§ The U.S. and Russia are close to reaching an agreement, opening another market to U.S. beef exports.  Prior to the beef ban in 2003, Russia was our 5^th largest customer.   According to Meatingplace.com, industry experts have indicated that Russia has built their pork industry more than their beef.  This could translate into a greater need for beef imports as the incomes in Russia rise and the U.S. dollar remains weak.

§ A recent study at Kansas State University indicates that that cattle fed distiller’s grains have an increased prevalence of E.coli 0157 in their hindgut.  The research showed the prevalence was about twice as high in cattle fed distiller’s grains compared to those which were not fed the byproduct.  Due to their cost-effectiveness, researchers know it’s not feasible to tell producers not to feed distiller’s grains.  They now want to understand why the E.coli increases and find a way to prevent it from happening.

§ In 2008 the cowherd is expected to be 3 million head smaller than in 1996, according to Cattle-Fax.  Even with this decrease, due to our improved efficiencies, in 2008 beef production is expected to be up 6% from 1996. 

§ Cattle-Fax reports that the Year-To-Date drop credit (or by-product) value has been $1.61/cwt. more than the 2006 average and $1.69/cwt. more than the 5-year average.  This equates to $20-23 per head.  The primary reason for the increase in value is due to the demand for tallow for use as biofuel.  Drop credit value will increase even more as markets to Japan and Korea become more established.  Drop credit is made up of items removed from carcasses during harvest that have utility and value. The top five value items are: steer hide, inedible bleached tallow, oxtail, meat and bone meal, and tongue. Other major by-product items include edible tallow, liver, heart, blood meal, tripe and cheek meat.

§ In November, the Consumer Confidence Index was reported at 87.3, its lowest level since October 2005.  This is a factor is the demand for beef this holiday season.

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