AgDay Daily Recap - December 7, 2010

December 7, 2010 04:27 AM
 

TODAY ON AGDAY:
DECEMBER 7, 2010

DAIRY OUTLOOK:
THE DAIRY INDUSTRY IS SLOWLY RECOVERING FROM LOW PRICES AND RECORD LOSSES ENCOUNTERED IN 2009 AND EARLY 2010, ACCORDING TO PURDUE UNIVERSITY AGRICULTURAL ECONOMIST NICOLE OLYNK BUT SHE SAYS IT WILL TAKE HIGHER PRICES OVER AN EXTENDED PERIOD OF TIME FOR DAIRY PRODUCERS TO BEGIN TO REPLACE EQUITY THAT WAS LOST IN 2009. OLYNK SAYS TYPICAL DAIRY FARMS LOST BETWEEN 350 AND 1,000 DOLLARS A COW IN EQUITY. PARTS OF THE LOSSES WERE DRIVEN BY HIGH COSTS, ESPECIALLY FEED. INPUTS EXCEEDED RETURNS FROM MILK SALES AND LOWER VALUE OF COWS AND HEIFERS AS DAIRY REPLACEMENTS. SHE SAYS DAIRY FARMS THAT WERE BETTER ABLE TO CONTROL THEIR OWN FORAGE PRODUCTION WERE BEST POSITIONED TO SURVIVE SUCH ECONOMIC LOSSES. VOLATILE FEED PRICES CONTINUE TO LEAVE DAIRIES CONCERNED ABOUT CHANGING COSTS OF PRODUCTION.  DURING THE 2010 MARKETING RALLY HELD LAST WEEK NEAR CHICAGO, AGRIBUSINESS DIRECTOR AL PELL DISCUSSED THE CHALLENGE OF TURNING A PROFIT IN THE DAIRY SECTOR.

MIKE NORTH DAIRY:
SOMETHING ELSE THAT MAY INPACT THE OUTLOOK FOR U.S. DAIRY PRODUCERS IS THE U-S-KOREA FREE TRADE AGREEMENT. AS WE FIRST REPORTED YESTERDAY, THE WHITE HOUSE ANNOUNCED THE AGREEMENT HAD BEEN FINALIZED. IT STILL MUST BE APPROVED BY CONGRESS. THE U.S. DAIRY EXPORT COUNCIL AND THE NATIONAL MILK PRODUCERS FEDERATION SAY THE FTA WILL DELIVER, ON AVERAGE, AN ADDITIONAL 380 MILLION DOLLARS A YEAR IN BENEFITS TO U.S. DAIRY PRODUCERS.

FTA KOREA:
THE LONG AWAITED DEAL WAS AT IMPASS DUE TO DISAGREEMENTS OVER AUTOS AND BEEF. IF APPROVED BY CONGRESS THE FTA PHASES OUT KOREA'S 40% TARIFF ON BEEF IMPORTS. SOUTH KOREA--CURRENTLY THE FOURTH LARGEST BUYER OF U.S. BEEF--WILL STILL REQUIRE AMERICAN IMPORTS COME FROM CATTLE UNDER 30 MONTHS OF AGE.  PORK ALSO STANDS TO BENEFIT FROM A NEGOTIATED ZERO TARRIF SET TO BEGIN IN 2014. EXPERTS PREDICT, ONCE FULLY IMPLEMENTED BEEF AND PORK EXPORTS TO SOUTH KOREA COULD INCREASE BY TWO BILLION DOLLARS PLUS ADD 27,000 AMERICAN JOBS.

STATE BY STATE:
CHECKING HEADLINES STATE BY STATE. IN SOUTH GEORGIA, BIOLOGISTS ARE WARNING BLUEBERRY GROWERS ABOUT TWO NEW DISEASES. RING BLOTCH AND LEAF SCORCH ARE INFECTING SOUTHERN HIGH BUSH VARIETITES. IN 2009, THAT VARIETY ACCOUNTED FOR 30% OF SALES WORTH MORE THAN 100-MILLION DOLLARS. BIOLOGISTS SAY THERE'S NO WAY TO PREVENT DAMAGE. GROWERS ONLY SOLUTION IS TO PLANT DIFFERENT VARIETIES. IN TEXAS, THE USDA AND MEXICO ARE STEPPING UP BORDER INSPECTIONS OF CITRUS. THE HOPE IS TO KEEP THE CITRUS GREENING DISEASE AWAY FROM U.S. GROVES. THE DISEASE REDUCES PRODUCTION, RUINS THE VALUE OF THE FRUIT AND EVENTUALLY KILLS THE TREE. LIKE FLORIDA, PARTS OF MEXICO ARE STRUGGLING WITH CITRUS GREENING. TEXAS AND CALIFORNIA ARE CURRENTLY FREE OF THE PROBLEM. INSPECTORS HOPE TO KEEP IT THAT WAY. AND IN NEBRASKA, A FORMER CATTLE INSPECTOR IS HEADED FOR TRIAL.
THE 41 YEAR OLD PLEAD NOT GUILTY TO CHARGES OF MAKING FALSE STATEMENTS AND MAIL FRAUD. FORMERLY EMPLOYED BY THE STATE DEPARTMENT OF AG, HE'S ACCUSED OF SUBMITTING INSPECTION REPORTS ON 92 NEBRASKA CATTLE OPERATIONS, WITHOUT HAVING ACTUALLY PERFORMED THE INSPECTIONS. IF CONVICTED HE FACES UP TO 25 YEARS IN PRISON AND 500,000 DOLLARS IN FINES.

ANALYSIS:
BILL BIEDERMAN

IN THE COUNTRY; YOUNG PRODUCERS:
FOR COUNTRY KIDS, GROWING UP ON A FARM OR RANCH IS A GOOD START TOWARD A CAREER IN AGRICULTURE. TRICK IS, NOT ALL OPERATIONS OPERATE THE SAME WAY. WHICH IS WHY IN LOUISIANA ABOUT A DOZEN HIGH SCHOOL STUDENTS ARE SPENDING A YEAR GAINING PERSPECTIVE AS PART OF THE LOUISIANA YOUNG AG PRODUCERS PROGRAM. TOBIE BLANCHARD WITH THE LSU AGCENTER HAS THE STORY. THANKS TOBIE. A RETURN IN CONSUMER DEMAND FOR BEEF. NEXT ON FOOD AND YOUR FAMILY FIND OUT WHAT CONSUMERS ARE BUYING AND WHICH TRENDS ARE LEADING THE MARKET.

BEEF DEMAND:
FOOD INDUSTRY EXPERTS ARE CALLING IT THE END OF THEIR RECESSION AS MORE PEOPLE RETURN TO RESTAURANTS. IN TODAY'S FOOD AND YOUR FAMILY TRAFFIC IS UP AT AMERICA'S EATERIES AND THAT BODES WELL FOR BEEF PRODUCERS. ACCORDING TO FOOD MARKETERS, SOME OF THE HOTTEST TRENDS IN THE BUSINESS INCLUDE OLD-FASHIONED HAMBURGERS AND CHEAPER CUTS OF STEAK. A RETURN IN CONSUMER DEMAND FOR BEEF, COUPLED WITH A 20% INCREASE IN EXPORTS AND A SHRINKING COW HERD NATIONWIDE, HAS INDUSTRY EXPERTS ANTICIPATING FEEDER CATTLE PRICES WILL HIT RECORD HIGHS NEXT YEAR. SPRING CALF PRICES SHOULD ALSO BE UP.

CONTACT PAGE:
AND IF YOU HAVE QUESTIONS OR COMMENTS ABOUT TODAY'S SHOW OR FUTURE SHOWS? GIVE US A CALL, DROP US AN EMAIL OR POST YOUR THOUGHTS ON FACEBOOK, AT WWW.FACEBOOK.COM/AGDAY .
 

 

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