John Nalivaka, Sterling Marketing , Putnam photo
Country of Origin Impacts on Markets and Producers
Country of Origin Impacts on Markets and Producers
Down now--Up Later
Boise--At the Idaho Farm Bureau Beef and Dairy Committee meeting, John Nalivaka of Sterling Marketing says that COOL rules and regs have impacted the beef market and cattlemen since implementation September 30th.
Boise--At the Idaho Farm Bureau Beef and Dairy Committee meeting, John Nalivaka of Sterling Marketing says that COOL rules and regs have impacted the beef market and cattlemen since implementation September 30th.
US beef exports last week were 25% lower than last year, according to USDA statistics but 13% higher than a week ago. Market watchers say there was an expected initial decline since the COOL implementation date, But its bounced back with increased demand as US packers adapted their operations to COOL.
Nalivaka says US cattlemen need to keep up with world competitors and if they do implementing COOL will have long range benefits. The beef marketing expert cited Brazil as an example. That country implemented trace back measures and has prospered in the European Union.
"Its all politics, global trade is politics, Brazil was allowed back in the EU two weeks ago", said Nalivaka. "They instituted an animal ID program, the EU liked what they saw and reinstituted them because of the program and their export numbers are way up."
"Its all politics, global trade is politics, Brazil was allowed back in the EU two weeks ago", said Nalivaka. "They instituted an animal ID program, the EU liked what they saw and reinstituted them because of the program and their export numbers are way up."
He thinks US beef producers will do much better than Brazil and Austrailia on the world market when COOL rules and regs kick in. He acknowledged that the cost of COOL rules and regs will hit every producer in the US in one way or another. Nalivaka told the group there's other impacts as well.
"No doubt, costs are going up this year, there's increased consumer input regarding both the final product and inputs. There'll be increased competition in both domestic and global markets, theres going to be greater change in how business must be done and ultimately increased consolidation," said Nalivaka.
"No doubt, costs are going up this year, there's increased consumer input regarding both the final product and inputs. There'll be increased competition in both domestic and global markets, theres going to be greater change in how business must be done and ultimately increased consolidation," said Nalivaka.
But he says ultimately "The market will find quality, there'll always be a place for beef but from here on out it must have age and source identification. We will see more Closed beef systems, harvesting of source verified, quality cattle and that will become the rule, not the exception."
Ron Davison of the Treasure Valley Livestock Auction agreed saying there'll be much more paper work and handed out sample affidavits that his company now passes out before cattle is sold.
“We have a form and the affidavit that was started the first of October," he says. "Sellers must sign it before selling, this tells us where the cattle came from and the records help us trace back the cattle from farm to fork," said Davison.
Davison and Nalivaka stressed the importance of trace back cattle and the paperwork.
"You can get by, have people sign the affidavit, get them home and put'em in a file, you don’t never know when something's going to go wrong on you," said Nalivaka.
“We have a form and the affidavit that was started the first of October," he says. "Sellers must sign it before selling, this tells us where the cattle came from and the records help us trace back the cattle from farm to fork," said Davison.
Davison and Nalivaka stressed the importance of trace back cattle and the paperwork.
"You can get by, have people sign the affidavit, get them home and put'em in a file, you don’t never know when something's going to go wrong on you," said Nalivaka.
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