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Weekly outlook
Beef prices and expansion

[FEB. 4, 2003]  URBANA -- Cattle numbers continue to drop, but there are signs that herd expansion may begin later this year, said a Purdue University Extension marketing specialist.

"The cattle market is trading at lofty levels, which makes it even more vulnerable to uncertainties, including a potential armed conflict and a still shaky recovery in the general economy," said Chris Hurt. "In addition, continued drought in the Mountain States, as well as the central and northern Plains, could keep cow slaughter much larger than anticipated and reduce the number of heifers retained for replacements."

Hurt's comments came as he reviewed the beef cattle market outlook. The beef cow herd inventory was reported as smaller in the USDA’s January 2003 report on cattle. Now at 32.9 million head, the beef cow herd has dropped 7 percent since 1996. The current beef cow cycle is now 14 years old, with the previous low on beef cow numbers occurring in 1989.

"This very long cycle will likely come to a close later this year, as producers have retained about 1 percent more heifers for replacements, with the number of replacements that will calve in 2003 up 3 percent," said Hurt.

The number of beef cows on Jan. 1 was down a modest 0.5 percent. In the eastern Corn Belt, numbers were down 1 percent, led by declines in Illinois (down 19,000 cows) and Ohio (down 20,000 cows). Indiana, Wisconsin and Michigan each reported some increase in beef cow numbers. Around the country, small increases in cow numbers occurred in the western Corn Belt, the southern Plains and the Southeast. All other regions had decreases.

 

"The northern and central Plains as well as the western United States all had decreases due to the pervasive drought that limited pastures and forage supplies in 2002," said Hurt. "Current drought indicators show no signs of improvement in most of these regions."

For the dairy herd, cow numbers were up by 0.4 percent.

"Unfortunately, there is still no sign that producers are reducing cow numbers in response to the dismal milk prices in 2002, which were the lowest since 1980," said Hurt. "In addition to a slightly higher number of cows in production, heifers being retained for breeding stock were up 1 percent. The continuation of higher milk cow numbers is a sign of even larger milk supplies this year."

With declining beef cow numbers and increasing milk cow numbers, the total number of cows is down only a modest 0.3 percent. The 2002 calf crop was down only 0.2 percent.

 

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Cattle-on-feed numbers were down 8 percent as of the beginning of the year. While placements in both November and December were moving back upward, the number of market-ready cattle coming out of feedlots will be small in coming months. Carcass weights in 2002 were up 2.8 percent and accounted for most of the 3.8 percent increase in total beef production for the year.

"So far this year, beef supplies have been down nearly 3 percent, providing the primary reason for finished cattle price strength," said Hurt. "First-half supplies will be drawn from the number of steers weighing over 500 pounds -- down 1.2 percent -- and heifers weighing over 500 pounds not headed back for replacements -- down 1.7 percent. Second-half supplies will be drawn from the number of calves weighing less than 500 pounds on Jan. 1 -- down 1.3 percent.

"Beef supplies for the rest of the year will also be influenced by marketing weights, by weather and drought conditions, and the resulting rate of cow slaughter."

Cold weather limited gains this winter and resulted in some delays of cattle coming out of feedlots, contributing to the 3-percent drop in January beef production. In the last half of the winter, there will be some "catching up" of marketings, which will contribute to larger supplies. Beef production may be down about 1 percent in the first quarter and down 2 percent in the second quarter. Heifer retention could begin to accelerate in the second half of the year and, combined with declining cow slaughter, may also reduce total beef supplies by as much as 3 percent to 4 percent.

"Choice cattle prices are expected to dim somewhat in the next few weeks as slaughter supplies increase from the cold-weather delays," said Hurt. "However, prices could still reach new highs in the very lows $80s in late March and early April. The decline in prices in the summer is not expected to be as severe as normal, with prices dropping back into the lower $70s by the end of the summer. Prices in the fall are expected to move into the mid-to-higher $70s."

Hurt said calf prices in the fall of 2003 are expected to recover substantially compared with last fall.

"As an example, Oklahoma City 500-550-pound steers averaged $88.38 last fall," he said. "If finished cattle prices remain strong, and if feed prices moderate with 'normal' weather this summer, calf prices could return to the very high $90s to low $100s per hundredweight."

[University of Illinois news release]


State scientists tackle CWD
and other prion diseases

[JAN. 31, 2003]  URBANA -- Diseases like mad cow disease and chronic wasting disease among deer have generated numerous headlines over the past decade. They also share something else in common -- their origin. That is what a team of researchers from the University of Illinois and Illinois Department of Natural Resources is tackling through what is likely to be groundbreaking research.

"Prions are proteins that occur in the brain of every animal," explained Jan Novakofski, a professor in the U of I Department of Animal Sciences and one of three lead researchers on the project. "In rare cases, these prions change into something that causes brain cells to die -- a poison, if you will. Once the process -- prion disease -- starts, it cannot be stopped, and to date no one has found a way to inactivate these agents. Prion disease in animals and humans is terminal."

Several years ago, the British beef industry was devastated by mad cow disease, a prion malady. A number of humans fell victim to the disease after eating beef infected with mad cow disease and contracting the human version, Creutzfeldt-Jakob disease, or CJD. This fall, chronic wasting disease began showing up in deer populations in Illinois, likely migrating from Wisconsin, where the disease has had a major impact on the hunting and tourism industry.

"There are many unknowns about these prion diseases," said John Killefer, an associate professor of muscle biology in the Department of Animal Sciences and also a lead researcher on the project. "No one understands where the animals are picking up the disease and how they are passing it on."

Nohra Mateus-Pinilla, an assistant professional scientist and epidemiologist with the Illinois Department of Natural Resources' Illinois Natural History Survey and also a leader in the prion project, says it is important to establish what prompts the prions to turn bad in the first place and how the process becomes infectious.

"All three of us were interested in prion diseases, so we decided to put our expertise together and develop a multidisciplinary research approach that would benefit the livestock and agricultural industry, as well as conservation and the protection of our natural resources," she explained. "Our work is partly focused on chronic wasting disease, but we are also looking at natural resistance to other prion diseases, like scrapie in sheep and mad cow disease and its human form, CJD."

The project also involves researchers from the U of I College of Veterinary Medicine and other state and federal agencies.

"Our long term goal is to understand mechanisms of CWD transmission and highlight possible intervention and prevent strategies," Mateus-Pinilla said.

Four broad goals are driving the research, the three explained. The first is the generation of a "risk map" that will aid the Department of Natural Resources in preventive management of CWD. Based on genetic data first developed at the Rocky Mountain Laboratory in Colorado, the researchers' map will indicate areas in Illinois where deer have a "genetic susceptibility" to CWD.

"This map will overlap ecosystems favored by deer and deer densities in urban and rural Illinois, as well as CWD-positive and negative deer, land cover data, and Illinois deer genetic fingerprinting," said Mateus-Pinilla. "This information will help the development of science-based deer herd management using spatial dynamics of CWD in a host-environment framework."

 

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A second goal involves determining if there are environmental reservoirs that favor development and transmission of the disease.

"Scientific evidence suggests that prions may persist in infectious environmental reservoirs outside deer," said Killefer. "These reservoirs may include soil, vegetation, insects or other animals. If we can determine where these reservoirs are, such knowledge may provide critical control points for intervention and prevention."

.Scientific evidence has already demonstrated the ability of infectious prions to jump species. At the same time, the researchers will address the transmission dynamics of interspecies prion infection.

"The potential for interspecies transmission highlights the need to assess the potential transmission of prion diseases from wild species into livestock species -- and vice versa -- as well as their transmission to humans. The first step is therefore to understand mechanisms of disease transmission," said Mateus-Pinilla.

The first three goals will help lay the groundwork for the fourth -- the development of prevention strategies.

"Studies in sheep have demonstrated that certain genetic backgrounds are highly resistant to scrapie infection," said Novakofski. "This type of genetic resistance has not been identified in cattle or pigs. At the same time, mouse model systems have shown that gene therapy can, in effect, knock the prion protein out.

"We'll look at the potential of developing a genetic prion 'knockout' in cattle that will be naturally resistant to infection and unable to transmit the disease to other animals or humans."

As the United States has remained relatively isolated from prion disease problems until the spread of chronic wasting disease from western deer populations into the Midwest, there has been little funding. The three scientists see that as changing.

One reason is the potential economic impact on the Midwestern as well as the U.S. livestock industry if CWD jumps species or if mad cow disease breaks out in the United States. The standard approach -- and currently the only one -- is to kill the infected animals and quarantine the area. In Canada, some elk breeders whose animals were found to have CWD have not only been banned from livestock production but also prohibited from growing crops on their land.

Killefer noted that although pigs can be infected by artificial means, no one has been able to demonstrate the natural occurrence of prion diseases in swine. Any prion outbreak among Illinois livestock could have serious economic repercussions for the state's agribusiness sector.

"Mad cow disease, although controlled in Great Britain and yet to reach the United States, continues to spread in Europe and Asia," said Novakofski. "It seems prudent to redouble our efforts to deal with the prion diseases."

[University of Illinois news release]

[Click here for related article, "CWD cases stand at seven in Illinois."]


Honors & Awards


Ag Announcements

Conservation district celebrates 50 years

Reserve tickets for annual meeting by Jan. 30

[JAN. 27, 2003]  The Logan County Soil and Water Conservation District has scheduled its annual dinner meeting for Thursday, Feb. 6. The event will be at the Knights of Columbus Hall on Limit Street in Lincoln. Featured speaker for the evening will be Brad Harding, ag specialist for CBS Channel 31 "News at Noon."

The smorgasbord meal will be served at 6 p.m. A social time from 5:30 to 6 p.m. will precede the dinner.

To celebrate its 50 years as a conservation district, past directors and staff will be recognized for their past service. County FFA chapters and their instructors will also be recognized for their past year's accomplishments.

There will be a short business meeting with election of directors. Terms of two directors, Duane Wibben of Hartsburg and Dean Sasse of Atlanta, will be expiring.

Cost of tickets for the evening is $5 per person if purchased by Jan. 30 and $9 per person after that date.

Stop by the district office at 1650 Fifth Street Road to purchase your ticket or call 732-2010, Ext. 3 for more information. District directors also have tickets available.

[News release]


Agriculture scholarships available

[JAN. 27, 2003]  The Lincoln/Logan County Chamber of Commerce will award two scholarships to high school seniors or college students from Logan County who are studying or will study agriculture for future careers in ag-related businesses.

Scholarship winners will be chosen based on their commitment to agriculture as a future career, academic performance, involvement in extracurricular activities, financial need and work experience. The committee is particularly interested in candidates who will return to the Logan County area to pursue their careers.

Applications are available from the Lincoln/Logan County Chamber of Commerce --  (217) 735-2385; 303 S. Kickapoo St., Lincoln, IL 62656 -- or at any high school in Logan County.

Completed applications are due to the Lincoln/Logan County Chamber office in Lincoln by Friday, Feb. 28. Applications will be reviewed soon afterward, and winners will be notified of their award. Winners will be recognized at the Logan County Ag Day breakfast on Wednesday, March 19.

[News release]

 

 

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