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ANN VENEMAN TABBED TO HEAD USDA - On Dec. 20, President-elect George W. Bush nominated Ann Veneman as Secretary of Agriculture. A veteran of the USDA a decade ago, Veneman grew up on a peach farm in the San Joaquin Valley in California and has recently run the CA Dept. of Food and Agriculture. The USDA is a 100,000-employee, $72 billion department, and faces a number of challenges entering the next millennium, including dealing with advances in genetic engineering, record low commodity prices for producers, and a growing concern about anticompetitive consolidation in agribusiness. California's cotton cop is estimated at 2.56 million bales for the current season, up from 2.18 million bales in 1999. At 1,352 pounds to the acre, California's crop was one of the few bright points in the 2000 crop nationwide.

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COTTON CROP FORECAST LOWER; DEMAND EXPECTED TO REMAIN STRONG FOR PRODUCTS - USDA’s December crop forecast put US cotton production at 17.4 million bales and cottonseed production at 6.51 million tons, about 1% less than their November estimate. The December 12 forecast included a reduction in cottonseed crushings for the 2000-01 season, from 3.1 million tons projected last month to 3.0 million tons. Projected imports of cottonseed during the Aug-Jul period were adjust up 50,000 tons to 258,000 tons, raising total seed supply to just above 7.0 million tons. The lower crush estimate puts domestic oil and meal production lower, at 960 million lbs. and 1.35 million tons, respectively. Usage is expected to remain strong throughout the season, however, as forecasters reduced ending stocks of both meal and oil from their month earlier levels. USDA cut their estimate of Sept. 30 ending meal stocks to 21,000 tons, down 25% from last month’s estimate. If realized, meal stocks would be near their 20-year low for season-ending stocks.

EU BAN LIKELY TO IMPACT DEMAND FOR US SOYBEANS, MEAL - As a result of the EU ban on feeding rendered products to livestock, USDA is forecasting an annual short fall of 2.5 million tons of meat and bone meal (MBM), which equates to 2.9 million tons of soybean meal equivalent (SME). This will likely result in a significant increase in demand for soybeans and soybean meal by the EU as replacement for MBM in feed rations. While the proposed EU regulations are for 6 months, USDA notes that based on the UK’s experience and its handling of BSE in the mid-1990's, feeding of rendered animal products, particularly to cattle, are likely to be banned indefinitely. Further, USDA analysis indicates that an additional 1.2 million tons of soybean meal will be required to meet EU feed demand in 2000/01, broken out as 500,000 tons soybean meal and 900,000 tons soybeans. The U.S. is expected to account for nearly 150,000 tons of soybean meal and 400,000 tons of soybeans this year. The remaining soybeans and soybean meal are expected to be supplied by South American sources. Most of the U.S. exports to the EU are likely to occur during the first quarter of 2001. U.S. cottonseed meal sales to Europe have averaged about 15,000 tons per year over the past five years.

COTTONSEED.COM PROVIDES EXPANDED SOURCE FOR SUPPLEMENTAL FEEDING - NCPA’s web site has recently added an expanded listing of articles and publications devoted to supplemental feeding for beef cattle, beef cows, brood cows, and managers of cow/calf operations. Click on “Cottonseed Feed Products” link on our home page then on “Supplemental Feeding”. You’ll find supplementation strategies for beef cattle by an extension beef cattle specialist, rations for cows on coastal hay, and supplementation beef cows diets in winter.

WELCOME NEW MEMBER - The Association is pleased to welcome the following new member: Ditai Zhou, Smart Eagle Logistics Co., Ltd., Room 2005, No. 77 Fenyang Rd., Shanghai, China 200031, tel. 86-21-6475-0080, ext 806, fax 86-21-6473-5889.