Buy the Atypical Mad Cow News
Mad cow disease also comes in two forms, typical and atypical. The normal version is the communicable ailment that results from improper animal husbandry and feed issues. The communicable type contributes to Creutzfeldt-Jakob disease in humans. A person's cases here in the U.S. were sourced for the consumption of British and Saudi Arabian products in 2003. The '03 outbreak also marked the start declining herd sizes and also country of origin labeling.
city of hanford
Atypical bovine spongiform encephalopathy is often a random genetic mutation it doesn't spread from cow to cow. This can be the type that was discovered in a transfer station in Hanford, California immediately and provided the catalyst with this week's buying opportunity in live cattle futures. Its detection was due to increased controls, labeling and testing methods put into place after the 2003 Canadian scare.
The definition of atypical by the Department of Agriculture shows that this is a random mutation that occurred genetically. The main element here is the reaction to this news. Based on our history, the photos we've seen on TV and the Oprah Winfrey special in 1996 the knee jerk reaction is to stop beef imports, quarantine people it came from and eat more chicken. The 2003 episode, which saw one reported case of Creutzfeldt-Jakob's disease, brought the Canadian beef sell to its knees. Canadian cattle prices fell by greater than 85% and led to the mass liquidation of approximately 20% of their animals to lessen the herd size and prevent further damage to the.
However, the a reaction to the headline news might not be indicative of the true story. Atypical kinds of this disease confine the situation to the individual animal. Therefore, neither the herd's nor the public's health is really affected. In fact, cases of mad cow have declined from over 37,000 in 1992 to under 30 in 2011. The controls and husbandry practices have dramatically improved in a business that is dominated by.....India!
Yes, India gets the largest cattle herd on earth. India has nearly twice the cattle we now have here in the U.S. It's funny what are the results when you search for global cattle herds as opposed to global cattle slaughter. I suppose Indian cattle live longer. Mad cow is passed to people through the consumption of infected meat. Therefore, Brazil leads the pack at 10.Seven million head processed and the U.S. comes in third at 5.Seven million.
There have been eight reported outbreaks or installments of mad cow since the information age became predominant. The last typical outbreak within the U.S. happened in 2006 and sent prices plunging by 11%. The typical decline for an outbreak with the typical variety is 6.4%. The very last observation was atypical and presented itself last March. The tale unfolded with a knee jerk sell followed by a rally, because the truth became known. The web market movement for that event was a rally of nearly 4%.
The actual scenario is playing out in the same fashion. The day the news was reported, the market closed limit down. The subsequent morning's headlines included a ban on U.S. beef by Mexico, our 4th largest importer. This too comes at a time if we are actively trying to negotiate with Japan to lift their import restrictions on U.S. beef. Japan was our primary importer prior to the 2003 mad cow episode. Headlines being what they're, we'll watch the marketplace signs of a turnaround and search to buy live cattle for this news induced sell.