USA economy crashing-political change
coming-cattle boom on the screen
Omaha, Nebraska is the home city of “The Sage of Omaha”,Warren Buffet—the Billionaire investor. Some 70 miles east is Hastings, the geographic centre of the USA.That is where the US Animal Research Center is located. The best of its kind in the world with scientists who have been an inspiration to me since I first visited twenty-five years ago.
I phoned Gordon Hayes, Chief of Cattle Breeding at the Centre and spoke for an hour rather than driving out on the wrong side of snow covered roads. They are currently doing interesting work on Santa Gertrudis genetics.
Omaha , with a population of nearly 500,000 and a bigger air terminal than Kingsford Smith domestic, is like a bigger and less attractive Canberra with all that city’s disconnect. I was having computer trouble, phoned various electrical stores in the phonebook until I found one that was” just around the corner” from my 900 bed Holiday Inn. Fortunately I asked “how far”,was told “only 4 miles” and took a taxi driven by a well educated Negro youth.
I was there at the invitation of R-CALF USA (the sister organisation to ABA) to speak on how our NLIS is performing. Contrary to Australian propaganda of five years ago they don’t have one. I received a repeat of the standing ovation that I had in 2005 from the Stetson hatted cowmen and women from most states in the USA. The freezing, drab, mid winter environment took on a new atmosphere !
My previous thoughts on the mid west americans were confirmed. They stood around talking at the Trade Show and at 8:00 am there were only a sprinkling in the big hall. Joel Gill got on the micrphone and five minutes later there was a crowd seated. I have seen this extraordinary (to an Australian) sudden change in tempo on every visit.
One thing that really annoyed me was discovering that the US RFID tags have the same number on the outside as on the inside(computer chip number). When I told a tag salesman he grinned and said “they are passing off the old style tags on you people as suckers”.
Over three days I heard some great presentations. The Market forecast by Charlie McVean was very heartening. Barring a full collpapse of the economy he sees the shortest supply and the highest real prices since 1973 starting in July this year. He sees this holding as theUS herd is - contrary to theUSDA forceasts - still still falling fast due to the droughts and debt. He doesn’t see a rebuild in sight due to land going to other uses on a huge scale. We are looking at the most positive outlook for beef for 35 years!
Land rights had a heavy covering with affiliate organisation representatives doing presentations.
The USDA was really hammered and they deserved it. As I waited for my connection in Los Angeles I read the Los Angleles Times and was amazed to read the story of the 143 million pound beef recall due to a Federally inspected Californian abattoir killing downer cattle for the food chain! I later phoned a retired friend who was a USDA employee and in a sad tone he said the the USDA was no longer the independent body admired worldwide for its integrity. “They are now under the influence of the crooks in Washington.” Their behaviour over the reopening of the Canadian border against their own BSE rules was easier to understand as was their rejection of Creekstone’s wish to test all their beef for BSE and their delaying of the implementation of the Country of Origin legislation that was passsed five years ago. My admiration for R-CALF’s lone battle on behalf of producers mounted.
Lori Wallach , Director of the 200,000 strong Public Citizen’s GlobalTrade Watch gave Free Trade the most energetic and fact based demolition that I have ever heard. Her description of the brainpower of those who negotiated the recent FreeTrade Agreements was unprintable. I felt just as she did. The US/Australian FTA is of no benefit to the ordinary people—only to multi national chemical companies and other billionaire thugs. Make a note to never get into an argument with this little, bouncing lady.
Radio legend, Derry Brownfield, friend of ABA’s Christenson family, made a great lunchtime speech. In it, he held up a silver 1923 dollar and a paper 2008 one. He explained that the 1923 dollar is now worth $17 and the 2008 one is worth $1 if he could find someone to pay it. He believes that the US is now in recession and headed for a repeat of the 1930’s Depression.
In other speeches, poet Stephen Anderson and GB Oliver of the Paragon Foundation gave presentations that reminded me of the style of the great humourist and philosopher Will Rogers. Brilliant
However it was the Leadership Townhall meeting following my effort that really impressed me. Sponsored by R-CALF and the Coalition for a Prosperous America, some 300 men and women sat around dinner in the ballroom of the hotel.
We stood as a ceremonial honour guard marched in the US, Nebraskan and Air Force flags. The gathering recited their oath of allegiance to the flag. A parson recited a long grace. An old, dignified Nebraskan Senator spoke of America being brought to its knees and the need for a rebirth. We then listened to seven brilliant speakers address answers to correcting the impending Depression. Leaders in manufacturing, the trade unions and farming attacked the de-regulation and free trade policies of the past 20 years. I wished that anyone with influence in Australia was listening. Here is the policy platform for a new Australian party to take. This was the heart of America rising against Globalisation greed and distortion.
Earlier, on my flight to Dallas, I had read The Economist’s list of indebtedness and interest rates for 43 countries. The US,Britain, South Africa, Pakistan, Mexico and Australia ( in a mineral boom!) are now the basket cases of the developed World. For nearly six years Australians have been told that we have a strong economy! The reverse is true, as with the USA..
The US now owes China $1.5 trillion and the Chinese Government is buying huge slices of US private business and public infrastructure. Debt is seeing the land of free enterprise being socialised by a communist Government in the same way that Australia is being taken by the Singapore Government.
Belatedly they are realising that China has outsmarted them. One speaker said “We put the small crooks in yellow suits and send them to gaol and the big ones in pin stripe suits and send them to Washington”. They see both major parties as multinational stooges. These people are serious about getting policy reversal.
A man from Paul Revere’s 1801 Revere Copper Products, explained how China was putting them out of business.They could manufacture a Revere silver plated bowl for $20 but China could do it for $14.28, not because of cheaper labor but because of their currency. Colorado apple farmers are being put out of business by China for the same reason. Free trade just doesn’t work with different currency regimes. The Union official spoke brilliantly on jobs being lost, health care becoming unaffordable. This was an inspiring coalition.
It was a privilege to be part of a general panel for questions. It was a privilege to be a part of this most inspiring gathering.
A TV interview gave me an insight into the depth of the division between rich and poor. A big Afro-American female Senator with her white eyeballs gleaming on the screen said “ The Sub Prime Loans are transfering $190 billion from poor and upwardly mobile black people to billionaire bankers and enslaving them for another two generations”. The Union speaker had said that the US average yearly wage was now achieved by the average CEO in less than one day ! This is a recipe for revolution.
Barack Obama is capturing a new mood of hope in the US but the people at this Convention are working for a major change in how Washington treats its electoral masters - the people - as opposed to Wall Street and the 92 billionaires in the US.
MANDATORY RFID FOR ANIMALS—THE SECOND Y2K BUG GOLDMINE.
Speech to R-CALF USA on 21st Feb 2008 in Omaha Nebraska by John Carter.
I thank R-CALF USA for its invitation to have me address the Conference. ABA is R-CALF’s sister organisation—we too, represent independent producers in the fight against multi national processors, feeble and corrupt bureaucrats and our sycophantic equivalent of your NCBA.
I was appalled to buy the Los Angeles Times when I landed in the US and read their headline article on the Chino beef recall. I worked with USDA men from 1983 to 1994. Their integrity was admired worldwide. It appears to have gone. There will be a backlash that will help our cause.
Australia, being a desert island in the middle of a huge ocean has the least disease of any continent.
Despite this, Australia has had Premises ID for cattle since 1980. We used a paper or plastic wrap around tail tag had to be affixed before sale.
In 1990 I got individual animal numbers put on those tags in around 1990—for use in producer carcase quality discovery. I t was hardly ever used. Later I was amazed to find that those sycophants supporting RFID didn’t even know.
Three years ago I spoke to you in Denver. I advised you not to allow mandatory RFID to be foisted on you because – It would be very costly And it wouldn’t work. I am back today to tell you that I was right.
In those three years Australian cattle producers have been the fall guys for the international tag manufacturers. Follow the money. Put your money on self-interest—you always know that it is trying.
ABA has no problem with voluntary RFID use. If I were unfortunate enough to own a feedlot I would use it in many ways to save feeding inefficient cattle.
Mandatory tracing is an entirely different matter.
We have abandoned our efficient mandatory tail tag system for expensive chaos.
No other large producing country has mandated the RFID Trace back system. All the reasons given for its introduction are now in tatters. Face saving and blame have replaced them.
Remember an ounce of prevention is worth pounds of cure. Don’t let anyone take you down this suicidal path because once you are on it, it will become the unchangeable custom and be used by your packers to discount your cattle. Its administration will cost you a fortune—all for no purpose but to increase tag manufacturer profit and give jobs to bureaucrats.
In Australia, the tag manufacturers beat us with lies and propaganda. They provided letters to the papers signed by producers who didn’t exist amidst a flood of propaganda. At one stage the rural press did a poll on NLIS acceptance by producers on one of its Farm polls on the Internet. On day 3 the poll showed 75% of producers voting the NLIS as being hopeless or a failure. About 10% were approving. In two hours this was reversed. Fortunately ABA had a computer fanatic following the vote and trying to boost the negative vote. We immediately did a press release stating that the poll was being fixed. It was withdrawn and hasn’t been attempted since. Investigations showed that hackers had the poll alteration from the database team at MLA( our Beef Board). We called for a full disclosure. MLA spent $81,000 of OUR MONEY on their auditors investigating, refused to release the results, and did not sack the two hackers. One can only presume that someone above had instructed them. A divisional head noted for his careful work resigned and was appointed as Integrity Officer by the packer organisation.
2 Reasons that tag manufacturers used with their stooges in Government, the packers and our NCBA equivalent.
· Market Access. In 2003 we were told that we had to have mandatory RFID NLIS because the USA was getting it and we would lose market share to the US in Japan and Korea. The US, with no RFID NLIS, is now regaining its market share in Japan and will get back into Korea despite your two cases of BSE. Australian producers are getting 60% of your prices.
Brazil and Argentina—with no RFID NLIS send many times Australia’s small 6,000-ton quota to Europe.
· Customers are demanding it.
This was a farce, as the system cannot trace beyond the packinghouse. Inquiries in Japan showed that no one was asking for it. Our packers claimed that McDonalds required RFID NLIS. Knowing the US situation I rang the McDonalds purchasing officer in Sydney .She denied ever making such a claim.
· Disease control.
The inaccuracy of the system and its slowness has shown that it would be of little use in an outbreak of exotic disease. We are supposed to inform the database of any movement of any cattle off our ranches— including to another pasture. Very few are doing it. NLIS couldn’t track a bleeding elephant through a snowfield.
· Prevention of stock stealing. Australia has decided that RFID NLIS is not a legal means of identifying livestock (the tags can be easily cut out and substituted). The recent severe floods in Queensland have seen police and owners rely on the firebrand to identify the thousands of stock on other ranches. However enthusiastic bureaucrats are demanding the producers put orange RFID tags in the ears of cattle that they have identified as theirs on other ranches before they take them home. An orange tag indicates that the beast has no whole of life accountability and will be discounted by the packers.
· Carcase feedback to producers. Our packinghouses were supposed to supply feedback to the breeder who put his tag in the ear when the beast was sold for the first time. They eventually agreed to give a carcase or a live weight but many are not doing it.
· The minute tag number on the outside (readable with glasses) is different to the computer number inside. Australia has been sold inferior tags by the multinationals—they think that we are stupid –I’m afraid that they are right.
3. It hasn’t been shown to work in any major beef producing country.
· The UK Auditor General’s Report on Livestock Tracking released on 10/11/2003 should be compulsory reading for anyone involved. At that time they had 700 bureaucrats chasing 10 million cattle at an annual cost of $ 60 per head sold with 20% missing. The committee concluded that the system was “in complete chaos”. That is a paper trail system. The EU’s IDEA trial on RFID had not found RFID to be feasible. Since then we have found the UK Lamb RFID trial release (late 2006). They concluded that it would not work as well as the paper trail and would cost the lamb producers so much that they would lose their European markets.
· This has caused our Sheep equivalent of your NCBA to say “NO –not without a cost benefit analysis”, which we had unsuccessfully demanded of MLA. The sheep people don’t seem to like the idea of paying $3 for a tag for a sheep that they may sell for $1. This doesn’t seem unreasonable.
· I phoned the Canadian ID Agency on Monday. I was told that their system of informing on stock movement is still voluntary and that few producers send in cattle movements to the agency, as they are not computer literate! This fact was obvious to “Blind Freddy” in Australia and was uncovered in the EU trials. You can have the best computer database system in the world but it is garbage in garbage out.
4. Monumental Failure.
When we began this war in Australia I said that there were 200,000 who sold cattle every year. MLA and your NCBA equivalents said that there were only 60,000. We now have 160,000 on the database. We have around 27 million cattle in Australia and the last figure on the database showed many millions unaccounted for.
Two weeks agio I did an audit of my account on the database-In three years I have bought 900 tags—they are on the database.
I have bought 92 cattle—79% are on my account.
I have sold 618- 74%have been taken off the account.
I have had the required carcase weight at abattoir when killed on 58%.
I have had fat depths (wildly inaccurate) given on 14%
I have had 20 cattle killed on my account that could not have been mine. I have had 22 recorded as deceased on ranch that never died.
I live in one of the better areas with higher stocking rates and a controlled system. I have the equal oldest registered firebrand in Australia (1853). I have tattooed every calf born with that brand since 1955. My experience would be better than most. Linda Hewitt who addressed you last year and is now in serious floods with her family run 15,000 cattle, she has had error notices from the database on thousands of cattle.
We have an international embarrassment on our hands because the tag companies bribed, cajoled and fooled those in power. Those in power refused to do a cost benefit analyse, they refused to do a trial. They mandated an impossible system and are now lying very low. They have had two small inquiries, which produced what they paid for but with very heavy qualifications on what needed to change to make it work. No senior bureaucrat, politician or NCBA equivalent will stand up and say that it is a success. They know what any producer who goes into his account knows—it is as the UK Committee said of their system in 2003-it is “In complete chaos”.
Fight this one down to the last cowboy. With 900,000 producers in 50 different state legislatures your bureaucrats have even less chance of making it work than ours have. That isn’t the point though--- you must stop the transfer of you money to multinational tag manufacturers. Follow the money and don’t be fooled as we were with theY2K Bug.. I think that you will win.
Good luck and thank you.
John Carter jcarter36@bigpond.com
Established in March 2007, USCA is committed to assembling a team to concentrate efforts in Washington, DC to enhance and expand the cattle industry's voice on Capitol Hill. For more information visit www.uscattlemen.org
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