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• By: Miranda McDaniel
• On: 07/07/2016 08:10:44
• In: News Releases
• Comments: 0

In an effort to provide clarity on the clouded topic of greenhouse gas emissions, a recent report out of the University of California, Davis, focuses on animal agriculture’s contribution to GHG–believed to drive climate change–challenging naysayers with surprising and encouraging new evidence.

The American Feed Industry Association strongly backs the “Livestock’s Contribution’s to Climate Change: Facts and Fiction” white paper, which states globally and in the U.S., energy production and use, as well as the transportation sector, are the largest anthropogenic contributors of GHG. The document, produced by UC-Davis’ Frank Mitloehner, Ph.D., details research from the U.S. Environmental Protection Agency stating animal agriculture contributes only 4.2 percent GHG emissions, not the 18 percent to 51 percent often wrongfully cited.

“Comparing the 4.2 percent GHG contribution from livestock to the 27 percent from the transportation sector, or 31 percent from the energy sector in the U.S., brings all contributions to GHG into perspective,” wrote Mitloehner in the document.

“It is no wonder why there is so much confusion today surrounding the topic of greenhouse gases. With anti-agriculture groups shouting inaccurate data about ‘cows causing climate change’ and ‘ag being to blame,’ it is hard for anyone to focus on, or even to find, the facts,” said AFIA President and CEO Joel G. Newman.

However, the facts are clear, especially surrounding where the most effective opportunities are for decreasing GHG emissions in various sectors, adds Newman. The white paper denounces “Meatless Mondays,” stating the program is not as efficient as its advocates lead the public to believe.

If all Americans practiced Meatless Mondays, only a 0.6 percent reduction of GHG emissions would be seen in the U.S. If the U.S. population instead replaced their incandescent lightbulbs with Energy Star bulbs, double the reduction would be seen (1.2 percent).

“One certainly cannot neglect emissions from the livestock sector, but to compare them to the main emission sources would put us on a wrong path to solutions, namely to significantly reduce our anthropogenic carbon footprint to reduce climate change,” Mitloehner stated in the paper.

“It may come as a surprise, but the U.S. livestock sector–looked at on a global scale–has the lowest carbon footprint per unit of livestock produced (i.e. meat, milk, eggs). We want to educate others in the feed, livestock and poultry sectors worldwide on using research, new technologies and best practices to achieve this as well,” said Newman.

To accurately and fairly assess emissions, as well as identify an overall path toward providing abundant food for years to come, Mitloehner and AFIA are part of a multi-stakeholder partnership project hosted by the […]

The IMF last week made its second cut to global growth forecasts, predicting a rate of +3.2% this year and +3.5% in 2017, having previously forecast 3.4% and 3.6% respectively. They noted that downside risks to the global economic outlook have increased since October, “raising the possibility of a more generalized slowdown and a sudden pull-back of capital flows.” Looking at the graph below showing the countries expected to be the worst performers, it’s pretty easy to draw some conclusions as to what the main trouble are – plummeting oil and commodity prices are a consistent theme for nearly all of the worst performers, joined by fiscal mismanagement and political turmoil. 

U.S. stocks have enjoyed their sixth straight week of moving higher, while oil prices have now erased all of their gains on the year. Ironically, oil rig counts here in the U.S. are at the lowest levels since Baker Hughes started counting oil rigs back in 1944. The trade clearly seems tripped up by the glut of global oil production. Recent comments from Saudi Arabia saying they would only freeze production if all major oil producers, including Iran, commit to doing the same. Iran has steadfastly maintained they will not entertain a freeze until their crude production reaches pre-sanction levels of 4-million barrels per day. Over the weekend, Iran’s oil minister announced the country’s oil and gas condensate exports have now surpassed 2-million barrels per day for the first time since sanctions were lifted. That works out to an increase of around +250,000 barrels per day since March 1. In other words the world is still swimming in a glut of supply while Iran is in the process of trying to add more barrels. Traders here at home have been digesting a wave of economic data as of late, which most argue has been fairly positive. I have to admit myself, while I remain a bit apprehensive in regard to being an outright raging stock market bull, there is evidence and recent talk that the “shallow manufacturing recession” is starting to subside. Remember we had manufacturing numbers expanding for the first time in seven months last week. More positive news is the fact the U.S. dollar continues to weaken in 2016 on talk from a apparently more dovish Fed. Pending U.S. home sales are also starting to increase, and mortgage purchasing applications most recently are up over +20% compared to last year. Keep in mind mortgage rates haven’t made new lows in over 3-years, but purchasing applications are picking up momentum, meaning perhaps the housing market is stronger than many are currently forecasting? Another positive is the fact even though gas prices at the pump have risen form an average low of $1.69 per gallon to now over $2.05 per gallon, our average four-week usage year-over-year is up +5%. There’s also evidence that Consumer Spending is starting to gain a bit more traction. Like I said, I’m not wildly bullish, in fact I still only have about 30% of my current portfolio invested in long equity positions, but I do believe some of the fear has been eliminated or at least temporarily subsided as the market evolves and adjust to the changing dynamics. To some degree the dollar strength feels like it has been digested, the commodity price slide has somewhat stabilized, and consumers are starting to spend a bit more of their energy savings in the economy. The week ahead will bring a much lighter economic calendar, but with heavier focus being placed on the U.S. Fed. We will hear multiple speeches form Fed Presidents and key members, as well as digesting on Wednesday the “minutes” from their recent March meeting. On Thursday there’s a historic event in New York featuring Fed chair Janet Yellen and all her living predecessors: Paul Volcker, Alan Greenspan and […]