In This IssueNews from your CEO

BeefTalk: Grass vs. grain -- Steer gains

Big July feedlot placements changes cattle markets: Or

does it?

Restaurant outlook weakens as sales, traffic slow

Excessive summer heat may cause fall calves to be born

earlier than normal

Cattle Producers Of LouisianaP.O. Box 886

Prairieville, Louisiana 70769Website: www.lacattle.orgToll Free: 888-528-6999

Dave Foster, Chief Executive Officerinfo@lacattle.org

Alaina Pierret, Editorapierret@wildblue.net

September 2011 Volume 3 Issue 9

soybean harvest in the Midwest. A good harvest will help prices as will adequate moisture in the wheat grazing states. The Labor Day weekend was a washout from the Mississippi river to the east which will affect demand for our ground beef. Cull cow prices will work lower but with the bulk of these cows sold early, grinders may be looking for supply later in the fall.

Now is the time to get together to discuss these issues, so I encourage all our members to think about some meetings to address those that are a concern to them. Also for those members who have not paid their dues, please take the time to do so now. Call our toll free number if you need help with a meeting or need information to assist you in your operation. Your organization has been working for a year to get the market news program restored and we will continue our efforts. If you have ideas, concerns, questions please contact me. Dave Foster

News from your CEO

This month, September, marks the first anniversary of no price discovery in Louisiana. Commissioner Strain on Sept. 6, 2010 shut down the Federal-State Livestock Market News program and with it no way to have local price information from the stock yards. Like the drought, we are now feeling the full effects of no price discovery. For the first few months prices remained competitive, however, as time went on prices started lower until now in the last two months the front end calves are 5.00-7.00 cwt. back of the market with our plainer cattle 20.00-30.00 cwt. lower. Normally this time of year our slick-hided calves, high percentage Brahman cross calves and off colored cattle are 15.00-20.00 behind our front end cattle, not so now. We have come through floods and drought with no way to price our cattle that were forced to market. Loan programs, insurance claims are of little value without price discovery.

Going into this month we will see less cattle at the market place than the same time last year. Demand for our lightweight calves, under 500 lbs., will be light to moderate without a good wheat planting and rye grass season. Now is the time to pay attention to the corn and

Restaurant outlook weakens

as sales, traffic slow (continued

from pg 3) that consumers can cut expenditures is by eating out less or trading down on where they eat out.“We agree that there was plenty of negativity in the marketplace and the news in July and would also state that keeping all three indexes near 100 may well have been a victory,” the analysts wrote in the CME Group’s Daily Livestock Report.

BeefTalk: Grass vs. grain -- Steer gains Kris Ringwall, North Dakota State University Extension

There is excitement in the air, or I should say excitement in the grass. The excitement leads to the interesting numbers of 2.80 and 4.07.

The Dickinson Research Extension Center sent steers to the feedlot in early May and sent a similar set of steers to grass at the same time.

Doug Landblom, DREC animal scientist, says that, through mid-August, the steers in the feedlot had gained 4.07 pounds per day. The steers on grass gained 2.80 pounds per day. Actual body weight was 1,150 pounds for the feedlot steers and 1,091 pounds for the grass steers. Both groups need more time before finishing.

One of the feedlot steers was sold because he did not respond to the health treatments and care provided by the feedlot. No health issues have been evident in the grazing steers.

Are these numbers relevant? What do the numbers mean as producers display considerable interest in shifting toward the grass business?

With the increased cost of feedlot inputs, should producers be adding 2.80 pounds a day to their calves as yearlings or selling the calves at weaning time? Technically, the calves that were sent to market in early May would be classified as yearlings. However, is the additional gain on grass worth it? How much time in the feedlot will be reduced by the weight the calves added while on grass? Will the perceived benefits of calves on grass carry through to the producer’s pocketbook?

At the very least, the DREC has two numbers to work with and more to come, but the grass questions remain very real. Stay tuned for more grass data in the future.

In the meantime, the DREC will host a workshop called “Grazing Alternatives to High Grain Prices” on Sept. 13 southwest of Manning. The Grassfed Exchange is hosting a workshop called “Grassfed Beef -- The New Multi-Billion $$ Industry -- Fueled by Demand and High Corn Prices” on Sept. 15-17 in Norfolk, Neb. Both events were triggered by changes in the cattle feeding industry.

Changes in farm cultural practices continue to evolve as producers and academic research explore ways to make the environment, crops and animals work for the producer. Successful food systems have to produce the food we need, provide profits for the farmer, protect resources and offer producer families a high-quality life.

High grain prices continue to challenge cattle feeding profits, so there are many questions. What is right for the beef industry when it comes to frame size, muscling and feed efficiency? How does one select for forage finishing? Is there a correct method to forage grazing? How does a producer fit all the information into his or her operation?

Producer efforts already are in place and offer real examples of how producing and direct marketing grass-finished beef can work. However, that brings up more questions. Just where is the grass-fed industry? What are the genetic opportunities? How does grass-fed beef fit with soil health? How do chefs feel grass-fed beef fits in with American tastes?

We have many questions to answer. For some answers, visit the DREC website at http://www.ag.ndsu.nodak.edu/dickinso/ or The Grassfed Exchange at http://www.grassfedexchange.com/. Keep checking the sites because education is an ongoing process.

For the DREC, the numbers 2.80 and 4.07 are important baseline figures that should help evaluate the shifting trends in beef production. As soon as the dollars catch up to the gain, the added value that is represented by 2.80 pounds per day gain on grass versus 4.07 pounds per day gain in the feedlot can be assessed.

Under which management program do the steers gain more value back to the producer? Obviously, costs need to be subtracted from the daily gain in value, so the numbers will be very interesting once both sets of cattle are harvested. How much value actually ended up on the rail?

Ultimately, we want to find out if the slower grass process is better than the faster grain-fed process in terms of dollars. Stay tuned.

May you find all your ear tags.

Big July feedlot placements changes cattle markets: Or does it? Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist

The most recent USDA Cattle on Feed report confirmed that the drought in the Southern Plains is having significant impacts on the producers directly affected and also on cattle markets broadly. Feedlot placements in July were 122 percent of last year, well above the average analyst expectations, though not above some estimates. The result is to push the cattle on feed inventory up to 108 percent of year ago levels. Large placements in Texas and Oklahoma confirm that much of the increase was the result of drought forced movement of cattle.

If taken at face value, this report would appear to be quite bearish but face value is very misleading in this case. The impact of this report must be viewed in term so of both the number of placements and the weight breakdown. 53 percent of the increased placements were cattle that were less than 600 pounds. Though is hard to be sure, some of these cattle were likely significantly below 600 pounds in weight. These cattle will be on feed longer than if they were placed later in the fall but they will also finish at somewhat lighter weights. The net effect is that the some of these lightweight cattle will finish in the first quarter rather than the second quarter of 2012. The large July placements also included a slight increase in heavy feeders. This is indicative of a rather good summer grazing period for the Osage and Flint Hills regions. These cattle will slightly increase fourth quarter marketings.

What is the net impact on fed cattle markets? Probably relatively little. The anticipated decrease in fourth quarter beef production may only be a 5 percent decrease compared to something bigger. First and second quarter decreases in beef production will also be slightly smaller with slightly larger decreases in the second half of 2012. All in all, the impacts are relatively minor. The nearly one for one tradeoff in placements now versus placements later combined with the fact that lighter placements means less total beef production ultimately.

Restaurant outlook weakens as sales, traffic slowSource: MeatingPlace Editors

An index tracking the health of the U.S. restaurant industry fell to its lowest level in 11 months in July, reflecting softer sales and customer traffic, as well as a more pessimistic outlook among operators.

The National Restaurant Association, however, cautioned that the month of July was a volatile one for the U.S. economy, and said it still sees growth ahead for the sector.

“This survey month was burdened with the debt ceiling crisis and the downgrade in the nation’s credit rating, which added an additional layer of uncertainty in an already fragile economic recovery,” said Hudson Riehle, senior vice president of research for the association, in a statement. “However, if the economy can avoid additional negative shocks in the months ahead, the overall fundamentals continue to point toward growth in the second half of the year,” he said. The association said its Restaurant Performance index fell to 99.7 in July, down from 100.6 in June, as operators’ outlook for economic conditions fell sharply. An index reading below 100 represents a period of contraction for key industry indicators.

Restaurant operators in July reported softer sales at stores open at least one year. Forty-eight percent reported same-store sales were up from the year before, down from 51 percent of operators who reported higher same-store sales in June. Meanwhile, 34 percent of operators said sales declined in July, up from 31 percent who reported lower sales in June.

Restaurant operators also reported weaker customer traffic levels in July. Forty percent of restaurant operators reported an increase in customer traffic from a year, down from 44 percent who did so in June. In comparison, 37 percent of operators reported a traffic decline in July, up from 33 percent who reported lower traffic in June.

Restaurant operators also reported a pullback in capital spending activity. Forty-three percent of operators said they made a capital expenditure for equipment, expansion or remodeling during the past three months, the lowest level in five months. Many also reduced their spending plans for the coming months.

The “expectations” component of the index fell below 100 for the first time in 20 months, indicating less optimism in operators’ outlook for the next six months. Thirty-nine percent said they expect to have higher sales in six months, compared to the same period in the previous year, but 23 percent expect their sales volume in six months to be lower than it was during the same period a year ago.Livestock analysts Len Steiner and Steve Meyer said consumer confidence is on shaky ground, and one place

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CATTLE PRODUCERS OF LOUISIANAP.O. BOX 886

PRAIRIEVILLE, LOUISIANA 70769WEBSITE: WWW.LACATTLE.ORG

TOLL FREE: 888-528-6999

Excessive summer heat may cause fall calves to be born earlier than normal Oklahoma State University Extension

STILLWATER, Okla. – Oklahoma cattle producers with fall-calving herds need to be aware that calves may be born earlier than normal this year because of the extremely hot summer experienced by the southern Great Plains states.

“It’s a good idea for producers to begin their routine heifer and cow checks at least a week to 10 days prior to the normally expected first-calving date,” said Glenn Selk, Oklahoma State University Cooperative Extension emeritus cattle specialist.

OSU animal science research studying early fall (August) and late fall (October) calving cows indicates that calves may start coming several days ahead of “textbook gestation table” dates.

Data from two successive years were combined for 50 Angus X Hereford crossbred cows. The “early” and “late” fall calving cows had been artificially inseminated in early November and early January, respectively. Semen from the same sire was used for all cows. All cows were exposed to a single cleanup bull for 35 days at four days after the AI season.

The weather prior to calving was significantly different for late pregnancy in the two groups. The average maximum temperature the week before calving was 93 degrees Fahrenheit for the “early” fall group. The average maximum temperature the week before parturition in the “late” calving group was 66 degrees Fahrenheit.

“There was a 100 percent survival rate for calves in both groups and both groups of cows had excellent re-breeding rates of 93 percent and 96 percent, respectively,” Selk said.

The average gestation length for the “early” cows was six days shorter (279 days) as compared to the “late” cows (285 days) in year one. The average gestation length for the “early” cows was four days shorter (278 days) as compared to the “late” cows (282 days) in year two.