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N A T I O N A L

CATTLEMEN The trusted leader and definitive voice of the beef industry. THE OFFICIAL PUBLICATION OF NCBA • 2016

BeefUSA.org

2016 DIRECTIONS State of the Association Report CattleFax Top 25 Industry Lists Legislative Outlook

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Table of Contents LETTER FROM THE PR ESIDEN T LETTER FROM THE CEO STATE OF NCBA

UPDATE ON

.................. Page 6

..................... Page 20

THE MARKET .......... Page 30

DIRECTIONS STATISTICS STATE OF THE

CATTLEMEN

..... Page 4

............................ Page 8

UPDATE ON POLICY

N A T I O N A L

.............. Page 35

FEDER ATION ..... Page 62

THE OFFICIAL PUBLICATION OF NCBA President Tracy Brunner President-elect Craig Uden Vice President Kevin Kester Federation Division Chair Steve Hanson Federation Division Vice-Chair Jerry Effertz Policy Division Chair Jennifer Houston Policy Division Vice-Chair Joe Guild Immediate Past President Philip Ellis Chief Executive Officer Kendal Frazier Senior Editor Associate Editors Contributing Writers

John Robinson Brittany Schaneman Charmayne Hefley Tracy Brunner Walt Barnhart Todd Johnson Chase Adams Shawna Newsome

Creative Director Don Waite Graphic Designer Sharon Murano For ad sales, contact Jill DeLucero or Beka Wall at 303-694-0305. Contact NCBA: 9110 E. Nichols Ave., Suite 300, Centennial, CO 80112 (303-694-0305); Washington D.C.: 1275 Pennsylvania Ave. N.W., Suite 801, Washington, D.C. 20004 (202-347-0228). National Cattlemen’s Beef Association reserves the right to refuse advertising in any of its publications. National Cattlemen’s Beef Association does not accept political advertising in any of its publications. National Cattlemen’s Beef Association does not accept any advertising promoting third-party lawsuits that have not been endorsed by the board of directors. ©2016 National Cattlemen’s Beef Association. All rights reserved. The contents of this magazine may not be reproduced by any means, in whole or part, without the prior written consent of the National Cattlemen’s Beef Association.

Keep up with the latest news

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Tracy Brunner NCBA President Kansas

Philip Ellis Immediate Past President Wyoming

Craig Uden NCBA President-Elect Nebraska

Steve Hanson NCBA Federation Chair Nebraska

Jerry Effertz NCBA Federation Vice-Chair North Dakota

Kevin Kester NCBA Vice President California

Kendal Frazier NCBA CEO Colorado

NCBA Offices DENVER OFFICE 9110 E. Nichols Ave. Suite 300 Centennial, CO 80112 303-694-0305 Fax 303-694-2581 membership@beef.org

Marty Smith NCBA Treasurer Florida 2 NATIONAL CATTLEMEN

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Jennifer Houston NCBA Policy Chair Tennessee

Joe Guild NCBA Policy Vice-Chair Nevada

WASHINGTON D.C. OFFICE 1275 Pennsylvania Ave. N.W. Suite 801 Washington, D.C. 20004-1701 202-347-0228 Fax 202-638-0607 DIRECTIONS 2016

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and women increased access to the lucrative Japanese market. It will immediately kill the Australian tariff rate advantage and help prevent the perception that meat supplies are backing up here on U.S. shores. American livestock producers answered the record-high price signals with an increased supply of meat. If we can overcome the hyperbole and access those markets with fewer restrictions than we face today, it will allow the world greater access to the high-quality U.S. meat products it needs and wants. Election year campaign rhetoric has painted global trade as bad for the U.S. economy. Nothing could be further from the truth and while members of Congress and their challengers are nearby and campaigning, please take the time to help them understand the importance of TPP passage, particularly as it applies to the beef community. American economic growth requires American producers to receive the greatest possible value for our products. American jobs, American economic growth and American security depend on the American role in global politics. We cannot contribute if we do not participate, and we cannot shape if we do not lead.

LETTER FROM THE

PR ESI DENT We Need Approval for TPP Tracy Brunner, NCBA President The Trans-Pacific Partnership is at the top of NCBA’s policy agenda this year and although we continue to make progress on this important issue, we need support from each of you this fall to help push it across the goal line before the end of the year. It’s unfortunate that TPP is caught up in election year politics, but one fact is clear: this agreement is good for agriculture and particularly for beef. In a pure and perfect free market, prices for our cattle and calves are determined by the supply of cattle, the value of the beef and byproducts, less the incremental or remaining costs to grow, finish, and transform our cattle into the end products. Prices are also influenced by forward expectations for those values. As cattlemen, we know that these supply- and demand-driven markets can—in the short term—be subject to greed, fear and bargaining. Right now commodity markets seem to be searching for market-clearing levels for beef, pork, other meats and meat byproducts. The greatest opportunity to alleviate the increasing supply situation is Congressional approval of the TransPacific Partnership. TPP will level the playing field and give U.S. cattlemen 4 NATIONAL CATTLEMEN

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TPP is not an Obama trade agreement, it is a trade agreement for future generations of America. It will lay the foundation for American producers, for American jobs and help maintain American values. TPP is not a big business bailout, it’s an opportunity for Industry and Main Street to compete in the global market place. We have the beef and the world wants it; cattlemen and women just need TPP to ensure fair access to markets. During my career as a beef producer I have seen good markets and bad. The only constant is the idea that conventional wisdom is usually wrong. I promise this: NCBA feels the pain of all cattlemen now and we understand the impact that the downward market pressure has on our industry. We are working on many fronts, from securing TPP passage, to addressing market volatility, and fighting government overreach and rampant regulation on every front to ensure our industry has the tools to be profitable. My personal economic analysis may not change the market chaos tomorrow, but I am certain there is great value in what we do. We convert forage and grain into high quality food. Our cattle turn grass, feed grains and other roughage into the highest quality beef in the world. Price competition between consumer choices is irrepressible. I believe at current levels we will not only buy back demand, we will kick other proteins’ butts down the alley and into the parking lot because our beef remains the protein of choice for consumers here and around the globe, but we must level the playing field for our product and ensure a stable market where prices respond appropriately to market signals. When we accomplish those two priorities, I would sure hate to have my future invested in any other food product. You can keep my dessert; bring me another steak! DIRECTIONS 2016

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ALLIED INDUSTRY DIRECTORY These are companies that have teamed with NCBA as allied industry members, demonstrating their commitment to the beef industry. Their involvement strengthens our future. NCBA members are urged to support these partners in turn by purchasing their products and services. Those who would like to become allied industry partners with NCBA (securing a premium booth placement at the next annual convention and trade show), please call the Association Marketing team at 303-694-0305. GOLD LEVEL SPONSORS (Minimum $100,000 Investment) Bayer Animal Health www.bayer-ah.com

Dow AgroSciences, LLC www.dowagro.com

New Holland Agriculture www.newholland.com

Boehringer Ingelheim Vetmedica, Inc. www.bi-vetmedica.com

John Deere www.deere.com

Purina Animal Nutrition LLC www.purinamills.com/cattle

Merck Animal Health www.merck-animal-health-usa.com

RAM www.ramtrucks.com

Caterpillar www.cat.com Central Life Sciences www.centrallifesciences.com

Merial www.merial.com Micro Technologies www.microtechnologies.com

Ritchie Industries Inc. https://ritchiefount.com/ Zoetis Animal Health www.zoetis.com

ALLIED INDUSTRY COUNCIL AgriLabs Allflex USA, Inc.

Animal Health International Elanco Animal Health

Massey Ferguson Y-Tex

ALLIED INDUSTRY PARTNERS ADM Alliance Nutrition, Inc. AgriClear Inc. Agricultural Engineering Associates Agri-Pro Enterprises of Iowa, Inc. Alltech, Inc. American Hereford Association Arm and Hammer Animal Nutrition Bank of America Merrill Lynch Barenbrug USA Beef Magazine Bimeda Cargill Animal Nutrition Case IH Certified Angus Beef Certified Hereford Beef CME Group DATAMARS, Inc. Diamond V DuPont/Pioneer Farm Credit Furst-McNess Company Greeley Hat Works Grow Safe Systems, Ltd Hartford Livestock Insurance Huvepharma, Inc.

IMI Global, Inc. IMMVAC, Inc. Kent Nutrition Group Kunafin “The Insectary” Laird Manufacturing Lallemand Animal Nutrition Life Products LIFELINE, APC , Inc. Meat & Livestock Australia, Ltd. Medtronics Micronutrients Midwest PMS, Inc. Miraco/Gallagher Moly Manufacturing, Inc. Monsanto Neogen Corporation Noble Foundation Norbrook, Inc. Nova Microbial Technologies Novus International Nutrition Physiology Co., LLC Parker McCrory PBS Animal Health Phibro Animal Health Priefert Ranch Equipment

Quali Tech, Inc. Quality Liquid Feeds R&R Machine Works Rabo AgriFinance RFD-TV Ridley Block Operations Roper/Stetson/Tin Haul Apparel and Footware Roto-Mix SmartLic Supplement — Feed In A Drum Stone Manufacturing Strategic Funding Source Superior Livestock TAGSMYTH LLC Tarter Farm and Ranch Equipment The Oaks Farms LLC The Vit-E-Men Co. Inc./Life Products Tru-Test Group U.S. Premium Beef Verdesian Life Sciences Vermeer Vigortone Ag Products Wilson Trailer Company Zinpro Performance Minerals

PRODUCT COUNCIL MEMBERS Albertsons® Companies American Foods Group Beef Products Inc. Cargill Meat Solutions Darden Restaurants Fareway Stores, Inc.

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H-E-B JBS Kane Beef Processors McDonald’s Corporation Meyer Natural Foods National Beef Packing

Omaha Steaks Performance Food Group Preferred Beef Group Tyson Fresh Meats Wendy’s International

DIRECTIONS 2016

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You may have recently heard news that China has announced it will reopen its domestic market to beef exports from the United States. It’s news that many of us have been working hard to deliver and it has taken more than a decade to reach this point. Although there is still a great deal of work to complete before the first shipments of U.S. beef are delivered to this important market, the announcement in September was a very positive sign and it adds to our optimism about the future potential for shipments to Asian markets. Our beef products face an extremely competitive market overseas, particularly in Japan which is among our most important destinations for beef. But it’s also important that we don’t overlook the importance of trade with markets closer to home. Canada and Mexico are two of our most crucial markets for U.S. beef and they’ve been constrained by the strength of the dollar for the past year. Although currency values are well outside of our control, we must always be aware of the external factors which affect cattle markets and the strength of the U.S. dollar is certainly one of those. It’s particularly true as we face increasing competition in important global markets from countries such as Brazil, Australia and others.

LETTER FROM THE

CEO Challenges and Opportunities Kendal Frazier, NCBA CEO There’s no question that 2016 has been a turbulent year in the cattle business. From market volatility and a challenging export landscape, to the uncertainty surrounding elections, it’s a year many will be glad is nearly behind them. But, there’s a universal trait that cattlemen and women possess that helps us weather turbulent times and that’s a sense of optimism, the knowledge that no matter what lies directly in front of us, we know that brighter days are ahead. As I have traveled the country this past year and met with many of you, I’ve been encouraged to see that although we acknowledge the challenges of today, we’re all still expectant about the hope for tomorrow. At NCBA, we’re working to address the challenges you each face. Whether it’s working on demand building programs to help increase consumer demand for beef and keep our products flowing into the marketplace, or working to open new markets for beef, we’re working on securing the future for our members and our industry. 6 NATIONAL CATTLEMEN

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However, cattle and beef prices aren’t the only challenges we face as cattle producers. We’ve been fortunate across much of the country to have seen better moisture conditions in 2016 than in recently past years and we’re thankful for that. Likewise, the 2016 corn harvest appears to be on track to be one of the best ever, which will help keep feed costs moderate during the year ahead. The improvement in moisture conditions is a positive that’s adding to the optimism being expressed in the country this fall and it’s one of the things I know many are thankful for this year Perhaps the greatest uncertainty we face today comes from our nation’s capital as we watch the election season unfold. Regardless of the outcome, we know it will bring change. However, it’s important to remember that NCBA members have a full staff of legislative, regulatory and legal experts who are in place to ensure that election year change in Washington, D.C., has minimal impact on your farms and ranches. No matter who moves into the White House in January, or which party controls Congress, your staff on Capitol Hill is ready and able to work with all of them to ensure your voice is heard and your viewpoints are understood. As Fall begins and as families gather to give thanks for a bountiful harvest and plan for 2017, the leaders and staff at NCBA will be giving thanks for the opportunity to represent the beef community and the outstanding men and women for whom we work. To each of you, thank you for your membership in the National Cattlemen’s Beef Association, now and in the future. DIRECTIONS 2016

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STATE OF

NC BA

Overcoming Challenges in the Beef Industry

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New and old challenges have kept the beef industry and NCBA on its toes as the year has progressed. Throughout 2016 there has been a progression in increased market volatility, a continued push to pass the Trans Pacific Partnership (TPP) trade agreement, further attempts to weaken the beef industry by activist groups and government overreach and more. However, as the beef industry always does, cattlemen and DIRECTIONS 2016

10/6/2016 6:37:27 AM


women have continued to persist for the betterment of the industry. Despite the challenges, the beef community continues to commit to the challenge of producing the best tasting, healthiest and most nutritious beef in the world. “The beef industry includes some of the most adaptable and resilient individuals in the world, so there is never a doubt in my mind about if we’ll overcome these challenges,” said NCBA CEO Kendal Frazier. www.BeefUSA.org

2016 Directions.indd 9

“That’s one of NCBA’s greatest strengths. By providing a forum for cattlemen and women to come together, we are better able to identify the best path forward and solve the challenges facing our industry more quickly than individuals might be able to do on their own.”

to put country-of-origin-labeling, extension of Section of 179 and other important issues behind us. Frazier said that by clearing these issues from the beef community’s plate, NCBA is better able to focus on new and continuing policy issues that affect the members of our organization.

NCBA began the year strong with a celebration of the passing of the Omnibus Appropriations bill, which allowed the beef industry

Trade Opportunities NCBA continues to work hard to educate the public on the benefits Continued on page 12

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Angus calves also bring higher prices than similar calves of any other breed, a combined average of nearly $7/cwt.b more, on average. In fact, packers pay Angus producers $1 million in premiums per week.c Year after year, Angus simply offers the best genetics and payout possible. Take the guesswork out of bull buying. Invest in reliable, registered Angus genetics.

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STATE OF Continued from page 9

of passing TPP despite negative campaign rhetoric. While the effort faces a number of hurdles, there are some signs that can be taken as positives. Passing TPP has become an ultimate priority for the cattle industry as we aim to increase exports to improve the bottom line for cattle producers. Frazier said trade is an important way for NCBA members to see better returns on their operations. “Market access overseas is crucial to our industry. Whether that’s through passage of TPP, which will provide a level playing field for U.S. beef in the crucial Japanese market, or the opening of China to our beef exports, we must continue to grow market share outside the United States,” he explained. “During much of the past two years, exports

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NCBA

provided approximately $300

beef was significant,” said Frazier.

cattle prices and with expanded

that it’s only the first step in

per head in added value to fed

market access, there is no reason

we can’t continue to increase that amount.”

Trade opportunities look likely to continue their growth, as Frazier

mentioned. That optimism comes

“But it’s important to remember the process and there remains a

great deal of work left to be done before we’ll see shipments into the market.”

Federal Policy Abuse

class and increasing appetite

Continued abuse of the Antiquities Act of 1906 by the Obama Administration has also been a major challenge for cattlemen and women, specifically in the western states. With the Administration continuing to lock up more and more land, NCBA has been working closely with the Public Lands Council to prevent further pen strokes to alter the way of life for members.

announcement from China that it

NCBA has also seen success as the U.S. Fish and Wildlife

on the heels of the announcement in September that after nearly

13 years of being closed out of

Chinese markets, American cattle producers should soon have the

ability to begin exporting beef and beef products into China.

“China represents a major

opportunity for the U.S. beef

industry. With a growing middle for high quality protein, the

would soon open its doors to U.S.

Continued on page 14

DIRECTIONS 2016

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10/6/2016 6:41:07 AM


STATE OF Continued from page 12

Service has made an effort to begin addressing the abuse of the Endangered Species Act (ESA).

NCBA

growth in beef exports, protecting

Plan that focuses all programs,

political climate for beef, growing

these four core strategies. This

and enhancing the business and consumer trust in beef and beef

“It is long past the time for Congress to take a close look at the Endangered Species Act and make necessary reforms,” said Frazier.

production, and promoting

Long Range Plan Update

– Nutrition, Stewardship,

Over the past year, NCBA has been working hard to reach the

align with structure of checkoff

goals laid out by the Long Range Plan for 2016-2020 for both

policy and checkoff programs. NCBA has begun the task of

meeting the core strategies laid out by the Beef Industry Long

Range Plan Task Force: driving

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and strengthening beef ’s value proposition.

Specifically, NCBA’s efforts

center on four key strategies Innovation and Issues – which

committees. A cross-functional

team of NCBA staff members– including technical and market

research experts, marketing and communications professionals–

have come together to build for the first time a fully integrated, interdisciplinary NCBA Work

projects and daily work against is critical, especially in a tight

budget year for the beef checkoff,

in order to make sure that NCBA is able to accomplish the goals of the Long Range Plan and

ultimately, that the organization

can serve beef producers and make the best use of their dollars as a contractor to the beef checkoff.

While plans for the 2017 fiscal year are still being finalized, NCBA has already had a chance to see some great outcomes from this integrated work in action in late FY2016. Some key highlights from FY2016 include: Continued on page 16

DIRECTIONS 2016

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The science.

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10/4/2016 2:04:23 PM


STATE OF Continued from page 14

• Issues Strategy – Building the

Beef Industry’s First Ever Beef Digital Command Center –

This physical and virtual tool, housed in the Denver offices,

brings together all traditional and social media listening

platforms to identify issues

and proactive opportunities in traditional and social media.

Staffed by two team members in Denver and one team

member in D.C., the team knows minute-by-minute

what’s being said about beef –

the good, the bad and the ugly – so that they can address this in real-time.

• Innovation Strategy –

Launching the New Families In Motion Marketing

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NCBA

Campaign – The new

the latest evidence when it

launched and will showcase

assessment” is underway to

campaign for beef is being

beef ’s new brand positioning (Families in Motion) to offer easy solutions to

incorporate beef into a daily

routine, ultimately providing millennial parents with the

reasons they need to choose beef more often. See the

latest videos, recipes and beef

photography for this campaign that will inspire consumers

to choose beef more often at

BeefItsWhatsForDinner.com. • Nutrition Strategy –

Continuing Critical Cancer Research – The team is

continuing more than 10 years of research in this

area so that we can review

comes to cancer risk. A “risk broaden the understanding beyond individual trials,

and the timing is critical,

given that the U.S. National Toxicology Program, as

well as the World Research for Cancer Fund and

International Agency for

Research on Cancer, are all

expected to come out in the coming months and years

with recommendations about beef and cancer risk. This

research will be critical to maintain beef ’s place on

the plate and to be able to

clearly communicate beef ’s nutritional benefits.

Continued on page 18

DIRECTIONS 2016

10/4/2016 2:04:26 PM


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All trademarks are the property of Zoetis. Š2016 Zoetis Services LLC. All rights reserved.

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10/4/2016 2:04:28 PM


STATE OF Continued from page 16

• Stewardship Strategy –

Training Producers on Beef

Quality Assurance Antibiotic Use Guidelines – On Jan. 1, 2017 new guidance

from the Food and Drug

Administration regarding the use and oversight of

antibiotics in food producing animals will begin. The new

NCBA

Quality Assurance Program

started the year off strongly as

hosting webinars, trainings and

work needed to be successful with

has been leading the way by

releasing a variety of different tools, including the new

Antibiotic Stewardship for

checkoff committees put in the

our long range plan,” Frazier said.

Addressing Beef Demand

Beef Producers manual, which

While the Wholesale Beef

principles for the beef industry

a projected 106 for 2016 from

puts all of the antibiotic use

into one cohesive document.

Demand Index has dropped to 123 in 2015, NCBA believes that

Veterinary Feed Directive,

“As contractors to the beef

the successes created by the beef

for Industry #209 and #213,

deal of success over the past year

help to improve that number and

changes for beef farmers

five-year goals. We certainly have

with consumers to meet the two

along with FDA Guidance

checkoff, we have seen a great

checkoff over the past year will

represent some significant

in working toward meeting our

return a driving demand for beef

and producers and the Beef

a long way to go, however we have

percent annual growth.

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DIRECTIONS 2016

10/4/2016 2:04:34 PM


IN TIMES OF

UNCERTAINTY YOU NEED SOMEONE CONSISTENTLY WORKING FOR YOU.

KEEP US FIGHTING FOR YOU! RECRUIT A NEW MEMBER TODAY! Call 866.233.3872 or visit us online at www.beefusa.org Recruit Members to NCBA and join our Top Hand Club. You could win a free trip to the Cattle Industry Convention and NCBA Trade Show! Raising cattle is your priority. Keeping you in business is ours. 2016 Directions.indd 19 Uncertainity_directions.indd 1

10/4/2016 PMPM 9/28/2016 2:04:36 1:48:58


POLICY

U PDAT E Each election is vitally

important to our country

and our industry, but there’s no doubt that a presidential election brings the biggest

2016: A Turbulent Year for the Cattle Industry

change to Washington,

D.C. With the change of president comes all new

cabinet officials and heads of agencies. This is an

opportunity to build new

relationships with officials at USDA, Environmental 20 NATIONAL CATTLEMEN

DIRECTIONS 2016


Protection Agency (EPA), Food

industry day-to-day.

swings unexplainable by any new

of Land Management (BLM),

NCBA Addresses Market Volatility

increasing difficulty for cattle

Service and countless others. It

One of the biggest issues

have to start from scratch

volatility in the marketplace.

and Drug Administration, Bureau Fish and Wildlife

also means, however, that we

talking about how these federal

departments and agencies impact our industry. Our work is cut out for us as we continue working the issues that impact our www.BeefUSA.org

market information—are causing buyers and sellers alike. NCBA created a working group to

NCBA has been working on is

work directly with CME Group

We believe supply and demand

The CME working group

does, and will continue to,

guide our markets long-term. However, the futures market volatility—those rapid price

(CME) to address the issue. reported its work-to-date at

the Summer Business Meeting in Denver, Colo., during a

marketing forum. NCBA also NATIONAL CATTLEMEN

21


PO LICY

U PDAT E

to make our effort more effective,

Contract Specifications (including

end. We will continue to look at the

to ensure all regions and industry

Discovery. President-elect Craig

work with CME to maintain

including expanding the group

segments have a voice. As a result,

affiliates nominated, and the officer team accepted, additional working group members.

With this broader composition

comes challenges and opportunities. The challenge of many voices will

be channeled into specialized areas for more in-

depth study and discussion.

Working group members have

divided into subgroups to focus on: Futures Market Volatility; Futures

P LE SAM BO A

Delivery Points); and Price Uden is shouldering the

task of chairing the full working group.

One key question about futures

cash market in order to

physical delivery rather than move to cash settlement of the futures

contracts. This is reflective of the member-supported change to

market volatility is related to the

NCBA’s policy during the summer

how it affects market momentum.

group will look at other changes to

Commodity Futures Trading

ways to improve the contracts and

contract trading on specific days

No stone will be left unturned and

expected to be released before year-

solution to reduce volatility.

impact of automated trading and

meeting. However, our working

To that end, we have asked the

the contract specifications to find

Commission to study Live Cattle

make them fit today’s cattle market.

of extreme volatility. The report is

NCBA will explore every potential

S LIVESTO CK

Z , ALABA MA

Located in north Alabama, Samples Livestock is a pre-conditioning operation and Livestock Transportation business. We are focused on providing our customers quality cattle care. Our pre-conditioning program focuses on getting your calves healthy, gaining weight and ready to go to the next phase you have planned. Customers can supply calves or we have order buyers available to purchase calves for you. Our transportation business is focused on providing our customers quality dependable service with well maintained equipment and experienced drivers. Our top priority is quality care for your livestock. Call, e-mail or come by to discuss how we can help you in the livestock business. We appreciate the opportunity to earn your business.

256 - 3 02-2 3 07

Nathan Samples • sampleslivestock@yahoo.com 22 NATIONAL CATTLEMEN

2016 Directions.indd 22

DIRECTIONS 2016

10/4/2016 2:04:45 PM


POLICY

U PDAT E

Time is of the Essence for TPP

Pacific Partnership (TPP) has

The biggest opportunity we have

and out-of-context soundbites. But

for U.S. beef outside of the United

opportunity to grow demand in

world living outside our borders,

Right now, the U.S. faces a 38.5

the world, there is significant

Japan. Our biggest competitor for

back home and into the pockets

percent tariff, meaning we are

have a mature market in the United

will bring the U.S. tariff rate down

care of our consumers here, but the

competitive with Australia. Trade

in front of us is growing demand

for the U.S. beef industry, it is the

States. With 96 percent of the

our biggest export market: Japan.

and growing middle classes around

percent tariff on beef shipped to

opportunity to bring more money

that market, Australia, has a 27.5

of America’s beef producers. We

slowly losing market share. TPP

States and will continue to take

to nine percent, ensuring we stay

increased revenue opportunity lies outside our borders. The Trans-

WOTUS Remains Regulatory Issue for Landowners

fallen victim to campaign rhetoric

Ambiguous and subjective in nature, NCBA is continuing

to fight to stop EPA’s “waters

of the Unites States” rule. The

Sixth Circuit Court of Appeals has temporarily suspended

enforcement and implementation

of the rule; however, in September 2016 the Senate Environment and Public Works Committee

released a report that provided conclusive evidence of EPA

supports U.S. jobs and the next

illegally enforcing the rule and

generation of U.S. beef producers.

asserting jurisdiction over features

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www.BeefUSA.org

2016 Directions.indd 23

NATIONAL CATTLEMEN

23

10/4/2016 2:04:48 PM


STATE OF THE PO LICY traditionally exempt from the Clean Water Act.

The report highlights two cases where EPA took enforcement

action against normal farming

and ranching activities exempt

FEDER ATION U PDAT E

agricultural exemption. In the

when Interior Secretary Sally

created a stock pond was informed

Grouse not warranted for listing

second instance, a rancher who

the pond was too ‘aesthetic’ and therefore fell outside the stock pond exemption.

from the Clean Water Act. In one

NCBA is continuing to fight the

a California rancher plowed crop

also calling on Congress to work

for cattle grazing. In that matter,

that will preserve the agricultural

rancher created furrow tops that

Act and bring regulatory certainty

as small mountain ranges’ which

Western ranchers hoped for a

instance, EPA intervened when

rule through the courts, while

land that was previously used

together and forge a compromise

EPA noted that by plowing, the

exemptions of the Clean Water

served as ‘uplands’ and ‘served

to cattle producers.

disqualified the plowing from the

small victory at the end of 2015

24 NATIONAL CATTLEMEN

2016 Directions.indd 24

Jewell deemed the Greater Sage under the Endangered Species

Act. Unfortunately, that victory

was tainted by the restrictive land use plan amendments released

concurrently by BLM and the US Forest Service, which threaten

to disrupt ongoing, collaborative management by states and

stakeholders like cattle producers. State management has led to a 63 percent increase in Sage Grouse

population in the past two years alone, illustrating

Continued on page 26

DIRECTIONS 2016

10/4/2016 2:04:51 PM


Confidence RUNS IN THE FAMILY NORFENICOL® Injection Injection NORFENICOL O O O

(f lorfenicol 300 mg/mL) Available in 100 mL, 250 mL and 500 mL Bottles New Plastic Bottles Eliminate Breakage Same Active Ingredient as Nuf lor® Injectable Solution

ENROFLOX® 100 100 Injection Injection ENROFLOX (enrof loxacin 100 mg/mL) Available in 100 mL and 250 mL Bottles O Same Active Ingredient as Baytril® 100 Injection O

NOROMYCIN® 300 300 LA LA NOROMYCIN O

(oxytetracycline 300 mg/mL) Available in 100 mL, 250 mL and 500 mL Bottles

Hexasol® Injection Injection Hexasol O

(oxytetracycline 300 mg and f lunixin 20 mg/mL) Available in 250 mL and 500 mL Bottles

www.norbrookinc.com For full prescribing information, including important safety information, warnings and contradictions, see the product insert available at Norbrook.com. Read product insert carefully prior to use. The Norbrook logos, Enroflox, Hexasol, Norfenicol and Noromycin are registered trademarks of Norbrook Laboratories Limited. Nuflor is a registered trademark of Merck Animal Health. Baytril is a registered trademark of Bayer Animal Health. 0316-000-M04A FOR

VETERINARY USE ONLY

www.BeefUSA.org NCBA NORBROOK FAMILY.indd 1

2016 Directions.indd 25

NATIONAL CATTLEMEN

25

9/1/16 12:01 PM

10/4/2016 2:04:55 PM


PO LICY Continued from page 24

that these Resource Management Plans (RMP) amendments are unnecessary. Working in partnership with the Public Lands Council (PLC), NCBA is working diligently through all three branches of government to stop these detrimental plans that usurp states’ rights and hamper ongoing conservation efforts. Addressing the exploding wild horse and burro population, the BLM’s Wild Horse and Burro Advisory Board, made up of a wide range of stakeholders, has recommended significant management changes to address the population and the resulting animal welfare catastrophe.

26 NATIONAL CATTLEMEN

2016 Directions.indd 26

U PDAT E

Currently, BLM estimates the

the population back to ecologically

and burros at 67,000 – nearly

40,000 or 150 percent over the

Protecting the Judicious Use of Antibiotics

growing at 20 percent per year.

For the cattle industry, antibiotic

burros remain in long-term storage

and well-being of the animals

per animal. The Advisory Board

developed the key technologies

private ownership and humanely

President Kevin Kester, to work

sold. NCBA and PLC support

to educate and protect the judicious

population of free roaming horses

appropriate management level and

and economically sustainable levels.

Additionally, 45,000 horses and

stewardship and ensuring the health

at a cost to taxpayers of $50,000

remains top priority. NCBA has

recommended BLM sell horses for

working group, chaired by Vice

euthanize those that cannot be

with the beef supply chain in order

this recommendation and strongly encourages the BLM to work

toward implementation of these

common sense options and allow

for the sale of wild horses, bringing

use of antibiotics. NCBA will

continue to fight to protect these

tools, which are vital to producing the most wholesome and plentiful food supply in the world.

DIRECTIONS 2016

10/4/2016 2:04:58 PM


2016 Directions.indd 27

10/4/2016 2:04:58 PM

104687_RAM_Directions.indd 1

October Directions

9/23/16 2:36 PM


A nnual E nvironmental S tewardship R egional W inners

R egion I

R egion III

26

th

Huntingdon Farm

Grant, Dawn & Karlie Breitkreutz Redwood Falls, MN

R egion V

R egion IV

John & Kathryn Dawes Alexandria, PA

Stoney Creek Farm

Turkey Track Ranch

Cherry Creek Ranch

Dale Smith & Jay O’Brien Hutchinson, TX

R egion VII

R egion VI Smith Creek Ranch, LTD

Samuel Lossing, Duane Coombs, Ray Hendrix Austin, NV

28 NATIONAL CATTLEMEN

2016 Directions.indd 28

Lon & Vicki Reukauf Terry, MT

Black Leg Ranch

Jerry & Renae Doan; Jeremy & Ashlee Doan; Jay & Kari Doan; Jayce Doan; Shanda & Don Morgan McKenzie, ND DIRECTIONS 2016

10/4/2016 2:05:13 PM


E NVIRONMENTAL S TEWARDSHIP A WARD The Environmental Stewardship Award was created in 1991 to recognize beef producers who make environmental stewardship a priority on their farms and ranches while at the same time improving production and profitability. These environmental stewards serve as spokespeople for the cattle industry by sharing their stories of conservation and environmental practices.

S ELECTION PROCESS Cattle operations may be nominated from any individual or organization for the Environmental Stewardship Award. The nominations are evaluated by a diverse selection committee that includes industry representatives, university personnel, government officials and environmental organizations that evaluate each nomination on the basis of a written nomination packet. The selection committee recognizes an operation from each of the seven NCBA geographic regions and those winners are announced at the Cattle Industry Summer Conference and then the National winner is announced at the Cattle Industry Annual Convention.

H ISTORY

No m i n a t e Y o u r Ne i g h b o r for the 2017 Environmental Stewardship Award

Do you know a fellow cattleman that is an excellent steward of the land? Has a neighbor put outstanding environmental practices into place to better their operation? If so, nominate them for the

2017 Environmental Stewardship Award. Nominations are due March 10, 2017 Contact your state affiliate, Dow AgroSciences or NRCS representative for more information and assistance in submitting an application. For more information on how to get started, contact esap@beef.org or check out the website at www.environmentalstewardship.org.

Currently in its 26th year, the program continues to honor cattle producing operations who are actively engaged in outstanding stewardship practices. Through the Environmental Stewardship Award, nearly 160 regional operations representing 33 different states have been recognized for their efforts in livestock management and natural resource conservation and enhancement. As sound environmental practices become more important to producers and consumers, the ability to recognize the voluntary stewardship practices being done by so many will elevate the awareness and legacy these operations are working to conserve for this generation and the next. The Environmental Stewardship Award operates under the direction of the National Cattlemen’s Foundation. The Environmental Stewardship Award is also sponsored and endorsed by Dow AgroSciences, the Unites States Department of Agriculture Natural Resources Conservation Service (USDA – NRCS) and U.S. Fish and Wildlife Service. We thank our sponsors for their continued support and growth in honoring extraordinary achievement in voluntary conservation by our nation’s farm and ranch families.

2016 Directions.indd 29

10/4/2016 2:05:23 PM


M A RK E T

U PDAT E

Exports Are a Key Jessica Sampson & James Robb Livestock Marketing Information Center 30 NATIONAL CATTLEMEN

2016 Directions.indd 30

So far in 2016, the impacts of increased beef production, lackluster exports, and large processor margins have translated into lower cattle prices. In addition, prices have been lower and much more volatile than expected. The record-high prices of late 2014 seem like a distant memory. Due mostly to increasing domestic supplies of beef and competing animal-based proteins, year-over-year declines DIRECTIONS 2016

10/4/2016 2:05:37 PM


in cattle prices are forecast for the

is a year-over-year increase in

significantly outpace domestic

price drops is expected to moderate

percent. That will be the first rise

To recap, 2015 was a diďŹƒcult year

next two years, but the pace of

significantly compared to that of

the last two years. With increasing domestic production, foreign

markets will be a key driver of U.S. cattle prices.

the range of 4.0 percent to 4.5 in tonnage compared to a year

earlier since 2010. LMIC forecasts that U.S. beef production will

continue to exceed the prior year’s level in 2017 by another 3 percent

In calendar year 2016, the

to 5 percent. Domestic output

Center (LMIC) forecasts U.S.

category is forecast to continue

Livestock Marketing information

in every red meat and poultry

commercial beef production at

increasing in 2018. The point is,

about 24.8 billion pounds, which www.BeefUSA.org

2016 Directions.indd 31

U.S. production will continue to

population growth.

in terms of U.S. meat and poultry exports due to global economic

and geopolitical conditions, rising value of the U.S. dollar, huge

drought-induced cattle slaughter in Australia (a major exporter on the

world stage), and record-high U.S. beef prices (at least for part of the

year). U.S. beef export tonnage was

the lowest since 2009 and the value NATIONAL CATTLEMEN

31

10/4/2016 2:05:52 PM


M A RK E T of exported beef and byproducts was the lowest since 2012. Moving into 2016, calendar year beef export tonnage is expected to improve compared to 2015. While beef exports have improved, the growth has been somewhat lackluster. Year-to-date, through July, beef export volume has increased 3 percent compared to 2015. The reason that increase has yet to impress anyone is because through July it is still 7 percent below 2014 levels. Our main international beef customers by country are Canada, Japan, Hong Kong, Mexico, and South Korea. In 2015, those top five countries represented 80 percent of U.S. fresh and frozen beef

U PDAT E News negotiated 5-market average slaughter (fed) steer reported prices for the first eight months of this year averaged just over $127 per cwt. compared to a shade above $157 last year, dropping 18 percent year-over-year. Lower fed cattle prices combined with cattle feeders adapting their feeder animal bids, after record-large losses in 2015, pressured yearling and calf prices well below 2015 levels. AMS reported auction prices for 700- to 800-pound steers in the southern Plains plummeted 30 percent yearover-year in the first eight months of 2016. Southern Plains prices for 500-to 600-pound steers in January through August averaged

export tonnage. In total the U.S. exports beef to over 100 countries, according to USDA-Economic Research Service (ERS) reports. Last year, all five major markets except South Korea suffered. This year, through July, Japan, Mexico, and South Korea have all increased their purchases of U.S. beef yearover-year. Volume of beef shipped to Canada and Hong Kong are still lagging behind last year’s totals, though. To remind readers, on an annual basis the United States typically exports about 10 percent of our domestic beef production.

Cattle Prices May Erode Throughout 2018 The USDA’s Agricultural Marketing Service (AMS) Market

28 percent below 2015.

Continued on page 34

MAJOR US BEEF EXPORT MARKETS Carcass Weight, Annual

Mil. Pounds 700 600 500 400 300 200 100

0

Japan

Canada

Avg. 2009/13

Mexico

2014

Korea

2015

Data Source: USDA-ERS & USDA-FAS, Compiled & Analysis by LMIC Livestock Marketing Information Center

32 NATIONAL CATTLEMEN

2016 Directions.indd 32

DIRECTIONS 2016

10/4/2016 2:05:52 PM


He wants it all. The Brass Rail chef-owner Scott Ellinger’s supplier relationships are built on trust. Chef Scott trusts the Certified Hereford Beef brand is backed by producers committed to making sure his customers have a positive dining experience. As a chef and businessman in a profession demanding perfection, Chef Scott wants it all—delicious and nutritious beef produced by America’s ranchers.

The stakes have never been higher to create value and efficiency throughout the production system. In the past decade, Hereford has documented dramatic improvements in calving ease, weaning and yearling performance and end product merit.*

Scott Ellinger is chef-owner of The Brass Rail steak house and adjoining retail meat market in O’Fallon, Missouri. Chef Scott has transformed The Brass Rail into a thriving steak house. Visit Hereford.org to hear Chef Scott in his own words.

Reduce your risk. Improve your opportunity for profitability.

You want it all in your beef operation? Then take it.

American Hereford Association P.O. Box 014059 • Kansas City, MO 64101 816-842-3757 • Hereford.org • HerefordBeef.org ©2016 American Hereford Association

HEREFORDS. Accountable. Predictable. Profitable. Sustainable. * The Spring 2015 Hereford Pan-American Cattle Evaluation (PACE) documents consistent improvements in all traits of economic importance. From 2004 to 2014, AHA Genetic Trends indicate a 14% reduction in birth weights, 20% improvement in weaning and yearling performance and a 30% improvement in end product merit. Hereford.org/userfiles/S15_Trend.pdf

AHA Directions.indd 2016 8.375x10.875 4c 33(c)-Ntl Ctlmn Directtions.indd 1

10/4/2016 8/10/16 2:05:53 7:57 PMAM


M A RK E T

U PDAT E

decline 8-10 percent year-over-year in 2017. Cyclically, cattle prices are forecast to post year-on-year declines through 2018.

Continued from page 32

LMIC expects the annual average

price in 2016 for fed steers will be down 16-18 percent compared to

2015 (5-market average in the low

current LMIC forecast is for fed

During the next two years, the major uncertainty regarding cattle prices is not supply; the U.S. will be increasing beef production. The question is demand – both domestically and especially that of foreign buyers. Relatively strong export demand would mitigate how much cattle prices decline and set the stage for a quicker price stabilization and then rebound.

year-over-year. LMIC forecasts

International Trade: Recent Announcements

around 4-6 percent and calves to

Trade relationships, exchange rates, and economic growth rates

$120s per cwt.). The lowest cattle prices this year (2016) will be in the fourth quarter. For this year, LMIC projects annual average

prices of 700-to 800-pound steers will be 28 percent to 30 percent

below 2015 and 500-to 600-pound steer price to be 32 percent to 33 percent below 2015. In 2017, the

cattle prices to decline 4-5 percent feeder animal prices to decrease

in other countries all impact the export demand profile. Those are difficult to anticipate, especially in the current geopolitical environment. LMIC preliminary forecasts already incorporate U.S. beef export tonnage to post gains in both 2017 and 2018. But how much of an increase those export levels will really experience will be important. Two recent announcements merit more discussion. As of the beginning of August, USDA announced the opening of fresh beef trade with Brazil. Second, as of mid-September, China’s government lifted its 13 year ban Continued on page 57

US BEEF INDUSTRY EXPORT VALUES Annual

Bil. $ 10 9 8 7 6 5

4 3 2 1 0

1989

1992

Live Cattle

1995

Beef & Veal

1998

2001

Hides & Skins

2004

2007

Variety Meats

2010

2013

Tallow & Greases

Data Source: USDA-FAS, Compiled & Analysis by LMIC Livestock Marketing Information Center

34 NATIONAL CATTLEMEN

2016 Directions.indd 34

DIRECTIONS 2016

10/4/2016 2:05:53 PM


DIRECTIONS Statistics The National Cattlemen’s Beef Association is pleased to present the 21st annual edition of Directions. This special edition of National Cattlemen includes useful beef industry trends and statistics, as well as information about NCBA and current priorities. The information included in this section is compiled annually by CattleFax over the course of several months. The information comes from open, voluntary and proprietary sources. While every effort is made to ensure the information contained

within is accurate, some individual operations may have been overlooked and others may have chosen not to be included. If you would like to participate in next year’s listings, please contact NCBA at 866-BEEF-USA and request to be included in the 2017 mailing. Please note that all listings must meet the rankings criteria in order to be considered. We hope you find the information included in this issue useful as you make decisions about your operation.

Cattle and Calves on Farms (000 head)

2015

Jan. 1, 2016 • Cattle and calf numbers up 2 percent at 92 million head, up from 89.1 million head the previous year. Smallest increase was in Region II and VI.

2015 Region VII Kansas Nebraska North Dakota South Dakota Total

2015 Region V Alaska Colorado Idaho Montana Oregon Washington Wyoming Total

TREND

19.6% 5,900 6,250 1,640 3,700 17,490

TREND UP UP UP UP UP

2016 19.9% 6,250 6,450 1,700 3,950 18,350

2015

TREND

2016

Region III 16.6% 16.5% Illinois 1,120 UP 1,180 Iowa 3,850 UP 3,950 Minnesota 2,320 UP 2,420 Missouri 4,000 UP 4,100 Wisconsin 3,500 FLAT 3,500 Total 14,790 UP 15,150

Region I 12.1% Indiana 870 Kentucky 2,050 Maryland 185 Michigan 1,120 New England* 510 New York 1,440 Ohio 1,240 Pennsylvania 1,530 Virginia 1,470 West Virginia 370 Total 10,785

TREND

2016

12.0% UP 890 UP 2,170 UP 190 UP 1,150 UP 512 UP 1,460 FLAT 1,240 UP 1,600 UP 1,480 UP 390 UP 11,082

*Connecticut, Delaware, Maine, Massachusetts, New Hampshire, New Jersey, Rhode Island and Vermont

2016

12.4% 12.5% 10 UP 11 2,550 UP 2,700 2,280 UP 2,400 2,500 UP 2,650 1,300 UP 1,320 1,150 FLAT 1,150 1,300 UP 1,310 11,090 UP 11,541

2015 2015 Region VI 9.7% Arizona 880 California 5,100 Hawaii 133 New Mexico 1,330 Nevada 430 Utah 780 Total 8,653

CattleFax charts and graphs_2016.indd 1

TREND UP UP UP UP UP UP UP

2016 9.7% 900 5,200 140 1,380 435 830 8,885

2015 Region IV 20.1% Arkansas 1,630 Oklahoma 4,550 Texas 11,700 Total 17,880

TREND

2016

19.8% UP 1,700 UP 4,850 FLAT 11,700 UP 18,250

TREND

2016

Region II 9.5% 9.7% Alabama 1,200 UP 1,250 Florida 1,680 UP 1,690 Georgia 1,030 UP 1,100 Louisiana 790 DOWN 780 Mississippi 900 UP 940 North Carolina 800 FLAT 800 South Carolina 335 UP 340 Tennessee 1,720 UP 1,830 Total 8,455 UP 8,730

10/4/2016 3:09:47 PM


Top 25 Seedstock Operators 7

9

20 17 16 5 4 , 6 13 18 19 24 11 12 & 15 7 14 21 8 22 2

1 25 3

9

23

1

Express Ranches Yukon, OK

2

Gardiner Angus Ranch Ashland, KS

Robert A. Funk, Owner Jarold Callahan, CEO Additional Locations: New Mexico Alabama Subsidiaries: Express UU Bar Ranch, Xcel Feedyard, Vista Farms Combined Ranch Acres: 200,000 Total Marketings: 4,700 Breeds Utilized: Angus and Hereford

The Henry Gardiner Family, Owners Mark Gardiner, CEO Additional Locations: N/A Subsidiaries: N/A Combined Ranch Acres: 46,000 Total Marketings: 3,500 Breeds Utilized: Angus

6

7

DeBruycker Charolais Dutton, MT

DeBruycker Family, Owners Lloyd DeBruycker, CEO Additional Locations: N/A Subsidiaries: N/A Combined Ranch Acres: N/A Total Marketings: 1,155 Breeds Utilized: Charolais

2016 Directions.indd 36

Thomas Angus Ranch Baker City, OR

The Thomas Family, Owners Rob Thomas, CEO Additional Locations: Wyoming Subsidiaries: ET Northwest, LLC Combined Ranch Acres: 6,000 Total Marketings: 1,071 Breeds Utilized: Angus

3

44 Farms

Cameron, TX

Bob McClaren, Owner Doug Slattery, CEO Additional Locations: N/A Subsidiaries: 44 Steaks Combined Ranch Acres: N/A Total Marketings: 2,128 Breeds Utilized: Angus

8

Powerline Genetics Arapahoe, NE

Genus/ABS Global, Owners Dan Dorn, Manager Additional Locations: Tennessee Subsidiaries: N/A Combined Ranch Acres: N/A Total Marketings: 1,050 Breeds Utilized: SimAngus

4

Vermilion Ranch Billings, MT

5

Sitz Angus Ranch

Harrison, MT

Pat Goggins Family, Owners Joe Goggins, CEO Additional Locations: N/A Subsidiaries: N/A Combined Ranch Acres: 35,000 Total Marketings: 1,500 Breeds Utilized: Angus

Jim & Bob Sitz, Owners N/A, CEO Additional Locations: N/A Subsidiaries: N/A Combined Ranch Acres: N/A Total Marketings: 1,364 Breeds Utilized: Angus

9

9

Langford Herefords

Okmulgee, OK

BB Cattle Co. Connell, WA

Tie Leon Langford & Family, Owners Watson Langford, CEO Additional Locations: N/A Subsidiaries: N/A Combined Ranch Acres: 4,000 Total Marketings: 1,000 Breeds Utilized: Hereford, Baldie Hybrids

W.T. Bill Bennett & Joe Bennett, Owners Joe Bennett, CEO Additional Locations: Texas Subsidiaries: BT Cattle Co., Nelson Polled Herefords Combined Ranch Acres: 3,000 Total Marketings: 1,000 Breeds Utilized: Hereford, Angus & Braford

10/4/2016 2:05:54 PM


2016 Directions.indd 37

10/4/2016 2:05:57 PM


11

Shaw Cattle Co. Caldwell, ID

12

Riverbend Ranch

Idaho Falls, ID

Greg, Tucker & Sam Shaw Familes, Owners Greg Shaw, CEO Additional Locations: N/A Subsidiaries: N/A Combined Ranch Acres: 3,270 Total Marketings: 965 Breeds Utilized: Horned & Polled Hereford, Angus, Red Angus

Frank & Belinda VanderSloot, Owners Steve Harrison, Manager Additional Locations: Montana Subsidiaries: N/A Combined Ranch Acres: N/A Total Marketings: 915 Breeds Utilized: Angus

16

17

KG Ranch

Three Forks, MT

Paul Doddridge, Owner Greg Strohecker, CEO Additional Locations: N/A Subsidiaries: N/A Combined Ranch Acres: 60,000 Total Marketings: 875 Breeds Utilized: Angus

21

Schurrtop Angus & Charolais Maywoood & Farnam, NE

John, Marty & Ryan Schurr Owners John Schurr, CEO Additional Locations: N/A Subsidiaries: N/A Combined Ranch Acres: N/A Total Marketings: 625 Breeds Utilized: Angus, Charolias

2016 Directions.indd 38

Eaton Charolais Lindsay, MT

13

Schaff Angus Valley St. Anthony, ND

Kelly Schaff, Owner and CEO Additional Locations: N/A Subsidiaries: N/A Combined Ranch Acres: 15,000 Total Marketings: 914 Breeds Utilized: Angus

18

Bieber Red Angus Leola, SD

Eaton Family, Owners Lee Eaton, CEO Additional Locations: N/A Subsidiaries: N/A Combined Ranch Acres: N/A Total Marketings: 850 Breeds Utilized: Charolais

Craig & Peggy Bieber, Ron & Lois Bieber, Owners

22

23

Fink Beef Genetics

Randolph, KS

Fink Family - Megan, Lori and Galen, Owners Galen Fink, CEO Additional Locations: N/A Subsidiaries: N/A Combined Ranch Acres: N/A Total Marketings: 616 Breeds Utilized: Angus, Charolais

Craig Bieber, CEO Additional Locations: N/A Subsidiaries: RAB Ranch Combined Ranch Acres: 11,000 Total Marketings: 831 Breeds Utilized: Red Angus

HeartBrand Beef Flatonia, TX

Beeman Family, Owners Bill Fielding, CEO Additional Locations: Texas, South Dakota, New Mexico, Arkansas, Idaho Subsidiaries: CertiďŹ ed Akaushi Beef, Bovina Feeders, American Akaushi Association, Caviness Beef Packers Combined Ranch Acres: N/A Total Marketings: 600 Breeds Utilized: Akaushi

14

Nichols Farms Ltd. Bridgewater, IA

15

Ludvigson Stock Farms Billings, MT

Family Ownership J. David Nichols, CEO Additional Locations: Wisconsin Subsidiaries: Nichols Farms, Wisconsin Division Combined Ranch Acres: N/A Total Marketings: 900 Breeds Utilized: Angus, Simmental, South Devon

The Ludvigson, Newberry Families, Owners Ryan Ludvigson, CEO Additional Locations: Iowa, North Dakota, Nevada, Missouri, Oregon Subsidiaries: LN Cattle Company Combined Ranch Acres: 8,000 Total Marketings: 881 Breeds Utilized: Red Angus, Simmental

19

20

Wulf Cattle Morris, MN

Riverview dba Wulf Cattle, Owner Jerry Wulf, CEO Additional Locations: Nebraska, South Dakota Subsidiaries: N/A Combined Ranch Acres: 63,000 Total Marketings: 700 Breeds Utilized: Limousin, LimFlex, Angus

24

Schiefelbein Farms Kimball, MN

Schiefelbein Family, Owners Don Schiefelbein, CEO Additional Locations: N/A Subsidiaries: N/A Combined Ranch Acres: 5,500 Total Marketings: 595 Breeds Utilized: Angus, Simmental, Balancer

Stevenson’s Diamond Dot Cattle Hobson, MT

Clint & Adana Stevenson Family, Owners Clint Stevenson, CEO Additional Locations: N/A Subsidiaries: N/A Combined Ranch Acres: N/A Total Marketings: 640 Breeds Utilized: Angus

25

J.D. Hudgins, Inc. Hungerford, TX

J.D. Hudgins, Inc., Owners Coleman H. Locke, President Additional Locations: N/A Subsidiaries: N/A Combined Ranch Acres: 14,000 Total Marketings: 592 Breeds Utilized: Brahman

10/4/2016 2:05:57 PM


2016 Directions.indd 39

10/4/2016 2:05:58 PM


Top 25 Cow-Calf Operators 24

9 2 22

19 4

15

6 13 7

11 20 17

18

23 3

1

Deseret Cattle & Citrus St. Cloud, FL

Head Office: St. Cloud, FL Owner: Farmland Reserve CEO: K. Erik Jacobson Subsidiaries: N/A Acreage: 295,000 States of Operation: Florida

6

Padlock Ranch Company Ranchester, WY

Head Office: Ranchester, WY Owner: Scott Family Subsidiaries: N/A CEO: Trey Patterson Acreage: 450,000 States of Operation: Wyoming

2

JR Simplot Co. Boise, ID

Head Office: Boise, ID Owner: Simplot Family CEO: Thomas J. Basabe Subsidiaries: Simplot Livestock Co. Acreage: Approximately 4 million States of Operation: Idaho, Oregon, Utah, Nevada

7

Matador Cattle Company

Head Office: Wichita, KS Owner: Koch Industries CEO: Damon Cox Subsidiaries: Koch Industries Acreage: N/A States of Operation: Kansas, Texas, Montana

40 NATIONAL CATTLEMEN

2016 Directions.indd 40

Wichita, KS

3

King Ranch Houston, TX

Head Office: Houston, TX Owner: King Ranch Family CEO: Robert Underbrink Subsidiaries: N/A Acreage: 830,000 States of Operation: Florida, New Mexico, Texas

8

Seminole Tribe of Florida Inc. Brighton, FL

Head Office: Brighton, FL Owner: Seminole Tribe of Florida Inc. CEO: Alex Johns Subsidiaries: N/A Acreage: 43,800 States of Operation: Florida, Georgia

4

25 10 1 5 & 8 12 14 21 Silver Spur Land and Cattle Encampment, WY

Head Office: Encampment, WY Owner: John and Leslie Malone CEO: Thad York Subsidiaries: N/A Acreage: N/A States of Operation: Colorado, Nebraska, New Mexico, Wyoming

9

Parker Ranch Kamuela, HI

Head Office: Kamuela, HI Owner: Parker Ranch Inc. CEO: Neil “Dutch” Kuyper Subsidiaries: N/A Acreage: 130,000 States of Operation: Hawaii

5

16 Lykes Bros. Inc. Brighton, FL

Head Office: Brighton, FL Owner: Lykes Bros. Inc. CEO: Charles P. Lykes, Jr. Subsidiaries: N/A Acreage: N/A States of Operation: Florida

10

Lightsey Cattle Co.

Lake Wales, FL

Head Office: Lake Wales, FL Owner: Cary and Layne Lightsey CEO: N/A Subsidiaries: N/A Acreage: 42,946 States of Operation: Georgia

DIRECTIONS 2016

10/4/2016 2:05:59 PM


11

Singleton Properties, LLC Lamy, NM

Head Office: Lamy, NM Owner: Singleton Family CEO: Will Singleton Subsidiaries: N/A Acreage: 1.3 million States of Operation: New Mexico, California

16

Adams Ranch Inc. Ft. Pierce, FL

Head Office: Ft. Pierce, FL Owner: Adams Family CEO: Michael Adams Subsidiaries: N/A Acreage: 50,000 States of Operation: Florida, Georgia

21

Immokalee Ranch Immokalee, FL

Head Office: Immokalee, FL Owners: The Colliers Subsidiaries: N/A CEO: C.W. “Buzz” Stoner, Jr. Acreage: 60,000 States of Operation: Florida

12

Okeechobee, FL

Head Office: Okeechobee, FL Owner: Williamson Cattle Company CEO: Wes Williamson Subsidiaries: N/A Acreage: N/A States of Operation: Florida, Alabama, Texas

17

Spade Ranches Lubbock, TX

Head Office: Lubbock, TX Owner: Chappell and Bassham Families Subsidiaries: N/A CEO: Wesley Welch Acreage: 26,000 States of Operation: Missouri

22

Duane Martin Jr. Livestock Elk Grove, CA

Head Office: Elk Grove, CA Owner and CEO: Duane Martin, Jr. Subsidiaries: N/A Acreage: N/A States of Operation: Oregon, Wyoming, Colorado, Idaho, Nebraska

41 NATIONAL CATTLEMEN

2016 Directions.indd 41

Williamson Cattle Company

13

True Ranches Casper, WY

Head Office: Casper, WY Owner: True Family CEO: David L. True Subsidiaries: N/A Acreage: N/A States of Operation: Wyoming

18

Circle A Angus Iberia, MO

Head Office: Iberia, MO Owner: The Gust Family Subsidiaries: N/A CEO: Mark Akin Acreage: 30,000 States of Operation: Missouri

23

Pitchfork Land and Cattle Guthrie, TX

Head Office: Guthrie, TX Owner: Williams Family CEO: Mrs. Mary Randolph Ballinger Subsidiaries: N/A Acreage: 182,520 States of Operation: Texas, Oklahoma

14

Alico, Inc. La Belle, FL

Head Office: La Belle, FL Owner: N/A CEO: J.D. Alexander Subsidiaries: N/A Acreage: N/A States of Operation: Florida

19

Riverbend Ranch

Idaho Falls, ID

Head Office: Idaho Falls, ID Owner: Frank and Belinda VanderSloot General Manager: Steve Harrison Subsidiaries: N/A Acreage: N/A States of Operation: California, Texas, Utah, Montana

24

Ponoholo Ranch, Ltd. Kohala, HI

Head Office: Kohala, HI Owner: von Holt Family CEO: Sabrina White Subsidiaries: N/A Acreage: 13,000 States of Operation: Hawaii

15

Duane Martin Livestock Ione, CA

Head Office: Ione, CA Owner: Duane Martin CEO: Duane Martin Subsidiaries: N/A Acreage: N/A States of Operation: Oregon, Nevada, Wyoming, Colorado, Nebraska

20

Cactus Feeders Amarillo, TX

Head Office: Amarillo, TX Owner: 100% Employee Owned CEO: Mike Engler Subsidiaries: N/A Acreage: N/A States of Operation: Kansas

25

A. Duda and Sons Inc. Oviedo, FL

Head Office: Oviedo, FL Owner: Duda Family CEO: N/A Subsidiaries:: N/A Acreage: N/A States of Operation: Florida

DIRECTIONS 2016

10/4/2016 2:05:59 PM


Top 20 Feedlots 6 19 1

14

16

13

1

JBS Five Rivers, LLC Greeley, CO

Head Office: Greeley, CO Owner: JBS Swift Subsidiaries: J&F Oklahoma CEO: Mike Thoren Capacity: 975,000 Number of Yards: 12 States of Operation: Arizona, Texas, Oklahoma, Kansas, Colorado, Idaho, Alberta, CN

2016 Directions.indd 42

2

15 10 6 11 5 8 4 20 16 2 , 3, 8 & 12

Cactus Feeders Amarillo, TX

Head Office: Amarillo, TX Owner: 100% Employee Owned Subsidiaries: Spike Box Land & Cattle Co. CEO: Mike Engler Capacity: 527,000 Number of Yards: 9 States of Operation: Texas, Kansas

3

Friona Industries, L.P. Amarillo, TX

Head Office: Amarillo, TX Owner: Privately Held Subsidiaries: Friona Ag. Credit Corp. CEO: Brad Stout Capacity: 300,000 Number of Yards: 4 States of Operation: Texas

4

Cargill Cattle Feeders Wichita, KS

Head Office: Wichita, KS Owner: Cargill Subsidiaries: N/A CEO: Todd Allen Capacity: 293,000 Number of Yards: 4 States of Operation: Texas, Kansas, Colorado

5

Catttle Empire LLC Satanta, KS

Head Office: Satanta, KS Owner: Roy N. Brown, Paul J. Brown, Rex A. Brown, Pam Kells, Ronald C. Shortridge and DeeAnn Brown Subsidiaries: 4BK Cattle Co. LLC, Sante Fe Trail Dairy LLC, Empire Dairy Services LLC, Empire Calf Ranch LLC CEO: Roy N. Brown Capacity: 243,000 Number of Yards: 5 States of Operation: Kansas

10/4/2016 2:06:00 PM


Driving Your Cattle Feeding Business Forward With a Special Breed of Financial Strength Helping your business thrive in today’s evolving industry is what our Agri-business team does best. That’s why we’re proud to support the National Cattlemen’s Beef Association. W. Ashley Allen Bank of America Merrill Lynch 806.463.3911 baml.com/agribusiness

“Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and members of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed. ©2013 Bank of America Corporation 09-13-0323

AD-09-13-0323.indd 2016 Directions.indd 431

10/4/2016 9/23/13 2:06:01 5:55 PMPM


6

J. R. Simplot Co. Boise, ID

6

Foote Cattle Co. Bucyrus, KS

8

Irsik & Doll Feed Services, Inc. Cimarron, KS

Tie Head Office: Boise, ID Owner: Simplot Family CEO: Thomas J. Basabe Subsidiaries: Simplot Livestock Co. Capacity: 230,000 Number of Yards: 2 States of Operation: Idaho, Washington

11

Innovative Livestock Services Inc. Great Bend, KS

Head Office: Great Bend, KS Owner: Privately Held CEO: Jerry Kuckelman Subsidiaries: Beef Marketing Group, ILS Land LLC Capacity: 180,000 Number of Yards: 8 States of Operation: Kansas, Nebraska

16

Dinklage Feed Yard, Inc. Sidney, NE

8

Oppliger Feedyard, Inc. Amarillo, TX

Tie Head Office: Bucyrus, KS Owner: Bob Foote Family CEO: Bob Foote Subsidiaries: N/A Capacity: 230,000 Number of Yards: 5 States of Operation: Kansas, Nebraska

12

Tejas Feeding Group Amarillo, TX

Head Office: Amarillo, TX Owner: Mike Smith CEO: Mike Smith Subsidiaries: Tejas Trading Company Capacity: 155,000 Number of Yards: 4 States of Operation: Texas

16

Bar-G Feedyard

Hereford, TX

Head Office: Cimarron, KS Owner: Privately Held CEO: John M. Petz Subsidiaries: Grain Division Capacity: 215,000 Number of Yards: 6.5 States of Operation: Kansas

13

Pinal Feeding Co. Laveen, AZ

Head Office: Laveen, AZ Owner: Northside Hay Company CEO: Earl Petznick, Jr. Subsidiaries: Sacate Pellet Mills Capacity: 145,000 Number of Yards: 3 States of Operation: Arizona

16

Barrett-Crofoot, Inc. Hereford, TX

Head Office: Amarillo, TX Owner: Don Oppliger CEO: Don Oppliger Subsidiaries: N/A Capacity: 215,000 Number of Yards: 6 States of Operation: Nebraska, New Mexico

14

Harris Feeding Co. Coalinga, CA

Head Office: Coalinga, CA Owner: John C. Harris CEO: David E. Wood Subsidiaries: Harris Farms, Harris Ranch Beef Co. Capacity: 135,000 Number of Yards: 2 States of Operation: California, Nevada

19

Agri Beef Co. Boise, ID

10

Gottsch Livestock Feeders Elkhorn, NE

Head Office: Elkhorn, NE Owner: Brett and Bill Gottsch CEO: Brett Gottsch Subsidiaries: N/A Capacity: 195,000 Number of Yards: 3 States of Operation: Nebraska

15

Adams Land & Cattle, LLC Broken Bow, NE

Head Office: Broken Bow, NE Owner: Bill and Jerry Adams CEO: Jerry Adams Subsidiaries: Paul Johnson & Sons Capacity: 126,000 Number of Yards: 3 States of Operation: Nebraska

20

Hitch Enterprises, Inc. Guymon, OK

Tie Head Office: Sidney, NE Owner: Shareholders CEO: Rex Trumbull Subsidiaries: N/A Capacity: 125,000 Number of Yards: 4 States of Operation: Nebraska, Wyoming, Colorado

Head Office: Hereford, TX Owner: Livestock Investors LTD CEO: Johnny Trotter Subsidiaries: N/A Capacity: 125,000 Number of Yards: 2 States of Operation: Texas

44 NATIONAL CATTLEMEN

2016 Directions.indd 44

Head Office: Hereford, TX Owner: Barrett Families CEO: Ed Barrett Subsidiaries: N/A Capacity: 125,000 Number of Yards: 2 States of Operation: Texas

Head Office: Boise, ID Owner: Rebholtz Family CEO: Robert Rebholtz Jr. Subsidiaries: AB Foods LLC, Performix Nutrition LLC Capacity: 115,000 Number of Yards: 5 States of Operation: Washington, Idaho

Head Office: Guymon, OK Owner: Hitch Family CEO: Chris and Jason Hitch Subsidiaries: Henry C. Hitch Feedlot Inc., Hitch Feeders 1 Inc. Capacity: 111,000 Number of Yards: 2 States of Operation: Oklahoma DIRECTIONS 2015

10/4/2016 2:06:01 PM


2016 Directions.indd 45

10/4/2016 2:06:04 PM


Top 10 Beef Slaughter Operations 1

Tyson Foods, Inc. Springdale, AR

2

JBS USA, LLC Greeley, CO

3

Cargill Meat Solutions Wichita, KS

4

National Beef Packing Company, LLC Kansas City, MO

Leucadia National Corp, U.S. Premium Beef, LLC & others, Owners Tim Klein, CEO

5

American Foods Group Green Bay, WI

Publicly traded company Donnie Smith, CEO

JBSSA Brazil, Owner Andre Nogueira, CEO

Cargill, Inc., Owner Bill Keating, CEO

Subsidiaries: N/A

Subsidiaries: N/A

Subsidiaries: N/A

Subsidiaries: National Carriers, Inc. National Beef Leathers, LLC, Kansas City Steak Company, LLC

Subsidiaries: N/A

Daily Slaughter Capacity:

Daily Slaughter Capacity

Daily Slaughter Capacity

Daily Slaughter Capacity:

Daily Slaughter Capacity:

N/A

27,125

29,000

2015 Sales: $17.2 Billion

2015 Sales: $15 Billion

2015 Sales $11 Billion

2015 Sales: $7.7 Billion

2015 Sales: $3.1 Billion

Slaughter Total: N/A

Slaughter Total 6 Million

Slaughter Total 7 Million

Slaughter Total: N/A

Slaughter Total: N/A

Number of Beef Plants: N/A

Number of Beef Plants: 9

Number of Beef Plants: 8

Number of Beef Plants: 2

Number of Beef Plants: 10

6

Greater Omaha Packing Co., Inc. Omaha, NE

7

Nebraska Beef Omaha, NE

8

Caviness Beef Packers, Ltd. Hereford, TX

Henry Davis, Owner Henry Davis, CEO

Corporate Owners William Hughes, CEO

Caviness Packing Co., Owner Terry Caviness, CEO

Subsidiaries: High Country Meats, Trex, Go Express Transportation

Subsidiaries: N/A

Daily Slaughter Capacity:

Daily Slaughter Capacity:

2,9002,800

2,500

Rosen’s Diversified Inc., Owner Steven W. Van Lannen, CEO

12,000

9

N/A

Agri Beef Company Boise, ID

10

Kane Beef

Corpus Christi, TX

Rebholtz Family, Owners Robert Rebholtz, Sr., CEO

Fernandez Family, Owners Alfredo Fernandez, CEO

Subsidiaries: Palo Duro Meat

Subsidiaries: AB Foods, LLC, PerforMix Nutrition Systems LLC

Subsidiaries: N/A

Daily Slaughter Capacity:

Daily Slaughter Capacity:

Daily Slaughter Capacity:

1,750

1,600

1,500

2015 Sales: $1.7 Billion

2015 Sales: N/A

2015 Sales: $650 Million

2015 Sales: N/A

2015 Sales: $450 Million

Slaughter Total: 700,000

Slaughter Total: N/A

Slaughter Total: 430,000

Slaughter Total: N/A

Slaughter Total: 200,000

Number of Beef Plants: 1

Number of Beef Plants: 1

Number of Beef Plants: 1

Number of Beef Plants: 1

Number of Beef Plants: 1

Company Headquarters

2016 Directions.indd 46

10/4/2016 2:06:04 PM


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2016 Directions.indd 47

10/4/2016 2:06:05 PM


Total Meat Supply

67.50 Total Poultry 93.86

Total Poultry 94.27

59.58

Total Red Meat 108.63

Total Poultry 98.93 45.73

57.29

Total Red Meat 104.22

2013 15.95 202.56

Total Red Meat 104.32

Total Poultry 99.25 45.94

57.36 Total Poultry 96.68

82.10

46.82

56.35 Total Poultry 98.05

83.49

46.43

Total Red Meat 101.80

54.23 Total Poultry 99.02

88.99

49.87

Total Red Meat 104.98

54.01

14. 1. T e xas 1. T e

.1% nia

.40 .91

.37

.84

.33

.85

.30 .85

.30

.85

.26

Cattle on Feed (000) Head All Other States 14.76% 2,002 8. M inne sot a 7. S. D akota 3.1% 3.3% 6. California 3.4%

5.C

.84

Total Poultry 104.71

%

47.74

U.S. Total 9,315

%

Total Poultry 96.99

.98

sin 13.7%

6.6

Total Red Meat 112.61

.40

2. Wisco n

rk Yo

61.10

50.13

4.3% % gan i 4.9 h ic ota 8. M s e nn Mi 7.

Top Ten 72.10% 6,712

do olora

.1%

Total Poultry 101.09

All Other States 27.90% 2,603

19

Total Red Meat 113.58

1.13

.41 1.00

62.70

49.47

83.47

80.67

19

Total Poultry 102.75

Total Red Meat 117.54

83.21

.40

65.23

ka

50.78

82.56

.43 1.05

65.82 Total Poultry 103.54

85.21

Dairy Cattle (000) Head

for

49.41

Total Red Meat 116.72

Total Red Meat 104.48

15.72

Total Poultry 102.56

86.62

79.74

.46 1.06

65.58

Total Red Meat 117.16

2012 16.01 201.17

2014 15.53 200.54

50.05

na 6.2

2011 16.04 203.56

Total Poultry 102.88

85.84

1.13

U.S. Total 91,988

ew

2010 16.37 207.56

Total Red Meat 119.16

.50

66.15

ia 4. Ind

2009 16.91 209.27

51.37

85.32

Top Ten 57.40% 52,650

N 3.

2008 17.62 214.67

Total Poultry 99.09

ali

2007 17.54 220.29

Total Red Meat 118.49

1.12

.58

64.95

3. Kansas 6.8% 4. C alifo 5. rnia Ok 5.7% lah om a5 .3%

1. C

2006 16.93 220.26

51.84

81.65

e

.0%

5% i 4. our iss % a 4.3 7. Iow

2005 16.72 219.72

Total Poultry 98.38

2. N

All Other States 42.76% 39,338

a7

6. M

2004 17.07 221.54

.59 1.18

67.72

sk bra

ras

51.55

80.66

U.S. Total 30,330

Total Cattle (000) Head

.59 1.14

66.29

Total Red Meat 118.33

1.12

% 3. Missouri 6.3 4. Ne b 5. S raska 6 .1% .D ak ota 5.6 %

Top Ten 57.9% 17,783

12.

Total Poultry 94.31 50.30

.66

.4%

6.9%

Io 4.

wa

% 9.3

Top Ten 84.8% 11,175

eb

Total Red Meat 120.65

1.14

a6

7%

67.64

51.23

.70

om

1. N

Total Red Meat 121.99

76.73

xas

Total Poultry 89.17 52.66

1.16

.80

66.69

ah Okl

2. Te x

as 18

.5%

U.S. Total 13,177

3. Kansas 16.9%

51.46

Total Red Meat 121.03

2003 17.44 217.58

2015 209.69

Total Poultry 88.67

2.

3.8% 8. S. Dakota 4.2%

2002 219.42

17.73

65.70

Total Red Meat 115.63

76.96

1.08

All Other States 42.1% 12,783

a 5.7%

2001 17.53 212.59

Total Poultry 87.36 47.83

76.31

1.01

67.13

Total Red Meat 117.72 71.38

1.09

5. Pennsylvani

48.33

1.16

9. Wis c

2000 17.35 214.96

Total Poultry 85.56

10. F lorid a 9. Iowa 3 3.0% .1% 8. Kentucky 3.4%

Total Red Meat 120.45 69.18

.99 1.15

66.58

onsin

51.72

67.91

72.04 1998 17.67 17.67 209.81 Total Red Meat 120.10 1999 17.55 215.84

Total Poultry 86.37

% 4.9 ana ont 6. M nsas 4.9% 7. Ka

1997 17.29 204.30

Total Red Meat 120.84

Beef Cows (000) Head

5.1%

1996 18.19 205.09

66.29

52.47

xas

1995 17.64 206.01

68.73

Top 10 Cattle Numbers

1.17

6. T e

1994 17.64 207.21

.91

1%

Millions of pounds

0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230

Turkey Chicken

2016 Directions.indd 48

Pork

Beef

Veal

Lamb

10/4/2016 2:06:06 PM


#BEEFMEET

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2016 Directions.indd 49

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8/22/2016 3:37:34 PM

10/4/2016 2:06:07 PM


Live Canadian Imports 2000

Fed Steer/Heifers Cows/Bulls

642,160

154,402 828,321

Fed Steer/Heifers

2001 229,772

Cows/Bulls

Fed Steer/Heifers

2002 Cows/Bulls

374,421

Fed Steer/Heifers

2003

775,827

319,372

102,587

Cows/Bulls

2004 – Fed Steer/Heifers – Cows/Bulls Fed Steer/Heifers

2005

310,241

Cows/Bulls 132 704,248

Fed Steer/Heifers

2006 – Cows/Bulls

806,947

Fed Steer/Heifers

2007 Cows/Bulls

17,641 Fed Steer/Heifers

2008

Cows/Bulls

637,623

198,663 Fed Steer/Heifers

2009

Cows/Bulls

537,293

213,229 611,789

Fed Steer/Heifers

2010

Cows/Bulls

227,467 406,412

Fed Steer/Heifers

2011

Cows/Bulls

190,873 415,499

Fed Steer/Heifers

2012

Cows/Bulls

260,022

Fed Steer/Heifers

2013

347,625

Cows/Bulls

376,390

Fed Steer/Heifers

2014

377,395

Cows/Bulls Fed Steer/Heifers

2015

345,786 217,410 297,024

Cows/Bulls 0

50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 550,000 600,000 650,000 700,000 750,000 800,000 850,000

Feed and Grain

8 7

Barley $5.30

6

Wheat $5.50

5 4

Corn $3.65

3

Sorghum $3.25

2 1 0

2000

Barley

2016 Directions.indd 50

2001

2002

Sorghum

2003

Corn

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Wheat 10/4/2016 2:06:07 PM


Canada

Feeder Imports

0 25K 50K 75K 100K 125K 150K 175K 200K 225K 250K 275K 300K 325K 350K 375K 400K 425K 450K 475K 500K 525K 550K 575K 2002

Mexico

0 100K 200K 300K 400K 500K 600K 700K 800K 900K 1,000K 1,100K 1,200K 1,300K 1,400K 1,500K 2001

2002

2003

2003 – – – – – –

2004 2004 2005 2005 2006 2006 2007 2007 2008

2008

2009

2009

2010

2010

2011 2011 2012 2012 2013 2013

2014

2014

2015

2015

0 25K 50K 75K 100K 125K 150K 175K 200K 225K 250K 275K 300K 325K 350K 375K 400K 425K 450K 475K 500K 525K 550K 575K

Washington North Dakota

2016 Directions.indd 51

Idaho Montana Other States U.S. Total

0 100K 200K 300K 400K 500K 600K 700K 800K 900K 1,000K 1,100K 1,200K 1,300K 1,400K 1,500K

Arizona

New Mexico Texas California had no imports.

U.S. Total

10/4/2016 2:06:07 PM


Exports

Millions of pounds 2800 2700 2600

Mexico

2500

201

2400

Canada

961

2300 2200

794

2100

587

2000

781

1800

722

465

1700

528

1600 1500

152

1400 1300

918

1200

271

78

1100

1

900 800 600

1

500

1

400

586

300 200

58 12

2003

2,518 Million Pounds

Others

305

277

351

319 671

662

449 538

389 363 391

500 467

17

468

364 324

759

2005

2006

697 Million Pounds

628

586

2007

1,145 Million Pounds

2008

1,434 Million Pounds

1,996 Million Pounds

2009

1,935 Million Pounds

500

2010

2,300 Million Pounds

Imports

Millions of pounds

488

2011

2,785 Million Pounds

352 2012

2,452 Million Pounds

403 2013

2,590 Million Pounds

435

2014

2,573 Million Pounds

768

428

729

645

603

27

2016 Directions.indd 52

2004

888

663

66 107

792

566

189

88

99

89

2005

3,599 Million Pounds

2006

3,085 Million Pounds

2007

3,052Million Pounds

526

155

242

252

100

655

2008 2,538 Million Pounds

812

2009 2,626 Million Pounds

861

2010 2,298 Million Pounds

392

New Zealand Others

689

2011 2,057 Million Pounds

1083

1258

624

125 841

Mexico

252 495

Australia

457

1092 789

219

178

452

844

3,679 Million Pounds

50

63

740

2003

473 44

49 1062

517

527

900

63

3,006 Million Pounds

508 41

888

597 190

564

16

65

350

363

Canada Nicaragua

661

19

1129

2015

2,266 Million Pounds

216

686

1118

363

327

913

645

S. Korea

301

106

464

2004

274

339

660

460 Million Pounds

253

380

456

109

56 333

100

231

159

52 239

227

700

141

78

193

1000

3700 3600 3500 3400 3300 3200 3100 3000 2900 2800 2700 2600 2500 2400 2300 2200 2100 2000 1900 1800 1700 1600 1500 1400 1300 1200 1100 1000 900 800 700 600 500 400 300 200 100 0

Japan

879

1900

0

810

101

91

537

537

2012 2,220 Million Pounds

2013 2,250 Million Pounds

42 139

104

602

628

2014 2,947 Million Pounds

3,370 Million Pounds

2015

10/4/2016 2:06:07 PM


All Cattle and Calves State

2015 (1,000 head)

2016 (1,000 Head)

All Cows That Have Calved

Percent of Previous Year

2015 (1,000 Head)

2016 (1,000) Head

Percent of Previous Year

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

1,200.0 10.0 880.0 1,630.0 5,100.0 2,550.0 47.0 17.0 1,680.0 1,030.0 133.0 2,280.0 1,120.0 870.0 3,850.0 5,900.0 2,050.0 790.0 85.0 185.0 38.0 1,120.0 2,320.0 900.0 4,000.0 2,500.0 6,250.0 430.0 30.0 28.0 1,330.0 1,440.0 800.0 1,640.0 1,240.0 4,550.0 1,300.0 1,530.0 5.0 335.0 3,700.0 1,720.00 11,700.0 780.0 260.0 1,470.0 1,150 370.0 3,500.0 1,300.0

1,250.0 11.0 900.0 1,700.0 5,20.0 2,700.0 49.0 16.0 1,690.0 1,100.0 140.0 2,400.0 1,180.0 890.0 3,950.0 6,250.0 2,170.0 780.0 81.0 190.0 38.0 1,150.0 2,420.0 940.0 4,100.0 2,650.0 6,450.0 435.0 35.0 28.0 1,380.0 1,460.0 800.0 1,700.0 1,240.0 4,850.0 1,320.0 1,600.0 5.0 340.0 3,950.0 1,830.0 11,700.0 930.0 260.0 1,480.0 1,150.0 390.0 3,500.0 1,310.0

104% 110% 102% 104% 102% 106% 104% 94% 101% 107% 105% 105% 105% 102% 103% 106% 106% 99% 95% 103% 100% 103% 104% 104% 103% 106% 103% 101% 117% 100% 104% 101% 100% 104% 100% 107% 102% 105% 100% 101% 107% 106% 100% 106% 100% 101% 100% 105% 100% 101%

660.0 5.0 370.0 870.0 2,370.0 870.0 24.0 8.0 1,030.0 560.0 71.0 1,040.0 460.0 380.0 1,110 1,570.0 1,060.0 480.0 41.0 91.0 18.0 510.0 800.0 480.0 1,940.0 1,510.0 1,810.0 240.0 17.0 15.0 730.0 720.0 410.0 910.0 550.0 1,920.0 650.0 680.0. 2.0 185.0 1,710.0 920.0 4,600.0 420.0 144.0 730.0 475.0 194.0 1,550.0 700.0

680.0 4.0 375.0 900.0 2,400.0 920.0 25.0 8.0 1,040.0 590.0 75.0 1,100.0 490.0 380.0 1,150.0 1,630.0 1,080.0 465.0 40.0 92.0 18.0 530.0 810.0 510.0 2,0000.0 1,500.0 1,910.0 245.0 19.0 15.0 740.0 730.0 410.0 920.0 550.0 1,990.0 660.0 71.0 2.0 190.0 1,800.0 940.0 4,750.0 420.0 144.0 720.0 500.0 210.0 1,550.0 710.0

103% 93% 101% 103% 101% 106% 104% 100% 101% 105% 106% 106% 107% 100% 104% 104% 102% 97% 98% 101% 100% 104% 101% 106% 103% 99% 106% 102% 109% 100% 101% 101% 100% 101% 100% 104% 102% 104% 100% 103% 105% 102% 103% 100% 100% 99% 105% 108% 100% 101%

United States

89,143.0

91,988.0

103%

38,609.0

39,646.0

103%

2016 Directions.indd 53

10/4/2016 2:06:07 PM


Beef Production

Carcass Weights

2,800

830

2,700

810

824.17

820 800 790

2,600

780 770

2,500

760 2,400

750

2,369

740

2,300 2,200

730 720 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

700 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Per Capita Spending $690.49

700 650 600

Beef

550

Pork

500

Broilers

450 400

43.71% 43.58% 44.37% 45.11% 45.09% 46.40% 46.22% 46.06% 45.19% 44.98% 45.54% 46.30% 45.63% 46.42% 47.32%

350

Total % Beef

$326.74

300 250

$192.00

200 150 100

$171.75 2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Steer Prices 2001 $100.61 + 1% $92.64 + 1% $72.31 + 4%

2006 $138.50 - 1% $115.33 - 2% $85.97 - 2%

2002 $101.83 - 8% $84.42 - 9% $67.28 - 7%

2007 $130.30 - 6% $111.28 - 4% $92.66 + 8%

2012 $183.73 $155.44 + 7% $122.93

2003 $109.73 + 8% $92.85 + 10% $83.92 + 25%

2008 $122.86 + -6% $105.61 - 5% $92.71 0% 2009 $115.93 - 6% $100.66 - 5% $83.20 - 10%

2013 $185.23 $156.13 $125.86 + 2%

2004 + 18% $129.61 $110.33 + 19% $84.44 + 1%

450 lb

650 lb

Fed Steer

+ 13%

0%

+ 17%

+ 1%

2014

2010 $131.05 + 13% $113.78 + 13% $95.42 + 15% 60 80 100 120 140 160 180 200 220 240 260 280

2005 $140.08 + 8% $117.76 + 7% $87.66 + 4% 60 80 100 120 140 160 180 200 220 240 260 280

2016 Directions.indd 54

2011 $157.42 + 20% $137.76 + 21% $114.83 + 20%

$171.42 + 47% $223.24 + 43% $154.37 + 23% 2015 $282.93 + 4% $227.41 + 2% $148.27 - 4% 60 80 100 120 140 160 180 200 220 240 260 280

% Change from Previous Year

10/4/2016 2:06:08 PM


2016 Directions.indd 55

10/4/2016 2:06:12 PM


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56 NATIONAL CATTLEMEN

2016 Directions.indd 56

DIRECTIONS 2016

10/4/2016 2:06:12 PM


M A RK E T Continued from page 34

on U.S. beef imports (under 30 months of age). The ban is still in place for beef that is over 30 months in age. While the two announcements impact the U.S. beef industry differently, both countries are important. Because of the size of their industries and recent herd growth, only a few countries, including the United States and Brazil, are in good position over the next few years to fill the demand for beef of those countries with growing incomes. Importantly, Australia will be on the back burner as an exporter for a while as they transition out of a multi-year drought and begin to

Step 1

U PDAT E

required for dealing with E.-coli as it relates to non-whole muscle cuts (trim etc.), and Brazil’s growing foothold in other major markets.

rebuild herds; currently cattle prices are record-high there.

Some Points Regarding Brazil With regard to Brazil, here we leave the critical discussion of animal health and food safety to those with expertise in those arenas. While the U.S market is now open to fresh and frozen beef from Brazil (in recent years we have only allowed cooked items from that country), we do not expect a major influx of Brazilian product into the United States in the short run. That assessment is mainly due to U.S. Tariff Rate Quotas (TRQs) and the number of plants that can meet and maintain the high U.S. standards

To review, TRQs are assigned to countries exporting product to the United States, which do not have a free trade agreement with us. The total TRQ for beef from countries

without a free trade agreement or specific quota with the U.S. (defined as “Other Countries”) is 64,805 metric tons, and is used on a first-come, first-served basis. Brazil

falls into this “Other Countries” category. Once the quota is reached, any beef exported to the U.S. from “Other Countries,” over the

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www.BeefUSA.org

2016 Directions.indd 57

NATIONAL CATTLEMEN

57

10/4/2016 2:06:17 PM


M A RK E T maximum amount, is subject to a 26.4 percent ad valorem tax. Of course, the effect of this tax will all depend on the relative prices of beef between Brazil and the United States, and it is key to remember that Brazil does have a much lower cost of production for its cattle than the United States. Most of the imports that do come in from Brazil are expected to be lean beef for manufacturing and some ground items.

U PDAT E

holds in China and Russia, leads us to believe that relatively small levels of beef will be imported from Brazil at least for the first couple of years. If Brazil were to fulfill the full quota amount, it would compare to 15 percent of the total volume of beef (product weight) the U.S. imported from Australia in 2015. Importantly, even with Brazil selling fresh and frozen beef to the United States, LMIC forecasts the total tonnage of beef imported by the U.S. will continue to decline from the very high levels of 2015. The more important longer-term story may turn out to be how well the U.S. is able to compete

Last year, 68 percent of the 64,805 metric ton (142 million pounds product weight) quota was filled, primarily by Nicaragua, Honduras, Costa Rica and Ireland. This TRQ, along with the market share Brazil

with Brazilian product in foreign markets like Mexico and Asian countries. Brazil also offers some potential for U.S. exports, especially to higher-end restaurants. As with many other markets, the future potential of the Brazilian market comes as their economy recovers and with that the ability of the middle and upper class income consumers to afford high quality, grain-fed U.S. beef.

China Re-opens to U.S. Beef Moving on to China’s recent announcement that it would finally Continued on page 60

US BEEF AND VEAL EXPORTS Carcass Weight, Annual

Bil. Pounds 3.0 2.5 2.0

1.5 1.0 0.5 0.0

1993

1996

1999

2002

2005

2008

2011

2014

2017

Data Source: USDA-ERS & USDA-FAS, Compiled & Analysis by LMIC Livestock Marketing Information Center

58 NATIONAL CATTLEMEN

2016 Directions.indd 58

DIRECTIONS 2016

10/4/2016 2:06:17 PM


In a world full of nails, bring the hammer.

When a long list of chores stretch out in front of you, hit them head on with some big muscle.

That’s where the 6M comes in. It’s the mid-spec utility tractor built to stand toe to toe with big jobs on hardworking beef and dairy operations. No complaints, no quitting, no slowing down. Get up to 10,696 (4850 kg) pounds of hitch lift capacity, a maximum of 30 gpm (113 lpm) of pressure and flow compensated hydraulic power that cycles heavy loads fast, and a heavy-duty, full-frame chassis designed to lift, load, and carry the toughest stuff out there. The new 6M. Available in 110 to 195 engine horsepower. With three available transmissions – including the CommandQuad™ – and the option of cab, open station, 2WD and MFWD. Talk to your dealer about getting more done … with the new 6M.

2016 Directions.indd 59

More power. More getting work done. JohnDeere.com

10/6/2016 6:16:59 AM


M A RK E T Continued from page 58

re-open its markets to U.S. beef, it indicates important progress has been made. However, there are caveats regarding the details which are still to be worked out. So, the timeline is very uncertain and the details will be important as to how quickly exports ramp-up. China is a difficult market; even Australia has recently had issues exporting beef there, and they have rather open access. China’s ban on U.S. beef imports had been in place since 2003, due to a case of Bovine Spongiform Encephalopathy (BSE) from a Canadian-born cow. While the announcement states that China has lifted its ban on U.S. beef under 30 months of age, there are still many factors that will have to be discussed before any beef can actually be shipped to China. The U.S. Meat Export Federation has cautioned that China must now negotiate with USDA regarding the rules and regulations that U.S. beef sent to China will abide by. For approved cuts to be shipped to China, they will have to adhere to China’s quarantine and traceability

U PDAT E

standards. Additionally, LMIC thinks China will not allow any beef into the country that came from cattle raised with hormone growth promotants. It is also expected that China will not allow any beef from cattle raised with the use of ractopamine, as this is the standard for pork exports to China. It will take some time for U.S. beef suppliers to adjust to these standards as only a very small percentage of cattle raised in the United States are currently certified and traceable to fit the expected Chinese conditions. According to the Global Trade Information System, China’s main current international suppliers of beef are Brazil, Uruguay, Australia, and New Zealand. China’s import volume of beef has been growing significantly since 2011. Australia was the top provider at about 35 percent of that annual total in 2015. While it is extremely difficult

market share is for the United States in Chinese beef purchases, the reality is that the U.S. is very well positioned after the specific details are agreed upon. However, immediate results are not likely.

Will We Do It? Building demand, whether domestically or overseas, takes time, effort and a long-term commitment. For example, breaking down Chinese barriers remains slow and the negotiation is an intensive process. Building a solid customer base for U.S. beef in China will take effort, too. The long-term rewards could be substantial for U.S. cattle producers, though, and growing beef export tonnage on a pace to at least help counteract the rate of U.S. production growth will be beneficial to overall cattle and beef prices domestically.

to speculate as to what realistic

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2016 Directions.indd 60

DIRECTIONS 2016

10/4/2016 2:06:31 PM


REDBOOK

2017 INTE GRATED RES OUR CE MAN AGE MEN T

For over thirty years cattlemen have used the IRM Redbook to enhance profitability by keeping better records, and to track the productivity of their cow-calf operations.

Features of the Redbook include: Guide for Judicious Use of Antimicrobials in Cattle Beef Quality Assurance Best Practices Injection Site Quality Control Calf Information Health Records AI Breeding Records

Customize your Redbook in quantities of 100 books or more. Volume discounts available. The non-customized Redbook will be $7.00 each, plus shipping. Visit www.beefusa.org Please contact Grace Webb at

(800) 525-3085

or at gwebb@beef.org for information on how to place a customized order. www.BeefUSA.org

2016 Directions.indd 61

NATIONAL CATTLEMEN

61

10/5/2016 7:45:45 PM


STATE OF THE

FEDER ATION

Getting to Know the U.S. Beef Consumer 62 NATIONAL CATTLEMEN

fixes.indd 4

Five people may provide five different routes to the same destination, and each of those routes may eventually end at the final point. But which route makes the most sense when all of the factors are considered? When deciding how to spend beef checkoff dollars to maximize impact on consumer beef demand, it’s an important question. DIRECTIONS 2016

10/7/2016 6:50:16 AM


Identifying who the beef consumer is and what they want is where it all starts, and the checkoff-funded national Consumer Beef Index (CBI) is an important tool in getting that done. Still, it obviously can’t explain everything about every consumer in every part of the country. In fact, when staff and boards at state beef councils take a look at the national numbers they may naturally wonder whether the picture represents their own beef www.BeefUSA.org

fixes.indd 5

consumers and the best route to reach them. Nationally, the checkoff-funded CBI, which is managed by staff at NCBA, a beef checkoff contractor, was started in 2006 as a meaningful, actionable, datadriven national performance measure to meet a beef industry Long Range Plan goal for a mechanism to track goals. It has continued on a bi-annual basis through 2015, with 18 “waves”

creating a combined national database of more than 19,500 consumers aged 13-65. The CBI measures changes in consumer perceptions of, and demand for, beef relative to other meat proteins; consumer impressions of beef that could be attributed to the industry’s communications and advertising efforts; areas of relative strength and potential vulnerability for beef sales; and market dimensions NATIONAL CATTLEMEN

63

10/7/2016 6:51:30 AM


STATE OF THE having an impact on national communication strategies. It paints effective pictures of U.S. beef consumers at the national level, and has been important in the development of national checkoff-funded programs that address consumer demand for beef. But by itself the research doesn’t distinguish between consumers geographically. That’s why since 2007 states have been allowed to customize that index to determine how their consumers differ from national scores for behavior and beliefs regarding beef and its primary competitors. Nuances within states might include how often consumers eat beef (consumers in beef production states tend to eat beef more often); the importance or reduced importance of production issues; competitive proteins (chicken is produced more commonly in some areas of the country); and distribution channels (big discounters are more prevalent in certain regions). Larger differences do exist, however. Even within what are commonly thought of as “beef

FEDER ATION

production states” there are some significant urban elements. While consumers in these urban areas are more knowledgeable on agricultural issues than consumers in, say, Los Angeles or New York City, they are still further removed from agriculture. And those are the kinds of things a state council board really wants to know. These boards are trying to make smart decisions in-state, and this information can help them set targets, and possibly close some gaps.

A Welcome Tool State beef councils have responded very well to the checkoff-funded information, which they can purchase at-cost through the national database. They recognize it’s difficult to get state-specific information, and can determine from the research if consumers in their state are different than those in other parts of the country.

2016 Directions.indd 64

Since individual state needs differ, state beef councils utilize the information they obtain in ways that are meaningful to their own volunteer producer boards. Some states use it to make their boards more knowledgeable, or to set key tracking goals.

Bottom Line Regardless how it’s used, CBI information is the kind of thirdparty research crucial to an industry that sometimes has a skewed perspective. Let’s face it: when you’re part of the industry you’re not totally objective. We’re too close to our product and our work.

Being involved in the CBI The research provides benchmarks allows national and state beef from which states can build some checkoff leaders and staff s to see programs. The CBI also infuses the consumer from a fresh and programs with direction and unbiased angle, and plan and elements on which to focus. Finally, develop programs accordingly. it maximizes value to producers in Everything done on behalf of the the state, as it improves checkoffbeef checkoff starts and ends with funded decisions by helping the consumer. determine where the best returns are. Many state marketing plans have information Supports these Long Range Plan Strategies: grow consumer trust in beef and beef from the CBI built in. If state councils find acquiring individual CBI

64 NATIONAL CATTLEMEN

data cost-prohibitive, they may join forces with other nearby councils to gather information. Last year, the councils in Nebraska, Missouri, Kansas and Iowa acquired data that would help them in their marketing plans. By joining together the “MINK” states gathered information useful in their efforts.

production; promote and strengthen beef’s value proposition

DIRECTIONS 2016

10/4/2016 3:06:47 PM


STATE OF THE

FEDERATION

Digital Does It A new national Families in

Included in the campaign are

The goal of the campaign is to

Checkoff Program began in late

information and recipes to meet

to include beef in more meals

Motion campaign from the Beef

cooking techniques, nutrition

June, and is delivering a message

the demands of these important

and ease-of-preparation to a

promoted through a wide variety

about beef ’s nutrition, versatility

consumers. The messages are

more specific – but very critical

of digital platforms, including

– audience. The campaign is

being managed by NCBA, a beef checkoff contractor.

The campaign is designed to

reach millennial parents ages

25-34, and is targeted to cooking

and/or health enthusiasts who are open to inspiration about their

meals and seeking assistance on

what to prepare, and how. Digital

media purchases for the campaign continues through October.

Facebook, Twitter and Pinterest, as well as Google search and banner advertising.

It also includes partnerships

with online food sites Food52

and TasteMade, which provide

get parents of young children by helping them see how

beef ’s versatility and unique

combination of nutrients gives

each member of the family what they need to get through the

day. Videos associated with the

campaign inspire beef usage and inform consumers about beef ’s health benefits.

helpful food and meal suggestions

A goal for the video campaign is

Food52 will provide nearly 28

viewer to the campaign’s landing

while TasteMade will feature

For Dinner website. Sixteen

shorter teasers.

other pages on the site.

to many millennial consumers.

24 million viewers, linking each

million impressions for beef,

page, which is the Beef It’s What’s

full-length YouTube videos and

percent of visitors continue on to

Supports this Long Range Plan Strategy: promote and strengthen beef’s value proposition

www.BeefUSA.org

2016 Directions.indd 65

NATIONAL CATTLEMEN

65

10/5/2016 7:47:47 PM


STATE OF THE States Step Up

FEDER ATION

regionally enhanced the reach of

State beef councils also stepped

the campaign.

both extending the national

states will generate at least a half

up to be part of the campaign,

The extra effort in these four

campaigns in their states or

million video views of checkoff

regions or incorporating parts of

the Families in Motion campaign in their own in-state programs. Some councils individually funded extensions of the

campaign in their states; others pooled funds at the regional

level to create some of the same kinds of benefits, recognizing that demographics of their

consumers were similar. State

beef councils in Kansas, Illinois,

Iowa and Nebraska, for instance,

targeted approach that reaches the appropriate audience efficiently, and provides metrics that allow state council managers and leaders to analyze results.

messages across the states.

In addition to the videos and

States participating in the

forms of assistance available to

campaign, whether individually or regionally, are seeing value in the

campaign. Because research shows this audience is important to beef and one that gets its information

digitally, council leaders can justify the additional investment in the

campaign. The campaign message that beef fits into a healthy,

balanced diet resonates with

consumers. Furthermore, it’s a

STRAIGHT AHEAD Cattle Industry Summer Business Meeting July 12-15, 2017

partnerships, there are numerous state beef councils allowing them to extend the campaign while

coordinating promotion programs in their own states. Banner ads,

social media posts and imagery,

and video commercials in a variety of lengths fit the theme and can

be used in a state’s campaign. New radio advertising has been made available through the national Beef Checkoff Program, while

Mark Your Calendar! www.BeefUSA.org

Denver, CO • Hyatt Regency

66 NATIONAL CATTLEMEN

2016 Directions.indd 66

DIRECTIONS 2016

10/4/2016 3:13:39 PM


STATE OF THE planning assistance is offered to help coordinate and maximize the state/national promotion

effort. Additional materials are in

FEDER ATION Joining Forces to Increase Reach in Key Consumer States

implementation of the campaign.

Seven state and regional beef promoting organizations joined forces with the national Beef Checkoff Program in a summer campaign targeting millennial consumers in five high population states. State beef councils in Illinois, Pennsylvania, South Dakota, Nebraska, Wyoming and Oklahoma, along with the Northeast Beef Promotion Initiative, funded extended promotion of the online checkoff-funded flagship website BeefItsWhatsForDinner.com, along with the brand’s online videos, into California, Florida, New York, Illinois and Pennsylvania.

received significant feedback from

The Top 5 State Media Campaign ran from mid-May through Aug. 31. Collectively, the five states targeted account for more than 100 million consumers, or about one-third of the total U.S. population.

production.

State councils weighed in on

both the development and the

The national team, for instance,

the Federation Advisory Council. Webinars for council staffs and direct contact between staffs

at the national and state levels

helped broaden the collaboration.

Just Beginning The Family in Motion video campaign runs into October, but that won’t be the end of the effort at either the state or national level. Through research the beef checkoff has developed significant creative ideas and content, and will leverage what’s been learned and created into the spring. It’s a checkoff investment that is helping generate both visibility for beef and quantifiable contact with millions of consumers who buy and prepare beef products.

www.BeefUSA.org

2016 Directions.indd 67

The campaign utilized internet search advertising on Google and YouTube video advertising to hit the consumer at the point of inspiration, encouraging beef interest and purchases. While the national campaign focuses on millennials throughout the United States, this campaign enhanced checkoff-funded efforts in top U.S. consumer markets. The 30 second and one minute videos were promoted in consumer YouTube searches through thousands of purchased keyword combinations, such as “easy meals” or “steak.” When those keywords and combinations were used, the beef ads moved to the top of the list. In addition, keywords typed into the YouTube site triggered a visual and linked to the Beef. It’s What’s For Dinner website, inviting consumers to watch how easy beef is to prepare. “Pre-roll” advertising, where consumers can elect to view a 30 second beef video prior to viewing their selected YouTube video, was also used. These video pre-roll ads are charged to an advertiser only when a viewer watches either 30 seconds of a video, the full video (if under 30 seconds) or clicks on a link within the video at any point. On Google, advertisers only pay when a searcher clicks on their site. The Top 5 State Media Campaign repeated a successful 2015 summer campaign that on Google delivered more than 4.1 million impressions and 188,000 clicks to the beef website, which resulted in almost 369,000 page views on the site. On YouTube, ads delivered 1.2 million impressions and received about 363,000 video views – at a cost-per-view of 8 cents. State-by-state detailed analytics from the campaign were provided to both participating state beef councils and councils in targeted states midway through the campaign to show progress, and at the end of the campaign to measure success.

NATIONAL CATTLEMEN

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10/4/2016 3:13:00 PM


STATE OF THE

FEDERATION

Increasing Demand by Building Trust Supported by the Beef Checkoff Program, Beef Quality Assurance is a nationally coordinated, state implemented program that provides systematic information to U.S. beef producers and beef consumers. It demonstrates how common sense husbandry techniques can be coupled with accepted scientific knowledge to raise cattle under optimum management and environmental conditions. BQA guidelines are designed to assure all beef consumers they can take pride in what they purchase – and can trust and have confidence in the entire beef industry.

BQA programs, which are coordinated nationally by NCBA as a contractor to the Beef Checkoff Program, have evolved to include best practices that involve good record keeping and protecting herd health, which can result in more profits for producers. When better quality cows leave the farm and reach the market place, the producer, packer, and consumer all benefit. When better quality beef reaches the supermarket, consumers are more confident in the beef they are buying, and this increases beef consumption.

Supports this Long Range Plan Strategy: grow consumer trust in beef and beef production

The efforts of BQA across the nation have been instrumental in recent successes that continue to re-build and sustain beef demand. Through BQA programs, producers

recognize the economic value of committing to quality beef production at every level - not just at the ranch, feedlot or packing plant, but within every segment of the cattle industry.

The guiding principles of BQA are based on these core beliefs: WE BELIEVE production practices affect consumer acceptance of beef. WE BELIEVE the BQA Program has and must continue to empower beef producers to improve the safety and wholesomeness of beef. WE BELIEVE these fundamental principles are the fabric of the BQA Program.

Federation Initiative Fund State

Program

Audience

Grant

Arizona Beef Council

Gate to Plate Tour Series

Health and Retail/Foodservice

Georgia Beef Board

Team Beef Program

Fitness Enthu-siasts

$10,000

Hawaii Beef Industry Council

Reaching International Consumers at Home

International C-onsumers

$10,000

Indiana Beef Council

Indiana Team BEEF

Fitness Enthusiasts

$2,200

Indiana Beef Council

Beef Facilities Tour

Meat Retailers

$2,500

Indiana Beef Council

Social Media Expansion

General Public

$1,500

Michigan Beef Industry Commission Family Meal Time Immersion

Dietitians, Bloggers

$4,700

New York Beef Council

Social Media Synergy

Meal-time Decision Makers, Bloggers

$18,000

New York Beef Council

Dietetic Intern Leadership Summit

Dietetic Interns

$10,500

Ohio Beef Council

Beef Immersion

Chefs, Culinary Instructors

Ohio Beef Council

Ohio State 4-Miler

Fitness Enthusiasts

$10,000

Pennsylvania Beef Council

Ibotta Have Beef

Millennials

$20,000

Pennsylvania Beef Council

Raising the Steaks for Dietitians

Dietetic Health Influencers

$5,500

Pennsylvania Beef Council

Opening the Farm Gate

School Foodservice Professionals

$5,000

Wisconsin Beef Council

Blogger Immersion

Blogger Influencers

$1,550

68 NATIONAL CATTLEMEN

2016 Directions.indd 68

$8,600

$5,000

DIRECTIONS 2016

10/5/2016 7:58:41 PM


STATE OF THE

FEDER ATION

Beef to Consumers? Bring the Consumers to Beef Our communications world

idea there is so much involved

These groups might include chefs,

smart phones, tablets and other

production of beef. By conducting

culinary instructors and others.

today is dominated by computers, forms of impersonal contact.

Checkoff-funded farm-to-fork tours conducted by state beef

councils, however, have shown

that more face-to-face forms of

interaction are a valuable tool in shifting perceptions about the beef industry.

State beef council managers who

with the care of animals, or in the

these tours, the industry is helping to effectively put a face on the industry itself.

As a result, research shows the

tours are helping shift opinions and producing incredible results, with

attitudes being significantly changed.

Not for Everyone

bloggers, retailers, dietitians,

Often these tours will include

from 20-40 participants, but the number on a tour is not nearly as important as the content.

Fostering relationships is an

important element of the trips. Surveys conducted both pre- and

post-tours support the use of tours

have been active in farm-to-fork

Because they’re so effective, any

with checkoff funds. For instance,

unanimously enthusiastic about

checkoff-funded farm-to-fork

checkoff-funded tour coordinated

fund requirements, they aren’t for

that 92 percent of participants

to take every consumer on a beef

or very concerned about humane

tours over the past decade are

the ability of the tours to improve knowledge of and move attitudes about the industry. They see it as chance to give influencers first-

hand experience in beef production, and allow them to network with producers themselves. Many of

the influencers do not have any

www.BeefUSA.org

2016 Directions.indd 69

consumer would benefit from these

a survey of participants in a beef

tours. But because of the time and

at the national level showed

everyone. In fact, it’s impossible

before the tour were somewhat

industry tour. That’s why these

treatment of cattle, and 8 percent

tours are focused on influencers

who can share their experiences with a much larger audience.

were somewhat or very concerned afterward. Eighty two percent

were somewhat or very concerned

NATIONAL CATTLEMEN

69

10/4/2016 2:07:02 PM


STATE OF THE about environmental impact pretour, and 25 percent afterward. Reach is extended through social

FEDER ATION

beef councils and the national beef

country where one or another

momentum toward that goal.

represented.

checkoff teams provide cooperative

segment of the beef industry isn’t

media. Participants share their own

For instance, checkoff-funded

Furthermore, the checkoff is

and these spread all over the country

at the national level often assist

of getting the right production

experiences, pictures and quotes,

quickly. Furthermore, the goal isn’t just to change opinion. It’s to give

influencers an experience that would shape how they share their stories with those they reach.

Producers involved in the tours

find that it’s a great way to share their stories, and often want to

do it again. They’re proud of their operations. They aren’t afraid of the tough conversations during the tours, which represent the

reality the industry faces today.

Building Trust Farm-to-fork tours help build

consumer trust in beef and beef production, which is one of

four Core Strategies of the Beef

Industry 2016-2020 Long Range

Plan. Coordination between state

70 NATIONAL CATTLEMEN

2016 Directions.indd 70

meat cutting and culinary experts state tour efforts. State beef councils also get assistance

from the national checkoff

always trying to improve on ways images to the right people at the right time. Video shot in Nebraska and Texas in 2014

team, which can help identify

and 2015 is helping provide

provide spokesperson training for

production with consumers. Some

for appropriate audiences. The

information can be found on

several state beef council-

Production immersion experiences

appropriate tour participants or

images that share a view of cattle

producers, or develop materials

of these images and additional

Federation has also supported

FactsAboutBeef.com.

conducted tours financially.

are an industry exercise in

There will always be a place

transparency. Those who work for

production experiences, and

Checkoff Program help gather the

them to produce other types of

and manage the follow-up, but the

for these kinds of in-person

state beef councils and the Beef

the industry is building on

information, coordinate the events

communications programs, such

first-hand visits and non-scripted

as virtual experiences via video. It can reach people who aren’t

able to go on a tour, or who are in a geographical area of the

conversations allow producers

themselves to be the story-tellers about how beef is raised.

Supports this Long Range Plan Strategy: grow consumer trust in beef and beef production

DIRECTIONS 2016

10/5/2016 8:02:27 PM


Dear Fellow Beef Producers, Focus! It’s a word with many uses, but for the beef industry in 2016 it has one clear directive: Concentrate. Focus has become much more important to the beef industry as it attempts to do more with less, especially through the Beef Checkoff Program. Limited resources have made state beef councils and the Beef Promotion Operating Committee concentrate even more closely on what will have the biggest impact on building beef demand and thereby protect the interests of beef producers. They have forced many difficult – even painful – decisions about where to direct resources, both time and money. And they have caused the industry to be really resolute in narrowing the number of objectives it will pursue and strategies it will utilize. The Beef Industry Long Range Plan 2016-2020 demonstrates that focus, and provides beef producers an important sense of direction and purpose. The authors of the Plan focused on one Strategic Objective – to Increase the Beef Demand Index measure by 2 percent annually over the next five years. That objective delivers a goal that allows industry leaders and the staffs of contracting organizations and state councils to measure their progress for the work they are doing. It also gives producers a key tool to help them determine how well their checkoff dollars are working to build demand for beef. The plan is focused on four areas: Drive growth in beef exports; protect and enhance the business and political climate for beef; grow consumer trust in beef and beef production; and promote and strengthen beef’s value proposition. They give us focus to deal effectively with the myriad of issues with which we struggle as an industry. They are a thoughtful, serious effort to make sure our work as an industry has tangible results. State beef council and national leaders are already working toward the goals it presents. You’ll see evidence of that in this issue of Directions. As we struggle with limited budgets and increasing needs, this kind of focus is crucial. There’s no question that within our states we have varying priorities and different sets of needs. With an eye toward better management of checkoff dollars, though, our Beef Industry Long Range Plan is a way to get everyone headed toward the final destination. Please accept my assurance that the NCBA Federation of State Beef Councils is on board, and committed to maintaining the focus so that we don’t get off course along the way. Yours Truly, Steve Hanson, Chairman Federation of State Beef Councils

Federation members on the 2016 Beef Promotion Operating Committee are: (back row, left to right) Steve Hanson (Federation chairman and BPOC vice chairman, Nebraska); Scott McGregor, (Iowa); Gary Deering (South Dakota); www.BeefUSA.org

2016 Directions.indd 71

Federation Executive Committee: Chair Vice-Chair Region I Region II Region III Region IV Region V Region VI Region VII Rev. Seat Rev. Seat Rev. Seat

Steve Hanson, Nebraska Jerry Effertz, North Dakota Bill Sexten, Ohio Donna Jo Curtis, Alabama Katie Brenny, Minnesota Weldon Wynn, Arkansas Dan Hinman, Idaho Linda Brake, Arizona Barb Downey, Kansas Mark Harms, Kansas Buck Wehrbein, Nebraska Steve Swensons, Texas

Federation Advisory Council: Patti Brumbach, Washington, Chair George Quackenbush, Michigan, Vice-Chair Valerie Bass, Tennessee, Past Chair Nancy Jo Bateman, North Dakota Bridget Bingham, Pennsylvania Ann Marie Bosshammer, Nebraska Chaley Harney, Montana Bill Dale, California Richard Wortham, Texas Karin Schaefer, Minnesota

Austin Brown III (Texas); Brent Buckley (Hawaii); Jerry Effertz (Federation vice chairman, North Dakota); (front row, left to right) Barb Downey, (Kansas); Kristin Larson (Montana); Dawn Caldwell (Nebraska); and Clay Burtrum (Oklahoma). NATIONAL CATTLEMEN

71

10/5/2016 8:08:51 PM


STATE OF THE

FEDER ATION

A National Staff to Support the States Regardless of where they’re located in this country, state beef councils have plenty on their plates. While some states have the checkoffresources to support all of their efforts, others must look outside of their offices to secure the services and expertise they need. The Federation can serve an enormous role in filling those needs. For example, the NCBA design services team can provide graphic and design services to participating state beef councils at no charge – and do so with knowledge of the cattle industry and Beef Checkoff Program that traditional ad agencies and graphic services companies won’t have. Incorporating images and concepts that are consistent with existing national programs, the design team can collaborate with state council staffs to make sure the state/national partnership is working at an optimum level. Among the many materials the NCBA design services team has assisted with over the past year have been brochures, posters, logos, banners and other materials that require imagination and special graphic talents. Because they do work for so many groups, the design services team can also usually help states save on printing costs – and NCBA has printing capabilities onsite for larger printed items such as 72 NATIONAL CATTLEMEN

2016 Directions.indd 72

banners, posters and signs, so even greater savings are available there.

IT Services In addition to design services, NCBA provides IT support to state beef councils on a regular basis. In fact, numerous state beef councils turn to the NCBA IT team to help create, update and revitalize websites that will allow them to more effectively reach consumers in their states. Some of the same benefits to states apply to IT. NCBA fully understands the cattle industry, so requires less of the learning curve that an outside IT firm would need. And because it does work for so many states across the country, it also understands what kinds of approaches work and which don’t when it comes to reaching out to various audiences through the computer. It also has the capabilities to efficiently make use of many of the industry’s online properties to make sure states don’t have to recreate the wheel on their own sites. Every year about 10 state beef councils will work with the NCBA IT team on their state websites. Many of those websites are hosted on the NCBA server. And, of course, the team is available to states for consultation and advice when it comes to the best approaches for filling web needs at the state level.

Meeting Other State Needs A state/national partnership isn’t complete without collaboration on the day-to-day programs being conducted by states that involve national programs, and by the national program that require the input of state beef councils. In addition to the Cattle Industry Convention and the Cattle Industry Summer Meeting, there are two meetings held at the NCBA offices that go toward filling those needs. The Partnerships in Action conference allows state council managers to meet and not only learn what is being done by NCBA at the national level on behalf of the Beef Checkoff Program, but discuss ways they can work with other states and national staffers on how to make the efforts better. Specifically, it provides state managers the opportunity to weigh in on how they might roll out or extend national programs in their states. On the volunteer level, new state beef council directors are invited to an orientation in Denver each spring to enhance their knowledge of the checkoff process and learn more about how states work together with the national teams to get the work of the Beef Checkoff Program done. Supports all Long Range Plan Strategies DIRECTIONS 2016

10/6/2016 7:48:10 AM


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2016 Directions cover.indd 4

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