Hereford eNews
Hereford Highlights | Market Update | Industry Insight Volume 4, Issue 7
Welcome{IF ISEMPTY [Name] THEN "" ELSE ", " END IF} {IF ISEMPTY [Name] THEN "" ELSE [Name] END IF}{IF NOT ISEMPTY [Name] THEN ", " ELSE " " END IF} to Hereford eNews, your source of the most current news affecting Hereford breeders. We aim to focus on newsworthy events pertaining to the Hereford seedstock industry. Sponsored by the American Hereford Association (AHA). Information sent to subscribers comes from material available on or authored by AHA, Hereford World and Certified Hereford Beef (CHB) LLC staff.
Curtis Polled Herefords
Hereford Highlights

Hereford 101: Grazing Strategies and Gallagher

The next Hereford 101 is scheduled for Feb. 22 at 7 p.m. A Gallagher Animal Management Systems representative will join Jack Ward, American Hereford Association (AHA) chief operating officer and director of breed improvement, to discuss grazing strategies. The Webinar will also feature information about Gallagher products including fence, scales and scaleheads for data collection.

Participants will be encouraged to submit questions, either by calling in or through the online “chat.”

In order to view the video, your computer needs to have a broadband connection to the Internet. Dial-up Internet will allow you to participate, but will only facilitate the audio portion of the Webinar.

If you go to, you will see an item in the calendar (list of auctions) for Hereford 101. Click on it and you will be prompted to enter a user name and password. If you haven’t previously set up an account you can do so via the Web site. It only takes a minute or two; just click on the “Hereford 101” item, and then on “Create a New User.” It is strongly suggested that you set up an account before the night of the Webinar.

For more information, contact Ward at (816) 842-3757 or

Calling for Young Hereford Sires

The deadline to nominate sires for the National Reference Sire Program (NRSP) is March 1. The NRSP tests young Hereford sires at cooperator cattle herds throughout the U.S., gaining proof on the bulls and data for the breed. Additional information and a nomination form is included in the January Hereford World on Page 85. You can also contact Jack Ward for copies at (816) 842-3757 or

Junior Associations – Contact Info Needed!

The AHA youth activities department needs current officer information for all state junior associations with complete addresses and telephone numbers. You may also want to include e-mail addresses for your officers and advisors if available. We are working on mailings for important summer activities and have received very few updated lists so far this year. Complete and mail the form linked below or e-mail the information to Chris Stephens at

Officers and Directors Form (Word)

Juniors – Make Sure You’ve Paid Your Membership Fee

National Junior Hereford Association (NJHA) members must pay a $15 annual membership fee to participate in any activity associated with the AHA including shows, scholarships, the Junior AI Program and contests. This fee covers the AHA fiscal year, Sept. 1-Aug. 31. Therefore, if you have not mailed your $15 junior membership fee to the AHA since Sept. 1, you are not eligible to compete in any AHA-sanctioned activity. Submit your fees today to reap the benefits of membership!

Summer and Regional Junior Shows Fast Approaching

Summer and regional junior show information must be submitted to the AHA by March 1. For those in the process of planning these events, please complete and mail the form linked below or e-mail the information to

Show Information Form (Word)

Join Fellow Hereford Enthusiasts at the JNHE – July 7-14

The “Western States Hereford Breeders” along with various state junior Hereford associations invite you to attend the 2007 Junior National Hereford Expo (JNHE), “A Hereford Celebration.” This year’s junior extravaganza is July 7-14 at the National Western Complex. The JNHE headquarters hotels are the Renaissance Denver Hotel, (303) 399-7500, and the Doubletree Hotel Denver, (303) 321-3333. Please make hotel reservations as soon as possible due to the limited number of hotel rooms in the area. The hotel reservation cutoff date is June 1. Look for additional hotel room blocks soon.

CHB LLC Internship Deadline Is March 1

Applications will be accepted for the Certified Hereford Beef (CHB) LLC internship until March 1. Candidates must be at least 21 years of age and enrolled in a two-year or four-year college. The intern’s primary responsibility is to help account managers with the sales and marketing of CHB®. For more information, contact Connie Couch at (816) 842-3758 or, or visit

Order Your Stanley Stout Memorial DVD

Stanley Stout, premier auctioneer and avid supporter of the Hereford industry, died suddenly in April 2006. Katie Colyer of Crystal Clear Creations has created a memorial DVD in Stanley’s honor. The DVD is a slideshow of pictures and video clips throughout Stanley’s life, played to music. You can order a copy by e-mailing your name, address and telephone number to Colyer at or by mailing the information to:

Katie Colyer
Crystal Clear Creations
31058 Colyer Rd.
Bruneau, ID 83604

Donations are accepted and will go toward the development of the Kansas State University (KSU) Stanley E. Stout Livestock Marketing Center. Checks should be made payable to the KSU Foundation–Stanley E. Stout Livestock Marketing Center, and can be mailed along with DVD requests to Colyer.

The center will be located close to the KSU beef barns, and the plan is to include a sale facility as well as classrooms. For more information, contact Joe Rickabaugh, AHA director of field management and seedstock marketing, at (816) 842-3757 or

Hoffman Herefords
Market Update

Cattle Outlook
Glenn Grimes and Ron Plain, University of Missouri-Columbia

Grimes and Plain offer market updates for the week past each Friday afternoon. To view this information, visit the University of Missouri AgEBB Web site.

Cow-Calf Weekly
Industry Insight

How Hot Is Ethanol?
Tom Hill, Oregon State University Department of Animal Sciences

Corn prices have now replaced bovine spongiform encephalopathy (BSE), Canadian border issues and mandatory animal ID as the current topic of concern in the beef industry. This area of concern is due to feedlot cost of gain moving from the low 50-cent range to the 70-cent range or higher on a per lb. basis. The direct results of this increase in production cost is cheaper feeder cattle and a narrower price spread between light and heavy feeders. Five-weight steers have dropped around 25 cents per lb. from the summer of ’06 to the current market averages. This drop in price on a 500-lb. calf equals $125 per head. On a national basis, a $125 drop in calf value equals $3.5 billion in lost revenue across the annual beef calf crop of 28 million head. Based on Chicago Mercantile Exchange projections, calf prices will average in 2007 what they averaged in 2003.

The force that has radically changed the beef cattle industry is the 2005 U.S. Energy Policy Act that mandates by 2012 the production of 7.5 billion gallons of ethanol and other biofuels. This mandate will allow for 3-4% of the U.S. gasoline supply to be replaced with alternative fuels. For comparison, 4 billion gallons of ethanol were produced in 2005 and 5 billion gallons were produced in 2006.

As reported by Oregon State University economist William Jaeger, on a per unit of net energy basis, ethanol costs 750% more than gasoline to produce. This cost disadvantage of producing ethanol versus gasoline is why the federal government pays a subsidy of 51 cents per gallon to blenders in order to promote the use of ethanol. The 51-cents-per-gallon subsidy equals $1.35 per bushel of corn. In addition to the 51-cents-per-gallon subsidy the federal government pays domestic suppliers, there is a 54-cents-per-gallon tariff charged against imports of ethanol. The political fate of the subsidy and tariff will affect the biofuel market and domestic corn prices.

Jaeger further reports a gallon of ethanol produces 91,742 Btu of energy but requires 73,118 Btu in the production process. These figures result in a net energy gain of 20.3%. Research will continue on other biofuel sources that yield a more favorable net energy gain than can be obtained from corn.

Peering into the short-term future, a record number of corn acres may be planted in 2007; days on feed for feedlot cattle should decrease, which will lower carcass weights and reduce quality grade; and energy prices are predicted to drop. The grain byproduct feeds produced when making ethanol are not as advantageous to swine and poultry as they are to ruminants. This fact may cause a reduction in poultry and pork meat supplies due to the unfavorable cost of production. Producers who can adapt and not overreact to change will be able to move on to the next market/political challenge.

The long-term fate of ethanol production will be determined by the marketplace and political realities. This scenario is not new to cattle producers and follows the trend of BSE, the Canadian border reopening and mandatory animal ID among other recent issues.


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