Cattle feeders are finishing the year with hope for the future, after enduring one of the most difficult markets in memory, according to Richard McDonald, president and CEO of the Texas Cattle Feeders Association (TCFA).  Speaking at the annual TCFA Year-End News Conference today in Amarillo , McDonald summarized the year and released the Association's list of Top 10 news stories in 2002.

            "Cattle feeders began the year in a loss situation and endured a market that continued to drain equity," McDonald said.  "Fed cattle didn't begin to show black ink until November and while profitability has returned to our industry, it will take quite a bit of time for cattle feeders to regain the equity they lost this year and last." 

            The difficult market situation caused the industry to look long and hard at possible solutions.  "Congress passed a Farm Bill with significant increases in conservation and commodity funding but rejected the Johnson amendment, which would have regulated ownership and marketing of cattle." 

            In response, the TCFA Board initiated a Four State Working Group to address cattle marketing problems.  "The group agreed to expand group marketing opportunities for cattle feeders through Consolidated Beef Producers," McDonald said.  Consolidated Beef Producers is a marketing venture initiated by TCFA several years ago that sold 955,000 fed cattle in 2002, making it one of the largest single marketers for fed cattle in the nation. 

            "It was a very eventful year for cattle feeding, with issues ranging from country-of-origin labeling to lawsuits on the beef checkoff.  Thanks to TCFA's ability to handle multiple issues, however, cattle feeders were well represented anytime an issue that affected their business came up."

            Here are the news stories that made headlines this year:

Top 10 News Stories in the Cattle Feeding Industry

1. The fed cattle market kept cattle feeders in knots for most of the year.  A combination of high costs and low selling prices contributed to massive losses for much of the year. 

2. A Farm Bill passed with significant increases in conservation and commodity funding. But Congress rejected the Johnson amendment, which would have regulated ownership and marketing of cattle.

3. Country-of-origin legislation passed which will cost $2 billion to implement for required products.  The program is voluntary in 2003 and mandatory in 2004.    

4. A federal judge in Montana declared the beef checkoff constitutional, while a federal judge in South Dakota ruled it unconstitutional.  The issue will likely be settled by the U.S. Supreme Court.   

5. Consolidated Beef Producers sold 955,000 head in 2002, making it one of the largest single marketers for fed cattle in the nation. 

 6. Congress passed Trade Promotion Authority which gives the President the ability to negotiate international trade deals that Congress can accept or reject, but not change.  

7. The Food Marketing Institute and National Council of Chain Restaurants released their Food Animal Welfare Report, with an outline of animal welfare guidelines for cattle.   

8. Individual animal identification continues to gain support.   

9. TAHC and USDA, in an effort to completely eradicate cattle TB in Texas and the U.S. , significantly tightened the rules for Mexican cattle crossing into the United States .  

10. Majority interest in ConAgra Meat Co. was sold to a group of Texas and Colorado investors and the name changed to Swift and Co.   

Top 10 News Stories Around TCFA in 2002  

1. TCFA initiated a Four State Working Group to address cattle marketing problems.  The group agreed to expand group marketing opportunities for cattle feeders through Consolidated Beef Producers.   

2. An enormous amount of effort by TCFA officers, directors and staff went into developing practical AFO/CAFO regulations released by EPA in December. 

3. Participation in TCFA Beef Safety and Quality Assurance Program^SM reached an all-time high of 78%.  

4. TCFA submitted comments saying country-of-origin labeling is complex and called on USDA to minimize negative impacts on cattlemen and consumers.   

5. Participation in the TCFA Environmental Services Program^SM increased 53% in its second year.  The program expands TCFA's long-standing environmental efforts.  

6. A coalition of groups, including TCFA, filed suit to challenge the designation of critical habitat for the Arkansas River shiner, with settlement likely in 2003.  

7. TCFA Committees approved 23 goals, setting an aggressive 2003 agenda for the Association to accomplish. 

8. The TCFA 35^th Anniversary Convention featured a discussion among top executives from all four major packers-an industry first for all four to be on the same stage.

 9. Seminars for the TCFA membership included topics as wide-ranging as grid marketing and office personnel.  TCFA held 16 different seminars for members. 

10. The Cattle Feeders Annual won first place general excellence and the Newsletter won second place general excellence from the Livestock Publications Council .