R-CALF has Concerns With New FMD Rule

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CN_Today 1/11/2007 10:23:00 AM


R-CALF: Producers Express Concern About APHIS' Proposed Argentina FMD Rule



Washington, D.C. – Last week, the U.S. Department of Agriculture's (USDA's) Animal and Plant Health Inspection Service (APHIS) proposed a rule that would – for the first time – recognize the disease status of a subregion of a country and allow fresh and frozen meat from the region to be exported to the United States.



The pending change – published in the Jan. 5, 2007, Federal Register – would declare a portion of Argentina known as the Patagonia South region, free of rinderpest and foot-and-mouth disease (FMD).



"This change would allow for the exportation of fresh and frozen meat products – including beef products – from the Patagonia South region to the United States," said Doug Zalesky, R-CALF USA's International Trade Committee Chair. "The proposed rule would set an important precedent in the regulation of U.S. meat imports, and may open the door to the certification of additional regions within countries – before those countries have achieved disease-free status at a national level."



Foot-and-mouth disease (FMD) – last diagnosed in the U.S. in 1929 and sometimes called hoof-and-mouth disease – is an acute, contagious, feverish – but usually not fatal – disease of cattle, hogs, sheep, and other cloven-hoofed animals.



Rinderpest, sometimes called cattle plague, is an acute, often fatal, contagious viral disease, chiefly of cattle, characterized by ulceration of the digestive tract, resulting in diarrhea. Rinderpest also affects sheep and is characterized by high fever, diarrhea, and lesions of the skin and mucous membranes.



"USDA's plans to regionalize FMD zones to enable additional beef exports to the U.S. are of great concern," said R-CALF USA International Trade Committee Chair Doug Zalesky.



Zalesky has testified before the U.S. International Trade Commission (ITC) regarding R-CALF USA's opposition to a potential increase in beef imports from free trade agreement (FTA) partners if those partners are able to achieve U.S. disease-status recognition for regions within their sovereign borders and FTA rules fail to include adequate safeguards accounting for such a possibility.



"The United States Trade Representative (USTR) has failed to include adequate rules of origin in previous FTAs with Central American and South American countries that have a problem with FMD, so strong import regulations serve as the last line of defense to prevent the transshipment of cattle from other regions within Argentina that continue to have disease problems into these newly designated FMD free zones for slaughter and export to the U.S. market," Zalesky pointed out.



"Currently, the majority of Central and South American countries are blocked from exporting fresh and frozen beef to the U.S. because of disease concerns," Zalesky continued. "While the Patagonia South region has been recognized as FMD-free by the World Animal Health Organization (OIE), current U.S transshipment safeguards regarding FMD have never been tested in controlling cross-regional movement within national boundaries.



"The new rules must be closely scrutinized to ensure that the regionalization of disease-affected countries like Argentina – for purposes of expanding meat exports – does not weaken health and safety protections for our domestic cattle herd," he emphasized.



Zalesky also is concerned that USDA's recognition of an FMD-free zone in Argentina could open the door for other Central American and South American nations looking to export beef to the United States.



"The recognition of this subregion begins the process of increased imports from Central and South American countries," Zalesky explained. "Several times, the proponents of free trade with these areas have argued that the importation of beef from these countries was highly unlikely because of FMD.



"However, this announcement shows that even those countries that only have achieved FMD-free status for subregions within their nations may be able to increase beef exports to the United States," he said. "USDA's approach would establish – for a region with more than 250 million head of cattle and continuous disease problems – a beach-head to our domestic beef market."



To prevent price-depressing import surges, R-CALF USA consistently has maintained the need for safeguards in FTAs, as well as special provisions that cattle and beef be treated as a perishable and cyclical item in bilateral FTAs and at the World Trade Organization (WTO).



R-CALF USA also is concerned with trade liberalization proposals such as this that involve highly contagious foreign animal diseases, and believe it would be premature for the U.S. to allow beef exports from subregions within disease-affected countries.



Public comments on the proposed rule are due by March 6. To submit comments, visit http://www.regulations.gov and select the "Animal and Plant Health Inspection Service" link from the agency's drop-down menu. In the Docket ID column, select APHIS-2005-0096. To submit a comment by Postal Mail/Commercial Delivery, please send four copies of comments to: Docket No. APHIS-2005-0096, Regulatory Analysis and Development, PPD, APHIS, Station 3A-03.8, 4700 River Road Unit 118, Riverdale, MD, 20737-1238. Please write the docket number in the top right-hand corner of all four copies of your comments.
 
I wonder if this could have any connection with USDA/APHIS announcing last week that they are proposing to relax these FMD import rules with Argentina :?:

USDA has sold out lock, stock, and barrel to the Big Corporate Packers- and would think nothing of endangering the US cattle herd if it could help the Tyson/Cargil/Swifts/etal profit :( :mad: :mad: Pure out and out corrupt government...

We need to implement the M-COOL law now.....

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Tyson Teams Up With Cactus Feeders and Cresud in Argentina Beef Venture

Companies Form Vertically Integrated Beef Operation



Source: Tyson Foods, Inc.



SANTA ROSA, La Pampa Province, Argentina, Jan. 12, 2007 (PRIME NEWSWIRE) (PRIMEZONE) -- Tyson Foods, Inc. (NYSE:TSN) has entered into a joint venture in Argentina, which will create the first vertically integrated beef operation in the South American country. The venture is expected to produce both products for the domestic Argentine consumer and give Tyson access to European and other high value beef markets.


Tyson has teamed up with Cactus Feeders Inc., one of the world's leading cattle feeding companies, and Cresud S.A.C.I.F. y A. (Nasdaq:CRESY), the leading agribusiness company in Argentina. The joint venture will use an existing feedlot operated by Cactus and Cresud to supply most of the beef for a beef slaughter and processing plant recently purchased by the joint venture. Both the feedlot and plant are located in central Argentina. Sales for the joint venture are expected to be in the range of $30 to $35 million in 2007.



Cactus and Cresud have successfully operated the feedlot, located at Villa Mercedes in the province of San Luis, since 1999. It currently has a one time capacity of 25,000 head, but the new venture has plans to expand its feedlot capacity in the region. The boxed beef plant, previously operated under the name Exportaciones Agroindustriales Argentinas S.A., is located in Santa Rosa in the province of La Pampa. It will be Tyson's first participation in a beef operation outside of North America.


Currently, approximately 380 people work at the government inspected facility, which now has the capacity to slaughter and process about 9,500 cattle per month. The new company expects to expand the plant's capacity to 15,000 head per month in the future.



As part of the joint venture, much of the plant's production will gradually be converted from grass-fed to grain-fed beef using cattle from the Cactus-Cresud feedlot. The higher quality product will provide increased access to important export markets in Asia, as well as the European Union (EU). The plant already has approval to ship product to the EU, as well as other countries, and exports a majority of the mostly grass-fed, boxed beef it currently produces.



"At Tyson, we are excited to join two great business partners in Cactus Feeders and Cresud. We believe our combined expertise will create a great new company that will be able to produce products for domestic consumption as well as export," said Rick Greubel, group vice president of international for Tyson. "Cresud's involvement in grain and livestock production, the experience of Cactus in the feedlot business and Tyson's success in processing and marketing beef will help capitalize on the strengths of Argentina's beef industry. This is also an important first step for Tyson as we look to create a presence in South America."



Paul Engler, chairman of the board of Cactus Feeders, Inc., said "We're very pleased the reorganization of Cactus Argentina includes the ownership and active participation of Tyson. Developing a vertically integrated system with such a partner has been one of our ultimate objectives in Argentina. Having a U.S. meat processor with the stature of Tyson as an active participant will have a very positive impact on the growth of the cattle sector in the country."



"We believe a vertically integrated system for finishing cattle and processing beef in Argentina is the perfect way to capitalize on the strengths of the country's beef industry," added Miguel De Achaval, vice president and general manager of Cactus Argentina. "The commitment of this venture is to work with the Argentine beef producers to offer a superior product at an affordable price for the domestic and the foreign markets."



Argentina is the fifth leading producer of beef and veal in the world, after the U.S., Brazil, the European Union and China, and is the second leading exporter of beef. The country is known for its low beef production costs due to competitive livestock, labor and energy markets, as well as the high quality breeds of the cattle raised there.



About Tyson Foods



Tyson Foods, Inc. (NYSE:TSN), founded in 1935 with headquarters in Springdale, Arkansas, is the world's largest processor and marketer of chicken, beef, and pork, the second-largest food production company in the Fortune 500 and a member of the S&P 500. The company produces a wide variety of protein-based and prepared food products, which are marketed under the "Powered by Tyson" strategy. Tyson is the recognized market leader in the retail and foodservice markets it serves, providing products and service to customers throughout the United States and more than 80 countries. The company has approximately 107,000 Team Members employed at more than 300 facilities and offices in the United States and around the world. Through its Core Values, Code of Conduct and Team Member Bill of Rights, Tyson strives to operate with integrity and trust and is committed to creating value for its shareholders, customers and Team Members. The company also strives to be faith-friendly, provide a safe work environment and serve as stewards of the animals, land and environment entrusted to it.



About Cactus Feeders



Cactus Feeders, headquartered in Amarillo, Texas, has nine large-scale feedyards across the Texas High Plains & Southwest Kansas. Since its founding in 1975, Cactus Feeders has grown to become one of the world's leading cattle feeding companies, employing approximately 500 people.



About Cresud



Cresud is a leading Argentine producer of basic agricultural products and the only such company with shares listed on the Buenos Aires Stock Exchange and NASDAQ. The company is currently involved in various operations and activities, including crop production, cattle raising and fattening, milk production and certain forestry activities. Most of its farms are located in Argentina's pampas, one of the largest temperate prairie zones in the world and one of the richest areas of the world for agricultural production.



Forward-Looking Statements



Certain information contained in the press release may constitute forward-looking statements, such as statements relating to expected sales of the joint venture and plans to expand the capacity of the feedlot and beef plant. These forward-looking statements are subject to a number of factors and uncertainties which could cause the company's actual results and experiences to differ materially from the anticipated results and expectations, expressed in such forward-looking statements. The company wishes to caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. Among the factors that may cause actual results and experiences to differ from the anticipated results and expectations expressed in such forward-looking statements are the following: (i) fluctuations in the cost and availability of inputs and raw materials, such as live cattle, live swine, or feed grains (including corn), and energy; (ii) the company's ability to realize anticipated savings from its cost reduction initiatives; (iii) market conditions for finished products, including competition from other global and domestic food processors, the supply and pricing of alternative proteins, and the demand for alternative proteins; (iv) risks associated with effectively evaluating derivatives and hedging activities; (v) access to foreign markets together with foreign economic conditions, including currency fluctuations, and import/export restrictions and foreign politics; (vi) outbreak of a livestock disease (such as avian influenza (AI) or bovine spongiform encephalopathy (BSE)) which could have an effect on livestock owned by the company, the availability of livestock for purchase by the company, consumer perception of certain protein products or the company's ability to access certain domestic and foreign markets; (vii) changes in the availability and relative costs of labor and contract growers, and the ability of the company to maintain good relationships with employees, labor unions, contract growers and independent producers providing livestock to the company; (viii) issues related to food safety, including costs resulting from product recalls, regulatory compliance and any related claims or litigation; (ix) changes in consumer preference and diets, and the company's ability to identify and react to consumer trends; (x) significant marketing plan changes by large customers, or the loss of one or more large customers; (xi) adverse results from litigation; (xii) risks associated with leverage, including cost increases due to rising interest rates or changes in debt ratings or outlook; (xii) changes in regulations and laws (both domestic and foreign), including changes in accounting standards, tax laws, environmental laws and occupational, health and safety laws; (xiv) the ability of the company to make effective acquisitions and successfully integrate newly acquired businesses into existing operations; (xv) effectiveness of advertising and marketing programs; (xvi) the results of the company's on-going tax account balance review; and (xvii) the effect of, or changes in, general economic conditions.



primenewswire.com
 
Friday, 19. January 2007 Cresud S.A.C.I.F.yA., Tyson's New Partner in ArgentinaBy worldbeefeforum, 20:01

Everyone in the cow-calf business in the U.S. knows about Tyson Foods, Inc., and most producers know about Cactus Feeders headquartered in Texas. But how many of you know about Cresud? Some of you may know about the first part of this report on Cresud, but I'll bet not many of you know the history of Cresud. It is very interesting, and raises some interesting questions about future global beef trade in my opinion. This post is a long one. Don't give up on it. I think you will agree with me that the second part as well as the first is very interesting.

Hoovers reports, "Cresud S.A.C.I.F.yA. is an agricultural real estate investment trust (REIT), and is also one of Argentina's largest landowners (some 258,000 hectares). It raises beef and dairy cattle and cultivates grains, including corn, soybeans, sunflowers, and wheat. In addition, the company farms and ranches on leased lands. Cresud is in partnership with Cactus Feeders of Texas to raise cattle in feedlots rather than on pastures. It also has a 70% holding in agricultural Web portal fyo.com (an online commodity exchange). The Argentine Elsztain family controls the company. The main office is in Buenos Aires, Argentina."

Answers.com reports the history: "Key Dates:

1936 Cresud is incorporated as a subsidiary of a Belgian company (my comments: The Belgian company was Credit Foncier, and the business of the subsidiary, Cresud, included several functions, among them administering real estate holdings foreclosed by Credit Foncier.).

1960 The company's shares are listed on the Bolsa de Comercio de Buenas Aires (stock exchange).

1994 Backed by George Soros, Eduardo S. Elsztain purchases a majority stake in Cresud.

1996 Cresud now owns nearly a million acres of farms, ranches and woodlands.

1997 The company purchases a big ranch from Swift Armour S.A.

1998 Cresud, with 26 farms and ranches, is Argentina's biggest producer of beef and grain.

1999 Cresud opens a cattle feedlot as a joint venture with a Texas-based company (Cactus Feeders).

2002 The company loses money in a crisis-ridden fiscal year. (My comments: They have done very well since then.)

More of my comments: Argentina went through convulsions in the 1980's which caused major problems for Eduardo Elsztain's family real estate business. Eduardo took a year off in 1990, moved to New York City, met daily with Orthodox Jews like himself and ultimately met with and convinced George Soros to provide $10 million USD to start purchasing undervalued Argentine stock and real estate. Real estate purchased included a lot of undervalued land in the nation's plains (known as pampas) which is very fertile land in a favorable climate. All of this ultimately led to the purchase of a 51% majority in Cresud in 1994 for $11.2 million USD and to Cresud becoming a major player in agriculture. Total investments in the company grew to $25 million USD, and by 1995 Eduardo was using $61.8 million USD from the Soros Group and raised even more from public stock offerings. Eduardo undoubtedly had a lot of good business advice along the way. The question is, who are the players in the new partnership with Tyson? Is it really only Cresud, Cactus and Tyson? And, if it is, what are the ties today between Cresud and George Soros, and how is all of this going to play out in the global beef industry?
Here is a link to the Cresud website. When you get there click on the background when it says "click to activate and use this control." You may need to do this 2 or 3 times to get where you want to go. I don't know why they did the website this way, but they did. So, don't give up. You will figure it out.

http://www.cresud.com.ar
 

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