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Beef industry leaders lead NETBIO members through current issues |
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By LORI COPE | East Texas Edition |
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October 17, 2002 -- Issues affecting the beef industry were trotted around the room during the recent NETBIO membership meeting as four nationally-recognized speakers cited their association's ideas and concerns. The NETBIO (Northeast Texas Beef Improvement Organization) meeting was held Oct. 8 in Sulphur Springs to bring members up-to-date about the group's successes, as well as serve as an educational forum. Dennis McDonald, trade action committee chairman for R-CALF USA, began with a voice of optimism that he has detected "a breeze" throughout the industry that is reflective of producers' renewed involvement. "I feel a new commitment from producers ... and I am convinced it will get us through this market, and this challenging time. "I want to be able to leave my ranch to my kids without being accused of child abuse," said McDonald, who operates a cow/calf ranch in Montana. The R-CALF chairman detailed some issues that are striking the beef industry. One concern, McDonald noted, is Brazil exporting 96 million head of cattle last year. "Brazil has no market to sell them in," he said, "so they look at our market. ... They have their sights on the best market in the world - here. If you add one million (head of imported cattle) here and one million there, pretty soon you have a full corral." McDonald also cited concern that a 750-pound steer in Brazil carries a 32-cent cost of production. In the United States, to bring a steer up to 750 pounds the cost of production is 76 cents. A U.S. trade representative told McDonald the "global market belongs to the low-cost producer. ... We (U.S.) are not the low-cost producer, but we can compete in the global market by retaking our domestic market. ... We raise the best (beef), so let's capitalize on it." The R-CALF chairman told producers developing a strong trade market to countries such as Japan and South Korea should be a goal for U.S. beef producers. "And at some point we'll have opportunity to trade with China. If these Chinese people want a hamburger, the U.S. could produce it." Eric Davis, president-elect of the National Cattlemen Beef Association, also offered optimism by stressing beef producers should work together to resolve issues. Beef producers, and beef organizations, cannot "kick each other in the shin." Davis said NCBA is governed by a 132-member board, which includes two meatpackers. "And we are intentionally inclusive to include all cattle organizations. ... At times we won't agree, but we work it out." Strict about following policy, Davis said NCBA views the government as a partner. "We can capitalize on that partnership" on issues that affect ranchers, such as repealing the estate tax, implementing the farm bill, wording the country of origin labeling policy, and trade. "I view TPA (Trade and Promotion Authority) as a great tool for our president to correct some problems" within the industry, Davis said. After citing several concerns within the U.S. beef industry, Davis, who leads a family-owned cow/calf operation in Idaho, told producers they "can't lose sight of the fact that there is a huge amount of protein out there." Handling that huge amount of beef is the country's meatpackers, especially the four major meatpackers. "But what's worse that just one packer? No packer," Davis added. Matt Brockman, executive vice president of Texas and Southwestern Cattle Raisers Association, encouraged the producers in attendance at the NETBIO meeting to get involved in beef organizations. "Membership in a trade association is important. There are some crucial threats in the industry," he said. On the subject of trade, Brockman offered, "We are involved in a global situation" that includes being a part of the World Trade Organization. "As these talks go forward, we must be engaged," he told the beef producers. Brockman has Washington, D.C. work experience from his employment as a legislative assistant for agriculture and trade issues in the office of U.S. Rep. Charles W. Stenholm, and as a lobbyist for National Grain and Feed Association. When it comes to TPA, he likes the idea that President Bush is at the helm of the act that's also known as "fast track." "We need someone to trust at the trade table and I think Bush will not sell us out," he added. "We have to stay diligent. We can negotiate some good trade deals" through TPA. On the state government level, Shane Sklar, executive director of the Independent Cattlemen's Association of Texas, said one of the big issues facing rural Texas is redistricting. "This is a concern for agriculture. These new guys and gals will mostly be from the suburbs." Sklar said ICA is working to educate the politicians (especially in a time when they will be looking at a state budget deficit) about issues important to agriculture, such as protecting ag exemptions for property owners. |
