CALF_News_August_September_2020

12 CALF News • August | September 2020 • www.calfnews.net Prime Points  CALF VOICES By MeganWebb, Ph.D. Contributing Editor Cattlemen's Comeback Paradigm T he only thing constant in life is change . Cattlemen are no strang- ers to transforming challenges into opportunities and shifting the paradigm for improvement. Let’s recall the “transportation revolution,” beginning in the 1890s when railroads replaced weeks-long cattle drives, and then trucks displaced railroads for transporting cattle. Later, local auc- tion markets made viable by trucks and trailers caused terminal markets to go out of business. Finally, packing plants moved from terminal markets closer to new commercial feedyards. During each of these transitions, cattlemen adapted, overcame and persevered to create a dynamic supply chain fitting the reformed business model. The past year has undoubtably produced industry-wide impacts and exposed the fragility of America’s meat distribution system and the volatility of the market when it is in high demand but disrupted from the traditional form. Recall last August when Tyson Foods’ Holcomb, Kan., plant caught fire, caus- ing volatility in wholesale beef and cattle prices, and market pressure for produc- ers. Now, six months after the first com- munity transmission of COVID-19 was detected in the U.S., producers have not only felt, but experienced just how fragile the nation’s livestock market can be. Packers – are they too big to fail? You may be familiar with the old saying,“you’ve got to make hay when the sun shines.”Well, that’s exactly what packers are doing while health professionals are using the Centers for Disease Control/Occupational Safety and Health Administration (CDC/ OSHA) guidelines to assess meat facili- ties’ COVID-19 control plans to aid in employee safety. More than 24,000 cases of coronavirus were found among meat- packing employees. But the plants had to remain open following federal orders of being a “critical infrastructure.” Cattle- men should be thankful for the heroic acts on the harvest floor, processing and packing lines that have helped the beef industry regain stability and strive for- ward. Can you imagine wearing a mask and additional sanitary equipment all day in addition to your normal personal protective equipment while working on a hot harvest floor and keeping up with the chain speed? With the federal executive orders and the CDC support- ive guidance, I think it’s worth asking if packing plants are really too big to fail? They, too, are dedicated and passionate, just like cattlemen. Proper planning prevents poor performance During the whiplash of 2020, produc- ers and agriculturalists, also deemed “essential,” pulled themselves up by their bootstraps and toiled on. Through the continuous toil, we have to remember than an ounce of prevention is worth a pound of cure. I’ve noticed more consideration among ag entities prepar- ing farm workers to ensure their safety by conducting employee trainings, increasing personal protective equip- ment, installing office sneeze guards and implementing sanitization practices. The CDC released guidance that encourages ag businesses to create a COVID-19 assessment and control plan to prevent and slow the virus’ spread. Taking the time to create and provide agricultural employees a written plan with actionable steps can aid in employee comfort so they remain at work and, ultimately, offer more business stability. A well-documented plan can also come in handy for local health departments for the purposes of contact tracing and OSHA review. In addition to safety guidelines, there are several programs that have been passed to support ag businesses, includ- ing the Paycheck Protection Program, the Small Business Administration Economic Injury Disaster Loan Program and the Coronavirus Food Assistance Program. It would be worth the time to take a look at each of these programs to determine if and how your ag entity may qualify; they are timely and handy in offsetting expenses incurred during busi- ness model shifts. The comeback April and May 2020 beef process- ing was almost 50 percent below 2019 and placed enormous pressure on the beef supply and fed cattle market. Beef processing increased in June and July and became more stable. Harvesting the backlog of cattle will take place during the rest of 2020 and perhaps into 2021. Cattle prices have been higher than in previous months as slaughter capac- ity recovers. According to the USDA Economic Research Service Agriculture Outlook Report, July slaughter esti- mates were more than 680,000 head, surpassing 2019 estimates for that same month by 10,000 head. Beef production is about 6 percent below 2019 and is expected to exceed 2019 by 3.4 percent as 2020 comes to a close. Other coun- tries, including Brazil and Europe, have been struggling with similar disruptions. Despite the supply chain disruptions, the remainder of 2020 beef export num- bers are optimistic, given that the U.S. is well positioned to trade with Mexico and South Central Asia as they begin reopening. During the height of the U.S. pandemic in April, Japan trade remained strong due to the newly implemented U.S. Japan Trade Agreement. Taiwan and China also remained steady as Continued on page 39 