National Beef Association Newsletter

Transcription

1 National Beef Association Newsletter THE INFORMATION AND OPINION IN THIS NEWSLETTER IS DISTRIBUTED FOR THE USE OF NBA MEMBERS. THE NEWSLETTER IS PUBLISHED BY NATIONAL BEEF SERVICES LIMITED. The Mart Centre, Tyne Green, Hexham, Northumberland, NE46 3SG Tel: rd February 2017: Issue 5/48 Contents: NEWS AND NBA S WEEKLY REPORT 2 NBA welcomes a new generation of beef farmers 2 Snapshots from the BCBC 2017 by Rosie McGowan NBA DIARY 4 Next Week s Regional meetings 4 SBA NEWS 5 Beef Efficiency Scheme(BES) - Deadlines for recording calving information 5 NBA MARKET REPORT (written today at 4pm) 6 AHDB (Meat Services) and LMC market prices: 8 DeadWeight Cattle Prices (p/kg) Week ending 28/01/ BEEF INDUSTRY NEWS 9 Log on for the latest outlook for your sector 9 EC Launches Public Consultation on the Future of CAP 9 Egypt signs agreement to import Irish Beef 10 Russia Issues Temporary Ban on Beef from New Zealand 10 United States Beef Supply Building Up 10 ADVERTISEMENTS 12 NBA Student Discount Voucher 12

2 NEWS AND NBA S WEEKLY REPORT NBA welcomes a new generation of beef farmers We are pleased to launch a new young member discount as part of the NBAs 2017 campaign to embrace the next generation of beef farmers. Now farmers, and those with an interest in the beef industry, aged can join for just 40 per year and get involved in the work we do! Rosie will be launching the campaign on the 16th February at Harper Adams University, presenting alongside Beef Farmer of the year Richard Tudor. The young member discount is just the first step of what we aim to achieve. This year we hope to create young farmer focus groups and arrange speakers to talk on topics such as careers, succession planning and the future of the beef industry. We are also investigating coordination innovation groups to trigger new ideals and trial technologies on farm. If you are interested in any of the above and would like to start up your own focus group, please do not hesitate to get in contact with Rosie McGowan (rosie@nationalbeefassociation.com, ). We will also shortly be launching our future beef farmer challenge which will be held at our annual Beef Expo, a great chance farmers aged to showcase their knowledge across all aspects of beef production at this year s flagship beef event. Entry forms will soon be available to download from the Beef Expo website. A student discount voucher can be found at the end of this newsletter. 2

3 Snapshots from the BCBC 2017 by Rosie McGowan Wulf Cattle: A fully integrated beef supply chain finishing 72,000 cattle to a premium market Jerry Wulf of Wulf Cattle, USA clearly outlined the opportunities that could be gained from an integrated approach to the beef supply chain. His family business began in 1955 as an arable and cattle finishing operation buying in stores to finish and sell through the live market. In the early 70 s with the first influx of European cattle into the USA, the Wulf family were quick to adopt the breed for its high dressing percentage, high red meat yield and good feed conversion rations closer to 5.5:1. The operation began with 4 French bulls and bred to American cattle and now has 1200 purebred registered American Limousin cattle and produces 700 bulls for to cattle ranches across the US. Wulf Cattle moved on to trial their Limousin semen stocks on their Jersey dairy herds. The progeny was a success and led several joint ventures with semen companies marketing Wulf Limousin Semen to dairies across the US and Canada. All progeny are bought back and moved on to the stocker component, feeding youngstock on corn stalks and grass so all cattle enter the feedlots at a uniform weight. The business now markets 72,000hd of finished cattle from its feed lots annually across Nebraska, South Dakota and Minnesota all of which are Limousin crosses from Wulf genetics. Data is collected on both pedigree and commercial cattle for cow/calf traits, stocker feedlot traits and carcass traits and converted to EBVs removing the bias from the raw data across the multiple geographic regions. Over the last 20 years a gain in average weaning weight of 10kg and a reduction in birth weight of 1kg has been achieved through their genetic progress. All finished cattle are sold as Value Added Cattle on a hormone free scheme deadweight to Tyson. Jerry believes that though removing 3rd parties it has allowed for a better transfer of knowledge and ease of improvement stating Building a level of trust sharing of information from segment to segment is paramount to making progress. A fascinating case study of vast scale showing the benefits of an integrated feedback system. For more information visit Wulf cattle online at 3

4 2017 NBA DIARY 6th February BVD Meeting, Kendal 7th February Meeting with Andrea Leadsom, Westminster 7th February 8th February 8th February Northern Open Meeting: Are Suckler Herd Targets Accurate and Achievable? 6.30pm Carlisle Auction Mart, CA 2RS Midlands Open Meeting: Are Suckler Herd Targets Accurate and Achievable? & AHDB Update and Outlook for pm Church Lawford Village Hall, Church Lawford, Warwickshire. CV239EE Red Tractor TAC 9th February Beef Expo Meeting, Midlands 16th February 21st February NBA presents to students at Harper Adams University Forum, presenting alongside Beef Farmer of the Year Richard Tudor NBA Board Meeting 9th March NBA Pedigree Committee Meeting 17th May Beef Expo Farm Tours 18th May BEEF EXPO, Stoneleigh Park Entries in Red are open to all NBA Members Entries in Green indicate Meetings attended by NBA representatives Entries in Blue indicate NBA Committee Meetings Next Week s Regional meetings Join us next week at our new regional meetings: NORTHERN : Tuesday 7th February: Borderway Mart, Carlisle, CA1 2RS Guest Speaker: Steven Sandison, Nuffield Scholar and first generation beef farmer, presenting on his Nuffield Scholarship and experiences farming in Orkney MIDLANDS : Wednesday 8th February: Church Lawford Village Hall, CV23 9EE Guest Speakers: Steven Sandison, Nuffield Scholar and first generation beef farmer presenting on his Nuffield Scholarship and experiences farming in Orkney # 4

5 Clive Brown, Head of Knowledge exchange for AHDB presenting an update and outlook for 2017 These are the first two of many regional meetings we will be hosting up and down the country in an aim to bring together our members and share knowledge across all aspects of beef production. Both meetings will begin with an update from the NBA, and the work we have been busy with over The meetings are open to all so please be encouraged to bring along friends and family. Both meetings start at 7pm with refreshments from 6.30pm. We look forward to seeing you there. SBA NEWS Beef Efficiency Scheme(BES) - Deadlines for recording calving information The Scottish Government is reminding beef producers that the deadline for entering the BES calving data for calves born between 2nd June 2016 and 31st December 2016 to ScotEID is now only a few days away and needs to be completed by the 7th February In addition, 7th February 2017 is also the date set by RPID in the revised guidance as the deadline for recording any disposals during Some calves will now be reaching 400 days old so please remember that calves must be weighed at least once between 120 and 400 days. A weight must be recorded on the Beef Efficiency Scheme system for every calf unless it dies or is sold before it reaches 120 days old. If a weight has not been entered onto the system by the time a calf reaches 400 days old, you will have 15 working days to record a weight or a breach may be applied. 5

6 NBA MARKET REPORT (written today at 4pm) Without a doubt English processors are keen for cattle and are having to be unusually competitive for January, in Scotland demand is steady but the usual Scottish premium has been eroded. Retail demand is solid and the supply of cattle is steady but carcass weight has been limited due to weight penalties and as such is lowering beef yield. All types of cattle are doing well including those outside of supermarket specification including cows. Finishers have reported that there is definitely room for negotiation when speaking to processors, especially for those able to supply good numbers. Top shelf beef such as organic is short on supply with a very high demand and as such is seeing a strong trade and a lifting price. For the week ended the 28 th of January, the GB all-prime average was at 350.7p/kg with prices for commercial cattle just over 20p/kg ahead of the position they were in at the end of January Overall, steers were little changed on the week earlier at 351.0p/kg, while those meeting R4L specification were back a penny to average 362.6p/kg. Heifers overall also came back a penny at 354.5p/kg, as did R4L s at 361.9p/kg. In contrast, young bulls moved up in price, on average up 3p on the week earlier to 320.3p/kg. For another week, cows met a firm trade in the market with an especially good trade for well-finished cows. At 242.2p/kg, those meeting R4L specification moved up over a penny on the week earlier. The fall of sterling following the Brexit referendum continues to boost British exports and margins. This provides an advantage to the domestic cow trade, given its commodity nature and improved competitiveness on euro markets. In the UK Irish beef production is important as it has the potential to impact on the market situation here, given that the UK market accounts for around half of Irish beef and veal exports. Since the Brexit vote, a narrowing price differential between the two regions, due to weakening sterling and increased domestic supplies in the UK, has had a positive impact on trade from the UK perspective. In Ireland there are an additional 100, ,000 finished cattle expected to come on stream this year. This represents an increase of six per cent on 2016 levels, when cattle supplies were up by approximately 80,000 head on Ireland has seen some gains in international markets in recent years and Bord Bia hopes that further strengthening of the Irish position in these locations will offer exporters additional opportunities this year. A high profile success was getting access to the United States (US) in 2015, the first European country to do so since the BSE export ban was imposed 20 years ago. Following that success, trade got off to a slow start, given the problematic approval of manufacturing beef. However, last year the decision by the US to extend its approval for Irish beef, to include manufacturing beef, was seen as a huge endorsement of Irish production and regulatory systems. This has the potential to be a significant boost to the Irish sector in the long run. However, in the short term, while grass-fed hormone-free beef is gaining traction in the US, the extent to which it would take product away from the UK is likely to be insignificant for the foreseeable future, if at all. As such, a significant proportion of the increased production this year will be available to the UK market, given the well-established vigorous demand in some segments of the retail and food service environment. What will matter most to the Irish beef sector is the competitive position of Irish product in the UK, which will of course be influenced 6

7 by the sterling/euro relationship. Given that the strength of the euro the UK market is not as attractive as it once was for Irish beef. Prime cattle imports from ROI for direct slaughter in NI plants totalled 151 head last week, almost unchanged from the previous week and accounting for two per cent of the total NI prime cattle kill. In the corresponding week in prime cattle were imported from ROI for slaughter in NI plants which accounted for eight per cent of the total NI prime cattle kill. Meanwhile 152 cows were exported from NI for direct slaughter in ROI last week, a decrease from the 188 cows exported in the same week last year. Exports from NI for direct slaughter in GB last week consisted of 46 prime cattle and 9 cows, a decline from year earlier levels when 136 prime cattle and 39 cows were exported to GB. The average R4L steer price in GB is back 1.5p/kg at 362.6p/kg, Scotland is back 1.2p/kg at 367.4pkg, the South is stand on at 361.9p/kg, the average in the North is steady for the week at 366.5p/kg, the Midland steers are back at 356.1p/kg for the week. In Northern Ireland steers are back 2.6p/kg at 352.6p/kg whilst ROI steers are down 6p/kg at 319.8p/kg mainly due to currency fluctuations. The average R4L heifer price in GB is back 0.9p/kg at 361.9p/kg, the R4L heifer price in Scotland is down 2.6p/kg at 366.7p/kg, Midlands are down 2.3p/kg at 359.2/kg, in the North heifers are steady on the week to an average of 358.9p/kg, whilst Southern England heifers are up 1.2p/kg at 362.1p/kg. In Northern Ireland heifers are down 2.6p/kg at 351.1p/kg, ROI heifers are down 5.5p/kg at 330.5p/kg. For the coming week: In the South of England, we are seeing cattle being quoted from around 353p. The North, is seeing base prices quoted for next week in the region of 359p/kg. Scotland is seeing cattle being quoted from a base of around 360p/kg. Northern Ireland, prices quoted are in the region of 342p/kg based on R4L for the coming week. Angus, Shorthorn and Hereford native bred cattle continue to attract premiums of depending on the scheme, with Angus at around 396p/kg and organic cattle are over 440p/kg. Cows are in the region of 250p, with more for better fleshed cows with good conformation. 7

8 AHDB (Meat Services) and LMC market prices: Auction Averages Week Ending 01/02/2017 Price p/kg lw p/kg change on wk STEERS HEIFERS YOUNG BULLS COWS DeadWeight Cattle Prices (p/kg) Week ending 28/01/2017 GB SOUTHERN CENTRAL NORTH SCOTLAND N.IRELAND ROI R4L Steer p/kg change on wk R4L Heifer p/kg change on wk R3 Bull p/kg change on wk O+3 Cow p/kg Change on wk All GB data in the above tables is reproduced from tables created by AHDB/LAA/IAAS For more detailed information please visit or * The above tables are unique because they are the only ones in existence that are published on a cross-uk basis that carry information on all UK regions plus the Republic of Ireland. The information, which is delivered free to NBA members by , can only otherwise be obtained through AHD/LAA/IAAS (see above) and the Livestock and Meat Commission s (LMC)Bulletin for Northern Ireland. The tables should be a useful source of information to committed beef finishers across the UK. 8

9 BEEF INDUSTRY NEWS Log on for the latest outlook for your sector The outlook for the English beef, lamb and pork sectors as the UK prepares to quit the EU will be the focus of an AHDB webinar this month. The online event on 14 February replaces the annual Outlook Conference for AHDB s livestock sectors, which previously took place in London. It will give farmers and the supply chain an opportunity to hear the latest prospects for their specific sector from AHDB Market Intelligence experts in the comfort of their home or office. The webinar, which kicks off at 10:30am, includes a presentation on the potential implications of Brexit for the red meat industry, as well as insight into topics AHDB analysis will cover in the near future. There will also be a presentation on the outlook for feed markets. The event will be rounded off with a Q&A session, where delegates can submit their questions to all the AHDB analysts on the agenda, before finishing at 12:30pm. To book, visit Agenda 10:30 Introduction Mick Sloyan, AHDB Pork Strategy Director 10:45 Beef outlook Debbie Butcher, AHDB Senior Analyst Beef and Sheep 11:00 Lamb outlook Mark Kozlowski, AHDB Senior Analyst Beef and Sheep 11:15 Pork outlook Vikki Campbell, AHDB Data and Analysis Manager 11:30 Feed outlook Millie Askew, AHDB Analyst, Cereals and Oilseeds 11:45 Brexit: Challenges and opportunities for red meat David Swales, AHDB Head of Strategic Insight 12:15 Q&A 12:30 Close EC Launches Public Consultation on the Future of CAP The European Commission yesterday (2 February) launched the first phase of the modernisation and simplification of the Common Agricultural Policy (CAP) with the opening of a three-month public consultation. The contributions received will support the Commission's work to define the agricultural policy priorities for the future. A modernised and simplified Common Agricultural Policy would address the key challenges that agriculture and rural areas are facing while at the same time contributing to the Commission's policy priorities (notably jobs and growth), to sustainable development, a budget focused on results, simplification and subsidiarity. Announcing the consultation process, EU Agriculture and Rural Development Commissioner Phil Hogan said: "Today we are taking the next steps towards modernising and simplifying the Common Agricultural Policy for the 21st Century. By launching this public consultation, we are asking all stakeholders and those interested in the future of food and farming in Europe to participate in shaping a policy for all the people of Europe. "This public consultation feeds directly into the roadmap for the Future Common Agricultural Policy announced by President Juncker in December. The Common Agricultural Policy is already delivering major benefits for every European citizen, in terms of food security, the vitality of rural areas, the rural environment and the contribution to the climate change challenge. By designing a roadmap for the future, I am confident it can deliver even more. But we must refine it, and revitalise it, and of course we must adequately fund it." The public consultation will run for 12 weeks and will give farmers, citizens, organisations and any other interested parties the chance to have their say on the future of the Common Agricultural Policy. The input from the consultation will be used by the Commission to help draft a Communication, due by the end of 2017 that will include conclusions on the current performance of the Common Agricultural Policy and potential policy options for the future based on reliable evidence. 9

10 The results of the public consultation will be published online and presented by Commissioner Hogan at a conference in Brussels in July You can find out more information on the public consultation launched by the European Commission by clicking here. Egypt signs agreement to import Irish Beef Egypt, the largest market in Middle East and North America, has signed an agreement with Ireland to import Irish beef. Egypt, once the biggest market of Irish beef, terminated importing it in late 1990s after the government proclaimed a ban on EU beef. Since 2001, the African nation has been allowing conditional lift for the ban, which in February 2016 was further eased when a delegation from Egyptian Ministry of Agriculture visited Ireland. Following the visit, both countries have agreed on live exports of cattle from Ireland to Egypt. Ireland s Department of Agriculture said that once the technicalities are done, five Irish plants would start exporting beef to Egypt, which has around 95 million prospectus customers. With exports of 45 million in 2015, Egypt is the third biggest terminus for Irish agri-food exports to Africa. But most of it comes from diary and seafood at 30.5 million and 11 million respectively. Under the current agreement Ireland would export beef offals and limited amount of sheep meat products. Russia Issues Temporary Ban on Beef from New Zealand The Russian agriculture safety watchdog has imposed a temporary ban on imports of beef and beef products from New Zealand, effective 6 February. The measure comes after the feed additive Ractopamine, a stimulant fertilizer for promoting muscle growth, has been discovered in some samples, the watchdog spokesperson said. The watchdog also said that it might ban fish imports from New Zealand due to traces of mercury in some supplies. New Zealand is not one of the Western countries facing a Russian food ban. Moscow introduced the measure in 2014 in response to sanctions imposed by the US, EU and their allies over Russia s alleged role in the Ukraine crisis. United States Beef Supply Building Up Beef production in the United States is moving up considerably after being at its lowest level since 1993 in This means that both consumption and exports will have to increase in order to absorb the production increase. In addition, this year the beef market will also have to contend with the five per cent increase in pig meat production and two per cent rise for poultry meat. As a result, the US meat market this year will be characterised by high supplies and lower producer and retail prices. In turn, it will result in increased export availability and competitive export prices of all meats. 10

11 The latest USDA beef and veal forecasts indicate a rise of three per cent in production this year, which follows an estimated six per cent uplift last year. Marked production increases are expected in the first three quarters of the year in particular, although with some slowdown in the fourth quarter. Both slaughterings, especially given increased number on feedlots, and carcase weights, helped by lower feed costs, are expected to be higher. However, it is worth remembering that if this production increase is realised this year, production would still be similar to that at the beginning of the current decade. Beef exports increased by an estimated 11 per cent in 2016 as a whole, and are forecast to rise by five per cent in Given the strong competition from pig meat in particular and ongoing tight export availability of Australian beef, the USDA export forecasts could prove to be on the conservative side. Already, trade was especially buoyant towards the end of last year, being up 30 per cent in August on a year earlier and 25 per cent in November. This compared with the 11 per cent in the year to November total. On the downside, Mexico is the third largest market for US beef and the outlook has become a little uncertain given the fall in the value of the peso and the risk of compromised trade relations under the Trump Presidency. In respect of domestic consumption, competition from pig meat will be intense in Per capita consumption of pork is forecast to be up by four per cent this year and such growth could put a lid of any rise in beef consumption. At the same time, it will inevitably result in very attractive meat prices to consumers. An analysis of the US pig meat market can be found here. The USDA price forecast for choice steers indicates a fall in the range of seven to 11 per cent in the year as a whole. This would be on top of the 18 per cent fall recorded in This is clearly influencing beef export prices, and will even help to offset the expected stronger US dollar in the coming months. Already, the average US beef export price was down 11 per cent in January-November 2016, which follows on from a one per cent fall in the same period of Inevitably, the US will have to further increase its presence on the global beef market in 2017 and so help to put a lid on global prices, unless demand becomes especially buoyant again. At least though, the ongoing tight Australian supply situation will enable the US to further increase its presence on the Asian markets in particular, such as Japan, South Korea and Taiwan. On the other hand, US import demand will inevitably contract further. 11

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13 Hexham & Northern Marts hold a weekly sale of 350 plus top quality store cattle every Friday. Contact our team of Auctioneers for further details or to receive copies of our catalogues. Tel: Web: info@hexhammart.co.uk Facebook: Hexham and Northern Marts 13

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