Page 10 - MWC 8-6-20s
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The Midwest Cattleman · August 6, 2020 · P10
California bill will CATTLE ON FEED lion head, 1 percent above
effectively ban feeding food continued from page 3 2019.
Other disappearance to-
byproducts to livestock counted for 4.41 million head, taled 62,000 head during
June, 6 percent below 2019.
down 1 percent from 2019.
By Todd Fitchette Placements in feedlots All Cattle on Feed Unchanged
during June totaled 1.80 mil- Cattle and calves on feed
lion head, 2 percent above for slaughter market in the
2019. Net placements were United States for all feed-
1.74 million head. During lots totaled 13.6 million head
June, placements of cattle on July 1, 2020. The inven-
and calves weighing less than tory was unchanged from
600 pounds were 430,000 the July 1, 2019 total of 13.6
head, 600-699 pounds were million head. Cattle on feed
310,000 head, 700-799 in feedlots with capacity of
pounds were 360,000 head, 1,000 or more head account-
800-899 pounds were 413,000 ed for 84 percent of the total
head, 900-999 pounds were cattle on feed on July 1, 2020,
200,000 head, and 1,000 down slightly from the previ-
pounds and greater were ous year.
85,000 head.
Farms that use agricultur- Livestock producers Marketings of fed cattle USDA
al byproducts for animal feed, Frank Konyn owns a dairy during June totaled 1.97 mil-
bedding materials, and dust near Escondido, Calif. and uses
control may lose those through the feed byproducts from local
a bill now in the California companies to feed his cows. If USDA
Senate. approved, the proposed law continued from page 3 demic. The investigation into
potential violations under the
Assembly Bill 2959 will force would ban him from hauling
the unfranchised hauling of or- those byproducts to his farm. ket conditions before, during Packers and Stockyards Act is
and after each of these two continuing.”
ganic byproducts from grocery Under current practices, live-
stores, restaurants, breweries, stock producers pay a nominal black swan events, confirm- The AMS report does men-
ing extreme volatility in both tion several policy consider-
and wineries to be subjected to fee to haulers to have organic
the same franchise agreements byproducts delivered. These the futures and cash markets ations “in light of the desire by
and providing some narrative many market participants for
municipalities now have with products tend to be less expen-
select companies. Some fear the sive than other feed sources of the market dynamics that improved price discovery, re-
were at play to help explain invigorated competition and
bill will go further as unintend- while providing proper nutri-
ed consequences are realized. tion for livestock. the drastic changes in cattle a more transparent relation-
ship between the prices for
Louie Brown, a lobbyist For Konyn, who buys the or- and boxed beef prices.
AMS findings regarding live cattle and the resulting
representing the California ganic byproducts and sells it to the Tyson plant fire indicated products.” One of those con-
Grocers Association, says the livestock producers, this would
bill addresses grocers, retail- destroy a business model oth- the uncertainty surrounding siderations is the potential
when the plant would reopen to rearrange the Livestock
ers, and restaurants. There ers like him successfully em-
remains some confusion about ploy. and the ease at which cattle Mandatory Reporting regions
could be rerouted was respon- to reduce instances of non-re-
the bill's effect on the sale of This turns the business
hulls and shells from tree nuts, model of paying the producers sible for a significant amount porting due to confidential-
of volatility in the market. ity limitations. The report
though most agree it will in- of organic byproducts for their
clude the byproducts of wine materials on its head. The bill The investigation into the also highlighted that some
market dynamics during the external stakeholders were
making, citrus juice processing will force these producers –
and breweries. wineries, breweries, and juice first two months of the pan- proposing minimum thresh-
What he does know is the processors – to pay to remove demic found economic uncer- olds of purchases through
bill will further compound the these byproducts, rather than tainty and sudden and dra- negotiated trade, but USDA
challenges of meeting state being paid for them. Only the matic changes in beef demand cautioned that there existed
mandates to divert organic franchise companies with li- each played a substantial role “concerns with these propos-
als and potential unintend-
waste away from landfills. censes issued by local munic- in the market reaction.
"California cannot meet its ipalities would have the au- The report does not address ed consequences throughout
organic diversion goals now," thority to haul these products. the ongoing investigation into the industry, especially if re-
Brown said. "Let's do the best Konyn says these companies do potential anticompetitive gional considerations are not
we can with the waste we now not have the infrastructure or practices by the Department adequately considered.” Ad-
have without making the prob- ability to effectively haul these of Justice, nor does it explore ditionally, USDA discussed
lem worse." byproducts. potential violations of the developing better risk man-
Small hauling companies Where will these byproducts Packers and Stockyards Act. agement products and edu-
and those who represent them wind up if they cannot be sold It does, however, include the cation for small and medi-
say the bill is even more trou- to livestock operations? Konyn following statement: “Find- um-sized cattle producers,
bling as it furthers the monop- says it will end up in landfills ings thus far do not preclude improving small to very small
oly solid waste companies now in California or neighboring the possibility that individu- meat processor outreach and
have through their franchise states. He says he has evidence al entities or groups of enti- enhancements to the Packers
agreements with municipali- to support that some of these ties violated the Packers and and Stockyards Act investiga-
ties. materials are being diverted by Stockyards Act during the af- tive and enforcement tools.
termath of the Tyson Holcomb KLA
fire and the COVID-19 pan-
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