USDA Supports Rural Areas & Red Meat Increase

USDA Supports Rural Areas & Red Meat Increase plus Food Forethought. I’m Greg Martin with today’s Northwest Report.

Even though times have been hard in many areas this year, one area seems to be growing and that is the demand for Certified Angus Beef. Brand partners sold 74-million pounds of beef in June - four-percent above a year ago. C-A-B Vice President Mark Polzer says that’s the highest monthly volume in the brand’s 34-year history.

POLZER: It really points to the quality of the brand and how people are perceiving it and as beef prices in general have had to go up because of the supply situation, it’s created an opportunity for our brand to set itself even further apart. If you are going to have to pay a little more for beef you certainly want a desirable eating experience.

Agriculture Secretary Tom Vilsack yesterday announced the selection of recipients in 14 states and one territory to receive loans to create or save jobs and boost local economies. Funding is provided through USDA's Intermediary Relending Program (IRP). Loans are provided to organizations (intermediaries) that re-lend the money to local businesses. $400,000 of that goes to the Greater Oregon Development Corporation. Some of those funds will provide low-interest loans to public and non-profit organizations for business and community development.

Now with today’s Food Forethought, here’s Lacy Gray.

This year pork producers have seen some of the toughest market conditions in years. They’ve faced a mountain of challenges over the last several years, and are looking at facing more of the same in the coming months. With the drought causing rising feed prices pork producers are liquidating sows. That combination of record high input costs and contracting herd size could quite easily lead to record high losses for pork producers. In the fall of 1998 the pork industry lost roughly $45 a head when the industry went through a financial downturn. Some experts are predicting that pork producers could possibly lose $60 a head heading into the fourth quarter of 2012. This begs the question, can the pork industry ever manage to be profitable again? Pork producers are meeting these challenges head on. Many from around the country met earlier this month to draft a 2013 budget for the National Pork Board. Also, the NPB is reviewing efforts on how to build stronger relationships with the industry’s food channel partners. It’s agreed, there’s a lot of “red ink” ahead for pork producers, but most of them know it won’t last forever. In the livestock business you get used to taking the good with the bad, and sometimes even the downright ugly.

Thanks Lacy. That’s today’s Northwest Report. I’m Greg Martin on the Ag Information Network.