DailyFinance.comhttp://www.dailyfinance.comDailyFinance.comhttp://o.aolcdn.com/os/df/2013/img/2-dailyfinance_logo_m.pngDailyFinance.comhttp://www.dailyfinance.comen-usCopyright 2013 Weblogs, Inc. The contents of this feed are available for non-commercial use only.Blogsmith http://www.blogsmith.com/As Medical Costs Rise, More Americans Turn to Acupuncturehttp://www.dailyfinance.com/2011/04/02/as-medical-costs-rise-more-americans-turn-to-acupuncture/http://www.dailyfinance.com/2011/04/02/as-medical-costs-rise-more-americans-turn-to-acupuncture/http://www.dailyfinance.com/2011/04/02/as-medical-costs-rise-more-americans-turn-to-acupuncture/#commentsFiled under: ,

As medical costs continue to rise, more Americans are turning to often less expensive alternative therapies, including acupuncture.A year after President Obama signed the Patient Protection and Affordable Care Act into law, many Americans are still struggling to get their insurance to cover basic medical treatments. A new report by Deloitte and Oxford Economics finds that consumers spent $363 billion dollars more for health-care goods and services in 2009 than official government statistics acknowledged -- a discrepancy of nearly 15%.

These out-of-pocket medical costs include "purchases that are outside of conventional therapies and treatments," as well as other products and services not covered by insurance programs and care for others. The finding joins a growing body of evidence that more Americans are exploring often less expensive alternatives to traditional Western medicine.

A 2007 National Health Interview Survey, which polled Americans about their use of so-called complementary and alternative medicine (CAM), estimated that 3.1 million U.S. adults and 150,000 children had used acupuncture during the previous year. And in the five years leading up to the survey, the use of acupuncture -- the traditional Asian medical technique that involves the insertion of thin needles at skin-level, into key areas of the body -- had increased among U.S. adults by 0.3%, or about 1 million people.

Getting Coverage for Acupuncture

Acupuncture, once considered exotic in the U.S., has been around long enough to become federally regulated. Practitioners must use needles produced and manufactured according to U.S. Food and Drug Administration standards, which require needles to "be sterile, nontoxic, and labeled for single use by qualified practitioners only."

Acupuncture has been used for centuries to treat a wide variety of ailments, including chronic pain, depression, menstrual irregularities, infertility and weight loss. Individual treatments at licensed acupuncturists can cost anywhere from $25 to $65 dollars or more per session.

While most employer-sponsored health plans cover may cover physicals, prescription drugs and mental health, only about half -- according to a 2004 Kaiser Family Foundation survey -- cover acupuncture, chiropractic care and other CAM treatments.

But insurance companies' reluctance to cover licensed acupuncture treatments may be changing. For the ninth straight year, Rep. Maurice Hinchey (D-NY) is introducing legislation that would add acupuncture to the list of services covered by Medicare and Federal Employees Health Benefits Program participants.

"Even though the National Institutes of Health has found acupuncture to be an effective treatment for a range of serious diseases and conditions, 52 million Medicare beneficiaries and federal employees have no guaranteed access to the treatment," Mike Morosi, Hinchey's press secretary, writes in an email. "Congressman Hinchey will soon reintroduce the The Federal Acupuncture Coverage Act, which would ensure that those in need of care aren't forced to choose more expensive, invasive and risky treatments with a long list of side effects simply because acupuncture isn't covered."

Pinpointing the Problems

Colorado lawmakers also are working on a measure that would make it easier for licensed acupuncturists to get insurance reimbursements. Many patients supposedly covered for acupuncture treatments are still turned down by their insurers, says state Sen. Lucía Guzmán, one of the bill's sponsors, who adds that the bill uncovered a disconnect between some carriers and their bureaucracies.

"Some of the insurance companies I spoke to were sort of dumbfounded," she says. "They said 'we cover that.' But then when we got into it, we found that once something gets to the billing department end of it, then it's like, 'no, the reason we didn't pay for that was because that was not a licensed [acupuncturist]...they're not included on this list of licensed persons."

Acupuncture treatments can vary in length, taking anywhere from several weeks to several months. But even insurance companies that cover acupuncture usually limit the number of annual visits their patients can make.

"There are some that give you [a limit of] 20 treatments per year," says Parago Jones, clinic director at the Colorado School of Traditional Chinese Medicine in Denver. "I think they're trying to placate a certain amount of their customers, giving a real basic [acupuncture coverage] -- like giving basic cable TV. It's kind of like, why even have it? I think an insurance carrier that only gives you 20 sessions per year isn't giving you much at all."

Jones recommends that consumers considering acupuncture educate themselves about their local practitioners and the available treatments. He also thinks there's a place in American health care for both Western medicine and legitimate, alternative treatments like acupuncture. "We're in that process of those two worlds slowly merging," he says, "and there's still a lot of trepidation -- at least from the Western side -- about what we do and what we know, and what's the best of this medicine."

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]]>acupucture treatmentsacupuncturealternative medicineAlternative therapieshealthHealth And Medicinehealth carehealth care billhealth care costshealth care reformhealth care reform billhealth care reform lawhealth care reform legislationHealth Care spendinghealth insurancehealthcarehealthcare reforminsuranceinsurance companiesmedicalmedical caremedicineBruce KennedySat, 02 Apr 2011 07:00:00 ESTJapan Disaster Creates Possible Windfall for U.S. Meat Exportshttp://www.dailyfinance.com/2011/03/24/japan-disaster-creates-possible-windfall-for-u-s-meat-exports/http://www.dailyfinance.com/2011/03/24/japan-disaster-creates-possible-windfall-for-u-s-meat-exports/http://www.dailyfinance.com/2011/03/24/japan-disaster-creates-possible-windfall-for-u-s-meat-exports/#commentsFiled under:

The triple-punch disaster in Japan -- the massive earthquake, tsunami and nuclear-reactor crisis -- is creating serious concerns about the nation's food supply.

Japan consumes most of the agriculture that it produces, with food products like seafood, dairy and vegetables reportedly accounting for only 0.5% of the country's total exports. Rising radiation levels from damaged nuclear power plants, meanwhile, have prompted Japanese authorities to stop shipments of milk and some vegetables produced in the region around the reactors.

Some fear that the disaster also could severely impact U.S. meat exports to Japan. Growth of those exports has been recovering from several years of restrictions in Asia after concerns about tainted U.S. beef. But industry officials remain optimistic.

Operations 'Severely Impacted'

"When we take a look at this whole Tohoku [Northeastern Japan] region, there's like four major prefectures have been affected," says Phillp Seng, President and CEO of the U.S. Meat Export Federation (USMEF), in a recent radio interview. "People have to realize it's only about 2% of the population, and about 2% of the GDP. But what they produce is about 16% of the pork, about 12% of the beef and about 15% of the poultry, and all those operations have been severely impacted."

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According to the Federation, less than half of Tohoku's 17 wholesale cattle markets have resumed normal operations, but the disruption should still only have a regional effect. Japan produces about 43% of the beef and 53% of the pork that it consumes.

For his part, Seng, who spent years living in and working in Japan, expects a shortage of domestic meat. That shortage, he says, will create "a need to bring in more meat products -- and so the outlook I think looks promising as far as [U.S.] exports and meeting our forecasts and possibly even exceeding our forecasts for Japan."

For now, USMEF Is retaining its earlier 2011 forecast figures for U.S. pork and beef exports to Japan. That forecast calls for 153,000 metric tons of beef, valued at $790 million, to be exported to Japan this year -- representing a 23% increase over last year. The group expects U.S. pork exports to Japan to increase 3% this year to 447,000 metric tons, valued at $1.7 billion.

Supply Chain Concerns

Of course, those U.S. meat exports need an vast infrastructure to get them to the Japanese market, and large swaths of Japan's roads, buildings and electric grid have been damaged by the disaster. But USMEF says much of its beef and pork are arriving at ports that weren't damaged by the quake, such as in Tokyo and south of the capital. And the Federation says that most the ports damaged by the quake are expected to reopen this week.

The nation's rolling blackouts are also affecting refrigeration in some areas, as well as ground transportation. Cold storage facilities in Japan are still being cleaned up, and electricity to those facilities is inconsistent.

"It is far too early to speculate about the long-term impact of this disaster on the nationwide economy of Japan," USMEF said in a recent statement to its members, "but even in recent economic times that were considered sluggish, Japan has remained a very robust market for U.S. beef and pork."

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]]>agriculturebeef exportscattleexports to japanfarmingfoodfood shortagefood supplyjapanjapan earthquakejapan exportsjapan tsunamijapanesejapanese foodmeatmeat exportsporkU.S. beef exportsu.s. meat exportsBruce KennedyThu, 24 Mar 2011 15:30:00 ESTEarthquake Rattles Japanese Animation Industryhttp://www.dailyfinance.com/2011/03/21/no-fantasy-earthquake-rattles-japanese-animation-industry-edite/http://www.dailyfinance.com/2011/03/21/no-fantasy-earthquake-rattles-japanese-animation-industry-edite/http://www.dailyfinance.com/2011/03/21/no-fantasy-earthquake-rattles-japanese-animation-industry-edite/#commentsFiled under: ,

Along with sushi and Toyota vehicles, one of the best-known Japanese exports is anime -- the Japanese term for animation.

The distinct anime style originated in post-war Japan - first in manga, the so-called graphic novels or comic books. But by the 1960's, anime television programs were being broadcast in North America, Australia and Europe -- shows like Astro Boy and Speed Racer. And today, as many parents know, anime programs like Pokemon and Dragon Ball Z -- along with their related merchandise -- have been hot items with children for years.

Anime Studios "At a Standstill"

Japan's recent earthquake, tsunami and nuclear reactor crises are taking their toll on the nation's population and industrial sector -- and Japanese anime, an industry that brings in an estimated $2.5 billion annually, has suffered as well.

"The whole thing is having a pretty significant effect right now," says Christopher Macdonald, CEO and publisher of Anime News Network. "70% of Japan's animation studios are in the suburbs of Tokyo, and those are . . . the areas being affected by the rolling blackouts. That means it's very hard for people to do work. They don't know when their electricity is going to be turned off for three to six hours; the offices start shaking every 15 minutes [from aftershocks]. For the most part, most of those studios are at a standstill when it comes to their animation work."

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Macdonald says some popular anime programs may end up having shortened seasons in Japan due to the disaster, but a lot of that programming has already made its way to international markets. "At this time we don't foresee any production delays for our series," says Jane Lui, publicity and events manager for San Francisco-based VIZ Media -- the largest North American distributor of anime -- in an email. "That fact . . . of itself is a testament to the incredible work ethic of our partners in Japan."

That being said, the situation at the anime studios remains in crisis. "Our parent companies, Shogakukan, Shueisha, and ShoPro (all based in Tokyo) and the studios . . . are extremely supportive of their staff," says Lui, "many of whom may be searching for missing loved ones, or taking care of those displaced or affected by the disaster. It will take a while for normal day-to-day business to stabilize."

An Industry Already in Crisis

The disaster is just the latest setback for Japan's anime industry. While demand for anime is growing internationally, Japanese anime is being challenged by animation from other countries. A lot of the manually-intensive animation work by Japanese studios is also being outsourced to countries with cheaper labor costs like South Korea, China and Thailand.

"Production budgets have been slashed because of the economic slump, and young workers on the margins are bearing hard burdens," Hisako Sasaki, the head of anime studio Wish, recently told the national newspaper Asahi Shimbun. "Young workers have fewer chances to accumulate experience and improve their skills."

There's also an ongoing international slump in the sale of DVDs, anime and otherwise. Internet piracy of anime programs, meanwhile, is rampant -- with some of the more popular shows illegally available online with hours of their first broadcast in Japan.

Grueling Entry-Level Work

As an important cultural icon, the Japanese government is taking the anime crisis seriously. The nation's Agency for Cultural Affairs is providing nearly $500,000 in subsidies for a program where experienced animators collaborate with novices to educate the next generation on key anime techniques.

But there's a high burn-out rate among Japanese trying to break into anime. Employees at the bottom of the anime ladder are expected to do the grueling "in-between" work, and are paid by each cell or drawing they complete. "And even though they produce a lot of drawings every month, their salaries are pretty crappy," says Macdonald -- who estimates the average salary of an anime "in-betweener" runs from $8,000 to $18,000.

"The talent pool for creating new visionaries, new directors, is shrinking," he says. "Like most industries, the animation industry is shaped a bit like a pyramid. If the base shrinks, the top shrinks."

And there are now concerns the earthquake and tsunami could create a worse-case scenario for Japanese anime. With work at home interrupted by the disaster, Macdonald says, "some of the studios might decide we need to get this work done, so we're going to hire some more Korean studios to fill in temporarily. Once a season is off-shored for a couple of weeks, it's not coming back. And if you lose a complete season or two seasons of salary in Japan, these people are going to find work in other industries, higher paying industries, like video gaming."

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]]>animationanimeanime moviescartoonschildrens programmingentertainmentjapanjapanese earthquakejapanese tsunamijapanese tvmangamediapokemonBruce KennedyMon, 21 Mar 2011 08:00:00 ESTCuba's Deepwater Oil Exploration Could Be a Game Changerhttp://www.dailyfinance.com/2011/03/05/cuba-deepwater-oil-exploration-game-changer/http://www.dailyfinance.com/2011/03/05/cuba-deepwater-oil-exploration-game-changer/http://www.dailyfinance.com/2011/03/05/cuba-deepwater-oil-exploration-game-changer/#commentsFiled under: , ,

People who follow the oil industry are closing watching a pair of news items, both involving drilling operations in the Gulf of Mexico.

Earlier this week, the Obama administration said Noble Energy (NBL) could restart drilling operations at its Santiago well in the Gulf. The announcement will make Noble the first company to resume drilling in the region since last April's BP (BP) Deepwater Horizon disaster -- and the first since the moratorium on deepwater drilling in the Gulf was lifted last October.

The other bit of news is that a semi-submersible oil rig, originally due to arrive in Cuban waters this month, will reportedly be delayed until late summer.

Working Around U.S. Trade Embargo

The rig is a multinational project: owned by an Italian oil service group, constructed by a Chinese firm and funded by a consortium led by the Spanish energy company Repsol (REP). The delay is being blamed on technical problems -- but "part of the delays were originally that the [rig's] works were going to have more than 10% of U.S. technology, which is not acceptable to the U.S.," says Jonathan Benjamin-Alvarado, political science professor at the University of Nebraska at Omaha.

That 10% figure is a part of the U.S. trade embargo against Cuba, now in its sixth decade. But the possibility of a good-size oil find off the Cuban coast could be a major game-changer for both Havana and Washington.

A 2004 assessment by the U.S. Geological Survey reported that about 4.6 billion barrels of oil -- as well as substantial deposits of natural gas -- might lie trapped in the sediment just north of Cuba.

Some preliminary explorations of the site have shown promise, but the oil deposit is hardly a sure thing -- especially since it's in water even deeper than the BP Deepwater Horizon site. But given present concerns over oil supplies, "the idea is to eventually export [oil] in the area or for Cuban consumption," says Arturo Lopez-Levy, a former political analyst for the Cuban government and now a research associate at the University of Denver.

Transitioning From Oil Importer to Exporter

"It could create a significant change in Cuba's economic wherewithal," says Benjamin-Alvarado, who recently co-authored a book on Cuba's energy sector. He notes Cuba currently produces about 90,000 barrels of oil daily, or about half of its overall needs -- with the rest being imported from Venezuela. But with the possibility of Cuba transitioning from an oil importer to a modest exporter, there's been a dramatic increase in foreign direct investment in Cuba in recent years -- as international companies invest in the country's oil production infrastructure.

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"About 88% of all the oil reserves in the world are already spoken for," Benjamin-Alvarado says. "Only 11% are open and available for purchase by the international oil companies." With that in mind, he says, "oil would solidify Castro's effort to remain viable with the Cuban people, to satisfy their material needs. The Cuban people would take the trade-off. But over the course of 10 to 15 years, that may change."

There are also some practical concerns about possibly having Cuban oil wells operating less than 90 miles from the Florida coast. A recent report by advocates for more U.S. engagement with Cuba suggests the U.S. government should start direct talks with Havana over energy and environmental issues -- to prevent any future Deepwater Horizon-like spills in the Gulf.

That suggestion is getting a lot of push-back from anti-Castro groups in Florida, as well as state lawmakers. But according to the report, by the Center for Democracy in the Americas, the current trade embargo "restricts Cuba's access to knowledge and associations that would help it plan for or react to a spill. The embargo prevents meaningful participation by U.S. private sector firms in planning for reaction, containment or remediation efforts."

"The extent to which the U.S. can get on the stick and put forth a working agreement on environmental drilling will be very important, to be able to monitor very closely what the Cubans will be doing," says Benjamin-Alvarado. "This won't solve our energy problem, but it gives the U.S. an opportunity to have an imprint in the direction of the energy developments that are presently at play in Cuba."


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]]>bpbp oil disasterbp oil spillcastrocubacuban oilgulf of mexicohavanaoiloil explorationoil pricesoil productionoil rigtrade embargoUS trade embargo against CubaBruce KennedySat, 05 Mar 2011 08:00:00 ESTWind Power Gets a Favorable Breeze From the Mideasthttp://www.dailyfinance.com/2011/03/01/wind-power-generates-renewed-interest-as-oil-worries-grow/http://www.dailyfinance.com/2011/03/01/wind-power-generates-renewed-interest-as-oil-worries-grow/http://www.dailyfinance.com/2011/03/01/wind-power-generates-renewed-interest-as-oil-worries-grow/#commentsFiled under: , ,

If it's true that markets constantly cycle between the emotional poles of greed and fear, then the energy sector right now is in fear mode -- spooked by what's happening to oil prices. Political unrest and uncertainty in the Middle East have sent crude soaring -- and that spike in prices is once again drawing the public's attention back toward alternative energy sources, in particular solar and wind power.

Analysts say that neither wind or solar power (although many public solar companies are on the rise right now) are the magic bullet to solve the problem of America's addiction to oil -- and like other industries, both have been hit hard by the financial crisis. But researchers and investors, particularly in wind power, aren't giving up.

According to the Global Wind Energy Council, worldwide wind power capacity increased by 22% last year -- and most of that was added outside of the older and traditionally stronger North American and European markets. In 2010, China surpassed the U.S. in total installed wind capacity.

"Our industry continues to endure a boom-bust cycle because of the lack of long-term, predictable federal policies, in contrast to the permanent entitlements that fossil fuels have enjoyed for 90 years or more," says Denise Bode, CEO of the American Wind Energy Association, in a GWEC press release. "Now that we're competing with natural gas on cost, we need consistent federal policies to ensure we have a diverse portfolio of energy sources in this country."

Dealing with the Weather and Technology

Despite such hurdles, wind power has been an established part of the U.S. grid for a decade or more. "We're well past the embryonic stage," says Paul Veers, chief engineer at the National Wind Technology Center, a part of the Department of Energy's National Renewable Energy Laboratory in Colorado. He says by the end of 2009 the U.S. had an estimated 35 gigawatts of wind power installed.

"One gigawatt is a thousand megawatts, which is a million kilowatts," Veers says. "One kilowatt is like [the power needed to run] a toaster. So that's the equivalent of 35 old-style, coal-fired power plants being generated [by wind power]."

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Of course, wind power depends on the weather -- and that variability has led to skepticism about whether it could ever be more than a supplement to traditional energy sources. Another well-publicized concern is the inability of power organizations to store the electricity generated by wind power.

Veers agrees that utilities currently can't store wind energy, "no more than you can store electricity from a coal plant or a nuclear plant," he says. But developments are under way to create storage facilities that could eventually set aside some of the excess electricity generated at night by wind turbines, when public demand is lower, and then feed it back onto the grid during the day.

And the reliability issue, Veers says, is improving with the development of more dependable and more efficient technologies - affecting everything from weather-forecasting models, allowing wind farms to fine-tune how their turbines run, to improvements in the turbines' infamously delicate gearboxes. He compares the current wind turbines and their development to where autos were in the 1970s or 1980s. "They had really good equipment. It worked," he notes. "But look at the change in the frequency of [auto] maintenance from now to then, and the change in fuel efficiency. The improvements they've been able to make in cars in the last 30 years are really pretty substantial."

20% by 2030?

Both the Bush and Obama administrations have pushed to have wind power and other alternative energies generate a greater percentage of America's electrical output. A Department of Energy report details a scenario whereby wind power could be responsible for 20% of U.S. electricity production by the year 2030.

But for the moment, that remains speculative. The government realizes that, "long-term, you have to find some alternative to a resource that is still embedded in a volatile part of the world," says Ron Rizzuto, professor of finance at the University of Denver's Daniels College of Business. Wind power, he says, is a "good, long-term thing, but we're still feeling our way. . .and it's not economic on its own without subsidies."

Paul Veers says that, given the incentive of subsidies, wind power is extremely cost-effective and a good investment. "It brings a lot of jobs and business activity to rural areas, remote places where the wind is located," he notes. "It also brings electrical generation to the West without the need for water for cooling -- a nice benefit there, too. That's why we're operating here. That's why we think we have a role for the future. That we can continue to bring costs down. . .and increase the productivity of these machines, so they become our cheapest energy source."

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]]>alternative energyenergyenergy policyenivronmentgreenMideast turmoilNational Renewable Energy Laboratorynreloil pricessolar energysolar powersubsidieswindwind powerwind turbineBruce KennedyTue, 01 Mar 2011 10:00:00 ESTState Governments Are Just Adding to Labor's Woeshttp://www.dailyfinance.com/2011/02/23/wisconsin-protests-unions-right-to-work-states/http://www.dailyfinance.com/2011/02/23/wisconsin-protests-unions-right-to-work-states/http://www.dailyfinance.com/2011/02/23/wisconsin-protests-unions-right-to-work-states/#commentsFiled under: , , ,

Right to Work: An Alternative to Unions or Simply Irony? Like many cash-strapped individuals trying to get by in the current economic climate, state governments are being forced to tighten their financial belts. In Wisconsin, Ohio and elsewhere, local legislatures are doing that by taking aim at government employees, preparing bills that would slash the bargaining rights of public unions. But the large protests against those moves have led to a Greek chorus of commentary about what's next for organized labor in the U.S.

American labor unions have been in decline for a half-century now -- and virtually the only large unions still growing are those in the public sector. "In the private sector, only unusual occupations like professional athletes, as well as and lawyers and physicians, are showing union growth," says Cynthia Fukami, a professor of management at the University of Denver's Daniels College of Business.

Fukami attributes the decline in the labor movement to a wide spectrum of factors, one of the biggest being America's evolution from a manufacturing-based to a service-based economy. "Unions aren't very strong in organizing service-based workers, knowledge workers," she says.

The Rise of "Right to Work" States

Also, relatively new federal laws on issues such as due process and workplace discrimination now provide protections to all workers that were once available only to union members. But those legal protections against unfair treatment are limited and often have loopholes that favor the employer over the employee.

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And laws on the books in 22 states -- mostly in the South, the Midwest and in major agricultural regions -- make them so-called Right to Work states. "A Right to Work law secures the right of employees to decide for themselves whether or not to join or financially support a union," says the National Right to Work Legal Defense Organization. According to its website, the group has been "defending America's workers from the abuses of compulsory unionism since 1968."

Right to Work legislation has also led to a geographic shift in where many private firms now have their operations. "If a company wants to avoid labor unions," says Fukami, "it closes up and moves to the South. Like R.H. Donnelley, the printing company, moving from Chicago to Dallas. . .or Gates Rubber moving from Denver to Tennessee."

Some of this controversy is certainly political, and harks back to other government vs. union confrontations, such as when President Reagan fired thousands of striking air-traffic controllers in 1981. It may also be due to a growing public perception that unionized government employees don't work as hard as people in the private sector, are impossible to manage and have job security to boot.

A State Can't Declare Bankruptcy

But unlike private firms facing fiscal problems, financially stressed states have limited options. "One way that profit-sector companies have dealt with this is to declare bankruptcy," says Fukami, "and the bankruptcy makes the union contracts null and void. Continental [Airlines] did this years ago. But a state can't really declare bankruptcy, so they just cut, cut, cut -- and the unions have contracts saying you just can't do that unilaterally. They're fighting for their rights, which they're entitled to according to federal law. "

While some analysts see the current confrontations in Wisconsin and elsewhere as signs of the death of organized labor in the U.S., Fukami isn't so sure. "If business and government treat their workers poorly, then there will be renewed interest in labor unions," she says, "because it's a way of us achieving the same kind of rights that we have as citizens in the United States, in the workplace."

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]]>benefitsbudget cutsColumnscutsGovernment Employeeslaborlayoffsohioohio protestsorganized laborprivate sectorpublic sectorpublic sector workersrepublicansright to workright to work statessalaryunionunionswisconsinwisconsin protestsBruce KennedyWed, 23 Feb 2011 12:00:00 ESTSpirited Startups: Colorado's Microdistilleries Follow an All-American Pathhttp://www.dailyfinance.com/2011/02/18/spirited-startups-colorados-microdistilleries-follow-an-all-am/http://www.dailyfinance.com/2011/02/18/spirited-startups-colorados-microdistilleries-follow-an-all-am/http://www.dailyfinance.com/2011/02/18/spirited-startups-colorados-microdistilleries-follow-an-all-am/#commentsFiled under: , , ,

Ted Palmer of Roundhouse SpiritsReinvention is something Americans are known for, and in this current economic climate, lots of us are trying to reinvent our careers and our lives.

Colorado 's new governor, John Hickenlooper, was a laid-off geologist who opened the state's first brewpub back in the 1980s. As he says in his official biography, "I didn't know anything about starting a business. I didn't even know what a pro forma was."

But Hickenlooper's efforts helped revitalize Denver's run-down downtown district, pioneered the region's booming microbrewery industry and in turn launched his political career.

Discovering a Family Recipe

That entrepreneurial spirit is thriving in some of Colorado's newly minted microdistilleries - most of which have been up and running for less than three years. For Steve Viezbicke, founder of the Boulder Distillery and Clear Spirit Co., Hickenlooper is a role model. "He started from nothing, just like I did," says Viezbicke - whose Polish-style potato vodka has a loyal customer base along the Front Range.

A Boulder native, Viezbicke's adventure into microdistilling reads like a movie screenplay. Several years ago, while working as a design engineer in the audio industry, he found a family secret -- a recipe for vodka hidden in the lining of his grandfather's steamer trunk. The senior Viezbicke was a teenager when he emigrated to the U.S. from Poland just before World War I. No one in his family ever talked about the recipe, he says, "but there were some hints of my father and my uncles up in northern Minnesota playing with some distilled spirits."

Viezbicke also played with the recipe, which got raves from his friends. And after he was laid-off, he says, "everybody was going, 'why don't you start a company? [This vodka] is blowing what's on the market out of the water, we don't care what it costs, it's so much better than what is out there, and it's hand-made, it's local, it's real, you can see it being made.'"

Viezbicke started his company in July of 2008 with an investment of about $110,000. He's since expanded from a mom-and-pop business (with his daughter running the company website) to having nine employees. He's also having new stills delivered, which he says will boost his current production from 200 bottles of vodka a week to around 1,000 by mid-summer.

Like a most microdistillers, he's aiming for an educated audience but also one that takes pleasure in buying local products. "Colorado's got this pride that if we can buy it all from in-state, then we can keep our economy rolling," he says. "I'm buying potatoes from Colorado. I'm getting the water from Colorado. I'm a Colorado native. You tag "Boulder" on something and it sells, because it is a true, clean product."

From the Navy to the Distillery

"A lot of people have begun to realize that localization is good for the global economy and helps lift up our neighbors," says Ted Palmer, the self-proclaimed "Presidente" of Boulder-based Roundhouse Spirits (pictured above). "But that money has to come from somewhere, and people are starting to realize it comes from us. A lot of people are looking at locally made products. It may cost a little bit more, but you're getting quality and more for your dollar."

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Palmer's story also involves reinventing himself. He spent a decade in the U.S. Navy, including two years in the Persian Gulf. There were no alcoholic beverages in the region, "so I started making wine on board, as were most other ships. And I would distribute among the crew, and everybody thought it was fantastic, including my captain. They all said, 'you should get out of the Navy and do that for a living.'"

Palmer took that advice to heart, working his way through three alcohol- related businesses before purchasing Roundhouse in 2008 from an amateur distiller.

Using a three-gallon still, he started producing what he calls a "melting-pot gin, because it takes the best parts of the different gin styles from around the world." Through word of mouth, he's gone from selling 190 cases (12 bottles in a case) in 2009 to 375 cases of gin last year -- and is currently expanding beyond his flagship gin with two new brands.

"Our biggest target audience is the younger 21- to 30-years-old, that's into microbrewed beer," he says. "They're really knowledgeable about what they drink, and they want to know what the news is and what's the best among their friends. Go into any brewpub. . .and listen to what they're saying. The older people talk work. The younger set -- they're talking about what they're drinking. They're the ones that we target the most, because those are the ones that are most interested. "

Even the Big Guys Think Small

"I celebrate the microdistillers. I think it's really cool," says Kevin Smith, director of bourbon distillery operations for Jim Beam. Smith entered the industry from college in the late 1980s as a floor-level supervisor. Working his way up the business, he eventually become a master distiller and plant manager.

Jim Beam is no microdistiller: It's the world's largest maker of bourbon. The company keeps its actual production numbers close to the vest. But blogger and bourbon aficionado Chuck Cowdery estimates the big U.S. whiskey distilleries "each fill between 500 and 1,500 barrels a day. Those barrels go into aging warehouses where they will sit for the next several years. As they fill, so shall they dump. And the major American whiskey distilleries each empty between 500 and 1,500 barrels a day, too."

Still, as for the microdistillers, quality control is a priority when it comes to producing Jim Beam -- from its major white-label product to its top-shelf, small-batch bourbons. "Unlike a lot of things that are out there, mass-producing bourbon doesn't really happen," says Smith. "The things that were important when you were small are still what's important today. The grain quality, where the grains come from, what kind of grains we're using, the yeast that we make -- all the way through the cooking, the fermentation and the distillation. As you get larger, you don't lose sight of the craft that got you to where you are."

"The U.S. Owns Bourbon"

Smith believes it's mass communication that has helped to change market tastes. He remembers how bourbon was disdained as "something your grandfather would drink" in the 1960s. But by the 1980s, he says, people started looking for unique tastes in their alcoholic beverages, and came back to traditional American spirits. The wide spectrum of food and lifestyle cable channels have also helped educate consumers. "Our audience has a desire to become expert in things," he says.

Smith believes the microdistilleries are a good thing for his industry. "Their passion is what our passion is," he says. "They're not going to be competition but will generate interest in bourbon. They've got challenges, the [microdistiller] in Texas, the guy in Wyoming. But it can be done. We don't own bourbon -- the U.S. owns bourbon."

And whether it's bourbon, gin or vodka -- or whether they hope to thrive independently or eventually be snapped up by the corporate giants -- microdistilleries appear to be putting down roots as they cater to local audiences. Cheers!

See the full Special Report:
From Prohibition to Microdistilleries: Changing How America Drink
New York's Microdistillery Law Is Building a New Industry
Bringing Cheer to the Local Economy
Pennsylvania's Small Liquor Makers Bottle a Heritage


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]]>alcoholbourbondistilleriesginJim Beamliquorlquor industrymicrodistilleryspriritsvodkaBruce KennedyFri, 18 Feb 2011 18:45:00 ESTFrom Prohibition to Microdistilleries: Changing How America Drinkshttp://www.dailyfinance.com/2011/02/18/from-prohibition-to-microdistilleries-changing-how-america-drin/http://www.dailyfinance.com/2011/02/18/from-prohibition-to-microdistilleries-changing-how-america-drin/http://www.dailyfinance.com/2011/02/18/from-prohibition-to-microdistilleries-changing-how-america-drin/#commentsFiled under: , ,

Philadelphia Distilling's Bluecoat ginStrong drink is as American as the Fourth of July, and dates back a few years earlier. In fact, U.S. distilleries and their potent products have been part of the national culture since long before the War of Independence and have played a major role in the country's history.

But America's troubled relationship with liquor had a huge impact on what consumers expect from their alcoholic beverages, and the devastating aftermath of the 18th Amendment left a barren landscape for liquor lovers. On the bright side, in more recent times, that loss has created a hunger for something better, contributing to a national revival of microdistilleries. Across the country, small companies are opening their doors and producing unique, handcrafted products with local or niche audiences in mind.

Today's microdistillery trend is a long way from where things stood at the time Prohibition -- the so-called Noble Experiment -- began in 1920. The passage of the eighteenth amendment forced scores of small distilleries across the U.S. to close their doors. After its repeal, what remained of the country's liquor industry was consolidated into a few large companies like Canada's Seagram.

While these behemoths profited greatly from Prohibition, they also lowered consumer expectations. At the time, America's large but then-underground drinking population wasn't picky, and many drinkers were all too ready to believe they were getting the real deal from bootleggers or speakeasy bartenders, who often rebottled homemade gin or rot-gut whiskey and sold it as top-shelf liquor.

How Blended Whiskey Got Its Start

In its online history of the era, the Distilled Spirits Council of the U.S. (DISCUS) notes that by the time Prohibition ended in 1933, the country had only 20 million gallons of real, aged whiskey -- compared to the more than 60 million gallons available before Prohibition. Newly reopened and again-legal distributors tried to fill the gap by importing whiskey from Canada and the U.K.

But, according to the site, a quick way to cater to the growing post-repeal thirst for whiskey "was to sell blended rather than straight whiskey, thereby 'stretching' the good stuff with neutral spirits and flavorings." Liquor companies at the time looked at blended whiskeys as a stopgap measure for consumers until there was enough pure, aged whiskey available. Instead, the public's tastes changed -- making blended scotch a part of the American drinking landscape.

No wonder that a few years later, after World War II, vodka -- which can be quickly produced and requires no aging -- ended up becoming the nation's most popular spirit.

Hard Liquor Inc.

Still, for its size and population, the U.S. isn't a particularly hard-drinking country. One-third of Americans reportedly don't drink any alcohol, and according to Garrett Peck's book, The Prohibition Hangover, consumption of alcoholic beverages in the U.S. didn't return to pre-Prohibition levels until 1965.

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Since then, especially in the past two decades, the liquor industry has become even more consolidated. Diageo (DEO), the world's largest alcoholic beverage company, was formed by the 1997 merger of Guinness with Grand Metropolitan. It's brands include well-known beers and wines, as well as some of the most popular and top-selling liquors, including Smirnoff vodka, Johnnie Walker scotch, Tanqueray gin, Jose Cuervo tequila and Bushmills Irish Whisky.

But two factors -- the economic downturn and changing tastes -- are drawing many Americans away from their usual drinks. "What we've learned is that while alcohol may be recession-resistant, the top brands aren't recession-resistant," says Mac Clouse, professor of finance at the University of Denver's Daniels College of Business.

One of Clouse's classes manages part of the university's endowment, which had a pretty big investment in Diageo. "Their idea with that investment was if the economy goes bad, people will still drink," he says. "The problem is people are still drinking, but they've gone down to the generic brands, the less expensive brands."

Thirsting for Something Nostalgic, but New

Despite the recession, people with a passion for hand-crafted spriits are opening microdistilleries. And, contrary to well-worn tropes about the foolishness of starting a business in a downturn, many are holding their own financially and finding audiences for their products. Clouse sees a parallel with the popularity of microbreweries in the beer industry. "For a long time the large beer companies didn't really see the craft producers as much of a competitor," he says. "But now they're taking them seriously. And a sign that they're taking them seriously is that they're trying to replicate their products. "

Even the well-established distilling companies appear to understand that Americans have a growing desire to drink something local, unique and perhaps even historic. For example, Knob Creek, a small-batch bourbon produced by liquor titan Jim Beam (itself owned by massive conglomerate Fortune Brands) has tried to tap into the microdistillery momentum on its website, where it nostalgically refers to its bourbon as being "characteristic of pre-Prohibition whiskey, with strong, rich flavors and aromas."

Analysts of the hotel and restaurant industries believe these new microdistilleries are indeed penetrating the American market by appealing to individuals with disposable income -- and who want to taste something not mass-produced. "There are examples of cocktail bars, cocktail houses where that's the concept -- to get back to the history of cocktailing in this country," says David L. Corsun, director of the Fritz Knoebel School of Hospitality Management at the University of Denver.

"There's once such place in Nashville, the owner of which is an alum of ours," says Corsun, "and this place is unbelievable. Their drink menu is phenomenal. A place like that is the venue for products like these, because these are the places where they are educating [customers] differently from how the mass market is educated."

If the data are any indication, Americans will be able to economically accommodate any new whiskeys, gins, vodkas or liqueurs that show up in their local bars, restaurants or hotels. Author Peck says Americans drank nearly $63 billion worth of distilled spirits in 2007. And according to DISCUS, about 1.3 million people in the country are employed in the manufacture, distribution and sale of distilled spirits, generating $95 billion in overall economic activity.

Let's drink to that!


See the full Special Report:
New York's Microdistillery Law Is Building a New Industry
Bringing Cheer to the Local Economy
Pennsylvania's Small Liquor Makers Bottle a Heritage
Colorado's Microdistilleries Follow an All-American Path




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]]>alcoholalcoholic beveragesbeerdiageodistillerieshand-craftedhard liquorliquormicor-distillingmicro-brewmicrodistillerySeagramvodkaswhiskeywhiskey distillerieswineBruce KennedyFri, 18 Feb 2011 18:45:00 ESTFor U.S. Beef Exports, 2010 Was Fat and Happyhttp://www.dailyfinance.com/2011/02/16/2010-best-year-ever-for-u-s-beef-exports/http://www.dailyfinance.com/2011/02/16/2010-best-year-ever-for-u-s-beef-exports/http://www.dailyfinance.com/2011/02/16/2010-best-year-ever-for-u-s-beef-exports/#commentsFiled under:

While analysts speculate about just how fragile the U.S. economy is, reports from one sector of American agriculture are bringing some welcome financial news.

Federal and industry officials say 2010 was the best year on record for U.S. beef exports. "Our beef exports actually eclipsed the record of 2003, which was our highest year," says Philip Seng, President and CEO of the U.S Meat Export Federation (USMEF). He says more than $4 billion worth of beef was exported last year -- a 19% increase in volume and a 32% rise in value.

"If you look at this on a value basis as well, we were up $1 billion over the prior year of 2009," he says, "so it was an extremely positive year."

Market Recovering From Mad Cow

In December 2003 a cow with bovine spongiform encephalopathy (BSE), or "mad cow disease," was discovered in Washington State. That incident virtually closed down U.S. beef and pork exports to Japan, South Korea and elsewhere in the world. "What we've been working on since 2003 is to try and get [U.S. products] restored in those markets," says Seng, "as far as our export volumes and values."

And with the exceptions of China -- which still restricts U.S. meat imports -- and Mexico -- which is finding American meat products increasingly expensive -- demand is way up. "The growth was really driven by North Asia," says Seng. "The Republic of Korea [South Korea] was up 100%. Take a look at Japan -- we were up 36%. The Middle East was also up very strongly."

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Those improvements come despite special requirements for U.S. beef exports to Japan and South Korea. Both nations allow meat only from relatively young animals into the country -- reportedly to reduce any future risk of BSE. "But in spite of those apparent restrictions, we're still seeing the velocity of our exports to Korea have gone up dramatically," says Seng -- who notes that U.S. beef and pork are filling a void in the local meat market created by an outbreak of foot-and-mouth disease in South Korea.

There are some political obstacles, as well. According to the Washington Post, Senate Finance Committee Chairman Max Baucus (D-Mont.) is threatening to hold up the recently concluded U.S.-Korea Free Trade Agreement unless Seoul reconsiders some of its restrictions on U.S. beef.

Weather Is a Global Concern

The USMEF estimates a global 10% increase in U.S. beef exports this year -- but Seng says the wild cards in that equation are weather and global grain prices. Feed costs from grain make up more than half the cost of beef and pork -- and weather-reduced crops could be a prime reason for inflation when it comes to meat.

"And when I say weather, it's not just weather in Kansas; it's weather in China," he says. " We're looking at five provinces in China being as dry as they've ever been in 100 years. You saw the impact on wheat when Russia decided they wouldn't export wheat last year. Just look at the flooding in Australia. So when you look at weather, this has a tremendous impact as far as prices, and not just in the U.S."

But Seng, who recently returned from Asia with a USMEF delegation, believes the U.S. has an advantage with its beef exports after decades of experience knowing and understanding its overseas consumers.

"The ability of the U.S. to be successful in Asia has to be determined by our ability to adapt," he says. "I've often said these are not markets -- these are cultures that we are marketing to. And the more we understand the cultures we are marketing to, then the more successful we are going to be."

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]]>agriculturebeefBSEcattlecowsjapankoreakorea free trade agreementmad cow diseasemeat exportssouth koreau.s. beef exportsUSMEFBruce KennedyWed, 16 Feb 2011 14:00:00 ESTDallas-Area Companies Go Whole Hog for Super Bowl XLVhttp://www.dailyfinance.com/2011/02/01/super-bowl-XLV-economic-impact-north-texas-companies-communities/http://www.dailyfinance.com/2011/02/01/super-bowl-XLV-economic-impact-north-texas-companies-communities/http://www.dailyfinance.com/2011/02/01/super-bowl-XLV-economic-impact-north-texas-companies-communities/#commentsFiled under: , ,

North Texas Companies and Communities Go All Out for Super Bowl XLV Neither Texas nor Texans are known for understatement -- and the upcoming Super Bowl should be no exception. The game on Sunday, Feb. 6, at Cowboys Stadium in Arlington is likely to draw record stadium audience of over 100,000, and beyond that it'll be watched by tens of millions of people on TV worldwide.

Parking spaces near the stadium are going for as much as $1,000 a vehicle. Ticket prices for seats have also gone ballistic -- reaching sums well over their reported face values of $600 to $1,200 per ticket. More frugal fans can party during the game in a plaza just outside the stadium walls for a mere $200, or get standing-room tickets inside for $350.

Pace Cars, Guns, Golf and Cooking

The Super Bowl is a natural attraction for businesses looking to impress their clients, and companies in the Dallas/Fort Worth region aren't about to miss the opportunity. The area is home to a number of America's largest corporations -- including Exxon Mobil (XOM), Texas Instruments (TXN) and American Airlines (AMR). And local, event-related businesses say many of these companies are bringing some of their most-favored clients into town for the event.

Beverly Brin, general manager with Dallas-based Ultimate Ventures -- a destination-management company -- says her staff of 14 full-time and 75 part-time employees is operating about a dozen programs for corporate customers and clients coming into North Texas for the game.

"We have groups going to the Texas Motor Speedway for some pace-car driving," she says. "We have a variety of groups going to different gun clubs here in the Dallas area, and having clay-shooting experiences. Some folks are golfing. We'll have cooking demonstrations going on with local chefs."

Will Region Profit by $200 Million, or $611 Million?

The three cities and four counties economically affected by the Super Bowl have gone through about four years of preparation on a scale usually associated with regions hosting Olympic games. The North Texas Super Bowl XLV Host Committee has also set a new event record for fund-raising.

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"We've secured 12 funders of $1 million or more, the most in Super Bowl history," says Tony Fay, the committee's vice president of communications. "We have about a $40 million operating budget, and [those raised funds] help us fulfill all the obligations that were in the big commitment that we presented to the NFL when we won the right to host Super Bowl 45."

And while local governments have reportedly spent $10 million on Super Bowl preparations for things like emergency services, cleanup and transportation costs, Fay says the region should do well. A study by his organization, ordered by the state, was projecting an estimated $611 million impact -- which would be a record for a city or region hosting a Super Bowl.

However, he notes, "PriceWaterhouseCoopers did an independent study, not associated with us, where they were estimating about a $200 million dollar impact. All these are estimates -- it's hard to know exactly what kind of an impact this will have. But obviously it's going to be something positive in a down economic time. It's something that's going to be a good deal for us."


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]]>american airlinescowboys stadiumeconomic impactexxonExxon Mobilexxon-mobilExxonMobilExxonMobilefootballgreen bay packersmedianflnorth texasNorth Texas Footballpittsburgh steelerssportssuper bowlSuper Bowl XLVtexasTexas InstrumentsBruce KennedyTue, 01 Feb 2011 10:00:00 ESTThe Taco Bell Beef Suit: Not All Processed Foods Are Evilhttp://www.dailyfinance.com/2011/01/28/the-taco-bell-beef-suit-not-all-processed-foods-are-evil/http://www.dailyfinance.com/2011/01/28/the-taco-bell-beef-suit-not-all-processed-foods-are-evil/http://www.dailyfinance.com/2011/01/28/the-taco-bell-beef-suit-not-all-processed-foods-are-evil/#commentsFiled under: , ,

Taco BellToo many undercooked, beef-related puns have been loping around the news media lately -- thanks to a consumer-rights class-action recently filed against Taco Bell (YUM) by an Alabama law firm. According to the complaint, most of what Taco Bell calls "seasoned ground beef" in its ads has hardly any meat in it all - containing mostly fillers such as "isolated oat product," yeast extract, corn starch and other ingredients. That would put Taco Bell's beef below the 40% meat requirement for what the U.S. Department of Agriculture (USDA) defines as "taco meat filling."

But the fast food giant is fighting back. "The lawsuit is bogus and filled with completely inaccurate facts," says a recent Taco Bell statement. "Our seasoned beef recipe contains 88% quality USDA-inspected beef and 12% seasonings, spices, water and other ingredients that provide taste, texture and moisture. The lawyers got their facts wrong. We take this attack on our quality very seriously and plan to take legal action against them for making false statements about our products."

What's in Processed Meats?

The media is mostly portraying this as a dispute over possible false advertising -- but the Taco Bell story also adds fuel to ongoing arguments over processed meat in general. McDonald's (MCD), for example, added healthier items to its menu after getting unwanted attention about some of its ingredients following the 2004 movie documentary Super-Size Me.

Controversies over processed meats have been in the news for years now -- over issues like the growing use of corn in U.S. food products and the dangers of too much salt, fat and preservatives. But some observers believe it's not necessarily fair to single out Taco Bell over its ingredients.

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"Consumers are not completely aware of the ingredients that go into processed meat items," says Dale Woerner, a professor at the Center for Meat Safety and Quality at Colorado State University's College of Agricultural Sciences. Woerner calls on consumers to read the labels on food products. Most processed meats, he says, contain processed proteins from grains like soy, wheat and rice - which reduce fat content.

And while those non-meat proteins are less expensive and certainly can help a company's bottom line, Woerner says most of those added ingredients have a purpose and not just as filler. "I'm talking about the tenderness or consistency of that product," he notes, "the moisture that that product maintains to give a pleasant eating experience, and also the flavor."

Expecting the Same Burger, Coast-to-Coast

Part of the problem may be that Americans have become accustomed to uniformity in their meals. Most folks expect a burger purchased from a major fast-food chain to taste the same, coast-to-coast, no matter where in the country (or in the world, for that matter) you buy it.

That uniformity, says Woerner, prompts processed-meat producers to work hard at keeping customers happy. "All of these things are factored into a least-cost formulation," he says, "but they're also driven toward a specification for quality. I'm certain, for example, that Taco Bell has done millions of dollars of research on ingredients, and ultimately they are producing a product that's demanded by their customers; in the way of flavor, functionality, mouth-feel, etc."

Consumers, however, are rapidly changing and becoming more health-conscious. As a result, chances are good that even if your guilty pleasure is a quick burger at a fast-food chain, you're going to be getting some nontraditional, low-fat ingredients mixed in with your beef. And for the record, Woerner believes Taco Bell's side of the story.

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]]>beefColumnsfast foodfast food chainsfast food nationfast food restaurantsmcdonaldmcdonaldsmeatprocessed foodprocessed foodsprocessed meatprocessed meatsprocessed meats in diet cancer riskssuper sizesuper size metacoTaco Bell lawsuitTacoBellBruce KennedyFri, 28 Jan 2011 11:20:00 ESTDomestic Yaks: The Next Buffalo?http://www.dailyfinance.com/2011/01/23/domestic-yaks-the-next-buffalo/http://www.dailyfinance.com/2011/01/23/domestic-yaks-the-next-buffalo/http://www.dailyfinance.com/2011/01/23/domestic-yaks-the-next-buffalo/#commentsFiled under: ,

Cattle ranchers at the National Western Stock Show in Denver were doing double takes the other morning when they walked by the yak pens. The yaks, with their shaggy appearance and grunting sounds, look like Ice Age relatives of the massive beef cattle elsewhere in the stockyards. Yaks are about half the size of domestic cattle -- with the three-month-old calves no bigger than an adult Newfoundland dog.

Yaks are still quite exotic in the U.S. and Canada. But the fact they've been a presence at one of the world's largest livestock events for several years now says something about both the animals and their breeders -- who swear up and down that yak meat and yak wool are the next big thing. Perhaps, at some future point, even the new buffalo.

Self-Sufficient, Ecologically Sound

Native to Asia's Himalayan Mountains, most of the 9,000 or so domestic yaks in North America reportedly descend from zoo animals brought to Canada a century ago. The animals love high altitudes, cold weather and dry climates -- and have done very well in the Rockies.

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Some yak ranchers say their animals eat like goats, consuming weeds and shrubs most beef cattle and horses avoid. "You can put four yak cows on the same acreage as one commercial beef cow," says breeder Bob Hasse, who's also on the International Yak Association's board of directors. While there is some difference of opinion over whether it's four cows or two cows per acre, there are other good reasons to raise yaks. "They're much lighter weight, so they're much easier on the environment," says Hasse.

"They'll thrive where cattle would starve. They also eat and drink about a third of what beef cattle do," says Joe Phillips, who started raising yaks about two years ago in Colorado's High Country. This time of year, he says, "you do have to feed them some hay, but they can handle the cold, they can handle the predators, it's not an issue. So I'm hoping to see more of them in the county and surrounding high-altitude areas."

Expensive Meat, Valuable Wool

Yak tastes like very lean beef, and their meat is low in fat. They take twice as long as cattle to mature, however. And yak is still considered an exotic meat like bison or elk. Because of that classification, Hasse says, any yaks prepared for public consumption have to be processed in a U.S. Department of Agriculture facility under a volunteer program -- where the yak producer pays for both the inspections and the inspectors' time.

And those costs add up for the yak rancher. "You can get grass-fed beef [processed] at a private facility for 50 to 75 cents a pound," he says. "The price of beef that goes into a store from a monster facility . . . runs between 25 and 35 cents a pound. Our costs [for Yak] run between a buck to a buck-and-a-half [per pound] for processing."

All those processing expenses mean that, even if you can find yak meat at your local market, it'll probably cost you two to three times the cost of a similar beef cut.

Good Reviews From a Weaver

Yaks are also valued for their wool. The animals have a coarse, dense, protective outer coat, but their inner "down" coat has a texture that compares favorably to cashmere. "The down is competitive to -- in the same realm as -- camel hair [and] alpaca," says Heather Morrissey, a weaver and hosiery producer from Ontario. She's currently working with yak wool fibers from Mongolia but is "looking at some of the domestic wool, both in the U.S. and Canada."

And while yak wool is still a niche market, Morrissey says it's where she wants to be. "I think it's got potential, probably in the next decade, to seriously bump it up a notch or two, looking at a commercial level," she says. "But right now I think it's at its infancy. It's going to be at a cottage-level for a bit. But I think . . . you have to structure it in such a way that it's similar to the way the other wool businesses are, so that you can take it to market."

"We're seriously in the pioneering stage," says Hasse. "We're learning what we have. Every time we learn something new, it's positive. With less than 10,000 animals in the country, we're scratching the surface. But the more people get to know [yaks], when they take the time, [the more] they're interested in the economics."

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]]>agricultureanimalsbuffalocattlecattle industrycattle ranchcowcowsfiberknittinglivestocklivestock breederLivestockBreederLivestockMarketingInformationCenterLivestockShowsmeatnational western stock showranchingweavingwoolyakyaksBruce KennedySun, 23 Jan 2011 09:00:00 ESTHome Office vs. At the Office: Which Is More Efficient?http://www.dailyfinance.com/2011/01/17/home-office-vs-at-the-office-more-efficient/http://www.dailyfinance.com/2011/01/17/home-office-vs-at-the-office-more-efficient/http://www.dailyfinance.com/2011/01/17/home-office-vs-at-the-office-more-efficient/#commentsFiled under: , , ,

Call it telecommuting, telework or working from home: It appears more of us are earning at least part of our salaries from home, and with the boss's blessings.

According to a survey by the human resources group WorldatWork, the number of Americans who work either from their homes or remotely at least one day a month rose by 74% between 2005 and 2008, to more than 17 million. And if you add to that figure the so-called "contract telecommuters" -- folks who are self-employed or run their own businesses -- the number jumps to nearly 34 million people.

There are more studies now than you can shake a stick at, arguing the pros and cons of telecommuting. Some groups tout its advantages: flexible time, the lack of a commute, as well as less office space, energy and supply issues for employers. But there are others who say working remotely not only cuts workers off from their fellow employees and office culture, but can also create tensions with colleagues back at the office.

A 2008 study from Rensselaer Polytechnic Institute suggests in-office workers feel they have "decreased flexibility and a higher workload, and the ensuing greater frustration that comes with coordinating in an environment with more extensive co-worker telework."

The Benefits of Knowing Someone Is Watching

While there has been no definitive study on which is more efficient, at least one analyst suspects time will show the benefits of both venues.

"People are equally efficient at home as at they are at work, but there are different forces that operate," says Kathryn Shaw, professor of economics at the Stanford University Business School, "and I think that's what the data will show in the long run." Shaw says she's uneasy with generalizations on this topic, because efficiency levels can vary greatly depending on the type of job.

More companies, meanwhile, are becoming aware of the need to balance at-home and in-office work for their employees, "but it depends on the firm and it depends on the nature of the work you're doing," says Shaw.

She points to company call centers that successfully have people working from their homes, as well as high-tech workers who can be more creative. "But there are other jobs where you really do want people watching," she says. "There's empirical evidence that watching does influence people, there are definitely peer effects -- when someone's watching, you behave differently." Some firms are also taking measures to ensure their contract employees aren't slacking off at home. At least one company takes screen shots of its remote contract employees as they work throughout the day.

Linked by Technology

Given the use of new technologies and the globalization of jobs, working remotely is par for the course at many companies. Teams of workers, located in different offices around the world, can now work together in real time on the same documents and projects. But there are times when face-to-face communication is the most efficient method.

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"You still see people flying all over in international work, because they have to get together," says Shaw, "because there are certain subtle forms of communication that help you do your job [that] occur in person. The downside of distance work is that you lose cultural cues, [compared to] when you're working face-to-face with people."

That combination of working alone, as well as taking part in the relative camaraderie of an office environment, she says, can often strike the balance that modern jobs need.

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]]>face-to-faceflexibilityfreelancing from homejobsremote workremote workingreturning to worktechnologytelecommutingwork life balanceworking from homeworking from home adviceworking from home jobsworking from home with childrenWorldatWorkBruce KennedyMon, 17 Jan 2011 09:00:00 ESTThe Autism Study Fraud's Impact on Scientific Researchhttp://www.dailyfinance.com/2011/01/12/autism-study-fraud-impact-scientific-research/http://www.dailyfinance.com/2011/01/12/autism-study-fraud-impact-scientific-research/http://www.dailyfinance.com/2011/01/12/autism-study-fraud-impact-scientific-research/#commentsFiled under:

British medical researchers recently discredited the work of one of their colleagues, Dr. Andrew Wakefield, who first made headlines more than a decade ago when he linked cases of autism to some common childhood vaccinations. A British medical journal now says Wakefield's autism research is fraudulent, full of inaccuracies and made-up data.

This isn't the first time the medical community has been snookered by fraud. Several years ago, news from South Korea -- of what was originally hailed as a breakthrough in embryonic stem cell research -- soon turned out to be a complete fake. And nearly 100 years ago, the scientific world was fooled into believing fragments of a skull found in Piltdown, England, were part of the "missing link" in human evolution.

Cutting Science to Cut Government

Aside from the embarrassment, researchers know deceptions like the autism research fraud can have much larger consequences, both for the parents of autistic children and for the future of their studies. "It's obviously a discouraging thing, because it taints a lot of very good work that goes on," says Ted Randolph, co-director of the Center for Pharmaceutical Biotechnology at the University of Colorado at Boulder. "The public has a very difficult time making up their minds as to which parts of research might be above-board and which parts might be more trouble."

For the past two decades, Randolph has been researching how to stabilize protein solutions in drugs, extending their shelf life for up to two years. His university gets funding for his work from the National Institute of Health, the National Science Foundation, several pharmaceutical companies and the U.S. Department of Defense. Randolph says the autism study fraud shouldn't affect his funding, but it does give ammunition to people who want the government to reduce such research -- in an effort to cut costs.

And he's worried the public doesn't understand that science is constantly checking itself, to ensure such frauds are exposed. "If someone publishes an interesting research result, something really new and something that really strikes people's fancy. . .those kinds of results often get featured in high-level journals [and] draw many people into the field," he says. "So, many people will start trying to use those results as a springboard for their own research. And as part of that research, they'll try to duplicate that research. If those results don't hold up, then very rapidly the problem may come to light. And sometimes it's an honest mistake, a misinterpretation - and occasionally its fraud."

Skepticism Before Belief

Randolph understands why people would grasp at seemingly off-the-wall solutions to such devastating and poorly understood diseases as autism. In fact, he supports such leaps of scientific imagination. "You hesitate as a scientist to discount anything," he says. "Most really good ideas sounded kind of wacko when they started out."

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But he says the general public doesn't understand how such hypotheses are tested by researchers. "And that's where the problem comes," he says, "because they hear something and become a believer in it -- rather than hearing something and saying 'that's really interesting, we should test that and see if it's true.'"

He points to concerns in the 1990s, that use of the mercury-based preservative Thimerosal in widely used vaccines could increase the risk for Autism Spectrum Disorder (ASD) in children.

"When I first read about Thimerosal question, I thought 'that's really interesting, I wonder if there's something to it,'" Randolph remembers. "But for me, the Thimerosal story cleared up pretty quickly. After Thimersoal was no longer being administered, and yet the rates of autism kept going up for kids who had never been exposed to it, clearly for me the question was done; [Thimerosal] wasn't the reason."

Randolph says he and his colleagues are frustrated by the current low level of scientific literacy in the U.S. -- and the apparent trend to distrust science in general. "It's very hard even when scientific evidence comes out, that shows that a popular myth is not true, to convince the public of that," he says, "because they don't understand the science and the scientific method. I think a lot of Americans reject science. Some of [that rejection] swirls around the need to cut government, to say it's not doing much. So there's that kind of pressure on science as a whole."


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]]>autismautism causesautism researchautism spectrumAutismVaccinesresearchresearch and developmentsciencescience and techthimerosalthimerosal and autismvaccinatedvaccinationvaccinationsVaccinationSkepticsvaccinevaccine debatevaccine exemptionsVaccineExemptionsvaccinesBruce KennedyWed, 12 Jan 2011 15:30:00 ESTFrom Colorado Springs: Lessons for America's Budget-Cuttershttp://www.dailyfinance.com/2011/01/06/from-colorado-springs-lessons-for-americas-budget-cutters/http://www.dailyfinance.com/2011/01/06/from-colorado-springs-lessons-for-americas-budget-cutters/http://www.dailyfinance.com/2011/01/06/from-colorado-springs-lessons-for-americas-budget-cutters/#commentsFiled under:

The Congress now sworn in brings with it a new group of fiscally and socially conservative lawmakers -- a good portion of them elected as part of the Tea Party momentum currently reverberating through the Republican Party. Their campaign rhetoric of limited and financially responsible government clearly struck a chord with voters during the campaigns.

But now, to switch metaphors, the rubber is about to hit the road, leading some communities to question if they can indeed function along the Spartan economic guidelines touted by Tea Party activists. One place those municipal leaders might want to examine is Colorado's second-largest city, Colorado Springs.

The city is known as the birthplace of the Libertarian movement and the incubator of Colorado's Taxpayer's Bill of Rights (TABOR) - which caps municipal spending and limits the amount of tax revenue the state's local governments can collect. "The Springs" is also home to a variety of conservative organizations such as Focus on the Family, and it's neighbors with the U.S. Air Force Academy, NORAD and several major military installations.

But that conservative stereotype also has its contradictions. Colorado Springs also has the largest number of medical marijuana dispensaries in the state, outside of Denver, a strong counterculture scene and a national reputation for cultural diversity.

Turning Out the Street Lights

Colorado Springs has made headlines in recent years for its particular brand of economic conservatism. Some property tax rates there are among the lowest in the country for a city of its size. Local sales taxes make up more than 50% of its annual budget for public services such as law enforcement, fire fighting and road infrastructure.

That reluctance to tax-and-spend has been a part of the Colorado Springs municipal lifestyle for more than a decade. But as the recent economic downturn deepened, it created some unwelcome situations. Last year, the city was criticized for turning off some of its street lights, selling off police helicopters, reducing public transportation and closing municipal recreation facilities - along with cutting some other services - all in an attempt to keep its budget under control.

At the same time, local county officials have made major reductions in health care services such as monitoring sexually transmitted diseases, rates of drug abuse and air and water quality.

Growth in Volunteerism

But locals are quick to defend such frugality as a virtue. "It's just not true that people in Colorado Springs will not approve tax increases, but they're very particular," says City Councilmember Sean Paige - who's also executive director of two local policy organizations, the Limited Government Forum and Local Liberty Action.

"What they usually like is a specific plan for what the money will be used for," says Paige. "They want a 'sunset' provision, so that it will go away if it's not working out, and the politicians have to come back and reconvince the public that they've made good use of the money."

While there's been some local criticism about the cutbacks, a number of residents have reportedly responded to the economic hard times with a growth in volunteerism. Locals are mowing overgrown road medians and "adopting" street lights. Some private organizations and church groups have taken over the running of city facilities like public parks and pools.

"Taxpayers Are Maxed Out"

Paige says his city is showing that, in a time of fiscal crisis, local government has to learn to do more with less. "When you're in a crisis, it spurs you to think creatively and innovatively," he says, "and revalue the sorts of services and the level of service you're providing. But I think every community is going to confront this, sooner or later. I think taxpayers are maxed out and government is taking too much across the board -- and so something's got to give."

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Paige believes his city isn't unique in its approach to municipal belt-tightening, but there are some skeptics. "I would view Colorado Springs as an anomaly," says Bob McGowan, professor in the Department of Management at the University of Denver's Daniels College of Business. He thinks the region's uniquely conservative outlook has made it very receptive to fiscal conservatism. He also believes such concerns over today's local budget issues may be short-sighted.

"It's fine if you make those cuts and everything works well," McGowan says. "I can cut my budget right now, save a lot of money. But I guarantee you when there's a problem, the next thing the public is going to say is, 'why aren't you doing anything about it?' And then you have this clamor for providing the [public] services that we once did."

It may be too soon to say whether the Colorado Springs approach to municipal budget-balancing can be applied elsewhere, but both Paige and McGowan agree there's room for at least some public services to get outsourced to the private sector.

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]]>budgetcoloradocolorado springsconservativesfinancialfinancial responsibilityfrugalfrugalitymunicipalmunicipal budgetsRepublicanrepublicanstea partyTea Party GOPtea party movementtea party nationBruce KennedyThu, 06 Jan 2011 08:00:00 ESTParty Time Again: Holiday Events Point to a Recovering Economyhttp://www.dailyfinance.com/2010/12/28/let-the-parties-begin-more-holiday-events-point-to-a-recovering/http://www.dailyfinance.com/2010/12/28/let-the-parties-begin-more-holiday-events-point-to-a-recovering/http://www.dailyfinance.com/2010/12/28/let-the-parties-begin-more-holiday-events-point-to-a-recovering/#commentsFiled under: ,

A lot of us have already packed up what remains of 2010 -- in our minds, at least -- as we look ahead to 2011. But while the New Year is traditionally associated with cautious optimism, this year's holiday season is showing some palpable signs of economic recovery.

Several recent surveys indicate the number of holiday and end-of-year parties has been increasing this season, especially compared to the past several years. A CareerBuilder poll says 52% of employers it surveyed had plans to throw a holiday party this year for their employers, compared to 49% last year. And while 8% of employers said they had no such plans, that's down from 11% in 2009.

Holiday celebrations may not appear to be the most realistic economic indicator, but some people in the hospitality industry would beg to differ. David Corsun, director of the University of Denver's Knoebel School of Hospitality Management, has some firsthand experience with the current uptick in holiday events. His school has its own event company, managed by a team of five professionals and staffed by students. And the number of holiday parties it catered this December was double that of last year.

"We're seeing the same thing [throughout] the industry, seeing the return of corporate holiday parties," he says. "And not just the return of the parties, but a little bit higher end. For about the last two weeks, any time I've been talking with anyone in the industry they say, 'this is a very good sign, this is a leading indicator.'"

Champagne vs. Sparkling Wine

Bonnie Fedchock, executive director for the National Association of Catering Executives, says parties and events taking place during the last six to eight weeks of the year generate 15% to 20% of her industry's annual revenue. And in terms of this season, "everyone I've talked to across the country says it's definitely better -- because last year corporate spending was negligible," she says. "The dollar spending is still down from '07 and '08 -- and last year most people canceled or really scaled back their events. In '09 it was almost taboo to do lavish corporate events because it would be considered bad form."

But individuals also seem to be feeling a bit more prosperous ahead of the New Year. "The majority of our [sales revenue] happens in the fourth quarter," says Lorena Ascencios, head wine buyer for Astor Wine and Spirits, one of the largest stores of its kind in New York City. And this year, she says, "we're definitely more comfortable."

One trend she's noticing this holiday season is the sale of a lot more champagne -- that is, actual champagne from France and not the less-expensive sparkling wine. "People are buying [champagne] right now," she says, "for Christmas dinner, for the holidays -- not just for New Year's." And a bottle of good champagne can cost three to five times as much as a similar bottle of sparkling wine.

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That largess appears to be spreading to the food currently served at holiday parties, as well. "People revert back to their childhood in hard times," says Fedchock. "Last year everyone reverted back to comfort food -- mac and cheese." This year, she says, people are still watching the bottom line, but they're willing to spend more on locally grown, quality foods for their party tables.

Food and drink are essentials -- and a willingness to spend a bit more on the basics, says Corsun, "comes from the psychological security of those who are employed, who can afford champagne - who say 'we're on the way up, we're not flat.'"

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]]>cateringcatering businessCateringBusinesseconomic recoveryentertainmentholidayholiday 2010holiday partiesHoliday2010holidayshospitalityHospitalityIndustryliquorNew Yearnew yearsnew years evepartiespartyspiritswineBruce KennedyTue, 28 Dec 2010 09:00:00 ESTU.S. Air Travel Woes Reflect Bigger Infrastructure Issueshttp://www.dailyfinance.com/2010/12/20/us-air-travel-transportation-infrastructure-issues/http://www.dailyfinance.com/2010/12/20/us-air-travel-transportation-infrastructure-issues/http://www.dailyfinance.com/2010/12/20/us-air-travel-transportation-infrastructure-issues/#commentsFiled under:

U.S. airport infrastructureIf you spend a lot of time on planes for work, there were probably very few surprises in this year's "Best of Business Travel" Awards from Business Traveler magazine. Of the 53 awards presented earlier this month, Air Canada took home five - including Best North American Airline for International Travel, for Business-Class Service, for In-Flight Services and for its Flight Attendants.

Two South Korean airlines, Asiana and Korean Air, were honored for having the Best Overall Customer Service, Best In-Flight Services, Best Trans-Pacific Business-Class Service and Best Flight Attendants in the world.

From a purely patriotic standpoint, I'm saddened that relatively few American carriers made it to this year's Business Traveler list for either domestic or international service. To be fair, United Airlines (UAL) did win Best Airline for North American Travel -- but considering the U.S. helped to pioneer commercial aviation, our standards have fallen pretty low in recent years.

Some analysts say the apparent malaise affecting U.S. airlines may go beyond the current economic downturn to something more fundamental: a national gap in transportation infrastructure.

Playing Catch-Up With Business Clientele

Let's focus first on business travelers. While not the largest group of commercial passengers, they certainly punch above their weight when it comes to the percentage of airline revenue they generate. And after the past several years of economic belt-tightening, business travel is on the rebound. A recent report from the International Air Transport Association says the number of passengers traveling up-front, in business-class and first-class seats, was nearly 11% higher this past October than for the same period a year earlier.

But most U.S. carriers are playing catch-up when it comes to accommodating their lucrative business clientele. Many airlines and airports outside of the U.S. have been specifically targeting business travelers with extensive support services like free WiFi and mobile charging stations for electronics (one U.S. exception, according to Business Traveler, is Denver International Airport - which won the Best North American Airport award).

And there's been a lot more emphasis in recent years on getting passengers to and from airports to major metropolitan areas. "It's all about ease of travel," says Business Traveler Editor-in-Chief Eva Leonard, "about helping travelers achieve seamless travel."

A Vanishing "Culture of Service"

But that seamless travel is becoming more of a dream for passengers using American airports and airlines. "The U.S. airline industry has thought of itself as being separate from other modes of transportation," says Andrew Goetz, professor and faculty member in the University of Denver's Intermodal Institute and the Urban Studies Program. "They don't see themselves as a part of an intermodal system. So there's very little support in the airline industry, and even in the airport community, for more effective ground transportation [and] ground access -- even though they recognize better ground transportation would help airlines and airports."

The recent economic downturn has not only affected what Goetz calls the "culture of service" on most American carriers but it's also creating dilemmas for local governments having to make hard choices between desperately needed investment in transportation infrastructure and balancing their already-tight budgets. "Funding sources are going to be getting tighter for [transportation] projects that are going to make that kind of seamlessness feasible," he says -- noting that the newly elected governors of Ohio and Wisconsin have pledged to give back hundreds of millions of dollars in federal funding for proposed high-speed rail projects in their states.

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Goetz worries that such budget balancing is shortsighted. "To be competitive in the future, in terms of our economic productivity, I would say investing in this transportation infrastructure -- good, solid, sound projects -- makes all the sense in the world," he says.

"Look at what China is doing," he points out. "They have a lot of capital, and they're investing in transportation infrastructure. They're building high-speed rail, they're building connections to their airports, they're building airports. It's at a scale that probably rivals, or maybe exceeds, what we were doing in the '50 and '60s, when we were building the interstate highway system and building airports, building a lot of infrastructure. Those things are fundamental to long-term economic growth."

Airline passengers in the U.S. stuck waiting for their flight have plenty of time to read about China's future-looking infrastructure projects and ponder the implications.

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]]>air passengersairline serviceairlinesAirlineServiceairportairportsaviationaviation industrybusiness travelBusinessClassColumnsDenver International Airportfirst classserviceservicestransportationtransportation infrastructuretravelUnited AirlinesBruce KennedyMon, 20 Dec 2010 10:00:00 ESTChina Uses Its Economic Clout as It Attempts to Enforce Nobel Boycotthttp://www.dailyfinance.com/2010/12/10/china-uses-its-economic-clout-as-it-attempts-to-enforce-nobel-bo/http://www.dailyfinance.com/2010/12/10/china-uses-its-economic-clout-as-it-attempts-to-enforce-nobel-bo/http://www.dailyfinance.com/2010/12/10/china-uses-its-economic-clout-as-it-attempts-to-enforce-nobel-bo/#commentsFiled under: ,

The Nobel Peace Prize ceremony in Norway is once again making headlines. In 2009, the controversial winner was President Barack Obama -- who had been in office for only a few months. This year's laureate is an imprisoned Chinese dissident, Liu Xiaobo, and the award has created a public relations headache for Beijing.

The Chinese government is denouncing the ceremony, while suppressing overseas media coverage of the peace prize at home. It's also blasting anyone making an issue about Liu's imprisonment as "anti-China clowns" who are interfering "in China's internal affairs and judicial sovereignty."

The People's Republic has called on other governments to boycott the Nobel ceremony in Oslo Friday -- and about 20 countries have agreed to stay away from the event. While dozens more nations ignored the boycott, it's a telling sign of China's growing economic clout when you look at who won't be attending the ceremony.

Here are some of the countries that aren't sending representatives to Oslo -- and their economic ties to China:

Afghanistan

While the U.S. spends billions of dollars a year fighting the Afghan conflict, China is reaping significant economic results from its ties to the Kabul government. In late 2007, China's state-owned China Metallurgical Group signed a $2.9 billion deal with Afghanistan to extract copper from the Aynak deposit -- believed to be one of the largest copper deposits in the world. The Afghan minister of mines, meanwhile, denied reports he had received about $30 million in bribes from MCC in exchange for the contract. The Xinhua news agency says Afghan-China trade has grown rapidly, reaching $155 million in 2008. China has also zeroed tariffs on hundreds of export products from Afghanistan -- while donating more than 900 million yuan ($130 million) in aid to Afghanistan over the past eight years

Colombia

Trade between China and Colombia reportedly reached nearly $3.4 billion last year -- and China is now the second-largest exporter of Colombian goods. A Chinese diplomat recently predicted a Chinese-Colombian Free Trade Agreement within the next two or three years.

Cuba

Ideological allies from the Cold War days, China has helped Cuba fend off economic collapse in the years following the fall of the Berlin Wall. According to the U.S. State Department, China is the second-largest exporter of Cuban goods -- and Havana's second-largest supplier of imports. Cuba-China trade was over $525 million in 2004. That same year, Beijing signed several memorandums of understanding regarding more than $500 million in investments. China is also the main market for Cuban nickel exports.

Egypt

China is expected to surpass the U.S. this year as Egypt's largest trading partner. China-Egypt trade volume reportedly hit $2.6 billion in 2008. China Daily, meanwhile, says construction of the Suez Economic and Trade Cooperation Zone project should be completed around 2018. The project is expected to attract 2 billion yuan ($293 million) in investment during the next decade. Its first phase is expected to be finished next year.

Iraq

China has widespread interests in Iraq's oil production. In 2008, the Chinese National Petroleum Company (CNPC), along with Chinese firm Zhenhua Oil, signed a multi-decade agreement to work in Iraq's al-Ahdab oil field -- which has an estimated one billion barrel oil reserve.

Iran

Western sanctions against Iran opened the Islamic Republic up to Chinese investment and economic ties. China is a major exporter of Iranian oil and one of Teheran's top financial partners. Last year, according to the American Enterprise Institute's IranTracker.org website, "China became Iran's most significant trade partner, with bilateral exchanges worth $21.2 billion compared to $14.4 billion three years earlier."

Kazakhstan

Trade between China and the former Soviet Republic totaled nearly $73 billion. According to the China Briefing website, several Chinese companies have made about $4.4 billion in investments with state oil firm KazMunaiGaz and on a deal to construct a hydro-power plant, Kazakhstan's State Statistics Agency says Kazakh exports to China totaled $5.5 billion in the first seven months of 2010. The two countries also recently opened a free-trade zone along their mutual border.

Pakistan

"Pakistan and China are two friendly countries and partners in international trade and investment," says Pakistan Defence, the unofficial website of Pakistan's armed forces. The site remarks on the high demand for Chinese goods in the Pakistani market -- and that China has become one of Pakistan's "top five import sources" for items such as machinery, electrical appliances and chemicals. Bilateral trade between the two nations reportedly reached about $7 billion in 2008. And, according to the site, existing China-Pakistan trade is expected to grow to $15 billion by 2012.

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The Philippines

Manila's Department of Foreign Affairs says trade between China and the Philippines increased by more than 52% during the first half of 2010, to $13.1 billion. In 2009, China reportedly became the Philippines' second-largest trading partner, after Japan.

Russia

Bilateral trade between Russia and China is expected to reach nearly $57 billion by year's end. Chinese media reports a Russia-to-China crude oil pipeline was completed last month. The project is expected to transfer 15 million tons of oil annually.

Saudi Arabia

As China's demand for oil grows, so do its economic ties to the kingdom. A recent New York Times article notes Saudi-Chinese trade grew from $290 million in 1990 -- when the two nations established diplomatic ties -- to an estimated $40 billion in 2008. The Saudis reportedly supply about one million barrels of oil daily to China, an estimated one-fifth of China's crude oil imports. And, according to the Times, Saudi Arabia "is investing to expand Chinese capacity for refining Saudi heavy crude."

Venezuela

Beijing has expanded its economic and political links to Venezuela. Last year, according to the Los Angeles Times, President Hugo Chavez said China was buying about 338,000 barrels of oil from Venezuela each day -- a number that he estimated could rise to one million barrels daily by 2012. The Times says the Chinese are also investing billions of dollars in a Venezuelan heavy oil project.


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]]>boycottboycottschinachinese democracychinese governmentdemocracydissidentdissidentshuman rightsLiuLiu XiaoboNobel Peace PrizeNobel Prizenobel prize winnerNobel Prize winnersBruce KennedyFri, 10 Dec 2010 08:30:00 ESTU.S.-South Korea Trade Pact Could Beef Up American Meat Exportshttp://www.dailyfinance.com/2010/12/07/us-south-korea-free-trade-pact-beef-exports/http://www.dailyfinance.com/2010/12/07/us-south-korea-free-trade-pact-beef-exports/http://www.dailyfinance.com/2010/12/07/us-south-korea-free-trade-pact-beef-exports/#commentsFiled under:

U.S.-South Korea Free Trade Pact Could Beef Up American Meat Exports It may seem like an agricultural footnote in a much larger treaty between two countries, but in some circles, the U.S.-South Korean Free Trade Agreement (FTA), announced earlier this month by President Obama, is being seen as a harbinger of better times ahead for U.S. meat exporters -- and perhaps for U.S. agricultural exports in general.

Before 2003, South Korea was one of the top importers of U.S. beef, a market approaching $1 billion in annual sales. But then came news that a cow in Washington state had been diagnosed with bovine spongiform encephalopathy (BSE), also known as mad cow disease. Soon after that discovery, South Korea, Malaysia, Japan and several other East Asian countries imposed bans on U.S. beef.

While other Asian markets lifted their bans on U.S. beef imports within a few years, it wasn't until 2008 that South Korea resumed limited imports, with severe restrictions on the age of the animals used (30 months or younger, since younger cattle are considered less susceptible to BSE) and the cuts of meat allowed in. But even that partial resumption sparked huge protests in Seoul against the incoming government of South Korean President Lee Myung-bak.

Not Really a Beef About Beef

A lot of the anger expressed toward U.S. beef was apparently linked to other political and economic issues, including the large, decades-long American military presence in South Korea, and the global financial downturn.

"Korea's economy was really in a slump at that time. There was a lot of sentiment against new government that they weren't doing enough to keep the economy moving," says Joe Schuele, communications director for the U.S. Meat Export Federation (USMEF). "The anti-beef sentiment picked up some momentum based on issues that really had nothing to do with beef safety or even food safety." But once the mad cow controversy began to fade from the headlines in South Korea, he says, "we felt confident that we would make more inroads into the market."

The turnaround began last year. According to USMEF data, the U.S. exported nearly 82,000 metric tons (more than 180 million pounds) of beef to South Korea during the first nine months of this year -- at a value of $383.8 million. That's a 181% increase in value and a 136% growth in volume, compared to the same period in 2009.

A Hefty Price Cut

And once it's ratified, the FTA will eventually eliminate heavy tariffs on U.S. agricultural products -- especially beef. "The 40% tariff on U.S. beef will be phased out over 15 years," says Schuele, "which is consistent with the terms of other agreements Korea is negotiating with providers such as Australia and the European Union." USMEF estimates that, once the beef tariff is zeroed-out, final costs on a metric ton of U.S. beef in South Korea will have been cut by $1,300, which will make American beef significantly more accessible to consumers there.

"We see this FTA as a definite positive. . .as it will move us toward normalized trade," said Jeremy Russell of the National Meat Association via email. "In fact, it's not just a positive for Korea, but for the entire region, because all. . .the countries in Asia watch each other and try not to be perceived as being less diligent on the safety of imported food. Also, as exports to Korea expand, other countries will be forced to make similar changes in order to compete for U.S. product."

The FTA still needs to be ratified by both the U.S. Congress and South Korea's National Assembly, and as recently as last month, when Presidents Lee and Obama met at the G20 summit, the agreement seemed in doubt. But observers say rising tensions between North and South Korea have helped ease the FTA's path.

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Seoul "is looking for as much support as they can gain in the U.S. . . .given the fact we've got two other wars we're fighting," says Gordon Von Stroh, professor of management at the University of Denver's Daniels College of Business. "From the South Korean perspective, [the FTA] is shoring up their political support -- gaining more support from U.S. senators in agricultural states. Because, let's be honest -- every job counts right now in the U.S."

That sentiment appears to echoed in South Korea. "We believe the pact will contribute in strengthening economic and security ties between the two countries, and therefore request the government and parliament to speed up the ratification," said the Federation of Korea Industries, a prominent business lobbying group, in a statement quoted by the Yonhap News Agency. And according to Korean International Trade Association, "Amid rising trade uncertainties -- such as slowing global economic growth, eurozone debt risks, and rising inter-Korean tension -- the early ratification of the KORUS FTA is important than ever."

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]]>agricultureasiaAsian marketsbeefbeef export restrictionsbeef exportsbovine spongiform encephalopathyBSEcattlecowcowseast asiaexportexportsfood safetyFree Trade AgreementkoreaKORUSmad cowmad cow diseasemeatNational Meat Associationporkred meatSeoulsouth koreaSouth KoreanSouth Korean Free Trade Agreementtarifftariffstradetrade agreementU.S. beef exportsUSMEFBruce KennedyTue, 07 Dec 2010 09:50:00 ESTOnline Buyer Beware: E-Commerce Fraud Is Getting More Sophisticatedhttp://www.dailyfinance.com/2010/11/30/online-shopping-cyber-monday-ecommerce-fraud-criminals-danger/http://www.dailyfinance.com/2010/11/30/online-shopping-cyber-monday-ecommerce-fraud-criminals-danger/http://www.dailyfinance.com/2010/11/30/online-shopping-cyber-monday-ecommerce-fraud-criminals-danger/#commentsFiled under: , , , ,

Cyber Monday Crackdown: Feds Bust Counterfeit E-Commerce Sales Sites The term Cyber Monday was coined only about five years ago -- but that day of frenzied online shopping, coming on the heels of the Thanksgiving holiday weekend, is already a major part of U.S. retail sales culture. The National Retail Federation estimates nearly 107 million Americans shopped on Cyber Monday this year -- up about 10% from 2009. And an NRF survey released before Thanksgiving reported more than 88% of retailers were planning special Cyber Monday promotions.

It's probably no coincidence, then, that the feds made a major announcement on Cyber Monday: They had seized 82 domain names of commercial websites they allege were engaged in the illegal sale and distribution of counterfeit goods and pirated copyrighted works.

According to a Department of Justice statement, the operation targeted bogus online retailers dealing in a wide spectrum of counterfeit goods, ranging from clothing and fashion accessories to sporting equipment, DVD sets, music and software. "By seizing these domain names, we have disrupted the sale of thousands of counterfeit items, while also cutting off funds to those willing to exploit the ingenuity of others for their own personal gain," said U.S. Attorney General Eric Holder

According to the Justice Department, a lot of the counterfeit goods were shipped from suppliers in other countries directly into the U.S. via international express mail.

Cyber-Criminals Can Sucker Even Savvy Users

It's not just retailers and intellectual property-holders being hurt by fraudulent online sites. "I would bet 5% of the websites being accessed [by consumers on Cyber Monday] are not legitimate," says Paul Bauer, chair of the Department of Business Information and Analytics at the University of Denver's Daniels College of Business.

Internet criminals have become amazingly sophisticated, he says -- even fooling people who consider themselves web-savvy when it comes to online shopping.

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Bauer offers himself as an example. About a year ago, he was making his mortgage payment online. "Within five minutes of paying it," he remembers, " I get back this email saying there was a problem with it; would you please click here. And I did, initially. But then I went, wait a minute -- that didn't come from [my bank]. In fact, I checked the IP address, and it was not from [the bank]. Somebody was monitoring their website close enough -- sitting on a router somewhere on the Internet -- that they were then able to send back that email. I damn-near fell for it."

Online fraudsters also set up up their fraud sites with Web addresses very similar to those of legitimate e-commerce sites, counting on the fact that consumers often mistype URLs. Another scheme is to redirect online shoppers to such bogus sites.

"They can set up the same level of security with certificates, so everything will look legitimate," says Bauer, "but the fact is that you aren't where you thought you were, [and that] exposes you to credit card theft."

The best thing online consumers can do is remain vigilant to potential fraud and watch where they shop. "Buyer beware," says Bauer. "There are bad guys out there, everywhere, trying to take your money. We haven't been able to design [the Internet] to shut that down completely. But this bust, taking away 82 domains, is a step in the right direction."

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]]>Attorney generalboguscounterfeitcounterfeit goodscredit card theftcyber mondaycybercrimecybersecurityEric Holderfraudidentity theftintellectual piracyintellectual propertyinternetinternet fraudJustice Departmentonlineonline advertisingonline shoppingPaul Bauerwebweb sitesBruce KennedyTue, 30 Nov 2010 09:55:00 EST