Texas Cattle Feeders Announce Top News Stories for 1998

To say 1998 was a challenging year for cattle feeders could be an understatement, according to TCFA President and CEO Richard McDonald. McDonald announced the Association's list of the Top 10 news stories that affected the industry in 1998. "The cattle market was, without a doubt, the major news story this year," McDonald said. "And we're still fighting the effects of heavy cattle and beef supplies and a hog market that is going through a meltdown."

Total beef production this year will be a near record 25.6 billion pounds, second only to the 25.7 billion pounds in 1976. "However, it's interesting to note that total cattle inventory in 1976 was 128 million head, compared with 99.5 million this year. So we produced nearly the same amount of beef with only 78 percent of the cattle -- 28.5 million head less."

According to McDonald here are the top stories that affected the cattle feeding industry:

1. The cattle market remined in the doldrums for most of the year. Average steer prices fluctuated from a low of $56 to a high of $66 per cwt., with prices well below breakeven for most of the year.

2. Total meat and poultry production at 78.2 billion pounds was a record.

3. Feedyard costs of gain were affected by corn prices, which were at the lowest level since 1987.

4. The Cattlemen vs. Oprah trial drew intense media attention and allowed the beef industry to assure consumers beef is safe.

5. The Livestock Marketing Association circulated petitions calling for a referendum to terminate the $1-per-head checkoff. TCFA urges members not to sign the petition.

6. Several European Union attempts to appeal a WTO decision were rebuffed. The WTO ruled that the EU must open its markets to U.S. beef.

7. USDA began to eliminate inspection inequities between beef and poultry.

8. R-CALF threatened to disrupt trade with Mexico and Canada, the No. 2 and No. 3 markets for U.S. beef exports.

9. The Beef Industry Food Safety Council developed a plan to eliminate the risk of pathogens in beef.

10. Worldwide economic troubles prompted USDA to allocate credit guarantees to South Korea and Russia to buy U.S. ag products, including beef.