R-CALF Reports on CAFTA

[Oldtimer]

June 27, 2005 Phone: 406-672-8969; e-mail: [email protected]



CAFTA-DR Fact-Finding Team in Costa Rica


(San Jose, Costa Rica) – An R-CALF USA fact-finding team assigned to visit specific Central American nations to research and analyze support for, and the impact of, the U.S.-Central American-Dominican Republic Free Trade Agreement (CAFTA-DR) arrived in San Jose, Costa Rica, on Friday, June 24. Members of the fact-finding team are: Dennis McDonald, R-CALF USA's International Trade Committee chairman, and president of the Montana Cattlemen's Association; R-CALF USA Director and Missouri veterinarian Max Thornsberry, who also chairs R-CALF USA's animal health committee; Joel Gill, R-CALF USA's state membership chairman for Mississippi, who also is vice president of Mississippi Order Buyers and president of the Mississippi Livestock Marketing Association; and, Doug Zalesky, Ph.D., a Colorado State University bovine research scientist and cattle producer from Colorado.



Initial findings from the task force examined the areas of cattle herd health measures, costs of production, cattle genetics and breeding techniques, along with the potential for cattle production expansion in Costa Rica.



"Costs associated with vaccines in Costa Rica are a fraction of U.S. costs, often for the same product from the same pharmaceutical company," said Thornsberry. "For example, Ivomec and Dectomax sell in Costa Rica for 60 cents a dose compared to $1.68 per dose in the United States.



"A worrisome fact is that various animal health products not permitted for use in cattle in the U.S. are commonly used in Costa Rica," he said. "An antibiotic called Ditrim is forbidden for use in food animals in the U.S., but it's a commonly used antibiotic in Costa Rica. Lepto vaccinations are supplied by the Costa Rican government, and other vaccines like anthrax, blackleg and pasturella are available at one-third the cost of similar products in the U.S."



Zalesky noted that costs of production for Costa Rican cattle producers are substantially less – about one-third – than those incurred by U.S. producers.



"This is a consequence of cheap labor ($6/day), and low feed costs," said Zalesky. "Costa Rican cattle can be kept on grass 12 months a year, with grasses varying in protein content from 12 percent to 22 percent, and no fertilizers are required due to the rich volcanic soil extending to a depth of 10 feet.



"Costa Rican cattle experience no climate change throughout the course of the year, which is a huge production advantage," Zalesky continued. "With no winter feed costs and little stress from seasonal climate changes, Costa Rican producers incur far fewer management costs, and the calving seasons here are coordinated with the lush green grass, providing another economic advantage."



Gill noted the genetic make-up of Costa Rican cattle rivals that of cattle in the United States.



"Frame scores result in mostly Yield Grade 2s that can compete on par with U.S.-fed cattle," said Gill. "Costa Rican ranchers have imported semen from the U.S. and they use artificial insemination techniques widely to breed a Brahman cross cattle herd that is efficient and tolerates tropical diseases successfully.



"The finishing ration used in Costa Rica relies heavily on local feed and is a mixture of poultry litter, rice hulls, molasses, corn and a mineral supplement," continued Gill. "Cost per pound of gain in Costa Rica is 15 cents. A big red flag went up in my mind when I discovered that meat, blood and bone meal are being fed to chickens and then the poultry litter is fed to beef cattle."



McDonald noted that the U.S. Trade Representative told U.S. cattle producers during consideration of the Chilean Free Trade Agreement (FTA) that Chilean cattle imports to the U.S. would not increase by virtue of the FTA.



"We now know their imports into the U.S. increased 200 percent," said McDonald. "Dr. Mantaro, a Costa Rican veterinarian, rancher and chief cattle procurement officer for one of the three largest Costa Rican packing houses, predicts that if CAFTA-DR is ratified and Costa Rica has free and unfettered access to U.S. markets, the Costa Rican cow herd will double within five years from 1.9 million head to 4 million head, with much greater capacity possible.



"Presently only one-half of the Costa Rican beef production is consumed within Costa Rica, and the balance is exported," McDonald said. "Any additional production will be exported, and the target is U.S. markets."



Other information discovered by the fact-finding team includes the fact Costa Rica universally uses a hot brand animal identification system that requires each animal to be branded at the point of sale – a system that allows for immediate trace back of all cattle.



"At the point of sale, the owner's brand is put on the animal upside down, which negates his ownership," said Zalesky. "The animal's hide carries the record of ownership of that animal. Here in Costa Rica they use a hot wire to brand the hide, and I have yet to see a smudged brand."



Costa Rica requires all imported meat products to be labeled as such in the retail case. Interestingly, when visiting a PriceSmart grocery outlet in San Jose, task force members viewed a banner in the store that declared a Costa Rican ban on all U.S. meat and poultry products, including canned and cooked U.S. meats.



"We'll be meeting with Costa Rican embassy staff to discuss this ban and the basis for it," commented McDonald.



PriceSmart is an American-owned company headquartered in San Diego.



"We greatly appreciate the hospitality and honesty of the Costa Rican producers we've met during our visit here," said McDonald.



The task force will travel to Nicaragua on Tuesday, June 28.



Note: Photos of the team are available in .jpg format. Contact R-CALF USA if you would like a copy.



# # #



R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) represents thousands of U.S. cattle producers on domestic and international trade and marketing issues. R-CALF USA, a national, non-profit organization, is dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. R-CALF USA's membership consists primarily of cow-calf operators, cattle backgrounders, and feedlot owners. Its members – over 18,000 strong – are located in 48 states, and the organization has over 60 local and state association affiliates, from both cattle and farm organizations. Various main street businesses are associate members of R-CALF USA. For more information, visit http://www.r-calfusa.com or, call 406-252-2516.

 

[Oldtimer]

CAFTA-DR Task Force in Nicaragua


(Managua, Nicaragua) – R-CALF USA's CAFTA-DR (Central American-Dominican Republic Free Trade Agreement) fact-finding task force arrived in Managua, Nicaragua, on Tuesday, June 28. The team will spend eight days in Central American nations to research and analyze the potential effects of CAFTA-DR on the U.S. cattle industry. The task force traveled to Nicaragua after spending three days in Costa Rica touring ranches, cattle-feeding operations, packing plants, grocery outlets and visiting with cattle industry leaders and embassy officials.



Members of the task force are: Dennis McDonald, Montana Cattlemen's Association president and R-CALF USA International Trade Committee Co-Chair; R-CALF USA Director and Missouri veterinarian Max Thornsberry, who also chairs R-CALF USA's Animal Health Committee; Joel Gill, R-CALF USA's Mississippi membership chair, who also is vice president of Mississippi Order Buyers and president of the Mississippi Livestock Marketing Association; and Doug Zalesky, Ph.D., a Colorado State University bovine research scientist and cattle producer from Colorado, who recently was elected president of the Colorado Independent Cattle Growers Association.



"We were shocked to find Nicaraguan law prohibits the importation of U.S. beef processed in plants not certified by Nicaraguan authorities," said McDonald. "Nicaraguan authorities have never undertaken inspection of U.S. plants. This is simply a mechanism to restrict U.S. beef trade in Nicaragua. Costa Rica has similar laws that prohibit the importation of U.S. beef, poultry products, fruits and vegetables, as well as seafood.



"Both Costa Rica and Nicaragua have strict mandatory food-labeling laws, which require all imported food products to be labeled," continued McDonald. "CAFTA-DR language prohibits many cuts of U.S. beef from entering either Costa Rica or Nicaragua for up to seven years. These trade barriers, added to the language in CAFTA-DR, which allows free and unfettered access to U.S. markets for Central American beef, make it very difficult to take the position that CAFTA-DR addresses global trade distortions or helps to level the playing field for U.S. cattle producers.



"It's little wonder that back in Washington, the Bush Administration is having difficulty passing CAFTA-DR through Congress," McDonald said. "American citizens know CAFTA-DR is a bad deal for the United States, and it's a bad deal for Central America.

"We are also very concerned to learn that both Nicaragua and Costa Rica are presently shipping large numbers of feeder cattle to Mexico duty-free," McDonald pointed out. "These cattle then enter the U.S. duty-free under the North American Free Trade Agreement (NAFTA). This trans-shipment of cattle is disturbing. The practice will accelerate if CAFTA-DR is ratified.



"In one instance, a group of Costa Rican ranchers were in the process of shipping 10,000 head of Costa Rican cattle to Mexico," McDonald explained. "This is a concern since the Nicaraguan herd numbers 3.4 million head, and this number will increase substantially if CAFTA is ratified."



Thornsberry inspected a local Costa Rican slaughter facility after admittance into a U.S. Department of Agriculture (USDA) slaughter plant was refused, although a previous appointment had been made and approved. The inspected plant slaughters 300 head of cattle and 400 hogs daily.



"The plant was well staffed since labor costs are a fraction of those in the U.S.," commented Thornsberry. "The plant management indicated their desire to become a USDA-approved plant to export to the U.S.



"The plant was sub-standard with open doors into all areas of the facility, and both species were being processed in the same areas," he continued. "Poor quality refrigeration was very apparent, with cooler temperatures in the mid-60 degree area, rather than the 40-degree temperatures required in U.S. plants."



Early information gathered in Nicaragua suggests that expansion of the national cattle herd is not only likely, but is well underway.



"During ranch visits in Costa Rica, we were informed that large numbers of breeding stock are being exported to Nicaragua," noted Zalesky. "Upon arrival in Nicaragua, we were informed by embassy and trade officials that Texas interests recently visited Nicaragua to negotiate development of cattle-feeding operations in the country. We've also learned that corn is a major crop here, and there is great potential for expansion in corn production."



"Superior genetics have been imported into Central America from the U.S., most notably from the Hudgins Ranch and the V 8 Ranch in Texas," said Gill. "Through the use of artificial insemination techniques, Costa Rican ranchers have been able to improve their breeding stock to the point that their genetics are widely sought after throughout the Central American region.



"With their herd improvements, the Costa Ricans no longer need to rely on U.S. genetics on a widespread basis," Gill said. "From our conversations with representatives of the U.S. government assigned to Nicaragua, it appears the same is true here."



Gill noted that many of the live animals the task force viewed in Costa Rica were destined for export to Nicaragua and El Salvador. Nicaragua exports breeding stock to Mexico, as well as other nations in the region.



Other facts gathered during initial Nicaraguan visit include:



1. Nicaraguan agriculture laborers average $2 per day, with no benefits.

2. Nicaraguans have a substantial comparative advantage over U.S. producers because of rich volcanic soil, constant year-round temperatures, climate, and rainfall, which varies from 30 inches to 80 inches annually.

3. Costa Rican labor leaders oppose CAFTA-DR because of the negative impact on family and culture, and because the agreement will allow for exploitation of cheap labor. The AFL-CIO maintains the labor standards recently have eroded in Central America in anticipation of CAFTA-DR ratification.

4. During a meeting with the R-CALF USA CAFTA-DR task force, the U.S. Economic Counselor in Nicaragua said the political climate in that nation makes ratification of CAFTA-DR unlikely.

5. During a meeting with U.S. Embassy officials, the task force learned that in 1991, China and Taiwan financed a program to increase cattle production in Nicaragua. Further, U.S. dollars are presently flowing to Nicaragua to add value to Nicaraguan cattle and to promote Nicaraguan organic cattle production.



# # #

 

[frenchie]

June 27, 2005 Phone: 406-672-8969; e-mail: [email protected]



CAFTA-DR Fact-Finding Team in Costa Rica


(San Jose, Costa Rica) – An R-CALF USA fact-finding team assigned to visit specific Central American nations to research and analyze support for, and the impact of, the U.S.-Central American-Dominican Republic Free Trade Agreement (CAFTA-DR) arrived in San Jose, Costa Rica, on Friday, June 24. Members of the fact-finding team are: Dennis McDonald, R-CALF USA's International Trade Committee chairman, and president of the Montana Cattlemen's Association; R-CALF USA Director and Missouri veterinarian Max Thornsberry, who also chairs R-CALF USA's animal health committee; Joel Gill, R-CALF USA's state membership chairman for Mississippi, who also is vice president of Mississippi Order Buyers and president of the Mississippi Livestock Marketing Association; and, Doug Zalesky, Ph.D., a Colorado State University bovine research scientist and cattle producer from Colorado.



Initial findings from the task force examined the areas of cattle herd health measures, costs of production, cattle genetics and breeding techniques, along with the potential for cattle production expansion in Costa Rica.



"Costs associated with vaccines in Costa Rica are a fraction of U.S. costs, often for the same product from the same pharmaceutical company," said Thornsberry. "For example, Ivomec and Dectomax sell in Costa Rica for 60 cents a dose compared to $1.68 per dose in the United States.



"A worrisome fact is that various animal health products not permitted for use in cattle in the U.S. are commonly used in Costa Rica," he said. "An antibiotic called Ditrim is forbidden for use in food animals in the U.S., but it's a commonly used antibiotic in Costa Rica. Lepto vaccinations are supplied by the Costa Rican government, and other vaccines like anthrax, blackleg and pasturella are available at one-third the cost of similar products in the U.S."



Zalesky noted that costs of production for Costa Rican cattle producers are substantially less – about one-third – than those incurred by U.S. producers.



"This is a consequence of cheap labor ($6/day), and low feed costs," said Zalesky. "Costa Rican cattle can be kept on grass 12 months a year, with grasses varying in protein content from 12 percent to 22 percent, and no fertilizers are required due to the rich volcanic soil extending to a depth of 10 feet.



"Costa Rican cattle experience no climate change throughout the course of the year, which is a huge production advantage," Zalesky continued. "With no winter feed costs and little stress from seasonal climate changes, Costa Rican producers incur far fewer management costs, and the calving seasons here are coordinated with the lush green grass, providing another economic advantage."



Gill noted the genetic make-up of Costa Rican cattle rivals that of cattle in the United States.



"Frame scores result in mostly Yield Grade 2s that can compete on par with U.S.-fed cattle," said Gill. "Costa Rican ranchers have imported semen from the U.S. and they use artificial insemination techniques widely to breed a Brahman cross cattle herd that is efficient and tolerates tropical diseases successfully.



"The finishing ration used in Costa Rica relies heavily on local feed and is a mixture of poultry litter, rice hulls, molasses, corn and a mineral supplement," continued Gill. "Cost per pound of gain in Costa Rica is 15 cents. .

Here we go again protectnism & fear mongering R-calf style.

A big red flag went up in my mind when I discovered that meat, blood and bone meal are being fed to chickens and then the poultry litter is fed to beef cattle.".

And this is different from the U.S in what way.

McDonald noted that the U.S. Trade Representative told U.S. cattle producers during consideration of the Chilean Free Trade Agreement (FTA) that Chilean cattle imports to the U.S. would not increase by virtue of the FTA.



"We now know their imports into the U.S. increased 200 percent," said McDonald. "Dr. Mantaro, a Costa Rican veterinarian, rancher and chief cattle procurement officer for one of the three largest Costa Rican packing houses, predicts that if CAFTA-DR is ratified and Costa Rica has free and unfettered access to U.S. markets, the Costa Rican cow herd will double within five years from 1.9 million head to 4 million head, with much greater capacity possible.



"Presently only one-half of the Costa Rican beef production is consumed within Costa Rica, and the balance is exported," McDonald said. "Any additional production will be exported, and the target is U.S. markets."



Other information discovered by the fact-finding team includes the fact Costa Rica universally uses a hot brand animal identification system that requires each animal to be branded at the point of sale – a system that allows for immediate trace back of all cattle.



"At the point of sale, the owner's brand is put on the animal upside down, which negates his ownership," said Zalesky. "The animal's hide carries the record of ownership of that animal. Here in Costa Rica they use a hot wire to brand the hide, and I have yet to see a smudged brand."

impressive

Costa Rica requires all imported meat products to be labeled as such in the retail case. Interestingly, when visiting a PriceSmart grocery outlet in San Jose, task force members viewed a banner in the store that declared a Costa Rican ban on all U.S. meat and poultry products, including canned and cooked U.S. meats.



"We'll be meeting with Costa Rican embassy staff to discuss this ban and the basis for it," commented McDonald.

Its a bugger ,when you are on the receiving end :lol:

PriceSmart is an American-owned company headquartered in San Diego.



"We greatly appreciate the hospitality and honesty of the Costa Rican producers we've met during our visit here," said McDonald.

I bet you do.Poor suckers.


.

 

[frenchie]

CAFTA-DR Task Force in Nicaragua


(Managua, Nicaragua) – R-CALF USA's CAFTA-DR (Central American-Dominican Republic Free Trade Agreement) fact-finding task force arrived in Managua, Nicaragua, on Tuesday, June 28. The team will spend eight days in Central American nations to research and analyze the potential effects of CAFTA-DR on the U.S. cattle industry. The task force traveled to Nicaragua after spending three days in Costa Rica touring ranches, cattle-feeding operations, packing plants, grocery outlets and visiting with cattle industry leaders and embassy officials.



Members of the task force are: Dennis McDonald, Montana Cattlemen's Association president and R-CALF USA International Trade Committee Co-Chair; R-CALF USA Director and Missouri veterinarian Max Thornsberry, who also chairs R-CALF USA's Animal Health Committee; Joel Gill, R-CALF USA's Mississippi membership chair, who also is vice president of Mississippi Order Buyers and president of the Mississippi Livestock Marketing Association; and Doug Zalesky, Ph.D., a Colorado State University bovine research scientist and cattle producer from Colorado, who recently was elected president of the Colorado Independent Cattle Growers Association.



"We were shocked to find Nicaraguan law prohibits the importation of U.S. beef processed in plants not certified by Nicaraguan authorities," said McDonald. "Nicaraguan authorities have never undertaken inspection of U.S. plants. This is simply a mechanism to restrict U.S. beef trade in Nicaragua. Costa Rica has similar laws that prohibit the importation of U.S. beef, poultry products, fruits and vegetables, as well as seafood

hurts don,t it. Kinda of reminds me of 2 countries that have the same disease,and one does not want to trade.

"Both Costa Rica and Nicaragua have strict mandatory food-labeling laws, which require all imported food products to be labeled," continued McDonald.

Kinda of different than some countries that wipe off the the product of anothers label and then claim the high quality beef as its own.

"We are also very concerned to learn that both Nicaragua and Costa Rica are presently shipping large numbers of feeder cattle to Mexico duty-free," McDonald pointed out. "These cattle then enter the U.S. duty-free under the North American Free Trade Agreement (NAFTA). This trans-shipment of cattle is disturbing. The practice will accelerate if CAFTA-DR is ratified.



"In one instance, a group of Costa Rican ranchers were in the process of shipping 10,000 head of Costa Rican cattle to Mexico," McDonald explained. "This is a concern since the Nicaraguan herd numbers 3.4 million head, and this number will increase substantially if CAFTA is ratified."#

More fearmongering

Thornsberry inspected a local Costa Rican slaughter facility after admittance into a U.S. Department of Agriculture (USDA) slaughter plant was refused, although a previous appointment had been made and approved. The inspected plant slaughters 300 head of cattle and 400 hogs daily.



"The plant was well staffed since labor costs are a fraction of those in the U.S.," commented Thornsberry. "The plant management indicated their desire to become a USDA-approved plant to export to the U.S.



"The plant was sub-standard with open doors into all areas of the facility, and both species were being processed in the same areas," he continued. "Poor quality refrigeration was very apparent, with cooler temperatures in the mid-60 degree area, rather than the 40-degree temperatures required in U.S. plants."#

This hardly a fair complaint, as it was not a U.S.D.A approved plant .Obviously to meet U.S.D.A standards It would have to do a lot of improvment.And as the task force did not see inside of a U.S.D.A approval plant.R-calf has no idea as to what occurs in one in this country..

Early information gathered in Nicaragua suggests that expansion of the national cattle herd is not only likely, but is well underway. #

even more fearmongering

"Superior genetics have been imported into Central America from the U.S., most notably from the Hudgins Ranch and the V 8 Ranch in Texas," said Gill. "Through the use of artificial insemination techniques, Costa Rican ranchers have been able to improve their breeding stock to the point that their genetics are widely sought after throughout the Central American region.


During a meeting with U.S. Embassy officials, the task force learned that in 1991, China and Taiwan financed a program to increase cattle production in Nicaragua. Further, U.S. dollars are presently flowing to Nicaragua to add value to Nicaraguan cattle and to promote Nicaraguan organic cattle production.



# # #

Interesting to see the Taiwan ,American money involved in this country.Obviously the American packers are expanding southward as well as to the north.

Guess where your beef sales to Taiwan are going.