Food Prices Jump to Six-Month High as Dairy Costs Rise

World food prices rose in September to the highest in six months as dairy and meat producers passed on higher feed costs to consumers, the United Nations’ Food & Agriculture Organization said.

An index of 55 food items tracked by the FAO rose to 215.8 points from a restated 212.8 points in August, the Rome-based agency reported on its website today. Dairy costs jumped the most in more than two years.

Livestock breeders and dairy farmers are passing on the higher cost of feed, after grain prices jumped in June and July, according to Abdolreza Abbassian, an economist at the FAO in the Italian capital. Higher prices don’t mean a food crisis is imminent, he said today by phone.

“Despite a very difficult market, the fundamentals that suggest a food crisis are just not there,” Abbassian said. “Market sentiment is now accepting high prices more as a rule than as an exception.” Read more >>

Ranchers See Increase In Grass Thefts From Drought

With drought drying out grazing land and driving up hay prices, some ranchers in New Mexico have started cutting neighbors' fences or leaving gates open so their cattle can graze on greener pastures.

Authorities in other drought-stricken states say they've seen similar fence cuttings, along with thefts of livestock and other materials as ranchers struggle to stay in business. In some cases, stealing a neighbor's grass may be the only way for a rancher to feed his livestock, but victims say their livelihood is being threatened too.

"We've had around five cases in the past few weeks where someone says his cattle just happened to walk through a gate that just happened to be open or an instance where a fence was clearly cut," Lucero said. "And I suspect there are more cases, but they aren't being reported." Read more >>

Mass slaughter of millions of farm animals worldwide set to push food prices up 14%

The mass slaughter of millions of farm animals across the world is expected to push food prices to their highest ever levels. As well as hitting consumers' pockets, the predicted 14% jump in food prices will also dash the Bank of England's hopes of pushing inflation down to 2% by next year.

Farmers across the world have begun a mass slaughter of their pig and cattle herds because they cannot afford the cost of feed, which has soared following the worst US drought in living memory, according to a report published on Wednesday. Experts at investment bank Rabobank warn that the mass "herd liquidation" will contribute to a 14% jump in the price of the average basket of food by next summer.

On Tuesday, the Office of National Statistics (ONS) said lower food prices had help bring inflation down to 2.5% in August. That brings it closer to the Bank's 2% target and should help consumers who have seen their spending power shrink as wages fail to match inflation. The Bank expects inflation to ease below the 2% target by early next year, but that could be scuppered by rising food, oil and commodity prices. Read more >>

U.S. Cattle Herd at Lowest Since 1958 May Spur Beef-Price Surge

Image via WikipediaThe U.S. cattle herd probably shrunk to the smallest size since 1958, and the drop in beef supplies may boost prices to a record, analysts said.

Ranchers held 92.211 million head of cattle as of Jan. 1, down 1.6 percent from a year ago, according to the average estimate of seven analysts surveyed by Bloomberg News. That would be the smallest herd in 53 years, said Ron Plain, a livestock economist at the University of Missouri in Columbia. The government releases its semiannual report on the cattle herd at 3 p.m. today in Washington.

“Cattle producers are being squeezed by tough finances and a soft economy,” Plain said. “The supply is just shrinking. Beef prices are likely to be record high in 2011, and it should be a record that will last.” Read More...

Costliest Beef in Quarter Century

Image via WikipediaMeat prices are poised to extend a 14 percent rally this year that drove U.S. retail costs to the highest levels since the 1980s as surging corn futures prevent livestock producers from expanding their herds.

The U.S. cattle herd in July was the smallest since 1973 and the number of breeding hogs last month was near the lowest ever, government data show. Corn futures jumped to a two-year high today and the price of the main feed ingredient is more than 70 percent above the 10-year average.

U.S. per-capita beef supplies next year will be the lowest since 1952 and pork the smallest since 1976, industry researcher CattleFax said. Hog futures will rise 14 percent by July and cattle may gain 3.6 percent by April, according to a Bloomberg survey of analysts. Wendy’s/Arby’s Group Inc., the maker of the 1,360-calorie Baconator Triple burger, and CKE Restaurants Inc., owner of the Hardee’s chain, have warned investors they are contending with higher commodity costs. More...

Modern-day Cattle Rustling at Record Levels

LITA BECK
A crime as old as the West is taking off again like a stampede as cattle rustlers armed with wire cutters and cattle trailers crisscross country roads.

"We've got some awful good cowboys, you know," said Marvin Willis, Texas Special Ranger. "They can load the cattle in a hurry."

For the second year in a row, cattle rustling may reach record levels. There were 6,404 cattle thefts in Texas in 2008 and only 2,400 thefts in 2007, according to the Texas & Southwestern Cattle Raisers Association.

A modern-day posse of more than two dozen Texas Rangers -- including Willis -- is charged with tracking down cattle thieves.

But it's nothing like the old Westerns, Willis said.

"I haven't seen any romance in any of the cattle thieving I've been involved in," he said.

Willis called the modern-day outlaws "common thugs."

"If it wasn't cattle, it would be something else they'd be stealing," he said.

Ranchers such as Sammy Ward said they fear the increase in cattle thefts is tied to the economic recession.

"But I think the worse the economy gets, you're going to see more," he said.

The victims are often small ranchers, and the loss cuts deep.

"One rancher I've been working a theft case on July -- he lost about $30,000 worth of livestock, and it's impacted him," Willis said. "That's a pretty good lick."

The thieves can be hard to catch, Willis said. Stolen cattle are often sold quickly at auctions. Some are sold out of state -- or even on the street.

"Some boys we caught here a while back, they actually sold one at a convenience store to another (rancher)," Willis said. "I mean, he just thought he was getting a pretty good deal."

Texas recently toughened the penalty for cattle rustling from two years in prison to 10 years. Of course that's mild compared to the old vigilante justice, when rustlers were hanged from the nearest tree.

"I don't think the punishment's hard enough. That's my opinion," Ward said.

To prevent thefts, the Texas and Southwestern Cattle Raisers Association is stationing inspectors at auction barns across the state to check tags and brands and try to identify stolen cattle before they're sold.