TheBeefSite Newsletter - 23 March 2011

Welcome to this week's newsletter

Producers Benefit From Record High Retail Prices

For the second month in a row, US retail beef prices were record high in February, and the futures market is forecasting that prices will remain this way.

Last week, the choice boxed beef carcase cutout value was $187.01/cwt, up $6.18 for the week. The select cutout was up $6.17/cwt from the previous Friday to $185.87/cwt.

So far, these increases in prices have been captured by producers, as opposed to retailers. Feedyards are benefiting directly from the high prices, and in turn passing them to their suppliers as higher feeder cattle bids.

The FAO has forecast that world wheat production for 2011 will increase by 3.4 per cent, to 676 million tonnes.

The growth is due to increased or an expected increase in plantings, in response to strong prices, while yield recoveries are forecast in areas that were affected by drought in 2010.

Pig producers from Canada, the US and Mexico have called on governments to prioritise the use of grains for human and animal consumptions.

Last month's USDA report raised concerns that the US was very close to not having enough grain to feed the US's population of people or animals. A shortage of feed for animals would result in much higher costs for meat.

Charlotte Johnston

TheBeefSite Book Focus

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This Week's Feature Articles

We have 3 new features this week:

Bovine EID Update
At the end of February, the European Commission announced that it was working on a proposal to introduce electronic identification in bovine animals. TheCattleSite Editor Charlotte Johnston speaks with Sergio Pavon, the European Commission official in charge of animal identification and traceability to find out more.

To Improve Animals, You Must Improve Performance
Most beef producers still prefer to make selection decisions based on what an animal looks like, rather than a calculation of its genetic merit. However, this tradition may be undermining future profitability, writes Wayne Upton, Beef CRC extension specialist.

Livestock, Dairy, and Poultry Outlook - March 2011
US beef exports for 2011 are forecast at 2.43 billion pounds, whilst dairy exports are expected to remain strong, outweighing the increasing feed costs, according to the latest Livestock, Dairy, and Poultry Outlook from the USDA's Economic Research Service.

Company News

Merck & Sanofi-Aventis To Maintain Separate Businesses
US & FRANCE - Merck and sanofi-aventis announced today the mutual termination of their agreement to form a new animal health joint venture by combining Merial, the animal health business of sanofi-aventis, with Intervet/Schering-Plough, Merck's animal health unit. As a result, each party will keep its current, separate animal health assets and businesses.

Global Beef Cattle Industry News