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Commodity Communicator Weekly

December 21, 2012

USDA ANNOUNCES KEY DATES FOR THE ANIMAL DISEASE TRACABILITY (Animal ID) RULE. . . . .USDA announced this week the effective dates for the Animal ID rule.  The official and final rule will be published December 28 and become effective February 26. For cattle, all animals over 18 months of age will be required to be identified when moving interstate.  Cattle 18 months and younger are exempt from these interstate identification rules; exempt for these younger animals moving across state lines for rodeo events or exhibitions.  All livestock and poultry species are affected by the rule and have varied specie-specific requirements. February 26 will mark the effective date of the rule; however, enforcement will likely follow some 6 month to a year later.  Program officials will engage in an educational and implementation process before any enforcement actions are taken.  A Question and Answer sheet and a full copy of the (144 page) rule can be found at:

. . . . .Cattle futures extended a rally to a record amid signs of shrinking supplies of U.S. beef. Hogs fell.  Beef production will drop 5 percent to 24.68 billion pounds (11.2 million metric tons) next year, the U.S. Department of Agriculture projected on Dec. 11. Ranchers culled herds as the worst drought since 1956 eroded crop yields, sending the price of corn, the main ingredient in feed, to a record in August. The U.S. herd as of  July 1 was the smallest since at least 1973.

SOUTH KOREA IS SIXTH TO BAN BRAZIL BEEF ON BSE SCARE. . . . .South Korea announced on Tuesday its immediate embargo of beef products from Brazil, becoming the sixth export market to place a temporary ban on Brazilian beef after details of  a “non-classic” case of bovine spongiform encephalopathy (BSE) were publicized on Dec. 7. In addition to South Korea, China, Japan, South Africa and Saudi Arabia have temporarily banned beef from all of Brazil, while Egypt has placed an embargo only on beef from Parana state, where the 2010 BSE case originated.

Brazil ranked as the world's second-largest beef exporter through October of this year, selling 1.024 million tons abroad, according to federal trade statistics. A delegation from Brazil's Ministry of Agriculture should be on its way to the World Trade Organization (WTO) this week, to try and convince beef partners that the case of BSE in Parana from a cow that died in 2010 is atypical for the Brazilian industry, and has been proven through testing by the World Organization for Animal Health (OIE) to have not been a danger to the public, or food supply.

. . . . .In the wake of a series of regional drought conferences with farmers, ranchers, business owners and other stakeholders, USDA is entering into a memorandum of understanding with the Commerce Department, including the National Oceanic and Atmospheric Administration, to improve sharing of data and expertise, monitoring networks and drought forecasting efforts.

HUDSON FARMS & PERDUE WIN POLLUTION LAWSUIT - A federal judge in Baltimore on Thursday ruled in favor of Hudson Farms and Perdue Farms in a pollution lawsuit that had broad implications for Maryland's poultry industry. In a 50-page written decision issued three weeks after closing arguments, U.S. District Court Judge William M. Nickerson declared that the New York-based environmental group the Waterkeeper Alliance, along with co-plaintiffs Assateague Coastal Trust and the University of Maryland Environmental Law Clinic, failed to prove their case against Salisbury-based Perdue Farms, Inc., and contract chicken growers Alan and Kristin Hudson of Berlin.

To read the article, click on the following link: WBOC - Hudson Farms

FARM BUREAU VEHICLE PURCHASE PROGRAM. . . . . Members now have a better way to buy a new or used vehicle through this easy to use program.  Benefits include in-depth price reports, target prices, estimated values and certified dealers.  The $500 GM incentive for members is already built into the system for qualifying vehicles.  Complete details at

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