Introduction To Bison
It's a great time to get into the bison business!
The American bison business is in its strongest economic condition in more than a decade. Robust consumer demand for bison the past two years has defied the general economic downturn. Meanwhile, strengthening live animal prices reflect a widespread optimism among producers, processors and marketers alike.
The National Bison Association–in cooperation with state/regional associations and individual producers–has been working hard over the past decade to build the marketplace for bison. Those efforts have borne fruit.
Here are some of the economic highlights, and key issues facing the bison industry today.
Our Economic Picture:
- Demand for bison meat has soared over the past five years, and is–in fact–outstripping our supply of market ready animals:
- According to a survey conducted in May, our commercial marketers are now able to fill less than 90% of the orders being placed with their companies.
- Prices paid to producers for slaughter-ready animals have increased over the past four years:
- Live animal prices, as reflected in the major association auctions, have also climbed.
The Bottom Line:
- Bison Producers are enjoying strong profitability
- We want to create ebbs & flows, not booms & busts
The National Bison Association is Promoting the Bison Advantage
Our Board of Directors have established as a key priority: the NBA is recognized as the primary center for technical assistance, financial tools and educational resources to equip producers to make decisions that are economically and ecologically sustainable
To that end, we are developing materials and resources to assist producers in building their herds. Those resources include:
- Bison Producers' Handbook – Published last year, and now widely recognized as the definitive source of information for all aspects of production and marketing.
- Bison Advantage Workshops – The NBA is partnering with State/Regional Associations to host educational sessions for new and prospective producers.
- New Materials for Lenders – New NBA materials inform agricultural lenders about the strength and stability that make today's bison business a sound investment.
- FFA – The National Bison Association's booth and workshop presentation at the national FFA convention is helping to spread the word about the need to grow the bison business.
- Expanded Website – The newly re-designed NBA website is filled with useful information for producers, consumers and members of the media.
- Farmers Market Promotion – USDA resources have enabled the NBA to develop resources to help producers in maximizing the economic potential of farmers' markets.
- Bison 101 & 201 – The NBA's on-line introductory training course helps prospective producers get a feel for the ins and outs of the modern bison business with the convenience of a virtual, web-based training.
- Risk Management Education – The U.S. Department of Agriculture dedicates significant resources to assisting producers of "mainstream commodities" in mitigating their risk. The NBA has developed a positive partnership with the USDA Risk Management Agency to assure that bison producers are afforded those same services.
- Junior Judging – The NBA Junior Judging contest–now in its third year–is drawing increased participation from around the country. With the assistance of the National Buffalo Foundation and other donors, three scholarships were awarded at the 2011 Gold Trophy Show and Sale in January.
Legislative & Regulatory Leadership
- Food Safety – The NBA worked with the staffs of U.S. Sens. Michael Enzi and Tom Harkin last year to assure that the Food Safety legislation enacted in December contained provisions protect the U.S. bison industry from dealing with dual layers of regulation from both USDA and the Food and Drug Administration.
- Brucellosis/TB Policies – UDSA's Animal and Plant Health Inspection Service is gathering input for a new framework being developed for the bovine tuberculosis and brucellosis programs in the United States. The NBA is actively involved to assure that these policies recognize the unique biological issues of our animals, and the production practices of our producers.
- Endangered Species & Conservation Issues – The NBA is actively involved with the Department of Interior and the U.S. Fish and Wildlife Service to assure that misguided efforts by some groups to not hinder the continued restoration of bison to the American landscape via private ranching.
- Export Trade – Earlier this year, USDA attempted to require that bison produced for export to the European Union comply with all of the feed verification requirements utilized in the High Quality Beef Export Program, even though bison are not eligible for the benefits of the tariff-free provisions of the HQBEP. The NBA worked with the various USDA agencies revise the requirement, and to reinstate a verification procedure appropriate for our industry.
- Interstate Shipment – Because state inspection programs are a key part of our business, the NBA worked with the National Association of State Departments of Agriculture for enactment of federal legislation to allow interstate shipment of meat from amenable species of animals to be shipped interstate. We have also been actively involved in the rulemaking process to implement the new federal program.
- Livestock Traceability – The USDA APHIS this week proposed a new regulation regarding the traceability of livestock moving in interstate commerce. The NBA has worked with APHIS during the development of this regulation, and will be weighing in with public comments regarding the need to recognize the unique handling practices and traceability measures utilized in our business.
- 2012 Farm Bill – As serious discussion begins on the next farm bill, the NBA will be offering proposals for cost-effective federal investments to support agricultural diversification, and to attract a new generation of producers.
- Regulatory Monitoring – The NBA works with regulatory agencies like the USDA, the Department of Interior, FDA and EPA to make sure new federal rules don't create undue problems and/or competitive disadvantages for the our industry.
- USDA Price Reporting & Data Collection – The NBA has worked with USDA to establish a monthly price reporting system that has proven to be a valuable tool for producers, processors, and marketers across the country.
Education, Outreach and Recruitment
- Public Relations – The NBA is the leading national voice for bison producers. The public relations activities of the NBA have resulted in positive media coverage in the past six months by Associated Press, National Public Radio, The New York Times, MSNBC, CNBC, USA Today, and several other important media outlets.
- Cooperation on All Things Bison – The NBA is actively working with leaders of the conservation community and other interests to develop better understanding and appreciation of the vital role that private herds and public herds play in the restoration of bison in North America.
- Conferences – More than 250 producers, marketers and bison enthusiasts gathered in Big Sky, MT in June for three days of tours, workshops and general networking around All things Bison. Next summer, the NBA and its sister organization, the Canadian Bison Association, will be hosting the Fourth International Bison Conference, which is scheduled in Quebec City, Canada.
In Summary
The U.S. bison business is robust, but fragile. Our growth in recent years has been based upon developing a strong bond of trust between ranchers and their customers. Even thought we have more than doubled the size of our business in the past five years, we are still only a fraction of the red meat marketplace. We know that bison will always remain a niche product. Consequently, we are sometimes overlooked in state and federal lawmaking. In other instances, we are directly impacted by laws developed to address issues with other species and commodities. Bison producers never want our product to be a commodity, but we do want to be active in working with legislative leaders to make sure that state and federal laws and regulations allow our business to continue to grow.
(Information provided on this page courtesy of the National Bison Association.)
