The World Trade Organization's (WTO) arbitration panel announced Monday its final ruling that the United States' Country of Origin Labeling (COOL) requirements for livestock and meat imports have cost our trading partners over $1 billion dollars. Canada and Mexico are now authorized to impose retaliatory tariffs in that amount against U.S. exports.  This has many agricultural groups, like the National Cattlemen's Beef Association, National Pork Producers Council, National Chicken Council and American Farm Bureau Federation - all requesting immediate action by the U.S. Senate or retaliation against U.S. exports will soon follow.  Each group addressed how retaliation will impact U.S. agricultural producers.

"If the Senate does not act, U.S. beef exports will face a 100 percent tariff in these countries, severely diminishing about $2 billion of beef exports annually," said NCBA President Philip Ellis.  Click or tap here to read more from NCBA.


"America's pork producers need congressional lawmakers to recognize the imminent harm our economy faces," said NPPC President Dr. Ron Prestage, a veterinarian and pork producer from Camden, S.C. "Retaliation has been authorized, and our exports to the No. 1 and No. 2 markets will suffer and so will U.S. farmers, business people and consumers."  Click or tap here to read more NPPC.


"I am keenly aware that chicken and fowl could be at the top of the list for retaliation by Canada and Mexico, and that this labeling law continues to leave the door open for retaliatory action by other countries, too," said NCC President Mike Brown. "NCC supports legislative action that will bring U.S. laws and regulations pertaining to meat and poultry into full compliance with our international trade obligations. NCC urges Congress to repeal the labeling provision for chicken, beef and pork now."  Click or tap here to read more NCC.

AFBF President Bob Stallman responded in saying, "AFBF supports country-of-origin labeling that meets WTO requirements, and we support the remaining COOL programs, but the risk of retaliation by Canada and Mexico is too great. U.S. farmers and ranchers could suffer a serious blow if Congress does not act quickly."  Click or tap here to read more from AFBF.


Canada has recently reorganized their government with elections sweeping the previous leadership out of power.  However, the new leaders issued a statement that they are ready to start retaliation quickly. In a joint statement early Monday afternoon, Canadian trade minister Chrystia Freeland and agriculture minister Lawrence MacAulay said their government "has made every effort to convince the United States to comply with its international trade obligations," but if COOL is not repealed, "Canada will quickly take steps to retaliate."

R-CALF USA, National Farmers Union (NFU) and United States Cattlemen's Association (USCA) came out adamantly against the World Trade Organization's (WTO's) arbitration decision that claims the United States mandatory Country-of-Origin Labeling (COOL) law caused Canada and Mexico to suffer annual losses of $782 million and $228 million, respectively.


"The WTO decision is utterly absurd," said R-CALF USA CEO Bill Bullard.  "The entire value of Canada's live cattle imports in 2014 was $1.753 billion and this represented an historical high. It is absolutely impossible that Canada could be suffering an annual loss representing 45 percent of Canada's record high imports.  Mexico's live cattle imports in 2014 were valued at $739 million and it is equally impossible that COOL has caused Mexico to lose 31 percent of the value of its record level of exports."  Click here to read more from R-CALF.


"The WTO rules without precedent and continues to undermine laws and regulations that benefit society," said NFU President Roger Johnson.  "The U.S. tried to ensure COOL regulations were in compliance, but received insufficient guidance and consequently could be on the hook for exaggerated damages."  Click or tap here to read more NFU.

"USCA is committed to exhausting all efforts on this issue and remain supportive of the Stabenow-Hoeven approach to COOL which is still on the table," USCA President Danni Beer.  "The voluntary option on COOL provides a common sense solution to COOL. The ability to maintain the integrity of COOL while adhering to WTO parameters is a workable solution for U.S., Mexico and Canada cattle producers."  Click here to read more USCA.

All three groups believe a voluntary COOL program will solve this trade dispute once and for all.

From the Canadian farm website Better Farming, writer Susan Mann says that "the United States has reached the end of the line for its Country of origin Labeling Law with Canada and Mexico able to slap retaliatory tariffs on American goods by a week from Friday if the American law stays in place."

We mentioned in our top story this morning that the new Canadian government seems to be lined up with what their predecessors were saying about COOL- that they are ready to retaliate quickly.

Canadian livestock groups are pleased- in a joint statement by beef and pork groups in that country- they say  let the tariffs begin- "U.S. mandatory Country of Origin Labeling (COOL) has been in effect since 2008. As the arbitrator's finding shows, in these seven years the cumulative losses for the Canadian beef and pork sectors have been staggering. At every step of the process, the WTO has repeatedly found that the U.S. is in breach of its WTO obligations. The only revision the U.S. has made, in 2013, increased the negative impact on Canadian farmers and meat processors.

 

U.S. pork and beef exports in October edged higher than the previous month, but were still down from a year ago, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).


October beef exports rebounded to some degree from their low September totals, but were still down 14 percent from a year ago in volume (94,524 mt) and fell 26 percent (to $508.2 million) compared to the record-high value posted in October 2014 ($687.1 million). Through the first 10 months of 2015, beef exports were down 12 percent in volume to 877,229 mt and were 10 percent lower in value at $5.28 billion.

Pork exports were down 3 percent year-over-year in volume to 177,191 metric tons (mt), and fell 21 percent in value to $447.8 million, reflecting lower global pork prices. Through the first 10 months of the year, exports were down 4 percent in volume (1.76 million mt) and were 17 percent lower in value ($4.65 billion).

  

The October report showed pork exports were solid in North American markets and improving in China.  Meanwhile, beef exports to South Korea and Taiwan softened in October, but showed improvement in some key markets.  Click or tap here to read more from USMEF's October export report.

Mondays, Dr. Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist, offers his economic analysis of the beef cattle industry. This analysis is a part of the weekly series known as the "Cow Calf Corner" published electronically by Dr. Peel and Dr. Glenn Selk.


"The Thanksgiving week storm hit parts of central Oklahoma hard with heavy ice accumulations that did significant damage and caused power outages for several days. The hardest hits areas were mostly west of Oklahoma City along the I-40 corridor. The storm created numerous cattle management challenges and disrupted movement of animals to markets. Cattle auction volume was lower last week and some sales were canceled due to the weather.


"My travels last week took me through part of the region impacted by the ice and the broken trees and downed limbs documented the impact of the storm. Oklahoma is justly famous (or infamous!) for variable and extreme weather; including tornados, ice storms, severe thunderstorms, floods and wildfires. Tornados and ice storms, in particular, leave a record of damage on trees that lasts for many years. It seems impossible to keep pretty trees in this state. Those familiar with the state can drive across the region and read the scars like a living history of severe weather, as in: "there was the tornado of..." or "there was the ice storm of ..." Oklahoma could be appropriately known as the Land of Ugly Trees."

Click or tap here to read more from Derrell Peel.

John Deere continues to expand its presence globally and their overall planter portfolio with two recent acquisitions. Last Month, John Deere acquired the European planter company Monosem as well as Precision Planting. John Deere Manager of Media Relations Barry Nelson said Monosem makes specialty planters for vegetables and peanuts.   Their planters are sold in the U.S., Canada, as well as Europe.


In November, John Deere also acquired Precision Planting from The Climate Corporation, a subsidiary of Monsanto Company. Nelson said this provides John Deere with new technology for planters. This includes new, used or competitive brands of planters. He said Precision Planting sold a lot of retrofit kits, which brings more efficiency, accuracy and productivity to existing planters.


With both of these acquisitions, Nelson said this offers John Deere customers more options, depending on the type of crops farmers are growing around the world. If dealers meet the requirements, they will also be able to sell the products. The Precision Planting and Monosem brands will continue, so farmers will also be able to work with existing dealers. Nelson said this is another step John Deere is making to advance innovation in agriculture in feeding a growing global population.


Our Leslie Smith interviewed Barry Nelson of John Deere. Click or tap here to hear the full interview.

 

 

Mike Macrie is the new Chief Information Officer for the agricultural Coop Land O'Lakes- and has been showcased in an article on the British based website for the Financial Times- FT. Com.

 

One of our sponsors for the last couple of years for this daily email is Winfield Solutions- one of the brands owned by the Cooperative- and we often have talked about some of their solution based efforts- such as Answer Plots.  

 

According to Macrie- projects like Answer Plots is the just the opening gambit for the future in agriculture when it comes to ways to farm better. "I feel we're probably around three years into a 15-year journey in which agriculture will be totally transformed by new technologies. There's a massive infusion of new ideas coming at America's farmers and our intention is to deliver tools in ways that are truly useful to them."

The article shows how Land O'Lakes is trying to improve how it serves farmers and at the same time- is looking for the best ways to engage more millennials in their consumer branding effort.

It's worth a read about where we are going in US agriculture- and we invite you to do so by clicking here.