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NCGA Producers Committed to Providing Beef Producers High-Quality Product (8-6-03)

Editor’s note: Livestock and poultry are corn’s biggest customers, consuming 58% of the nation’s crop in 2002. In the upcoming weeks, NCGA will look at the various sectors of this key market. This week we take a look at beef.

Beef, a staple of the American diet and nostalgic reminder of the Old West, is a key market for the nation’s corn growers. With 5,600 million bushels of corn consumed by all livestock sectors, the National Corn Growers Association is committed to focusing on livestock and production-related issues to support the domestic livestock and poultry industry.

The beef industry faces a myriad of challenges, says NCGA Corn Board member John Tibbits. Among the challenges include a decline in domestic beef consumption, continuing national, state and local environmental regulations and imports of grains to feed livestock and poultry sectors.

“We’re seeing a lot of grain being moved from major corn producing areas to major livestock feeding areas, which could be a good 500-600 miles apart,” he said. “That and a decline in beef can impact the corn producer from that standpoint that we have a smaller customer base. By the same token, as we approach a renewable fuels standard and ethanol, the DDGS (distillers dried grains with solubles) coproducts provide a considerable outlet and favorable price structure to the corn grower to recapture some balance.”

Livestock producers are adept at adapting to challenges, he said. And some challenges such as the recent incident of mad cow disease (Bovine Spongiform Encephalopathy) or BSE in Canada have some positives, including working closely with Canadian and USDA officials to ensure public safety on both sides of the border.

In regard to increasing regulations and export issues, such as Japan’s decision to increase tariffs on U.S. chilled beef imports, Tibbits said the U.S. Meat Export Federation and the National Cattleman’s Beef Association are working on export issues and in-country labeling issues. Tibbits urges beef producers to be involved with their state and national livestock associations in order to stay abreast of the issues and be prepared to implement changes as they occur.

“As corn producers we more or less drive along as passengers; we’re not driving the train as it relates to beef issues, but we are a vital need on the train. We are a consistent, high- quality supply of a valuable asset to the livestock industry. We need to be a dependable constant supplier. And as changes occur that effect our major customer, we must adapt and change too.”

For information regarding issues affecting livestock producers, such as the Canadian BSE incident, visit www.usda.gov.


Last reviewed August 5, 2003



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