Month: June 2021

JBS Cyber Attack and Cattle Slaughter Update

– James Mitchell, Livestock Marketing Specialist, University of Arkansas

The cyber-attack that JBS suffered last week presented U.S. and global meat and livestock supply chains with a new set of challenges. Josh summarized the details of the cyberattack that were available as of Tuesday. As the news broke, the two big questions were what would the impacts be and how long would those impacts last. I will review these impacts for cattle slaughter in today’s article, but note that meat supplies and prices, especially on the spot market, were also impacted by last week’s events.

Estimates indicate (see below) that the cyberattack impacted roughly one-fifth of total cattle capacity in the U.S. Cattle slaughter was down 14.5 percent last week compared to the prior week. However, the weekly data shows the effects of the cyberattack and last week being a holiday week. Daily cattle slaughter provides a more accurate representation of last week’s events.

The second figure (see below) shows daily cattle slaughter for weeks ending May 22, May 29, and June 5. It is important to note that the data reflect estimates and does not distinguish between steer and Continue reading JBS Cyber Attack and Cattle Slaughter Update →

LRP Considerations

– Matthew Diersen, Risk & Business Management Specialist, Ness School of Management & Economics, South Dakota State University

In early 2021 the Risk Management Agency implemented a subtle change to Livestock Risk Protection (LRP) insurance. LRP covers the price risk or the risk of cattle prices moving lower while owned by those raising cattle. The policy was changed to allow those with coverage to collect indemnity payments if they dispose of (think sell) insured cattle within the last 60 days of coverage. Without such a clause people without cattle would have an incentive to purchase the subsidized coverage. Prior to the change, the limit was the last 30 days of coverage. Cattle could be (and still can be) owned past the end of coverage and remain insured.

Does this change matter? In short, yes, as it makes an LRP policy more flexible and therefore more attractive for cattle producers. LRP is sold with fixed end dates from 13 to 52 weeks out in 4-week intervals; basically, these are monthly end dates. Producers generally want insurance coverage to span the timeframe they own the cattle. Once any such cattle are sold there would be no more price risk so producers would not want to pay for a longer coverage period than needed. LRP cannot be exercised nor offset prior to the end date, but coverage can be transferred to another party such as the buyer of the cattle. In contrast, with futures and options any hedge position can be Continue reading LRP Considerations →

Managing the Breeding Season and Reproductive Performance of the Beef Herd

The fourth session of this past winter’s 2021 Ohio Beef Cattle Management School was hosted via ZOOM by the Ohio State University Extension Beef Team on February 8th. During that fourth session the focus turned to genetics, reproduction and breeding management. More specifically, in the portion of the evening’s program embedded below, OSU Extension Beef Field Specialist Garth Ruff introduces Alvaro Garcia Guerra, Assistant Professor for cattle reproduction in the Department of Animal Science at Ohio State, as he discusses considerations for managing the breeding season and factors that will maximize pregnancy rates including bull management, the use of estrus synchronization programs and artificial insemination in the beef herd.

Keep an Eye on that Bull

– Dr. Les Anderson, Extension Professor, University of Kentucky

Many producers with spring calving herds just turned out their bulls. In the May Off the Hoof, we reminded everyone to subject their herd bulls to a breeding soundness exam (BSE). A BSE is the best insurance we have available to ensure we don’t turn out a bull that is infertile or incapable of breeding cows. However, the BSE does not indicate if the bull is willing to breed cows. I was reminded of this very recently in the herd that I used for the “I bought a farm” YouTube video series. To get these heifers bred, we synchronized them for AI and then turned out a mature bull that had passed a BSE. When I inseminated these heifers, the weather turned very poor (middle of December) and the estrus response rate in the heifers was low, so I wasn’t expecting high conception rates to AI. Just to get an idea of how well we did, I spent some time in the pasture watching for return heats. As I expected, several heifers had return heats but what really stuck out was the bull was NOT breeding them. Some of the heifers were jumping on the bull and he seemed disinterested. I was concerned about the bull and told the owner that he needed to consider finding another bull. I could not assure him the bull was Continue reading Keep an Eye on that Bull →

Meeting Cow Nutrient Requirements in the Winter Starts in the Spring

– Dr. Katie VanValin, Assistant Extension Professor, University of Kentucky

When the weather forecast calls for a few days of clear skies this time of year, it is a safe bet that many producers are hitting the hay fields to get hay put up to feed their herd this winter. When thinking about the hay requirements for a herd, I often hear discussions about the number of bales required. However, focusing on the number of bales alone is like only looking at half of the picture. Cattle have nutrient (energy and protein) requirements, not a bale requirement. So really, at the end of the day, it won’t be a certain number of bales that maintain the cowherd at a BCS 5 or greater. Instead, supplying enough pounds of total digestible nutrients (TDN) or energy and pounds of crude protein will meet the cow’s nutrient requirements. The exact amount of TDN and crude protein required depends on several factors such as stage of production, environmental factors, and mature cow size, to name a few.

The single most significant factor that impacts forage quality or the nutrient content and digestibility of the forage is the stage of maturity at harvest. As the plant matures, the leaf to stem ratio decreases, which means a greater concentration of fiber (a portion of which is undigestible) and decreased protein concentrations. Unfortunately, when cool-season forages are rapidly growing in the spring, it can be easy to miss the optimal stage of maturity to capitalize on forage quality. Weather can also have a significant Continue reading Meeting Cow Nutrient Requirements in the Winter Starts in the Spring →

It’s all about maximizing a grazing season!

– Victor Shelton, NRCS State Agronomist/Grazing Specialist

Forage growth has leaped forward big time. How do we keep it vegetative?

It’s June. Am I the only one who feels like we lost a month somewhere? The longer-than-normal cooler spring has warped time a little. Forages in the last 14 to 21 days went from vegetative to seed heads. No, it’s not your imagination, that was a bit early.

Not only was seed head production early, but the quantity of seed heads was also higher. Grass plants tend to react to stress factors by initiating their survival mode. This generally means they produce more seed. Cool season forages prefer cool, moist growing conditions. It has been a little cooler and while soil moisture conditions have varied quite a bit across the area, it’s leaning more towards the drier side now, especially in some spots.

The real kicker this year, I believe, was late freezes. New spring growth was a little early this year and there was quite a bit of growth present, actually a lot in some locations, when temperatures dropped to below freezing. I was concerned about row crops that had been planted, fruit trees that were blooming, tender transplants in the garden, and heavy frost/freezes on forages. Cool season forages are pretty tolerable to frosts; freezing conditions can be a little more detrimental. I noticed light colored tips and even some whitening on orchardgrass. The plants quickly appeared to grow out of this with no ill effects, but I believe that the late freezes this year were the stress factor trigger that set the stage for Continue reading It’s all about maximizing a grazing season! →

Poisonous Pasture Weeds and Livestock

– Dwight Lingenfelter, Extension Associate, Weed Science, Penn State

Horsenettle in a pasture setting. (Source: D. Lingenfelter, Penn State Weed Science)

During drought and other poor environmental conditions that reduce forage growth, there are concerns for poisonous weeds in pastures and hay. Livestock may be forced to graze on weeds that normally they would not, or they may eat weeds out of curiosity. Scout your pastures and remove these weeds before they cause livestock health problems. Keep in mind there are numerous poisonous plants that could invade an area or pasture. Many plants contain potentially poisonous substances that may be toxic to livestock if consumed. In addition, certain plants may be problematic because of mechanical irritation when eaten, photosensitization, and disagreeable tastes or odors in meat, milk or milk products. If you suspect livestock poisoning, call your local extension educator or veterinarian immediately. If death occurs, the stomach contents should be examined for consumed herbage. Identify the suspected plants and remove livestock from the grazing area until all poisonous plants have been removed or destroyed. The table below lists . . .

Continue reading Poisonous Pasture Weeds and Livestock

JBS Cyber Attack

– Josh Maples, Assistant Professor & Extension Economist, Department of Agricultural Economics, Mississippi State University

News broke over the holiday weekend that JBS had suffered a cyber attack that caused disruptions at some plants globally. According to a statement by JBS, the attack affected “. . . some of the servers supporting its North American and Australian IT systems.”

It is unclear the full extent of the attack or the impact it might have on slaughter in the United States. Daily slaughter estimates have not been released at the time of this writing. The figure above does not include any data since the attack. Cattle futures markets have been volatile in Continue reading JBS Cyber Attack →

Weekly Livestock Comments for May 28, 2021

– Dr. Andrew Griffith, Assistant Professor, Department of Agricultural and Resource Economics, University of Tennessee

FED CATTLE: Fed cattle traded steady compared to last week on a live basis. Prices on a live basis were primarily $119 to $120 while dressed prices were mostly $189 to $191.

The 5-area weighted average prices thru Thursday were $119.64 live, down $0.07 compared to last week and $190.66 dressed, up $0.10 from a week ago. A year ago, prices were $115.65 live and $183.30 dressed.

“This is the song that never ends. It goes on and on my friend.” Maybe the live cattle market is not a song, and maybe we are not friends. But, the live cattle trade at $120 seems to never end. This has been one of the longest periods of steady live cattle trade in memory. The futures market is not pricing in much of a summer price decline, which could mean this market stays range bound for several more weeks and possibly through the summer months. Steady prices are certainly welcome by cattle feeders given that the seasonal tendency is for fed cattle prices to soften during the summer. The problem with lack of price movement is Continue reading Weekly Livestock Comments for May 28, 2021 →