“Animal ID is going to mean real dollars in the cattlemen's pockets,” said Jim Sartwelle, American Farm Bureau Federation livestock economist of Washington, D.C., during the recent Montana Farm Bureau Federation annual convention conducted on Nov. 12-15 in Bozeman, Mont. “The cow that stole Christmas on Dec. 23, 2003, stole money from you too. The nation's lack of animal ID is hindering its ability to get back into those markets we lost that year.”
The American Farm Bureau Federation supports a national animal identification system so long as it meets the federation's guidelines of keeping the information confidential, keeping the process simple and limiting access to the producers' information. “There is potential we will reap big awards from animal ID in all sectors of the industry,” said Sartwelle.
Texas rancher and American Farm Bureau president Bob Stallman also addressed animal identification during the Montana convention. “There remains much uncertainty as to the direction the United States will take in regard to animal identification. Technically speaking, our policy is still in support of mandatory animal ID, but our delegates will have the opportunity to revisit the issue in January at our national convention if they choose to do so,” he said. “We support animal ID to help protect our agricultural industry against profit-destroying disease outbreaks and unfortunately, today, against potential terrorist attacks. AFBF supports an animal ID program that will add value to U.S. products domestically and abroad. However, American Farm Bureau will not compromise one bit when it comes to creating a system that fully addresses cost, preserves your confidentiality and protects you from liability. We want to ensure that any system be operated by a non-profit agricultural organization.”
American cattlemen aren't only competing with other cattle-trading countries, but also other American commodities to make a profit. “I've learned that the cattle market starts with corn and ends with what is happening on the trade front,” said Sartwelle. “Biofuels are booming right now and a lot of the corn is serving those plants that are currently in production, which is going to have an effect on the West. The cattle markets are looking like they did in 1996 when the corn stocks were tight; cattle producers will have to adjust their management for that.”
The beef cycle is heading into its expansion phase, which will also have an affect on the nation's cattle industry. Sartwelle estimated the cattle population will grow another 100,000 head outside the current population. The population growth combined with higher slaughter weights will lead to decreased prices, he noted.
Nevertheless, Sartwelle said he isn't concerned about the price of corn putting an end to cattle feeding of yet. “If corn stays above $4 a bushel, then we'll have to look for alternative feed sources or it could be the end of calf feeding,” he said. “I'm not saying the sky is falling - there will still be trading of feeder cattle and calves, but looks to be trading less than the industry did in 1996.”
Sartwelle is optimistic about the future of global beef trade and the happenings since Dec. 23, 2003. “I feel fortunate that we were at the low and tightest point of the cattle cycle and domestic demand bounced back,” he explained. “We lost several key export markets in Japan, South Korea and Mexico, but the trade recovery has started close to home with Mexico. Mexico is taking more than a billion dollars of U.S. beef a year, and Russia may become another large U.S. beef consumer, since they import more than 50 percent of their beef. I'm not happy with what is happening to beef trade in Asia - we need to get on the offensive and encourage them to take ‘bone-in' cuts instead of worrying about potential bone chips in the beef.”
Stallman also addressed the outlook on the future of agriculture, noting issues such as immigration reform, targeted disaster assistance and a new farm bill have a better possibility of getting a boost with the change in power in Washington, D.C.
“Farm Bureau members have remained committed to continued maintenance of the structure and funding of the 2002 Farm Bill as a high priority, and we have been successful in that endeavor for the most part,” he said. “It is absolutely critical that a World Trade Organization agreement be finalized before changing farm policy. This approach gives our U.S. trade representatives the strongest negotiating leverage. If we reduce our domestic supports in an upcoming farm bill debate, we have less leverage to use to convince other countries to reduce their tariffs and export subsidies.”
Stallman and Sartwelle also stressed vigilance in keeping consumers aware that American cattle are well cared for and the food produced is safe, as the threat from anti-meat, anti-animal agriculture groups continue. “These groups have been around for so long spouting their rhetoric it's easy to tune them out ... and therein, lies the danger. Right now there is a need for continued focus and emphasis on animal agriculture. The animal ag industry is facing new pressures that show no signs of letting up,” Stallman cautioned.
“Animal agriculturalists have got to stress that meat is produced by humane, veterinarian-approved means,” Sartwelle added. “These anti-animal agriculture groups are a realistic threat.”
The American agriculture industry is never going to win its battles if it stays on defense, said Sartwelle. “The animal rights groups take great joys in small victories,” he noted. “The agriculture industry was almost perfectly united on opposing the horse slaughter ban and got thumped. If we continue to stay on the defensive, we will never win. We've got to press the case - take the lead in defining what is humane. If we allow someone else to define that word, we've already lost the ball game; the playing field is changing every day.”
