Debilitating Effects of Recently Weakened U.S. LivestockDisease Protections and USDA’s New Animal ID Scheme: A            ...
The United States Is the Largest Beef Producer andLargest Beef Consumer in the           World  Our Reputation of Producin...
The United States Has WeakerBSE Import Requirements for Beef than Most Major Beef     Importing Countries                 ...
2011 BSE Requirements Imposed by Major U.S.              Export Markets                       Source: USDA-FSIS Index of E...
Numerous Countries that Accept U.S.Beef Continue to Ban Canadian Beef                  U.S. EXPORT MARKETS CLOSED TO CANAD...
The United States Has WeakerDisease Import Standards forCattle than Many, If Not Most, Cattle Importing Countries         ...
BSE Age Restrictions    COUNTRIES WITH STRICTER THAN U.S. AGE REQUIREMENTS FOR IMPORTING                            CANADI...
In Return for Having Among the Weakest  of Disease Import Standards, the U.S.            Cattle Industry Is:• Subject to a...
In Return for Having Among the Weakest  of Disease Import Standards, the U.S.            Cattle Industry Is:• Suffering fr...
In Return for Having Among the Weakest  of Disease Import Standards, the U.S.            Cattle Industry Is:• Suffering Si...
Correlation Between U.S. Calf Prices and        Canadian Cattle Imports                                                   ...
Consumers Both Here and Abroad Know      that Canada Has a Higher BSE Risk•    The U.S. Centers for Disease Control and Pr...
Incubation Periods Have Not Lengthened inCanada as In Europe, Where BSE Spread Is       Thought to be Under Control       ...
Canada Has SignificantlyReduced Its Annual BSE Testing                                                                    ...
Canada Has Significantly Reduced    Its Monthly BSE Testing                                                               ...
In Return for Having Among the Weakest  of Disease Import Standards, the U.S.            Cattle Industry Is:• Suffering a ...
Long-Term Global Trade Deficit in Cattle, Beef,   Beef Variety Meat and Processed Beef        ($16 Billion Cumulative Cost...
Trade With Canada and Mexico Contributes  More than Half to the U.S. Trade Deficit      ($9.9 Billion Cumulative Cost)    ...
Increased Exports                               2009-2010                                                   2009        20...
Using Weaker U.S. Disease ImportStandards to Leverage the Reopening of     Export Markets Is Deplorable• USDA Has a Duty t...
USDA and the OIE Are Incapable of   Accurately Evaluating the Risk of FMD      Outbreaks in Foreign CountriesCountry/Regio...
USDA has Failed Its Mission to Prevent the       Introduction and Spread of TB• “Each year 1-2 [TB] infected animals per 1...
History Shows that Exports Do Not Drive Live Cattle Prices Paid to Farmers and                Ranchers                    ...
Long-Run Domestic Price Depression Coincides withIncreased Cattle Imports that Have Recently Introduced      TB and Classi...
The Solution Is To Address The Problem,     Not The Problem’s Symptoms• The problem’s symptoms include loss of consumer  c...
The Solution• USDA Must Restore for U.S.  Livestock, Livestock Producers, and the  People of the United States Its Previou...
Priority Action: In Descending            Order of Priority•   Immediately dedicate all available resources to prevent the...
Additional Actions• Require all cattle imported into the U.S. from Mexico to be tested for  bovine tuberculosis (TB), dire...
What’s at Stake? The Disconnect Between       Domestic Cattle Prices and Retail Beef                 Prices Will Worsen   ...
What’s At Stake? The Domestic CattleIndustry Will Continue to Shrink even as        Consumption Increases                 ...
What’s at Stake? The U.S. Cattle Cycle Will               Disappear                                                       ...
What’s at Stake? Domestic Beef ProducersWill Continue Losing their Share of the Total           Available Beef Supply     ...
What’s at Stake? Domestic BeefProduction Will Continue to Lag Behind    Domestic Beef Consumption                         ...
What’s at Stake? The Domestic Cattle  Industry Will Continue to Shrink and Hollow  Out Rural Communities all Across Americ...
The Present and Future Viability of the U.S. CattleIndustry Is Wholly Dependent on the Ability of U.S.   Cattle Producers ...
R-CALF USA     P.O. Box 30715   Billings, MT 59107      406-252-2516r-calfusa@r-calfusa.com   www.r-calfusa.com           ...
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110922, r calf usa presentation on animal health and id

  1. 1. Debilitating Effects of Recently Weakened U.S. LivestockDisease Protections and USDA’s New Animal ID Scheme: A Solution in Search of a Problem Presented to South Dakota Stockgrowers Association Members by Bill Bullard, CEO, R-CALF USA September 22, 2011 1
  2. 2. The United States Is the Largest Beef Producer andLargest Beef Consumer in the World Our Reputation of Producing the Healthiest Cattle and the Safest, Most Wholesome Beef Is Contingent on Maintaining the Highest Possible Health and Safety Standards, But . . . 2
  3. 3. The United States Has WeakerBSE Import Requirements for Beef than Most Major Beef Importing Countries 3
  4. 4. 2011 BSE Requirements Imposed by Major U.S. Export Markets Source: USDA-FSIS Index of Export Requirements for Meat and Poultry Products Country & Import Age Restriction Commodity Restrictions Rank Mexico Less than 30 months No ground meat. #1 Japan 20 months or younger No ground beef, processed beef, head meat, finely textured beef, or mechanically #3 separated meat. South Korea Less than 30 months Cattle must be born and raised in the United States, or imported from a country #4 deemed eligible by the Korean government to export beef or beef products to Korea, or raised in the United States for at least 100 days. Hong Kong Less than 30 months No ground beef, bone-in beef, edible offal, or beef derived from advanced meat #5 recovery systems. Taiwan Less than 30 months No ground beef or internal organs. Cattle must be born and raised in the United #6 States, raised in the United States for at least 100 days prior to slaughter, or legally imported into the United States from a country deemed eligible by Taiwan to export deboned beef to Taiwan. Beef or beef products of cattle from Canada fed less than 100 days prior to slaughter in the United States is limited to deboned beef derived from animals less than 30 months of age. Vietnam Under 30 months #7 Russia Under 30 months The beef and beef byproducts must be derived from cattle raised in the United #9 States. Ground red meat, packaged in bulk form or in the form of meat patties, is prohibited. United Arab Under 30 months Ritual: Islamic Halal Slaughter requirements apply. Emirates Singapore Under 30 months Only Fresh/frozen boneless beef derived from animals less than 30 months of age is eligible. Beef derived from cattle imported from Canada is not eligible. R-CALF USA 4
  5. 5. Numerous Countries that Accept U.S.Beef Continue to Ban Canadian Beef U.S. EXPORT MARKETS CLOSED TO CANADIAN BEEF 26 countries continue to ban Canadian beef due to BSE. The following 10 countries accept U.S. beef; but, according to information provided by the Canadian Food Inspection Agency, do not allow Canadian beef: Chile Dominican Republic Haiti Jamaica South Korea Kuwait Malaysia Peru Saint Lucia Ukraine Sources: USDA, FSIS, Index of Export Requirements for Meat and Poultry Products, undated, (accessed September 16, 2011). Canadian Food Inspection Agency, Summary of the Situation with Foreign Markets relative to BSE as of November 5, 2009 (latest available information), available at http://www.inspection.gc.ca/english/fssa/meavia/man/ch11/annexre.shtml, accessed September 16, 2011. 5
  6. 6. The United States Has WeakerDisease Import Standards forCattle than Many, If Not Most, Cattle Importing Countries 6
  7. 7. BSE Age Restrictions COUNTRIES WITH STRICTER THAN U.S. AGE REQUIREMENTS FOR IMPORTING CANADIAN CATTLECOUNTRY AGE RESTRICTIONS ON CANADIAN CATTLEAlgeria Cattle must be less than 36 months of ageBarbados Cattle must be born after Dec. 31, 2003Egypt Slaughter cattle must be less than 24 months of ageEuropean Union Cattle must be born after date of last indigenous BSE caseLebanon Cattle must be under 30 months of ageRepublic of Croatia Cattle must be born after date of last indigenous BSE caseSouth Korea Cattle must be born two years after effective enforcement of feed banSwitzerland Cattle must be born after date of last indigenous BSE caseTunisia Cattle must be born after July 1, 2001Source: Canadian Food Inspection Agency Export Program, Veterinary Health Certificates,Bovine, available athttp://www.inspection.gc.ca/english/anima/heasan/export/bovine/bovine.shtml 7
  8. 8. In Return for Having Among the Weakest of Disease Import Standards, the U.S. Cattle Industry Is:• Subject to a Scientifically Determined, Increased Risk of Introducing BSE into the U.S. Cattle Herd, which Presents a Hazard to both Livestock and Humans. – USDA’s risk modeling for its over-30-month rule (OTM Rule) predicts the U.S. would import between 19 and 105 BSE-infected cattle from Canada, which would subsequently produce BSE infections in 2 to 75 U.S.-born cattle over a 20-year period. (See 72 Fed. Reg., 1109, col. 2; 72 Fed. Reg., 53347, col. 1.) 8
  9. 9. In Return for Having Among the Weakest of Disease Import Standards, the U.S. Cattle Industry Is:• Suffering from the Continual Reintroduction of Other Dangerous Diseases Into the United States. – The USDA’s Office of Inspector General (OIG) reported in 2006 that 75 percent of bovine TB cases detected during the previous five years by U.S. slaughter surveillance originated in Mexico and were detected in 12 U.S. states. The OIG explained that because Mexican cattle spend many months on U.S. farms and ranches prior to slaughter, each bovine TB case is potentially spreading the disease in the United States. In addition, the OIG stated, “Until additional controls are added, APHIS cannot reasonably expect to achieve its goal and eradicate TB when it is being imported into the United States each year. (See OIG Report No. 50601-0009-Ch, September 2006, at iii,19, 20.) 9
  10. 10. In Return for Having Among the Weakest of Disease Import Standards, the U.S. Cattle Industry Is:• Suffering Significant Financial Losses Resulting from the Importation of Higher-Risk Canadian Cattle. – USDA estimates that the cost to U.S. cattle producers, for the privilege of being exposed to a heightened risk for BSE from Canadian cattle and beef, would be over $66 million per year (or approx. $1.3 million each week), for which no compensation can be obtained from anyone. (See 72 Fed. Reg. 53,356, col. 1.) 10
  11. 11. Correlation Between U.S. Calf Prices and Canadian Cattle Imports Relationship Between U.S. Calf Prices and Canadian Live Cattle Imports Slaughter Steers and Heifers Feeder Steers and Heifers Slaughter Cows and Bulls 5-6 cwt. Kansas Steer Price 1,800,000 $135.00 2011 avg through August: $149.53 1,600,000 $130.00 1,400,000 $125.00 Kansas Steer Price Per Hundredweight Number of Imported Canadian Cattle 1,200,000 $120.00 1,000,000 $115.00 800,000 $110.00 600,000 $105.00 400,000 $100.00 200,000 $95.00 0 $90.00 10 02 03 04 05 06 07 08 09 10 20 20 20 20 20 20 20 20 20 t ep -S 11 20 Data Source: USDA FAS, AMS and K-State Research and Extension R-CALF USA 11
  12. 12. Consumers Both Here and Abroad Know that Canada Has a Higher BSE Risk• The U.S. Centers for Disease Control and Prevention (CDC) states: As of March 2011, 19 BSE cases in Canadian-born cattle have been identified, 18 in Canada and 1 in the U.S. Of these 19 cases, 13 were known to have been born after the implementation of the 1997 Canadian feed ban ; 12 of these 13 were born after March 1, 1999. This latter date is particularly relevant to the U.S. because since a USDA rule went into effect on November 19, 2007, Canadian cattle born on or after March 1, 1999 have been legally imported into this country for any use. One of the 19 Canadian-born BSE cases was reported in an animal that was most likely born before or possibly very shortly after implementation of the 1997 feed ban. Based on the known or most likely year of birth, an average of 1.4 cases of BSE occurred among the group of animals born each year in Canada from 1991 through 2004. The highest reported number of cases by birth year in a single year, 3 BSE cases, occurred in 2000, 2001 and 2002. The most recently reported case extends the period of BSE transmission in Canada through at least the latter half of 2004. (citations omitted)http://www.cdc.gov/ncidod/dvrd/bse/, downloaded Sept. 21, 2011. To reduce any risk of acquiring vCJD from food, concerned travelers to Europe or other areas with indigenous cases of BSE may consider either avoiding beef and beef products altogether or selecting beef or beef products, such as solid pieces of muscle meat (rather than brains or beef products like burgers and sausages), that might have a reduced opportunity for contamination with tissues that may harbor the BSE agent.http://www.cdc.gov/ncidod/dvrd/vcjd/risk_travelers.htm, downloaded Sept. 21, 2011. 12
  13. 13. Incubation Periods Have Not Lengthened inCanada as In Europe, Where BSE Spread Is Thought to be Under Control Lifespans of Known BSE-Positive Canadian-Born BSE Cases 20 Case # 7 19 Case # 12 18 Case # 3 17 Case # 9 16 Case # 1 15 Case # 2 14 Case # 4 13 Number of BSE Cases Case # 5 12 Case # 6 11 Case # 10 10 Case # 13 9 Case # 16 8 Case # 11 7 Case #15 6 5 Case # 8 Case # 14 4 3 Case # 17 Case # 18 2 1 Case # 19 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 13
  14. 14. Canada Has SignificantlyReduced Its Annual BSE Testing Canadas Annual BSE Testing and Results 70,000 2 BSE Positives 3 BSE Positives 60,000 5 BSE Positives 4 BSE Positives 50,000 Total Cattle Tested Annually 1 BSE Positive 40,000 1 BSE Positive 30,000 1 BSE Positive 0 BSE Positives 20,000 10,000 2 BSE Positives (1 Imported to U.S.) 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 -Aug Annual Tests 3710 23550 57768 55420 58177 48808 34618 35655 25445 14
  15. 15. Canada Has Significantly Reduced Its Monthly BSE Testing Canadas Monthly BSE Testing 8,000 7,000 6,000 Number of Cattle Tested Each Month 5,000 4,000 3,000 2,000 1,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 6227 5587 5747 6713 5726 3908 2593 1966 2244 2500 2669 2928 2009 3507 3285 3592 3900 2991 2729 2294 2009 2170 2596 2719 2826 2010 3536 3195 4015 3806 3105 2905 2405 2105 2388 2371 2925 2899 3-Yr Ave (05-07) 5310 5325 6511 6773 5820 4531 2890 2660 3029 3337 5456 5479 15
  16. 16. In Return for Having Among the Weakest of Disease Import Standards, the U.S. Cattle Industry Is:• Suffering a Global Trade Deficit in the Trade of Cattle, Beef, Beef Variety Meats and Processed Beef. 16
  17. 17. Long-Term Global Trade Deficit in Cattle, Beef, Beef Variety Meat and Processed Beef ($16 Billion Cumulative Cost) U.S. Global Trade Balance Live Cattle, Beef, Beef Variety Meat, Processed Beef R-CALF USA, Sept. 21, 2011 HS-6 Digit 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 Value in 1000 Dollars 1,000,000 0 -1,000,000 -2,000,000 -3,000,000 -4,000,000 -5,000,000 2003 2004 2005 2006 2007 2008 2009 2010 Jan-Jul 2011 Exports 3,637,193 648,298 1,136,658 1,758,309 2,304,207 3,208,976 3,060,897 4,133,409 3,176,308 Imports 3,553,119 4,232,467 4,779,442 4,867,587 5,296,271 4,957,138 4,141,458 4,530,722 2,797,944 Trade Balance 84,074 -3,584,169 -3,642,784 -3,109,278 -2,992,064 -1,748,162 -1,080,561 -397,313 378,364 17
  18. 18. Trade With Canada and Mexico Contributes More than Half to the U.S. Trade Deficit ($9.9 Billion Cumulative Cost) U.S. Trade With Canada and Mexico Live Cattle, Beef, Beef Variety Meat, Processed Beef R-CALF USA, Sept. 21, 2011 HS-6 Digit 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 Value in 1000 Dollars 1,000,000 500,000 0 -500,000 -1,000,000 -1,500,000 -2,000,000 2003 2004 2005 2006 2007 2008 2009 2010 Jan-Jul 2011 Exports 1,057,030 517,943 870,385 1,315,186 1,461,557 1,686,586 1,533,304 1,558,281 1,149,845 Imports 1,788,316 1,796,693 2,394,262 2,611,919 2,907,845 2,843,198 2,294,563 2,823,453 1,568,873 Trade Balance -731,286 -1,278,750 -1,523,877 -1,296,733 -1,446,288 -1,156,612 -761,259 -1,265,172 -419,028 18
  19. 19. Increased Exports 2009-2010 2009 2010 Partner Product Value Value Amount of Increased Value World Total 020230 - Bovine Boneless Froz 719,079 1,146,145 $427,066 World Total 020130 - Bovine Boneless Fr/C 1,502,278 1,724,773 $222,495 World Total 020220 - Bovine Bone In Froz 157,313 369,268 $211,955 World Total 010210 - Bovine Live, Pure 40,048 114,993 $74,945 World Total 020629 - Bovine Offal Froz 142,639 209,149 $66,510 World Total 020621 - Bovine Tongues, Froz 45,155 75,448 $30,293 World Total 020622 - Bovine Livers, Froz 88,227 118,592 $30,365 World Total 160250 - Bovine Meat, Prep 113,052 135,324 $22,272 World Total 020610 - Bovine Offal Fr/Ch 45,931 59,463 $13,532 World Total 020110 - Bovine Carcass Fr/Ch 5,588 13,124 $7,536 World Total 021020 - Bovine Meat, Salted 5,281 7,875 $2,594 World Total 020210 - Bovine Carcass Froz 4,734 4,956 $222 World Total 010290 - Bovine Live 18,745 17,752 -$993 World Total 020120 - Bovine Bone In Fr/Ch 172,827 136,549 -$36,278Grand Total 3,060,897 4,133,409 $1,072,512 19
  20. 20. Using Weaker U.S. Disease ImportStandards to Leverage the Reopening of Export Markets Is Deplorable• USDA Has a Duty to Prevent the Introduction of Dangerous Diseases Into the U.S. (see 7 U.S.C. 8301 (1), 8303 (a)(1)) and Performance of that Duty Is Essential to Restoring the United States’ Lost Reputation of Maintaining the Healthiest Cattle Herd in the World, which Reputation Was the U.S. Cattle Industry’s Competitive Advantage 20
  21. 21. USDA and the OIE Are Incapable of Accurately Evaluating the Risk of FMD Outbreaks in Foreign CountriesCountry/Region Date Declared FMD Free Date of FMD OutbreaksRegion within Argentina July 2000 August 2000 March 2001Region within Uruguay October 2000 April 2001Region within Republic of April 2000 September 2000South Africa November 2000South Korea December 2009 January 2010Japan 2001 April 2010Region within Paraguay May 2011 September 2011 21
  22. 22. USDA has Failed Its Mission to Prevent the Introduction and Spread of TB• “Each year 1-2 [TB] infected animals per 100,000 animals imported from Mexico are identified through slaughter detection or epidemiologic investigations.” (APHIS’ March 2011 report on TB pathways).• In 2010, 1,221,111 Mexican Cattle were imported into the U.S. Based on APHIS’ own estimate, we likely introduced between 12 and 24 TB infected cattle in 2010 alone.• USDA wants U.S. cattle producers to manage these diseased cattle with its new mandatory animal identification scheme. 22
  23. 23. History Shows that Exports Do Not Drive Live Cattle Prices Paid to Farmers and Ranchers Relationship Between Export Volumes and Fed Cattle Prices 3.0 $100.00 Source: USDA-ERS Imported Canadian Cow Detected with BSE 2.5 $90.00 Effective Date of NAFTA Exports: Billions of Pounds 2.0 $80.00 Fed Cattle Prices (per cwt.) Canadian-U.S. Free Trade Agreement Thirteen Years of Depressed Prices 1.5 $70.00 1.0 $60.00 0.5 $50.00 0.0 $40.00 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 23 R-CALF USA
  24. 24. Long-Run Domestic Price Depression Coincides withIncreased Cattle Imports that Have Recently Introduced TB and Classical BSE into the United States RELATIONSHIP BETWEEN CATTLE IMPORTS AND FED CATTLE PRICES 3,000,000 $100.00 Record Live Cattle BSE Detected Imports from Mexico in Canada 2,500,000 $90.00 2,000,000 $80.00 Fed Cattle Prices (per cwt.) Number of Cattle Imports Canada-U.S. Free Trade Agreement Effective Date of NAFTA 1,500,000 $70.00 1,000,000 $60.00 500,000 $50.00 Source: 0 $40.00 USDA-ERS 2009 Estimated 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 R-CALF USA 24
  25. 25. The Solution Is To Address The Problem, Not The Problem’s Symptoms• The problem’s symptoms include loss of consumer confidence in the health and safety of U.S. cattle and beef products, reduced consumption of U.S. beef, severe restrictions on U.S. beef exports, and depressed prices for U.S. cattle farmers and ranchers.• The problem is that the U.S. maintains disease import standards that are too weak to prevent the introduction of dangerous diseases, and everyone knows it. 25
  26. 26. The Solution• USDA Must Restore for U.S. Livestock, Livestock Producers, and the People of the United States Its Previously Weakened Disease Import Restrictions and Endeavor to Achieve the Highest Possible Level of Protection Against the Introduction and Spread of Animal Diseases. 26
  27. 27. Priority Action: In Descending Order of Priority• Immediately dedicate all available resources to prevent the introduction and spread of foreign animal diseases in the United States.• Immediately Reverse the OTM Rule that Allows the Importation into the U.S. from Canada of Older Cattle, and Beef from Older Cattle, that Harbor the Highest Risk for BSE.After the OTM Rule is Reversed:• Require Canada, and any other country with BSE cases born after their respective feed bans, to test all slaughtered cattle over 30 months of age (OTM) for at least one-year prior to considering the resumption OTM beef.• Assist U.S. beef packers in the voluntary testing for BSE.• Cease all efforts to implement a mandatory animal identification system – which is designed to manage other countries’ animal disease problems after they enter the United States – and redirect all resources currently deployed for animal identification to strengthen our disease protections at our borders, including increased testing of imported livestock. 27
  28. 28. Additional Actions• Require all cattle imported into the U.S. from Mexico to be tested for bovine tuberculosis (TB), directed to designated feedlots, and held in those feedlots until they are ready for slaughter.• Require all cattle imported into the U.S. from any country with known TB or brucellosis reservoirs, in either livestock or wildlife, to be tested for TB and brucellosis prior to entering the United States.• Reverse the recently promulgated “regionalization” scheme that allows the importation of cattle or beef from countries with ongoing disease outbreaks by carving out a specific region or zone within those countries and designating products in that region eligible for export to the United States. 28
  29. 29. What’s at Stake? The Disconnect Between Domestic Cattle Prices and Retail Beef Prices Will Worsen Black: Cattle Prices Red: Retail Beef PricesSource: Dr. Robert Taylor, Auburn University R-CALF USA 29
  30. 30. What’s At Stake? The Domestic CattleIndustry Will Continue to Shrink even as Consumption Increases Number of Beef Cattle Operations vs Domestic Beef Consumption 1,000 28,500 28,000 Domestic Beef Consumption in Pounds (Thousands) No of Beef Cattle Operations (Thousands) 27,500 900 27,000 26,500 26,000 800 25,500 25,000 700 24,500 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 Source: USDA FAS, NASS Domestic Beef Consumption No. of Beef Cattle Operations R-CALF USASource: USDA FAS, NASS R-CALF USA 30
  31. 31. What’s at Stake? The U.S. Cattle Cycle Will Disappear Total U.S. Cattle Inventory and Beef Cow Inventory, January 1 135 135 130 Start 4-Year Liquidation 130 125 125 120 Start 8-Year Liquidation 120 115 Start 14-Year Liquidation 115 110 110 105 105 100 100 Cattle Numbers (Millions) 95 95 90 90 85 85 80 80 75 75 70 70 65 65 60 60 55 55 50 50 45 45 40 40 35 35 30 30 25 25 19 0 19 1 19 2 19 3 19 4 19 5 19 6 19 7 19 8 19 9 19 0 19 1 19 2 19 3 19 4 19 5 19 6 19 7 19 8 19 9 19 0 19 1 19 2 19 3 19 4 19 5 19 6 19 7 19 8 20 9 20 0 20 1 20 2 20 3 20 4 20 5 20 6 20 7 20 8 20 9 10 7 7 7 7 7 7 7 7 7 7 8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 19 Source: USDA-NASS Total Beef Cow Inventory Total Cattle Inventory R-CALF USAUSDA NASS, Agricultural Statistics Board 31
  32. 32. What’s at Stake? Domestic Beef ProducersWill Continue Losing their Share of the Total Available Beef Supply 10 % of All Available Beef was Imported Origins of the United States Beef Supply in 1985 13 % of All Available 14 % of All Available Beef was Imported Total Available Beef in Beef was Imported 31 in 1996 U.S. Market in 2010 30 29 28 27 26 25 Imported Beef 24 23 22 Beef from Imported Cattle 21 20 Billions Pounds 19 18 17 16 Beef produced exclusively 15 14 from cattle born and raised 13 in the United States 12 11 Total Domestic Production 10 9 8 7 6 5 4 3 2 1 0 85 86 87 88 19 89 19 19 90 91 19 19 92 93 19 19 94 95 19 19 96 97 19 19 98 19 99 19 00 19 01 19 02 Data Source: USDA-ERS 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 R-CALF USA 20 20 Source: USDA ERS R-CALF USA 32
  33. 33. What’s at Stake? Domestic BeefProduction Will Continue to Lag Behind Domestic Beef Consumption Domestic Consumption in Excess of Domestic Production 1962-2010 30 29 Consumption Increases 28 27 after 1993 26 Total Domestic Beef 25 Widest spread in history of Consumption 24 industry, 2004-2007 23 22 21 Billions Pounds 20 19 18 17 16 15 14 13 12 11 10 9 Imported Beef and Beef 8 7 from Imported Cattle 6 5 4 Beef Produced Exclusively 3 2 from Cattle Born and Raised 1 in the United States 0 Imported beef and beef from imported cattle 19 2 6 64 19 19 6 6 68 19 19 0 7 72 19 19 4 7 76 19 78 80 19 82 19 84 19 86 19 88 19 90 19 Source: USDA FAS, ERS 92 19 94 19 96 19 98 19 00 19 02 R-CALF USA 20 04 20 06 20 08 20 10 20 20 Source: USDA ERS, FAS R-CALF USA 33
  34. 34. What’s at Stake? The Domestic Cattle Industry Will Continue to Shrink and Hollow Out Rural Communities all Across America Loss of U.S. Livestock Operations 1980-2010 1,300,000 1,200,000 1,100,000 1,000,000 Number of U.S. livestock Operations 900,000 42% Loss 800,000 700,000 600,000 500,000 400,000 300,000 91% Loss 200,000 81% Loss 32% Loss 100,000 0 Beef Cattle Swine Diary Sheep 1980 1,272,950 667,000 335,270 120,000 2010 742,000 60,460 62,500 81,000 >100 Hd 72,000 12,060 16,000 5,022 75,000 Type of Livestock Operations Source: USDA-NASS R-CALF USA 34Source: USDA-NASS R-CALF USA
  35. 35. The Present and Future Viability of the U.S. CattleIndustry Is Wholly Dependent on the Ability of U.S. Cattle Producers to Maintain a Healthy Cattle Herd. This is Fundamental. And, this Is Fundamentally Impossible if USDA Persists in Its Support of Inadequate Disease Protections that Encourage the Introduction of Cattle Diseases from Foreign Sources. We Respectfully Urge USDA to Immediately Change its Present Course and Begin Aggressively to Protect our Borders from the Introduction and Spread of Avoidable Animal Diseases 35
  36. 36. R-CALF USA P.O. Box 30715 Billings, MT 59107 406-252-2516r-calfusa@r-calfusa.com www.r-calfusa.com 36

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