By Doug Rich
The Missouri Cattlemen's Association (MCA) held its 38th annual convention Dec. 8 to 11. A highlight of this year's convention was a presentation by Ian McKillop, president of the Ontario Cattlemen's Association and board member of the Canadian Cattlemen's Association (CCA) and John Masswohl, director of International relations for the CCA.
Canadian perspective
Like most cattlemen here in the U.S., Canadian cattlemen were looking forward to the opening of the Japanese market to beef products from Canada and the U.S. "We are encouraged in Canada that Japan is lifting restriction for Canada and the U.S. at the same time," said Ian McKillop. "This will send a strong message to other trading partners like Taiwan and China that this is an integrated North American market. We should be treated as if there is no border between Canada and the U.S."
Although Canada has a mandatory animal identification program in place, McKillop said age verification will be a challenge for the Canadian beef industry. "We do not have a large number of cattle that will qualify for the Japanese market at this time," he said. McKillop noted that Missouri has caught up to or surpassed Canada in it efforts to meet age verification requirements for the Japanese market. This is due in large part to the Quality System Assessment program that is in place in Missouri.
Canada will continue to be dependent on export markets for it beef products. McKillop said they will continue to export at least 50 to 60 percent of their beef. "To have viable export business, we need more market access worldwide," said McKillop. "We need to have tariffs reduced." This is particularly true of the European Union which has high tariffs and quotas for imported beef products.
On the subject of borders opening, John Masswohl noted that when the Canadian border opened there was not a huge backlog of cattle waiting to rush into the U.S. "We were not just backlogging cattle, we were processing them," Masswohl said. "Our industry has restructured." The restructuring has included a dramatic increase in their slaughter capacity.
Prior to the closure of the border Canada was slaughtering 72,000 head per week. Today that slaughter capacity has increased to 98,000 head per week. "We figure that self-sufficiency comes somewhere around 105,000 to 110,000 head per week," he said.
Value added
A panel discussion on value added opportunities for Missouri cattlemen touched on animal health, age verification, and all natural products. Mark Harmon with the Joplin Regional Stockyards said they had 7,000 cattle sell in their first Quality System Assessment (QSA) sale. All of these cattle qualify for sale to Japan. QSA is an umbrella system that includes several programs that provide source and age verification. Consumers are willing to pay a premium for all natural beef products.
"We are in the natural food business," said Ken Disselhorst, regional manager of cattle procurement for Meyer Natural Angus Beef. "The places that buy this product are high end stores in major cities." Disselhorst said they want cattle that are antibiotic and hormone free but this does not mean they want cattle that have not been vaccinated. "We want healthy, weaned cattle. We want our cattle to be vaccinated."
Cattlemen wanting to add value to their calves through an all natural program need to know that there are many different definitions of "all natural". Not all of the all natural programs are the same.
Co-products
Ki Fanning, Great Plains Livestock Consulting, Inc., presented his perspective on maximizing the economical and nutritional advantages of feeding co-products. Soybean hulls, gluten feed, Wheat meddlings, dried distillers grains, and wet distillers grains are fed as co-products.
The inclusion of co-products in cattle diets can reduce acidosis, lower the mortality and reduce fines and sorting of the ration. "The biggest advantage is that bunk management will be easier," said Fanning. "Co-products provide a more energy dense diet with more protein."
The growing market for ethanol has increased the amount of dry and wet distillers grains available to producers. Fanning noted that dried distillers grains contain 127 percent the net energy value of corn when fed to slow and fast growing calves. In growing calves, wet distillers grain and dried distillers grain produce greater gains and better feed efficiency than a corn/urea ration.
"You need to monitor these products to make sure you are getting a consistent product," said Ki Fanning. "Be sure to compare price on moisture, protein and energy basis."
Eminent domain
In their legislative session, Missouri cattlemen received an update on the issue of eminent domain from Steve Hobbs, a state legislator from Audrain County. "This is one of the biggest issues we will deal with this year," Hobbs said.
On June 28, 2005, Governor Matt Blunt announced the formation of the Eminent Domain Task Force. The purpose of this task force was to review state and federal eminent domain law and establish criteria that state and local government entities can use when the use of eminent domain is being proposed. Rep. Hobbs said the task force has put together a list of 19 recommendations that will be included in legislation in 2006.
Among those recommendations for eminent domain are early notification, a land owners bill of right, mediation, just compensation, early determination of blight designation, and thirty days to consider an offer. Putting the recommendations together was the easy part. "The devil is getting it to the table," said Rep. Hobbs.
Interest in this issue is very high. Rep. Hobbs said the task force has been meeting every two weeks since Aug. 5, 2005. A one-day meeting resulted in 220 pages of transcribed testimony.
Annual meeting
During their annual business meeting, the Missouri Cattlemen's Association passed a resolution in support of the concept of increasing the national beef checkoff. The resolution did not stipulate any specific amount for the increase, it just stated they would consider an increase in the national beef checkoff.
"We need to study, over the next five to 10 years, the beef checkoff and beef demand to see where we have to be positioned to compete on the global market and continue to increase domestic demand," said Brent Bryant, MCA executive vice president.
David Moore , Bismarck, Mo., will serve as president of the Missouri Cattlemen's Association for the next year. His goals are to increase membership, create a relationship with auction markets around the state, and make sure membership wishes are carried out on the issue of eminent domain. Merrel Breyer will serve as first vice-president, David Geyer as second vice-president, and Paul Gibbs as secretary/treasurer.
Doug Rich can be reached by phone at 785-749-5304 or by e-mail at Richhpj@aol.com.
Date: 12/22/05