsored the meal.
"Everything Bill said makes sense, such as COOL and the reasons we need it," Akers said. "American packing companies are going to South America and building plants so that once trade opens with those countries, they will be able to ship cheap beef back here, duty-free.
"The control that USDA will have with the Animal ID database is a large concern to producers here," continued Akers. "The paperwork that will come along with the program will put a lot of small producers out of business. Worry about vertical integration of the cattle industry is also a huge issue in this part of the country."
Werner said he was really pleased with the outcomes of the meetings, and acknowledged the support from area media and event sponsors.
"We have a lot of work ahead of us, but this is a good foundation," Werner said. "In this area, awareness of R-CALF was low, and these meetings have given us a good start."
"Complacency is a huge issue, so we try to get people to listen to the R-CALF message and begin to think about cattle-producer issues," said Beck. "Sure, we want members and money, but we want people to get involved in their industry more, to become proactive in order to remain in the business we have chosen."
"Bill Bullard does a wonderful job of explaining the history of the industry up to the present-day," said Barnes. "I think that everyone that was involved in organizing these meetings came away with a lot of energy and excitement about growing the organization.
"Niche marketing opportunities may disappear if Animal ID is implemented, since everyone's product would bear the same information," Barnes continued. "I have always been in favor of COOL because it gives us a level playing field to compete in the global market and a chance to distinguish my product."
"It doesn't cost a thing to come to the meetings, so the least producers can do is come and listen with an open mind to what is going on in the industry," noted Osborn. "We tell producers that R-CALF is an organization that represents the producer only."
R-CALF: More Than 100 New Members Join During Iowa Meetings
South Central Iowa – R-CALF USA CEO Bill Bullard recently toured south central Iowa and spoke to more than 360 producers about factors affecting the U.S. cattle market and what action they should take to ensure a profitable and viable live cattle industry long into the future. More than 100 participants took the opportunity to become members of R-CALF USA.
Bullard pointed out that producer profits ought to be going through the roof because of 2005's decreased slaughter numbers and the overall increase in beef demand.
"In addition, our industry is experiencing the largest spread between domestic production and domestic consumption in 40 years, yet, prices are falling because packers cast a cloud over the industry by closing plants in January and by following these plant closings with an absence from the cash market for a two-week period," Bullard explained. "Packers are again using their captive-supply cattle to stay out of the market for extended periods, particularly in the Kansas and Texas markets.
"Canadian cattle are adding to those captive supplies by entering the U.S. at a rate of 100,000 head per month and these cattle have been selling for well under U.S. prices, at $76 cwt to $78 cwt for Select Grades 1 and 2," he noted. "Once again, access to cheaper imported cattle and unlimited access to captive-supply cattle have given packers control over the price of your cattle, and they're using this control to drive your prices down.
"As long as cattle producers stand by and say nothing, packers will continue to manipulate the market and push USDA and Congress to expedite free trade agreements with as many cattle-producing nations as they can," Bullard continued. "Packers will push to lower current health and safety standards in the U.S. so that countries with lower standards may export their beef and cattle to us, and packers will procure as many cattle as they can through captive-supply arrangements in order to stay out of the cash markets as much as possible."
Bullard said independent U.S. cattle producers immediately must take steps to rebuild and compete for their share of the domestic market, and that R-CALF USA's four-step plan could help them survive in this highly competitive beef industry.
"First, we must implement Mandatory Country-of-Origin Labeling (M-COOL), so you will have the tools to compete in the global market," Bullard pointed out. "Secondly, we must limit the packers' use of captive-supply cattle, thereby removing the tools they are using to interfere with your competitive market.
"Third, we must ensure that special rules and safeguards are included in trade agreements that recognize the perishable and cyclical nature of your industry, and finally, we must work to maintain the highest health and safety standards in the world to protect your industry from the introduction of foreign animal diseases and to ensure the highest quality and safest product for your customers," concluded Bullard.
A team of five R-CALF USA Iowa members worked to make the meetings in Lamoni, Creston and Russell a huge success: Monte Akers, of Kellerton; Terry Barnes, of Lamoni; Charles Beck, of Kellerton, Iowa; Tom Osborn, of Grand River; and, Jim Werner, of Diagonal. Creston Livestock Auction, Iowa State Savings Bank, and First National Bank sponsored the meal served at Creston. Russell Sale Co. hosted the Russell meeting and also sponsored the meal.
"Everything Bill said makes sense, such as COOL and the reasons we need it," Akers said. "American packing companies are going to South America and building plants so that once trade opens with those countries, they will be able to ship cheap beef back here, duty-free.
"The control that USDA will have with the Animal ID database is a large concern to producers here," continued Akers. "The paperwork that will come along with the program will put a lot of small producers out of business. Worry about vertical integration of the cattle industry is also a huge issue in this part of the country."
Werner said he was really pleased with the outcomes of the meetings, and acknowledged the support from area media and event sponsors.
"We have a lot of work ahead of us, but this is a good foundation," Werner said. "In this area, awareness of R-CALF was low, and these meetings have given us a good start."
"Complacency is a huge issue, so we try to get people to listen to the R-CALF message and begin to think about cattle-producer issues," said Beck. "Sure, we want members and money, but we want people to get involved in their industry more, to become proactive in order to remain in the business we have chosen."
"Bill Bullard does a wonderful job of explaining the history of the industry up to the present-day," said Barnes. "I think that everyone that was involved in organizing these meetings came away with a lot of energy and excitement about growing the organization.
"Niche marketing opportunities may disappear if Animal ID is implemented, since everyone's product would bear the same information," Barnes continued. "I have always been in favor of COOL because it gives us a level playing field to compete in the global market and a chance to distinguish my product."
"It doesn't cost a thing to come to the meetings, so the least producers can do is come and listen with an open mind to what is going on in the industry," noted Osborn. "We tell producers that R-CALF is an organization that represents the producer only."
