Talking about...Hormones, Farm bill, WTO, $6 corn, JBS Swift

"It is high time for the E. U. to come into compliance with its obligations.”
Susan Schwab, US Trade Representative, calling the WTO decision on a long-running trans-Atlantic trade spat over hormone-treated cattle an "important victory" for the US livestock industry.
AND
“This government is standing up for Canadian farm families at home and around the world. This ruling once again shows that Canada is playing by the rules and delivering safe, healthy food to markets around the world.”
Gerry Ritz, Canadian Agriculture Minister, hailing the WTO ruling.
(Source: Cal Trade Report, April 2, 2008)
>PS: It’s good to see the U.S. and Canada on the same side of the cattle fence for a change.
>PPS: Let’s not start the celebration, yet. Despite the WTO ruling, it’s the E.U. consumer who will make the final decision.

"The findings confirm the principle that measures imposed for health reasons must be based on science. It is high time for the EU to come into compliance with its obligations on this matter.”
(Source: AFP, March 31, 2008)
Susan Schwab, US Trade Representative, talking about the WTO ruling that struck down the EU ban on American and Canadian beef treated with growth hormones, deeming it an "important victory for all US farmers and ranchers.”
>PS: It’s a victory ONLY if E.U. consumers are willing to buy hormone-treated North American beef.
PPS: Really want to sell beef to those persnickety Europeans? Here’s an acronym for you: NHTC.

“We’ve got to keep urban support in the House of Representatives to get a farm bill through and that urban support is going to be weakened when people find out that 10 percent of the biggest farmers are getting 73 percent of the benefits out of the farm program.”
(Source: Brownfield Network, April 1, 2008)
Senator Chuck Grassley (R-IA), still optimistic about a new farm bill by April 18.
>PS: Is he just whistling through the graveyard?

"Food prices are rising twice as fast as inflation, placing significant pressure on American families who are already suffering from economic uncertainty. It's time for Congress and the administration to offer families some relief and stop food inflation.”
(Source: Los Angeles Times, April 1, 2008)
Scott Faber, spokesman for the Grocery Manufacturers of America, ‘viewing with alarm’ the recent USDA estimate that this year’s corn crop would be about 8% lower than 2007.
>PS: I don’t care what the ethanol folks say, it really IS a food vs fuel debate.

“Higher corn prices is [sic] going to affect meat prices. If you're feeding with $6 corn, you'll definitely have some (cost) pressure.”
(Source: Business Media, April 4, 2008)
Elaine Kub, a grains analyst with Data Transmission Network talking about $6 corn with the Associated Press.
>PS: $6 corn? Seems like only a few months ago. We were worrying about $4 corn and prime Iowa farmland going for $4,000 an acre. We blew past both those price points in a hurry, didn’t we?

Point:
"It's a continuation of a bad trend we've been dealing with in not only agriculture, but in a lot of industries that have been trending toward bigger and fewer companies. The main problem is a lack of competition. If you had competitive markets, you could have smaller players re-injecting an accurate price into the system quite easily and effectively."
Dan Teigen of the Western Organization of Resource Councils, warning of a loss of competition and its effects on Montana cattle ranchers if the JBS Swift purchase is OK’d by the Department of Justice.
Counterpoint:
"We've reached out to the Montana stockgrowers, and we've already told them we would love to bring our senior management to meet with anybody in Montana anytime to talk about JBS's vision. We're ready to do that."
Chandler Keys, a JBS spokesman, assuring cattlemen that they have nothing to worry about.
(Source: Billings Gazette, April 1, 2008)
>PS: Keys also said the feds generally approve any change on the competitive scene as lon as at least three competitors are left standing.
PPS: His opinion is borne out by history. Get used to a new cattle business industry landscape.