Friday, March 24, 2006 - Daily Update
 

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TODAY'S ARTICLES
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1.  Creekstone Suit Against USDA Seeks BSE Test Kits
2.  US, EU Sign Trade Pact; Ag Tariffs Affected
3.  WA Dairy at Root of E. coli Outbreak Fined $8,000
4.  Cattle Supplies, Disposition: Heifers Soar
5.  Livestock Slaughter: Veal Drops on Month
6.  National Dairy Market at a Glance
7.  Dairy Products Prices Highlights
8.  Weekly National Grain Market Review
9.  National Carlot Meat Trade Review
10.  Hormonal Stimulation and Oocytes, Follicles
 

TODAY'S ARTICLES

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1. Creekstone Suit Against USDA Seeks BSE Test Kits   back to top


A small meatpacker is challenging a giant government agency with hopes of slaying its policy of not allowing individual companies to test for mad cow disease.

Creekstone Farms Premium Beef LLC, with a packing plant in Kansas, wants the right to test all of its cattle for mad cow disease in hopes of regaining the Japanese market. It has filed suit in U.S. district court in Washington, D.C., to try to force USDA to give the company access to test kits for mad cow.

Source: Reuters/ Charles Abbott, March 23, 2006
Source URL: http://today.reuters.com/news/newsArticle.aspx?type=domesticNews&storyID=2006-03-23T191733Z_01_N23301432_RTRUKOC_0_US-MADCOW-USA.xml&archived=False

 
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2. US, EU Sign Trade Pact; Ag Tariffs Affected   back to top


The United States and the European Union (EU) signed a bilateral trade agreement March 22 in Geneva on a comprehensive package of EU trade concessions to compensate the United States for tariff increases that resulted from the EU’s May 2004 enlargement.

The agreement was reached in November 2005 but required approval by the EU member states.  It was signed in Geneva by U.S. Ambassador to the World Trade Organization (WTO) Peter Allgeier and European Commission Ambassador to the WTO Carlo Trojan.

The agreement reduces several EU agricultural and industrial tariffs to offset increases that occurred when the 10 countries that acceded to the EU in 2004 were required to change their tariff schedules to conform to the EU's common external tariff schedule. Under the General Agreement on Tariffs and Trade (GATT), the United States is entitled to compensation from the EU to offset some of those changes.

Source: USInfo/ News Release, March 22, 2006
Source URL: http://usinfo.state.gov/xarchives/display.html?p=washfile-
english&y=2006&m=March&x=20060322162821xlrennef5.045718e-02&t=livefeeds/wf-latest.html

 
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3. WA Dairy at Root of E. coli Outbreak Fined $8,000   back to top


After completing an investigation of Dee Creek Farm of Woodland, the Washington State Department of Agriculture (WSDA) plans to assess a civil penalty of $8,000 against the unlicensed dairy operation.

Dee Creek Farm’s unpasteurized or “raw” milk was the source of an E. coli O157:H7 outbreak that sickened at least 18 people in the Vancouver, Washington-Portland, Oregon area in December. Three children were admitted to local intensive care units as a result of the life-threatening infection.

Source: Washington State Department of Agriculture/ News Release, March 23, 2006
Source URL: http://agr.wa.gov/News/2006/06-09.htm

 
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MARKETS

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4. Cattle Supplies, Disposition: Heifers Soar   back to top


For the past 100 years, a well defined cyclical rise and decline has emerged in U.S. cattle production. This cycle typically followed a 10 year course of 6 years of accumulation and 4 years of decrease. However the recent cattle cycle has not followed this trend but rather taken much longer to complete the cycle. This special report examines some of the issues that affected the current cattle cycle. In addition, the report also considers the role and production method of cattle being fed for the slaughter market; a brief description of survey procedures and sampling methods; and terminology and definitions used in NASS cattle publications.

The dairy herd buy-out program may have helped to slow the expansion of the milk cow herds to less than 1 percent annually. However milk replacement heifers are the highest since 1987 reflecting the growing tendency among dairy producers to replace their milk cows at a higher rate than in the past.

Source: USDA/ NASS, March 24, 2006
Source URL: http://www.usda.gov/nass/PUBS/TODAYRPT/specat06.pdf

 
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5. Livestock Slaughter: Veal Drops on Month   back to top


Commercial red meat production for the United States totaled 3.48 billion pounds in February, up 2 percent from the 3.42 billion pounds produced in February 2005.

Veal production totaled 11.7 million pounds, 3 percent below February a year ago. Calf slaughter totaled 53,000 head, down 14 percent from February 2005. The average live weight was 35 pounds above last year, at 362 pounds.

Source: USDA/ NASS, March 24, 2006
Source URL: http://www.usda.gov/nass/PUBS/TODAYRPT/lstk0306.txt

 
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6. National Dairy Market at a Glance   back to top


FLUID MILK:  Milk production continues to increase in most parts of the country. Milk supplies are often burdensome and manufacturing plant capacities are being tested. Fluid milk demand is mainly flat with limited promotions. School and college needs are expected to fluctuate in the coming weeks as spring breaks begin at various times. The fluid cream market is mixed. Some cream handlers see improvement in demand and want to push multiples higher, while others still see excessive supplies and buyers resisting any increases to multiples. Demand is fair for higher class cream-based items. Cream cheese and ice cream production are trending higher, but are still below most people's expectations.

Source: USDA, March 24, 2006

 
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7. Dairy Products Prices Highlights   back to top


Cheddar Cheese prices received for US 40 pound Blocks averaged $1.14 per pound for the week ending March 18. The price per pound decreased 0.9 cents from the previous week. The price for US 500 pound Barrels adjusted to 38 percent moisture averaged $1.13 per pound, down 0.7 cents from the previous week.

Butter prices received for 25 kilogram and 68 pound boxes meeting USDA Grade AA standards averaged $1.15 per pound for the week ending March 18. The U.S. price per pound decreased 1.9 cents from the previous week.

Source: USDA/ NASS, March 24, 2006
Source URL: http://www.usda.gov/nass/PUBS/TODAYRPT/dppr1206.txt

 
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8. Weekly National Grain Market Review   back to top


For the week, grain and soybean bids were mix. Wheat was pressured by moisture in the hard red winter wheat region which improved soil conditions. Rain continues to be in the forecast for the southern plains next week adding additional pressure late in the week. Heavy rain amounts were reported, along with some areas reporting measurable snow. Weekly export sales came in at 482,600 tonnes as compared to trade estimates 300,000-500,000 tonnes.

Source: USDA/ AMS, March 24, 2006
Source URL: http://www.ams.usda.gov/mnreports/SJ_GR851.txt

 
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9. National Carlot Meat Trade Review   back to top


Early in the week, movement of live cows and boneless processing beef products was hampered in the Midwest and Central Plains states due to heavy amounts of snow fall. Therefore, harvest numbers were cut drastically causing offerings to be very limited. Demand for grinding materials was good as grinders were trying to replenish their inventory, after a very good demand over the weekend. Consumers stocked up, due to anticipation of the snow storm. This allowed boneless processing beef prices to regain previous week’s losses and finished the week sharply higher. Import boneless beef prices for spot delivery were lower. However, majority of the trading was for out-front delivery at weak to lower prices. Reporting was limited early in the week, but heavy movement of supplies was noted. Cow cuts prices were all over the board this week with some items moving at higher prices while others traded at lower prices. The biggest news was the advance in ribeye rolls as demand was good due to upcoming fast food promotions.
  
Lean boneless beef 92-94% 7.00 to 14.00 higher; 90% 10.00 to 13.00 higher; 85% 7.00 to 11.00 higher; 81% not established; 75% 1.00 to 5.00 higher; 73% not established; 65% unevenly steady. 100% lean items firm to higher in light trading.

The Cutter cow carcass gross cut out value for Thursday, March 23 2006 was estimated at 111.40 per cwt, up 6.45 from last Friday.

Source: USDA/ AMS, March 24, 2006
Source URL: http://www.ams.usda.gov/mnreports/NW_LS850.txt

 
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PRODUCTION

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10. Hormonal Stimulation and Oocytes, Follicles   back to top


This retrospective study examined data collected over a 5-year period involving oocyte collections in a commercial embryo transfer unit to determine the stimulation protocol that was most effective in producing competent cumulus oocyte complexes, and to determine a definition of a low responder.

Embryo transfer practitioners must distinguish between low responders and low potential animals as modifications to the stimulation protocol for the latter group is unlikely to result in a higher number of transferable embryos.

Source: Effect of hormonal stimulation on bovine follicular response and oocyte developmental competence in a commercial operation. Theriogenology 65 (1): 102-115, 2006. Durocher, J.; Morin, N.; Blondin, P.

 
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