MSGA applauds news of U.S. Beef heading to China

The Montana Stockgrowers Association issued the following statement regarding the announcement that an agreement has been reached to begin shipping U.S. beef to China:

“Montana ranchers have been waiting for this day for thirteen years,” said Montana Stockgrowers Association Executive Vice President, Errol Rice. “Restored access to China’s 1.3 billion consumers will create an immense market potential for Montana ranchers.”

The Montana Stockgrowers Association is still evaluating the technical aspects of the agreement. Included below are USDA’s specific requirements for exports to China:

  • Beef and beef products must be derived from cattle that were born, raised, and slaughtered in the U.S., cattle that were imported from Canada or Mexico and subsequently raised and slaughtered in the U.S., or cattle that were imported from Canada or Mexico for direct slaughter;
  • Cattle must be traceable to the U.S. birth farm using a unique identifier, or if imported to the first place of residence or port of entry;
  • Beef and beef products must be derived from cattle less than 30 months of age;
  • Chilled or frozen bone-in and deboned beef products are eligible for shipment.  For a complete listing, refer to the FSIS Export Library; and
  • Carcasses, beef, and beef products must be uniquely identified and controlled up until the time of shipment.

 

###

The Montana Stockgrowers Association, a non-profit organization representing nearly 2,500 members, strives to serve, protect and advance the economic, political, environmental and cultural interests of cattle producers, the largest sector of Montana’s number one industry – agriculture.

Cattle industry urges against mandatory ID

From Tri-State Livestock News:

Cattle producers, veterinarians, sale barn operators and others involved in the cattle industry encouraged the federal government not to implement any kind of mandatory individual identification for feeder cattle 18 months of age and younger.

That was the message that Wayne Gerbig, Amidon, North Dakota, rancher heard at the Billings, Montana, U.S. Department of Agriculture Animal and Plant Health Inspection Service hearing May 24. The North Dakota Stockmen’s Association board member said that the two most important and most common messages shared during the public hearing were:

1 – USDA was encouraged to not pursue a mandatory identification program for breeding cattle or feeder cattle

2 – hot branding and the use of brand inspection and shippers permits are still viable forms of identification

“As important as it is to do our part, we don’t think they need to mandate it for all feeder cattle. We need to step back and see what’s working

— a lot of things are working. I think the view of the group, especially producers, is that there is enough opportunity with voluntary identification to meet the export demand. I felt like that was definitely the majority opinion of the producers at the meeting.” Race King, Dillon, Mont., rancher

The USDA APHIS hosted listening sessions in Oklahoma, Maryland, Tennessee, Minnesota, Denver, California and Billings to obtain public comment on the current Animal Disease Traceability system in order to determine what changes might be needed in the future.

Two upcoming meetings were recently added to the original lineup:

Omaha, Nebraska, July 18: Embassy Suites Omaha Downtown; and Fort Worth, Texas, July 20, Dallas/Fort Worth Marriott Hotel & Golf Club at Champions Circle. Producers are encouraged to attend those meetings to share their experiences and thoughts regarding a national animal identification program.

In 2012, USDA lowered the age at which sexually intact breeding cattle moving interstate required individual identification – from 24 months to 18 months of age. In this, “Phase two” USDA indicated it was interested in tracking all cattle that move interstate, including feeder cattle.

The final USDA hearing, in Billings, included an industry panel with a sale barn operator a purebred operator, a sale barn vet, and Race King, a Dillon, Montana, rancher who runs a yearling outfit.

King said his family, who operates within a designated surveillance area (DSA) in southwest Montana, began using individual electronic identification for their cattle to comply with state requirements. The DSAs exist to attempt to track breeding cattle from the areas of Montana most affected by brucellosis from wildlife – both elk and buffalo.

The Montana Stockgrowers member said the state compensates his ranch for some of the testing costs required within the DSA, and for some of the tagging costs as well. But the King Ranch has “embraced” the electronic identification program and now finds it useful for their own herd recordkeeping.

“We have made it work in our operation. We’ve adopted several ways of using the technology to make us better managers and marketers. We are now purchasing tags on our own,” he said, and added that his heifers don’t get a metal bangs tag when they are vaccinated and tattooed – the electronic identification tag takes the place of the bangs tag.

“Our premise is registered so those tag numbers are associated with our ranch.”

The Kings are involved in programs that require individual traceback identification, and that often offer premiums, but these programs are about more than just a button in the ear, he said.

“It’s not just tagging,” he said, adding that different programs call for different management strategies.

All of the benefits his ranch has experienced aside, King said he does not believe a mandatory tagging protocol for America’s feeder cattle is a good idea, and his family still utilizes hot branding and the state’s brand inspection program.

“As important as it is to do our part, we don’t think they need to mandate it for all feeder cattle. We need to step back and see what’s working – a lot of things are working. I think the view of the group, especially producers, is that there is enough opportunity for voluntary identification to meet the export demand. I felt like that was definitely the majority opinion of the producers at the meeting.”

Montana Stockgrowers Association Executive Vice President Errol Rice said his group doesn’t support a mandatory tagging requirement but would like to see USDA work in tandem with operators who are already utilizing traceback identification, or those who are interested in it, to develop some standardized government traceback protocols.

“If we do get hit with another disease outbreak, that way we’ve got a critical mass of feeder cattle that are under identification that could be made available for export markets,” said Rice. His group hopes this system would keep other countries from banning U.S. beef in the case of future disease outbreaks.

Gerbig said that he learned from other presenters that the electronic button tags have improved substantially. He said Joe Goggins, owner of the two Billings livestock auction barns and Vermilion Angus, testified that the electronic tags – in use in his purebred operation – are much less likely to fall out than earlier versions.

Goggins also explained that electronic identification would severely impede commerce during the fall run at his sale barn because, contrary to industry hopes that a truckload or a ring full of cattle could just be “swiped,” in reality each animal has to be run down a chute or individually caught in a head catch in order for the tags to be read.

There is still a good market for “source verified” cattle, although premiums are smaller than when they were newer, Gerbig said he learned in the meeting, due to more producers getting involved. He said that producers can’t just buy an electronic tag – which average around $2.50 for the basic kind – and expect a premium. He believes producers will need to get involved in a program and follow expected protocol throughout the year in order to qualify for a premium.

Read more at TSLN.com.

Stockgrowers comment on announcement of U.S. beef access to China

Helena, Mont. (May 12, 2017) – The Montana Stockgrowers Association issued the following statement regarding the announcement that an agreement has been reached between the White House and China to restore U.S. beef access:

“As the second largest importer of beef, we are extremely excited that an agreement has been made to restore U.S. beef to China. Montana’s ranchers have been waiting since 2003, to ship the nation’s highest quality beef to China’s 1.3 billion consumers.” Errol Rice, Executive Vice President, Montana Stockgrowers Association.

###

The Montana Stockgrowers Association, a non-profit organization representing nearly 2,500 members, strives to serve, protect and advance the economic, political, environmental and cultural interests of cattle producers, the largest sector of Montana’s number one industry – agriculture.

Podcast Update || MidYear Meeting 2017

Kori and Errol discuss highlights of this year’s MidYear Meeting and why this is one event you don’t want to miss out on!

Montana Stockgrowers Association commends confirmation of Representative Zinke

Helena (March 1, 2017) – The Montana Stockgrowers Association (MSGA) today applauded the U.S. Senate’s confirmation of Montana Congressman Ryan Zinke to serve as the next U.S. Secretary of the Interior.

MSGA Executive Vice President, Errol Rice noted Zinke’s experience living in the west gives him a unique perspective of public land issues.

“We are excited to see the confirmation of Congressman Zinke,” said Rice. “He has a thorough knowledge of natural resource issues and how the management of said issues impact the states. Representative Zinke has been a great advocate for Montana and ranching during his tenure in Congress. We look forward to continuing to be a resource for him on the complex and diverse issues that impact not only Montana but the nation.”

###

The Montana Stockgrowers Association, a non-profit organization representing nearly 2,500 members, strives to serve, protect and advance the economic, political, environmental and cultural interests of cattle producers, the largest sector of Montana’s number one industry – agriculture.

China Lifts Ban on U.S. Beef

After 13 years of closed access, the Montana Stockgrowers Association (MSGA) welcomed the news of the Chinese government lifting the ban on the import of U.S. beef. As one of the largest importers of beef, exports to China will open up new opportunities for Montana ranchers.

China’s imports have risen dramatically, reaching a record $2.3 billion in 2015. USDA forecasts that China will surpass Japan as the second-largest beef importer with imports estimated at 825,000 tons in 2016. Rapidly rising demand for beef has made China the fastest-growing beef market in the world.

Montana Stockgrowers President, Gene Curry of Valier notes, “This news comes at a time when the markets are at the top of mind for every cattle producer. China is home to one-fifth of the global population and a major importer of protein, we look forward to providing China with high quality beef. On behalf of our membership, I would like to personally thank Senator Daines and Ambassador Baucus for their work in opening this exciting new market.”

This past May, MSGA sent a letter to Vice-Premier Zhang that was hand delivered by U.S. Senator Steve Daines. The letter promoted Montana beef’s quality and encouraged lifting the ban on U.S. beef.

###

The Montana Stockgrowers Association, a non-profit organization representing nearly 2,500 members, strives to serve, protect and advance the economic, political, environmental and cultural interests of cattle producers, the largest sector of Montana’s number one industry – agriculture.

Livestock Groups Consider MOU for Brucellosis Management | Podcast

PodcastThe National Public Lands Council is hosting their annual meeting this week in Cody, Wyoming. Several Montana ranchers are taking advantage of the close proximity to attend the conference and meeting with public land users from across the country. Montana Stockgrowers and Montana Public Lands Council has several representatives at the meeting and we’ll be catching up later with Jay Bodner to learn more about the big topics of discussion coming out of the event.

Ranchers representing the Montana Public Lands Council in Cody this week include Vicki Olson of Malta and MPLC President, John and Joe Helle from Dillon, George Trischman from Sheridan and Johnny Schultz

Earlier, Montana Stockgrowers took part in a Tri-State Meeting prior to the PLC conference in Cody, to meet with representatives from our neighboring states of Idaho and Wyoming. MSGA Executive Vice President, Errol Rice, shares more about the topics discussed on the Stockgrowers podcast. As part of the meeting, the three states agreed to encourage state and federal agencies to create a working committee that will work toward better solutions for managing brucellosis in the Greater Yellowstone Area.

Click here to listen to today’s podcast on a new page.

Errol Rice: We are a Global Business

Errol RiceFree trade is on the minds of Congress, MSGA and many U.S. business executives these days as the White House looks to push for reauthorization of Trade Promotion Authority (TPA) as well as a watershed Pacific trade deal with Japan and 10 other countries. The Japan agreement is better known as TPP. Congress is also weighing in to modify mandatory Country of Origin Labeling (COOL) requirements.

MSGA was actively involved in the formation of COOL legislation during the 2002 Farm Bill. Since that time, the program has been challenged in the World Trade Organization (WTO) by Canada and Mexico. The WTO’s Appellate Body has determined that our COOL requirements unfairly discriminate Canada and Mexico’s beef exports. Canada and Mexico are now seeking more than $3 billion per year in sanctions against a variety of U.S. exports. According to the Canadian Embassy in Washington, D.C., the top Montana exports affected by retaliation include cattle, cherries, corn, pasta and jewelry valued at right around $10 million.

MSGA has long supported COOL, but realizing the significance of retaliation, the MSGA Beef Production and Marketing Committee and the Board of Directors adopted new interim policy on June 6th. The policy supports the repeal of our current COOL statute and then work to develop a comprehensive, broad-based labeling program for U.S. beef.

On June 10th, the House passed H.R. 2393, the COOL Amendments Act, by a vote of 300-131. H.R. 2393 amended the Agriculture Act of 1946 to repeal mandatory COOL. As I write this piece, the Senate Agriculture Committee is deliberating on its own version of a COOL bill. The Senate may have some hurdles to jump to get the required 60 votes for full repeal but we will be monitoring and weighing in on this very actively in the next several weeks.

Since 1974, Congress has enacted TPA legislation that gives the President guidelines on negotiating trade agreements while giving Congress the final up or down vote. A consensus version of TPA passed through both the House and Senate this month and is headed to the President’s desk (as of this writing). MSGA has worked very hard to ensure that agriculture and business has the balance of power to get TPA reauthorized.

Our point of view is that there was a time when the largest part of our economic activity was domestic, but now our future depends on our ability to be globally competitive. TPA is key to accessing the additional demand from the 96% of consumers that live outside the United States. TPA eliminated tariffs on U.S. beef by 40%, 20% and 89% in Korea, Panama and Colombia alone.

We are trying to level the global playing field. According to Michael Froman the U.S. Trade Ambassador, the average tariff in TPP countries is three to four times as high as ours is. It equates to 70% on autos, 50% on machinery, 35% on chemical and 50% on beef. A successful TPP agreement will either make these zero or much lower which in turn creates more economic opportunity for our U.S. cattle market. Let’s also not forget about China. There is no formal access for U.S. beef into China. If we care about American jobs and beef’s role in feeding a global population then we have to make progress on all of these fronts.

Looking Ahead For Montana Sage Grouse Stewardship | Podcast

PodcastOn this week’s podcast, we’ll continue our conversation with Stockgrowers Executive Vice President, Errol Rice, to find out what happens in policy work after the legislative session ends in Helena. Plus, we’ll have a recap on sage grouse stewardship and what conservation of this bird’s habitat means for ranchers in the western states.

Learn more about Senate Bill 261, which establishes Montana’s sage grouse stewardship plans, that was signed by Governor Bullock last week.

Have questions or suggestions for future podcast topics? Connect with us via our Contact form.

Montana Stockgrowers Addresses Policy Focus and Priorities during Legislative Session

Errol RiceBy Errol Rice, MSGA Executive Vice President

Three overarching policy areas were paramount to Montana Stockgrowers during the 2015 Montana State Legislature – adequate funding for the Department of Livestock, passage of the CSKT Water Compact and the Sage Grouse Conservation Act. Each brought varying degrees of controversy and unwavering points of view by lawmakers and constituents, but we made the lift. There is still work to be done.

Fundamentally, there are three different approaches MSGA could have taken on these issues. We could have just simply reacted and waited to see if we’d be forced to respond to new and unanticipated policies. We could have only monitored and gleaned information to anticipate policy changes. We could have undergone direct participation in the process and shaped policy to minimize threats and advance opportunities. We chose direct participation in the process. This approach is the most costly in terms of resources, but the results in my opinion have yielded the greatest benefit to our industry.

The Department of Livestock budget came together after weeks of negotiations between livestock interests, House Appropriations and the Senate Finance committee. MSGA worked hard on the appropriations process. For months, leading up to the session we have been offering feedback and briefings to legislators on the tightening of costs and revenue projections, adjusting fees, recalibrating Board governance, human resource policies and procedures, and building a long-range plan. MSGA has also focused on vetting and making recommendations to the Bullock administration about appointments to Department’s Board.

The Governor’s nomination of Lila Taylor is a game changer. We supported and stewarded her candidacy through the process. Lila brings over forty years of industry experience along with a foundation in legislative appropriations and sharp understanding of how to serve on high-level boards.

She has served on the Board of Regents and the Montana Board of Public Education just to name a few. We also supported the confirmation of Nina Baucus and reappointment of Brett DeBruycker. Both of whom are stalwarts to the successful future of the DOL.

The CSKT water compact was a very complex policy matter that required intense due diligence by the water committee, Board of Directors, legal counsel and our lobbyists. We had to establish a high degree of confidence that the compact protected historic water rights both on and off the Flathead Reservation. Ratifying an agreement of this magnitude is of course going to draw a level of skepticism by some people.

There are almost no public policy decisions that enjoy unanimous support from all constituents, but as a matter of mitigating our industry’s risk exposure from tribal water claims, this compact needed passage. This proposal still has to go before the U.S. Congress for authorization and this could take years. After that, the CSKT’s tribal council must formally approve it. Following the tribe’s approval, the Montana Water Court must consider it.

In the meantime, the tribe must file their water rights by June 30th of this year. Those claims will be put on hold while Congress takes up the compact. MSGA will continue to be fully engaged at all levels of the compact’s life cycle moving forward.

Since April of 2013 MSGA has been working to develop a Montana solution for the conservation and management of sage grouse with the intent of avoiding a U.S. Fish and Wildlife Service listing of the bird under the Endangered Species Act. A listing by the USFWS would have a devastating impact to Montana’s livestock economy.

The passage of Senate Bill 261, solidified a mechanism for private landowners to maintain, restore and expand sage grouse habitat. Furthermore, it offers incentives for private landowners to participate as well as provide mitigation options for project developers such as coal, oil and natural gas to meet their regulatory obligations. MSGA has been at the forefront of getting Montana’s plan structured the right way for grazing interests.

Montana’s livestock industry is profoundly affected by public policy decisions. Anybody can be a part of this process but MSGA will continue to build from the bottom up to access key policy makers, providing credible technical information and influence. Political advocacy is not always easy and it is a competitive endeavor but we have to play to win.

I read a piece recently by Stanley McChrystal, who led U.S. forces in Afghanistan and now advises CEOs on leadership. He said that political chiefs handling national security in Washington would benefit from a bit of white-water rafting together. That would build personal relationships that promote cooperation during times of crisis.  This is important from my point of view in that political advocacy is not always about making a statement but actually showing that we can develop meaningful relationships and lead on major issues affecting our industry.