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| Duane A. Lienemann UNL Extension Educator |
This whole thing started with the publication of a notification by Tyson Foods to its fed-cattle suppliers on Wednesday, September 7 ---that beginning Sept. 6, it will no longer accept cattle fed with Zilmax, a beta-agonist sold by Merck Animal Health. The letter, addressed to “cattle feeders” with the subject line of “Animal Well Being,” It reads:
“As you know, animal well-being is extremely important to our business. This is why we want to express our continued concerns about the receipt of cattle that become non-ambulatory or lame at some of our beef plants. There have been recent instances of cattle delivered for processing that have difficulty walking or are unable to move. We do not know the specific cause of these problems, but some animal health experts have suggested that the use of the feed supplement Zilmax, also known as zilpaterol is one possible cause. Our evaluation of these problems is ongoing but as an interim measure we plan to suspend our purchases of cattle that have been fed Zilmax. The purpose of this letter is to provide notice that within 30 days – or as of September 6 – we will no longer purchase cattle that have been fed Zilmax. This suspension will remain in effect until further notice. This is not a food safety issue. It is about animal well-being and ensuring the proper treatment of the livestock we depend on to operate.” Signed: John Gerber, Director of Cattle Procurement, Tyson Fresh Meats, Inc.
What was kind of surprising was that live cattle futures surged in overnight trading boosted apparently by the above notification from Tyson. I would assume that traders surmised that this would further restrict the supply of an already tight market, and that is probably a pretty safe bet. The question is if the Tyson ban on Zilmax will reduce beef supplies coming to market in the next 12 months. It is a reasonable expectation given the significant carcass weight gains that have been attributed to the inclusion of beta-agonists like Zilmax in feedlot rations. I guess all we can do is wait and see.
There has been controversy surrounding the industry's use of Zilmax, as the product was originally created to help people with asthma; but researchers found that it makes animals produce more muscle and less fat, and has been used in the beef production industry. Zilmax is blended with other feed rations and vitamins and fed to cattle during the last few weeks they are in feedlots before being processed into beef. Basically the drug causes cattle to bulk up dramatically in the last few weeks before slaughter. That produces more meat for consumption, and it was embraced by food producers, who could suddenly get more revenue from a single animal. The perception has been that quality of the steaks from these animals does not suffer and that consumers can't tell the difference between beef that has, and has not been, treated with the drug.
The question that the market will have to sort out in the coming days is not whether, but how big of an impact, this ban will really have on beef tonnage. There have been times when packers have had divergent policies in this regard. Tyson accounts for a little over a quarter of the daily steer/heifer slaughter, with JBS-SA, Cargill and National Beef Packing Co. processing another 60%. If other packers continue to accept Zilmax fed cattle, the overall impact on steer/heifer carcass weights will be more limited, but will still obviously have an impact. One thing is for sure. The move by Tyson will have short term economic implications for feeders and packers, and likely long term impacts on cow/calf producers and feeders.
In response to the Tyson decision Merck & Co Inc, whose animal health division manufactures the additive, said in a statement that “Tests have proven that Zilmax is safe and has been used in cattle globally for nearly two decades, and that it was working with Tyson on the issue.” The National Cattlemen’s Beef Association has also responded by saying that – “The NCBA’s membership believes in the right of farmers and ranchers “to responsibly use FDA-approved technologies. We also believe in Tyson’s right to make individual company decisions that they feel are in the best interest of their business. We do not have all the details regarding the animal welfare concerns cited by Tyson in the letter to their cattle suppliers. However, we take every report of animal welfare issues very seriously. We convened experts across the beef supply chain who have conducted extensive research on beta-agonists, and engaged cattle feeding and animal health experts who have many years of experience using these products. We will continue these efforts until we have solid answers to these questions. In the meantime, we believe these products can be used responsibly when managed properly.”
In today’s world, with all of the things being thrown at the livestock industry; I just hope that Tyson isn’t using this as an excuse and are trying to “beef” up its export business with overseas customers, like China or other global export customers, who do not want animals that are fed feed additives, all at Nebraska cattlemen’s expense! How about the future with other products or species fed beta-agonists? All I can say is “Cattlemen – and other livestock producers – Hold on to your hats!!!”
The preceding information comes from the research and personal observations of the writer which may or may not reflect the views of UNL or UNL Extension. For more further information on these or other topics contact D. A. Lienemann, UNL Extension Educator for Webster County in Red Cloud, (402) 746-3417 or email to: dlienemann2@unl.edu or go to the website at: http://www.webster.unl.edu/home
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