Meat

Beef Industry Chaos: Tight Supplies, Strong Consumer Demand and Political Interference

Thu, 13 Nov 2025 19:42:19 GMT

The current state of the cattle market and beef industry has been described as chaotic. “There’s chaos in cattle,” as Chip Flory, AgriTalk host, put it.

The industry turmoil follows recent statements made by President Donald Trump regarding the need to lower beef prices as well as his request for the Department of Justice to immediately begin an investigation into meatpackers for driving up the price of beef.

Derrell Peel, Extension livestock marketing specialist from Oklahoma State University, affirms these are unique times, emphasizing while political factors have always indirectly influenced agriculture, it’s unprecedented for the cattle and beef markets to be at the center of direct political debate.

On a recent AgriTalk segment, Peel points out the inherent biological and production constraints of the cattle industry — particularly the fixed timeline to raise cattle — make quick fixes impossible. Both Flory and Peel stress that no political policy can shorten the cattle production process; any effective supply response requires patience and long-term adjustment.

Packers Under Fire

The concept of industry consolidation and foreign packer ownership has long drawn scrutiny with frequent government investigations. Peel says highly concentrated industries such as beef packing have been targets for skepticism and regulatory attention for over a century, to the point suspicion of packers is almost “a cultural thing” within segments of the industry.

He characterizes the latest call as another attempt to target convenient scapegoats rather than addressing deeper systemic realities of supply and demand.

“The reason we have the industry structure we do is because the economies of size and cost efficiencies are such a powerful economic force,” Peels explains.

He confirms researchers have long studied market power, and while concentration does have a small negative price impact for producers, the efficiency and cost-savings from large-scale firms more than compensate. These benefits, he says, keep cattle prices higher for producers and beef prices lower for consumers than they would be with a less efficient structure.

Dissecting the economics of margin markets Peels explains why price changes in different parts of the beef supply chain — cow-calf, feeders, packers and retailers — don’t move in lockstep. He uses a “bungee cord” analogy to illustrate the complex, dynamic and time-lagged interactions linking cattle prices at the farm with retail beef prices.

“All cattle prices and beef prices are ultimately connected, but they’re not connected with a stick or a chain,” Peel summarizes.” They’re connected with a bungee cord. There’s just an enormous amount of dynamics in this thing.”

Regarding the foreign ownership debate, Peel says there is no evidence foreign ownership alters packer behavior within the U.S. marketplace. He emphasizes foreign firms have made large investments in U.S. facilities and continue to operate them by the same market logic that would govern domestic ownership.

He also points out it is unclear who else would be in a position to make such significant investments if these foreign companies were not involved. This pragmatic view suggests the ownership issue might be less important than is commonly believed, at least concerning everyday operations and market outcomes.

A Lot Hinges on Rebuilding the Cow Herd

In his latest article, “ All Bets are Off ,” Peel says: “The latest edition in the torrent of recent political attentions directed at the cattle and beef industry includes allegations of market manipulation against the beef packing industry. Beef packers are the one segment that has been most negatively impacted in the current market, incurring huge losses due to poor margins and limited cattle supplies.”

(Meat Institute)

Peel reports packers have been losing enormous amounts of money for about the past 18 to 24 months. According to the Meat Institute, packer margins slipped into the red in September 2024. Through the week ending Oct. 4, 2025, packer margins were a negative $126.50 per head, up slightly from a year earlier at a negative $125.65 per head, according to Sterling Profit Tracker. The outlook for the year is a negative $165.96 per head packer margin.

“There’s just simply not enough cattle for them to operate at cost efficient capacities,” Peel explains.

This negative trend was anticipated — the reduced supply of cattle has made it difficult for packing plants to function at cost-efficient capacities, leading to the accumulation of operating losses. Peel points out the combination of low unit margins and insufficient cattle supplies challenges the economic viability of packers, further illustrating the complexity of the current environment.

This decline in inventory is not the result of a single factor but is driven by several years of drought and other market pressures. It is clear high beef and cattle prices are a result of these tight supplies and, according to Peel, these high prices are likely to persist for several years. The industry simply cannot turn around production levels quickly, and it will take time — a matter of years, not months — for conditions to normalize.

“Using logic that only works in the office of a politician, packers are supposedly wielding unacceptable market power while paying record high cattle prices and artificially raising beef prices … but not enough to avoid losing a couple hundred dollars on every animal they process — certainly many millions of dollars,” Peel says. “If beef packers had any significant ability to exercise market power, I am certain that we would not have record high cattle prices and packers would not be losing money.”

Peel suggests the federal government attacks on beef packers are aided and supported by a vocal minority of the cattle industry and a few sympathetic politicians who view packers as a perennial villain and always worthy of attack anytime the opportunity is presented.

“The timing of such attacks this time is particularly puzzling as dismantling the packing industry would certainly jeopardize current record high cattle prices and the best economic returns most producers have ever enjoyed,” Peels says. “I guess some cowboys just can’t stand prosperity.”

R-CALF CEO Bill Bullard says the cattle market is fundamentally broken citing years of an inverse relationship between falling cattle prices and increasing retail beef prices when the only ingredient in beef is cattle. Read more about his perspective.

Patience not Politics

Beef and cattle prices, Peel notes, are historically high, a result of industry-wide low cattle inventory. Rebuilding the nation’s cow herd will be a long, slow process, keeping prices elevated for an extended period. And Peel says there is no definitive evidence producers are saving heifers to start the rebuilding process.

“2025 may prove to be technically the cyclical low, but 2026 is going to be barely bigger, if it is, and no growth in 2026 and probably none in 2027 ... it’s 2028 into 2029 before that turns into increased beef production,” Peel predicts.

He summarizes neither regulatory nor political action will can speed up the rebuilding process. It will take years of concerted effort, market healing and stability before the industry can expect a meaningful rebound in herd numbers and production — a reality that requires patience across the industry.

“There is absolutely nothing anybody can do to make beef prices go down, or cattle prices, other than maybe tear up the industry completely,” Peels says. “And if we tear up the industry, it’ll make cattle prices go down, but it won’t make beef prices go down. It’ll make beef prices go even higher for consumers and the only way to fix this is to give the industry time to rebuild, and that’s going to take two to four years if we ever get started.”

He says a majority of cattle producers understand the beef industry is extremely complex and all segments are critical and essential.

“Though the outcome of current political actions is uncertain, the potential for long-term harm to the industry is substantial,” Peel says. “Anytime politics trumps economics, the strong supply and demand fundamentals that have determined the outlook for the industry to this point become irrelevant. Expectations for prices and production going forward are now completely clouded…therefore… all bets are off.”

Your Next Read: You Be The Judge: The Big Bad Beef Packers Are On Trial

From Corn to Cattle: Farmers Pivot to Create Profit

Thu, 23 Oct 2025 21:03:47 GMT

With commodity prices under pressure and input costs on the rise, many row-crop farmers are evaluating their options and looking for new revenue opportunities in the process.

For Troy and Stacy Hadrick, that required making a bold shift in their farming operation about four years ago. They started converting much of their South Dakota cropland to pasture and expanding their cowherd.

It’s a path no one would describe as easy. But as Troy puts it, “You’re going to do something hard if you’re in agriculture, so choose your hard.”

The Hadricks, based near Faulkton, say moving away from commodity corn, soybeans and wheat to a more direct, value-added beef production model is giving them more control over their product and their bottom line.

“We want to take ourselves out of the ebbs and flows of the commodity market, and we believe our beef business is viable long-term,” says Troy.

The Hadricks’ business includes selling beef direct to nine restaurants, a caterer, grocery store and even to a gas station that sells high-end meat. Learn more at hadrickranch.com/

Farmers Put Marginal Crop Ground Into Grass
As the Hadricks tried to decide whether to focus more on their beef business, and less on commodity grains, two things encouraged them to move forward with cattle: the marketplace and some of their land that’s prone to erosion.

“We started thinking about what could we do on some of this crop ground to be better stewards of that land – to think about it in a different purpose,” Troy recalls.

When the Hadricks learned about a Ducks Unlimited (DU) program that fit with their goals, they signed on to convert an additional 250 acres of cropland to pasture to feed cattle.

“They help cover the cost of that land while it’s sitting idle for a couple years, allowing the grass to establish,” Troy notes.

Bruce Toay, manager of DU conservation programs in South Dakota, says the organization is working with 58 farmers across the as part of its Working Grasslands Partnership.

DU provides annual payments to farmers for the first three years of their participation in the program, based on local CRP rates. After establishment, cooperators are able to utilize the forage by haying or grazing for the remainder of the 10-year commitment.

Payment rates reflect the land quality: in southeast South Dakota, where soils are more productive, rates can be $200 or more per acre. In the northwest part of the state, rates are usually $20 to $30 per acre.

“We can help install pipelines and tanks, and sometimes drill wells—whatever it takes to ensure a reliable water source,” Toay adds. “You can’t have a good grazing plan without water.”

Currently, South Dakota farmers have enrolled 12,000 acres with DU, which aims to expand the program to 25,000 acres. The program goes through 2029.

“We’re really pushing to find more interested cooperators and get more acres back into grass,” says Toay.

Beyond DU, other organizations investing in habitat restoration in regions of the U.S. include Pheasants Forever and Quail Forever .

More Short-Term Opportunities Wanted
While the Hadricks are finding success in a long-term strategy of moving to beef production, most U.S. farmers are exploring short-term revenue streams rather than a permanent exit from row crops.

Jay Parsons, an agricultural economist at the University of Nebraska–Lincoln, says that for most farmers, converting cropland to permanent pasture rarely pencils out—unless the goal is to leave row-crop farming altogether and sell off equipment.

“Otherwise, it makes a lot more sense to go with annual forages, because it’s easier to switch back to crops when markets change,” he notes.

In some scenarios, farmers rent their ground in the fall for cattle to come in and graze cornstalks, adds Mary Drewnoski, UNL professor and beef systems Extension specialist. Another common practice is to charge beef producers a fee to graze cattle on cover crops.

“That’s probably the simplest thing for a farmer to do – have somebody else come in with cattle and graze the fields,” she says. “Basically, you give them access and get a paycheck.”

Grazing rates can vary significantly. Drewnoski says going rate in the eastern part of Nebraska is $10 to $15 an acre. In the western part of the state, farmers can charge in the neighborhood of $30 an acre.

“It’s a matter of supply and demand, and there’s more demand there,” Drewnoski explains.

She believes row-crop growers based in any area that also supports cattle production can likely find ways to add revenue from grazing cattle, either their own animals or through leasing ground to local beef producers.

The one thing she says is of utmost importance to do in the process is to develop a clear, written lease agreement spelling out the details that can keep everyone on the same page and relationships intact.

Key terms to define in a lease agreement include the rental rate, payment schedule, specific stocking rate, along with a clear outline of responsibilities for fencing, water, and general pasture maintenance. The agreement should also cover conditions for renewal or termination and any provisions for insurance, recommends Purdue University Extension.

When executed well, Drewnoski says partnerships between row-crop growers and livestock producers can be mutually rewarding. “There can be real beauty in this if you’re a crop farmer and you find the right cattleman to partner with,” she says. “It can open up doors for you both to benefit.”

Your next read: Breeding for New Markets: How University of Minnesota is Working to Boost the Oil Content in Soybeans

Are We Seeing Signs of Herd Rebuilding?

Mon, 15 Sep 2025 13:46:26 GMT

The U.S. beef cow inventory has reached its lowest point since 1962, marking what appears to be the bottom of the current cattle cycle. Tight supply is driving the strong pricing environment beef producers are enjoying today.

“For cow-calf producers right now, things are as good as they’ve probably ever been,” says Troy Rowan, University of Tennessee assistant professor. “Even though things are really good, producers are conscientious and vigilant about potential challenges,” Rowan summarizes.

Agreeing with Rowan, South Dakota cattleman Ken Odde adds while profits are currently strong, inflation quickly erodes economic gains. He stresses the importance of risk management and diversification.

Early Signs of Herd Rebuilding?

This is the million-dollar question: Are there encouraging signs of expansion?

“The beef industry is not currently in herd expansion mode, with producers hesitant to retain heifers due to high costs and economic uncertainties,” says Dave Weaber, Terrain senior animal protein analyst.

In Drovers State of Industry Report to be released the week of Sept. 15, we breakdown the July USDA cattle inventory and cattle on feed reports. While the USDA reports showed the smallest U.S. herd in history and continuing tightening numbers on feed, analysts predict producers have not experienced the highest cattle prices, yet.

“Our national herd size has the industry at an interesting point,” Rowan says. “Prices are at all-time highs, inputs are reasonable and more cow-calf enterprises are profitable than ever. When the industrywide rebuild will happen remains up in the air, but producers are keeping in mind that the high-flying industry right now is not going to stick around forever. They’re starting to adopt new technologies, leveling up their crossbreeding programs and expand opportunities for non-cattle related income on their ranches.”

Weaber adds producers need to be intentional about herd expansion, understanding the financial implications of adding new cattle.

Beef-on-Dairy Fills the Beef Supply Gap

“The current dynamics of supply is going to be a challenge,” says Jarrod Gillig, Cargill senior vice president, managing director for beef.

Gillig summarizes the cattle industry is experiencing a critical period of transition. He doesn’t expect the cow herd to return to previous peak levels of 32 million head. Instead, he predicts the gap in supply will be filled by beef-on-dairy calves.

Nick Hardcastle, Cargill senior director of meat grading and technical specialist, explains how the beef-on-dairy calves are an upgrade to the traditional Holstein steer and the positive impact they are making on beef supply.

“Beef-on-dairy is more desirable because it helped overcome several Holstein difficulties,” he says. “Improvements include red meat yield — more meat to a consumer — as well as improved acceptance in branded programs.”

Hardcastle says the beef-on-dairy cattle are filling the supply gap by filling pens in the Plains states where feeders are needed, and they are widely accepted by feeders and packers.

Defining Future Beef Producer Success

Odde says the beef industry is not just surviving but positioning itself for significant transformation.

“Producers who remain flexible, technologically savvy and strategic in their approach will be best positioned to thrive in this changing environment,” he says.

Weaber agrees saying successful producers will be those who can adapt, manage costs effectively and align themselves with evolving market trends.

“Don’t let cost get away from you,” Weaber warns, emphasizing that “being a low-cost, high-productivity producer means you get to make money seven, eight or nine years of the cycle.”

He stresses the importance of understanding financial implications, particularly during market transitions.

“If we’re not working on the business, we can’t work in the business,” Weaber adds, summarizing his philosophy regarding producers’ need to adopt more strategic, data-driven approaches.

The State of the Beef Industry Report includes input from nearly 500 beef producers. The annual report provides information to help producers when making decisions. Click here to download the full report.

Your Next Read: 47% of Beef Producers Plan to Increase Herd Numbers

Why Aren't High Beef Prices Causing Sticker Shock With Consumers?

Wed, 23 Jul 2025 19:37:01 GMT

Gound beef prices across the U.S. continue to reach new highs. Retail prices for ground beef hit its highest level in history in June climbing above $6 per pound, while steaks were up 8% at $11.49 per pound.

(Bureau of Labor Statistics )

“The record high retail beef price reported by the most recent Consumer Price Index (CPI) has prompted a lot of calls about why prices are record high and whether there is any relief in sight,” says David Anderson, Texas A&M Extension economist for livestock and food product marketing. “While we often write about the great cattle prices for producers who are selling, there is a flip side, and that is consumers who are buying beef.”

Anderson explains reduced slaughter and beef production, especially in the second quarter of the year, cut supplies just as grilling season heated up for seasonal beef demand. The combination led to a spike in wholesale prices and retail beef prices.

Don Close, Terrain senior animal protein analyst, says: “What we have seen so far is consumers have been incredibly loyal to protein collectively, but they have been especially loyal to beef, and beef is actually continuing to gain market there, even at the current prices at the expense of the other protein.”

Wages Are Keeping Pace With Beef Prices

Close says when he correlates the monthly all fresh beef price to hourly wages he found they are in lock step.

“Yes, beef prices have escalated, but beef prices have not risen any faster than the improvement in overall hourly wage,” he explains. “So from the consumer’s perspective, their share of their paycheck committed to beef is essentially the same as it’s been on a comparative basis for years.”

(Don Close, Terrain )

Other contributing factors to beef demand include consumers’ craze for protein and the impact of GLP-1 diets on protein consumption.

Scott Varilek, Kooima Kooima Varilek, says: “I think beef demand has just proven time and time again — hey, consumers want it. It’s a great healthy protein, and I think it’s got a lot of good traction here over the last year of being a good quality source of food.”

High Quality Attracts Consumer Spending

Plus, with 82% to 84% of the beef produced grading Choice or better, the high quality of beef is pushing demand.

“I don’t see any weakness really in the consumers or their spending habits,” says Mike Minor, professional ag marketing. “We actually are eating more Prime meat today than Choice for the first time ever. So, people like their expensive meat still.”

How Long Will High Cattle and Beef Prices Last?

Last week USDA reported average fed cash cattle prices hit the second-highest level in history at $237.78, up 57¢ from the average the prior week.

The high cattle and beef prices continue to be driven by tight cattle numbers, the Mexican boarder closing due to New World screwworm and looming import challenges.

Yet, Close says the role of strong demand can’t be ignored and is likely to continue.

“I think it’s certainly through 2026 and really more realistic somewhere deep into 2027,” he adds.

Anderson explains normal seasonal production and demand would suggest prices falling from recent highs. Evidence from the wholesale beef market over the last couple of weeks indicates lower prices.

“Seasonal price patterns would suggest that there is a chance for a little bit of relief from record high beef prices,” Anderson says. “But, only if we compare to the peak price this summer. Wholesale beef prices are already declining.”

He adds there is a time lag from lower wholesale prices showing up at retail, but lower wholesale prices combined with normal seasonality of various cut prices should lead to the expectation of falling prices in the coming months.

“But, it’s not likely that prices will decline below year-ago levels,” Anderson emphasizes.

Inventory Reports Release on July 25

Close says more will be known about supply levels after the USDA Cattle on Feed and Cattle Inventory reports on Friday.

“While market analysts expect lower placements, marketings and cattle in feedyards than a year ago, the really interesting number will be the number of heifers on feed on July 1,” Anderson summarizes. “The heifers on feed will provide some insight into heifer retention. Also, look for placements in Texas due to the ban on Mexican feeder cattle. The lack of spayed heifers coming from Mexico is important in evaluating the number of heifers on feed.”

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Trump Plans to Ease Trade Tensions by Reducing Tariffs On Chinese Goods

Thu, 24 Apr 2025 13:48:40 GMT

Comments President Donald Trump made at a White House press briefing on Tuesday have signaled the U.S. trade war with China is about to de-escalate.

The 145% import tax rate imposed on Chinese goods will “come down substantially, but it won’t be a zero,” Trump said.

“I don’t know if we can call what President Trump did on China a U-turn, but some people are calling it that,” AgriTalk Host Chip Flory said on Wednesday. He asked guests what their level of support is for what the Trump administration is doing on trade currently.

“I think he’s doing what needed to be done,” said Scott McGregor a cattleman and grain producer from northeast Iowa, near Nashua.

McGregor said he wants to see a level playing field for the U.S. in its trade efforts and negotiations with China.

“China needs to be a trade partner, not just a trading destination. That’s a lot of it,” McGregor said. Get the complete AgriTalk discussion here .

Financial Losses In The U.S. Beef Industry

Beef producers are reported to be “losing up to $165 per head on cattle currently, due to the absence of Chinese competition for high-value cuts like short rib and chuck. That’s a $4 billion annual blow to the U.S. beef sector…,” reported The Scottish Farmer last week.

McGregor said he would like to see the U.S. open up new markets for its beef and grain products to increase opportunities and minimize potential risks from future tariffs.

“China is not our only destination for our ag products, right? We need to expand our horizons as much as we can,” McGregor said.

When U.S. cattlemen start talking about market opportunities, Flory said they often turn their focus on Australia. The U.S. imports about $3-billion worth of beef from Australia a year.

“Australia doesn’t import any beef from the U.S., and there’s cattlemen here that would like to see that fixed,” Flory said. “But the issue is, there’s only, what, 30 million people in Australia?”

Furthermore, Australia has a lot of beef to export that the U.S. needs for use in hamburger, McGregor said.

“I know people don’t want us to import it, but Nellie bar the door if we couldn’t import beef from Australia for grinding,” he said. “Our demand is so huge here in the United States that we have got to import it. It has to meet all the specs that our beef does for importation, and it isn’t like we’re just willy-nilly importing some beef. We need it bad. And yes, it’d be great if they took some of our beef, but they don’t have the population.”

China has turned its attention and dollars to accessing more Australian beef, as well. According to Meat and Livestock Australia, Australian grain-fed beef exports to China surged almost 40% in February and March year-on-year, according to The Scottish Farmer article.

“Australian beef finds itself in a rare sweet spot – a prime cut of opportunity in a world of lean margins,” the article said.

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USDA Says Farm-level Egg Prices Could Jump Another 45.2% in 2025 Due to Avian Flu

Fri, 24 Jan 2025 20:54:38 GMT

The January 2025 Food Price Outlook released Friday shows while food price inflation has slowed overall, key sectors like eggs and beef remain volatile due to supply chain and input cost pressures.

Egg prices saw the biggest spike, according to USDA’s data, up 37% year-over-year. But the U.S. Bureau of Labor Statistics data shows the price of Grade A eggs in December was up 93% since January 2024. And when you look ahead, USDA expects outbreaks of highly pathogenic avian influenza to continue to cause egg prices to climb.

When it comes to USDA’s specific outlook released Friday, the agency uses recent trends in food prices based on Consumer Price Index (CPI) and Producer Price Index (PPI) data through December 2024.

Key Highlights of the report include:

Overall inflation trends:
- Food prices increased by 2.5% year-over-year as of December 2024
- Food-at-home prices rising by 1.8% and food-away-from-home prices increasing by 3.6%.
2025 forecasts:
- Food prices expected to rise by 2.2%, slower than the historical average.
- Food-at-home prices predicted to grow by 1.3%, while food-away-from-home prices are forecast to increase by 3.6%.
Insights Within Categories:
- Egg prices saw a sharp rise of 36.8% year-over-year in December 2024, with 2025 prices projected to climb by 20.3% amid ongoing supply constraints.
- Beef and veal prices are expected to increase modestly by 1.5% in 2025, following a 4.9% rise in 2024.
- Pork and fats/oils prices are forecast to decline in 2025, with decreases of 0.8% and 1.6%, respectively.
- Fresh fruit prices are anticipated to rise by 0.7%, while dairy product prices are expected to increase by 1.3%.

Producer Price Insights:

The PPI, which tracks wholesale prices, suggests continued volatility in farm-level and wholesale markets, with significant fluctuations predicted for eggs, milk, and fruits due to factors such as extreme weather and disease outbreaks. Farm-level egg prices are expected to see a sharp increase of 45.2% in 2025, with a wide prediction interval reflecting uncertainty.

Overall, while food price growth is expected to moderate compared to recent years, specific categories remain susceptible to sudden price shifts driven by global and domestic factors.

What’s the Deal with Egg Prices?

Sticker shock with eggs stared shoppers in the face to end 2024. According to the U.S. Bureau of Labor Statistics, the increase is even more staggering. They show the average cost of a dozen Grade A large eggs was $4.15 in December, up from $3.65 in November and $2.15 in January 2024.

According to livestock economists at Texas A&M University, the widespread outbreaks of highly pathogenic avian influenza, or HPAI, continue to be the culprit, driving egg prices to record highs across the U.S. Commercial laying flocks have been hit especially hard.

“There is seasonality to egg prices based on demand, but the cutting of supplies, in this case by disease, has driven prices higher,” says David Anderson, Ph.D., AgriLife Extension economist and professor in the Texas A&M Department of Agricultural Economics . “I wouldn’t be surprised to see them go higher in the next report, but there is price volatility when you consider the supply and demand factors in play.”

USDA’s Animal and Plant Health Inspection Service reports since first detected in 2022, 1,410 flocks have been impacted, including 637 commercial operations. As a result, 134.7 million birds have been culled.

Georgia Hit for First Time By Avian Flu

Just last week, the largest poultry producing state in the nation reported its first case of avian flu. The Georgia Department of Agriculture confirming the virus at a farm in Elbert County. In reaction, the Georgia Depart of Agriculture says all poultry exhibitions, swaps, meets and sales have been suspended as a precaution. The Department says cleanup is currently underway and nearby operations are under quarantine.

According to Greg Archer, Ph.D., AgriLife Extension poultry specialist and associate professor in the Texas A&M Department of Poultry Science , one reason the HPAI is spreading so quickly is because of environmental conditions. According to Archer, the disease prefers temperatures below 90 degrees.

“Farmers take biosecurity seriously because they’ve been dealing with the threat for years,” he said. “The big question this time is the strain mutations and how outbreaks in poultry facilities are occurring.

Archer also says migratory birds have historically been the main carrier of the disease. The pathogen will enter the poultry house through migratory bird feces on the bottom of the show or by a truck of vehicle that transports materials or feed between farms.

The Time It Takes to Rebuild

Once a flock is hit, the operation culls the animals, and replacing lost birds takes times. According to Archer, it can take 20 or more weeks for birds to develop from incubated eggs to pullets to production-ready laying hens.

In some cases, entire farms are wiped out. Archer says farmers bring those farms back online in phases to stagger their production by new and older birds.

As they do so, the eggs produced by younger and older birds are typically smaller while hens in their prime lay large to jumbo eggs.

And the key in building back the supply of eggs in the U.S., according to Archer, is rebuilding the flocks impacted by avian flu.

The other recent wild card, is recent transmission patterns in new animals, including dairy cows and pigs.

Consumer Demand and the Unknown

Now the question is how much consumers are willing to pay, and if it will impact demand?

“Producers will be expanding their flocks to produce more eggs to meet demand and capitalize on the high prices, while consumers might cut back,” says Anderson. “That combination aligning with fewer instances of avian influenza as the weather warms up would likely put downward pressure on prices. There is a natural ebb and flow to egg prices from seasonal supply and demand, and HPAI has just added volatility to the market.”

USDA Aims to Boost Fair Competition and Lower Food Prices, Targeting Seed and Meat Industries

Tue, 08 Oct 2024 15:08:36 GMT

USDA announced several initiatives to promote fair competition in American agriculture and reduce food prices for consumers Tuesday morning, in line with President Biden’s Executive Order on Promoting Competition in the American economy.

Seed competition framework. USDA introduced a three-part strategy to enhance seed system diversity, competition, and resilience:
• Improving patent-related disclosure for seeds to clarify research opportunities.
• Providing guidance to USDA researchers on using protected germplasm.
• Encouraging the sharing of federally funded germplasm for research and plant breeding.

Meat Retail Industry Report

USDA published an interim report assessing competitive conditions in the meat retail industry, focusing on beef markets as a case study. The report identifies:
• Increasing market concentration among top packers, distributors, and retailers.
• Concerns from farmers and small to midsize processors about problematic practices by intermediaries.

Cattle Price Discovery Initiative

USDA announced steps to enhance price discovery and fairness in cattle markets through an Advanced Notice of Proposed Rulemaking (ANPR). This initiative aims to:
• Improve the base prices in fed cattle purchasing agreements.
• Address concerns about the negative effects of Alternative Marketing Agreements (AMAs) on the spot market.

Impact and Next Steps

These actions are part of the Biden/Harris administration’s efforts to:
• Open new markets for farmers
• Provide more competitive choices
• Lower food costs for consumers
• Support small businesses and family farms

USDA said it will continue its investigative study, including through subpoenas, and seek public input on potential next steps to ensure fair competition in the agricultural sector. Additionally, in the upcoming months, USDA will issue an Advance Notice of Proposed Rulemaking (ANPR) seeking public input around how best to address practices used in meat merchandising that may violate the Packers and Stockyards Act.

Meat Industry Urges Harris to Stop Using Meat As a Scapegoat And Distraction For Root Cause of Inflation

Thu, 12 Sep 2024 15:29:51 GMT

Today in Raleigh, North Carolina, Vice President Kamala Harris is expected to propose several economic measures aimed at addressing key voter concerns such as housing and grocery costs. Her proposals include:

• Federal ban on price gouging: Harris plans to introduce a federal ban on price gouging in the food and grocery sectors, particularly targeting the meat processing industry, which she claims is highly consolidated and contributes to rising grocery prices. Harris has declined to detail what her administration would consider “excessive” price gouging and how they would go about targeting companies, appearing to leave much of those decisions to FTC discretion. Calling out companies for running up the price of some food products polls well with swing-state voters and is supported by progressive groups. Several factors have made grocery prices volatile since the pandemic, including supply chain disruptions and a big shift in consumer buying patterns.
• Price controls: The vice president also envisions new price controls on groceries, and expanding limits on out-of-pocket prescription drug prices to all Americans. Harris says she would push the government to negotiate additional drug savings faster, and cap the monthly cost of insulin at $35 for all Americans. Jason Furman, a Harvard economist who worked in the Obama administration, warned about potential market disruptions that such pricing policies could unleash. If prices don’t rise as demand grows, companies might be less inclined to increase supplies. “This not sensible policy and I think the biggest hope is that it ends up being a lot of rhetoric and no reality,” he told the New York Times.
• Housing initiatives: She will propose tax incentives to facilitate the creation of 3 million new housing units over four years, surpassing previous initiatives. This includes unspecified tax advantages for builders focusing on entry-level buyers and affordable rental properties, as well as a $40 billion fund to assist local governments in financing housing developments.
• Down payment assistance: Harris is set to propose providing up to $25,000 in down payment support for first-time homebuyers, a plan that her campaign suggests could benefit over 4 million buyers.
• Tax relief on tips: Harris will advocate for eliminating federal taxes on tips, a proposal also supported by former President Donald Trump.
• Tax credits: Harris’ plan would expand the child tax credit to $3,600 from $2,000 per dependent, with a $6,000 credit for newborns. She also proposes expanding the Earned Income Tax Credit for childless low-wage workers and increasing subsidies for those who purchase insurance on federal health exchanges.

These proposals are part of her broader economic agenda aimed at reducing costs for consumers and addressing inflationary pressures, which remain a significant concern for voters despite a generally strong economic performance.

Of note: Harris’ price-gouging initiatives are unlikely to pass in Congress due to insufficient support. Her plan mirrors stalled legislation from Democratic Sens. Elizabeth Warren (D-Mass.), Bob Casey (D-Pa.), and Tammy Baldwin (D-Wis.), which has faced strong opposition from Republicans.

Meat Industry Speaks Out

The meat industry has strongly rejected Harris’ pointing to meat prices at the center of food inflation.

“It’s time for this administration to stop using the meat and poultry industry as a scapegoat and a distraction for the root causes of inflation and the significant challenges facing our economy,” National Chicken Council Interim President Gary Kushner said in a statement.

The Meat Institute issued the following statement from Meat Institute President and CEO, Julie Anna Potts, in response to news reporting of a Harris Campaign proposal to place a federal ban on price gouging:

“Consumers have been impacted by high prices due to inflation on everything from services to rent to automobiles, not just at the grocery store. A federal ban on price gouging does not address the real causes of inflation.

“The Harris campaign rhetoric unfairly targets the meat and poultry industry and does not match the facts. Food prices continue to come down from the highs of the pandemic. Prices for meat are based on supply and demand. Avian Influenza, a shortage of beef cattle and high input prices like energy and labor are all factors that determine prices at the meat case.

“Prices that livestock producers receive for their animals are also heavily influenced by supply and demand. Prices for cattle producers especially are at record highs, surpassing the 2014-2015 previous record highs. Today, well into 2024, cattle prices remain at record levels because the US has the lowest cattle inventory since Harry Truman was President.

“Major meat companies have reported losses during the Biden-Harris Administration, with some closing facilities and laying off workers.”

— Donald Trump held a press conference yesterday where he labeled Harris’ plan as “communist” and warned efforts to control grocery prices would lead to “food shortages, rationing, hunger, dramatically more inflation.”

— Do food price controls work?
While food price controls can offer short-term benefits in specific situations, such as during acute supply disruptions, they are generally seen as economically unsound in the long term. They tend to create more problems than they solve by distorting market mechanisms and leading to shortages. Most economists recommend targeted income support and structural economic policies as more effective alternatives for addressing food price inflation.

— The Biden administration has previously raised concerns about potential price gouging in the food industry, particularly in the context of rising grocery prices. However, these charges have not been proven. Vice President Kamala Harris has been vocal about the issue, emphasizing the role of corporate price gouging in driving up grocery costs, particularly in the meat industry, which she claims has seen significant price increases. The administration has proposed measures to address these concerns, including advocating for a federal ban on corporate price gouging. This proposal aims to hold large corporations accountable for maintaining high prices on essential goods. Despite these claims, the economic community remains divided on the issue. Many economists argue that the primary drivers of recent price increases are supply chain disruptions, changes in consumer behavior, and increased demand due to government stimulus measures, rather than corporate practices. Some economists have criticized the administration’s focus on price gouging as a political maneuver rather than a substantive economic policy.

— Fed study: Corporate price gouging not a significant factor in U.S. inflation surge. Earlier this year, a study published by economists at the Federal Reserve Bank of San Francisco concluded that corporate price gouging has not been a significant factor in the recent surge of U.S. inflation. The study, led by researchers Sylvain Leduc, Huiyu Li, and Zheng Liu, found that while there were spikes in markups for specific sectors like motor vehicles and petroleum products, the overall markups for U.S. goods and services have remained relatively stable. This suggests that rising corporate profits and price increases were not the primary drivers of inflation during the post-pandemic recovery.

The study contradicts the narrative that corporate greed, often referred to as “greedflation,” is a major cause of inflation. Instead, it attributes the inflationary pressures to supply chain disruptions, a decrease in labor supply, and a surge in consumer demand during the recovery period. The easing of inflation is credited to improvements in supply chains, increased immigration, and reduced demand due to higher borrowing costs as the Federal Reserve raised interest rates.

— Several recent U.S. presidents have attempted to implement price controls, with varying degrees of success and consequences.

• Richard Nixon: Wage and Price Controls (1971-1973): President Richard Nixon is perhaps the most famous for implementing wage and price controls in the early 1970s. In August 1971, Nixon imposed a 90-day freeze on wages and prices to combat inflation, which was part of a broader economic strategy that included taking the U.S. off the gold standard. These controls were initially popular and appeared to be effective in curbing inflation temporarily. However, once the controls were lifted, inflation surged again, leading to economic distortions and shortages. The controls were largely seen as a failure in the long term, as they did not address the underlying causes of inflation and led to economic inefficiencies.

• Gerald Ford: President Gerald Ford did not implement new price controls during his administration. Instead, he focused on ending existing controls. In response to the economic issues of the mid-1970s, Ford proposed ending price controls on domestic oil as part of his broader energy policy. This was part of a compromise with Congress, which allowed for a gradual phasing out of these controls over a forty-month period. Ford believed that removing price controls would stimulate domestic oil production and align with his free-market philosophy. However, this decision was contentious, with Democrats worried about potential long-term price increases and conservative Republicans dissatisfied with the compromise. Ultimately, Ford’s administration focused more on tax and spending policies, such as the “Whip Inflation Now” (WIN) campaign, which aimed to combat inflation through voluntary measures rather than mandatory controls.

• Jimmy Carter: President Jimmy Carter, facing high inflation, introduced a program of voluntary wage and price controls in 1978. This approach was part of a broader anti-inflation strategy that included government restraint and efforts to reduce the federal deficit. The voluntary nature of the controls, however, led to skepticism about their effectiveness. Critics argued that voluntary controls were insufficient to curb inflation, which continued to rise during Carter’s presidency. In addition to voluntary controls, Carter also dealt with energy price controls. In response to the energy crisis and rising oil prices, he gradually deregulated oil prices starting in 1979, while also proposing a windfall profits tax to address public concerns about oil company profits. Despite these efforts, inflation remained a significant issue throughout Carter’s term, contributing to economic instability and public dissatisfaction.

Florida Becomes First State to Ban the Sale of Lab-Grown Meat

Thu, 26 Sep 2024 16:26:14 GMT

The first bill banning lab-grown meat was signed into law by Gov. Ron DeSantis of Florida on May 1. According to SB 1084, the bill prohibits the manufacture for sale, sale, holding or offering for sale, or distribution of cultivated meat in the state.

In a press conference in Hardee County, which is one of the top five cattle-producing counties in the state, the Governor spoke about the importance of supporting rural economies and agriculture.

“We’re fighting back against an ideology that ultimately wants to eliminate meat production in the U.S. and around the globe,” DeSantis said. “In the state of Florida we’ve put down the marker very clearly; we stand with agriculture. We stand with the cattle ranchers. We stand with our farmers because we understand it’s important for the backbone of the state. It’s important for our culture. It’s important for our heritage so the bill that I’m going to sign today is going to say basically take your fake, lab-grown meat elsewhere. We’re not doing that in the state of Florida.”

Joining the Governor during the conference were Wilton Simpson, commissioner of agriculture; Dale Carlton, president-elect of the Florida Cattlemen’s Association; Pat Durden, president of the Florida Cattlemen’s Association; and Sen. Jay Collins who worked on the bill.

In his remarks, Simpson said that food security is national security.

“It doesn’t always rise to the height of national security, but think about if there were no groceries just for one week in the grocery store, you would have total chaos in this country, and if that’s not national security, I don’t know what it is,” he said. “We get up every day thinking how can we have the most safe, affordable, abundant food anywhere in the world, and Florida is going to do its share of growing that product. We work hard every day to give our farmers the tools they need to accomplish these things.”

Both cattlemen expressed appreciation for the Governor and the legislature for protecting Florida’s cattle industry by signing this bill.

There has been an ongoing debate across the country in regard to cultivated meat products. Currently, lab-grown meat is only approved to be sold in the U.S. and Singapore. Italy was the first country in the EU to ban lab-grown meat, a decision made in February 2024.

The Forecast Looks Good for Grilling, And That's Great News for Meat Demand

Tue, 13 Jun 2023 18:41:37 GMT

Memorial Day weekend marks the unofficial start to grilling season, and there are many sunny and warm weather days ahead.

“From what I’ve seen the weather forecast, it looks like we’re going to have clear sailing for firing up a lot of grills,” says Don Close, chief research and analytics officer with Terrain.

Favorable weather could help entice more cookouts even as inflation is dampening some of that demand.

“The first thing I’m going to say is demand is still very good,” says Close. “Now, with that said, are we clearly seeing signs of softening demand across all species? We absolutely are.”

And with the federal reserve weighing the possibility of more rate hikes this year, the impact on meat demand is something economists are watching.

“We have some things we need to be watching and certainly as inflationary pressures and recessionary threats impact consumer spending, we’re seeing it in the meat case,” Close adds.

Impacts of Inflation on Demand

There’s no denying that inflation has put pressure on many Americans. Glynn Tonsor, agriculture economist professor and livestock economist at Kansas State University, watches demand closely each month through the Meat Demand Monitor .

“Meat protein demand in the U.S. is still higher today than it was before the pandemic, so, this is not doomsday, per se,” says Tonsor. “It’s comparing to a fairly high peak that we had roughly a year ago and many of these metrics. So, yes, demand has eased. But some context is important.”

He says his data shows meat demand peaked last year.

“Specifically about the middle of 2022, depends on the cut and the species and the product of what month, I’d say it peaked. It was somewhere between April and July of 2022,” Tonsor explains.

Tonsor says what is key to know is while demand may have peaked, it was at historically high levels. But today, domestic demand is softening.

“My opinion is that the broader macro-economic situation, and even more narrowly personal finances for many households, are put in a pinch on wallets,” he says.

Post Pandemic Meat Demand

The surge in meat demand- despite higher prices- happened longer than many economists thought. One reason may be the number of Americans who built up their savings during the pandemic, from less travel and staying at home more. Add to that all the pandemic payments from the federal government.

According to the IRS data, three rounds of stimulus money created more than 476 million payments. And the grand total? More than $814 billion dollars. And Tonsor says that further boosted those household savings numbers.

“That allowed a bigger cushion to absorb higher meat prices. And households, remained willing to do that for some time, as long as they had those built up savings,” he says.

Now that many households have chewed through those extra savings, while also paying more for many items, Tonsor says the demand monitor shows financial sentiments are waning.

“We ask how your financial situation for household is now compared to one year ago. And there’s more people that say it’s worse. And there’s fewer people that say it’s better, both compared to April of ’22 and April of ’21,” says Tonsor.

Different Stories Brewing in Pork and Beef

Close says at the retail level, the current price spread on retail pork versus pork cutouts is creating a very unusual situation.

“Retail port prices are softer than they were but still right at their highs. But the price spread between retail pork prices and pork cutout values is incredibly wide,” says Close.

With cash hogs under intense pressure, he thinks it could also cause pork prices at the meat counter to retract, beef is seeing the opposite story play out. He says even with the current drop in cow slaughter, the percentage of heifers in the fed slaughter mix is still incredibly high, and according to Close, that’s a sign liquidation will continue.

“Because of the weather influences, particularly across the northern feeding states, this market is performed as if it is a sprint, and this market is a marathon. We haven’t got to our tightest numbers yet. So this market will continue, by all rights should continue ’23, ‘24 and even in ‘25,” he says.

The test may come when retail beef prices continue to climb, and if Americans are willing to dish out more for certain cuts of meat. Close thinks some shoppers may be forced to trade down to less expensive cuts of meat.

But today, Americans are still hungry for protein, and more specifically, they’re hungry for meat.

“The public wants meat in their diet. I think their ability to pay for it is going to improve in the next 24 months. Specifically on pork and chicken,” says Tonsor.

Close’s request this holiday weekend to help that demand? It’s short and sweet.

“I just encourage consumers to go out there and fire up those grills,” he says.

It’s a big weekend for driving meat demand as peak summer demand heats up.

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What Meat Product is Your State Most Hungry For? Data Shows Top Meat Volume Growth

Wed, 03 May 2023 16:44:19 GMT

When it comes to meat, what is your state most hungry for?

In a recent CoBank webinar featuring experts from Circana, Inc., data shows meat eaters across the nation are looking for variety and are open to trying new things, whether that’s experimenting with different cuts on the grill or air frying something typically cooked in other ways.

From chicken wings and thighs to pork shoulder to beef chuck and brisket, Melissa Rodriguez, principal in client insights at Circana, Inc., notes that the trends have a geographic component, creating “pockets” of consumer preferences.

According to data ending in March of this year, Rodriguez shares the following map, highlighting the top meat volume growth across the U.S. by state.

Rodriguez notes that consumers are looking for variety, including different meat sources and cuts of meat. Unfortunately, when looking at the meat department as a whole in the start of 2023, consumers have been found to buy less fresh meat by volume.

Specifically, 91% of shoppers said the cost of groceries is much higher than one year ago, with 24% also claiming to buy less meat and poultry.

While all meat options show a decrease in volume to start 2023, chicken has declined the least and has actually increased in total dollars of growth.

In the first quarter of 2023, Rodriguez suggests chicken reaped the benefits of retailers showcasing chicken breast as the “go-to” meat.

Circana estimates the net volume change, as a result of consumers switching protein choices, led to an increase in chicken purchases, pulling some market share from beef, pork and turkey. However, Rodriguez explains the volume increase in chicken is minimal.

Overall, shoppers continue to purchase across all proteins, she notes, but it’s more concerning that consumers are purchasing less.

So, how will the meat case re-attract consumers?

Along with decreased prices and inflationary pressures, Rodriguez says there are many opportunities in protein for the remainder of the year.

She believes relating to the consumer and connecting the various generations, including Boomers, Millennials and Generation Z, back to the meat case will be key. This includes education on how to prepare the different meats available, whether it be on the grill, the smoker or other cooking appliance, Rodriguez suggests.

Social media, especially through video content, may be a great driver to get consumers back to the meat case, she says, and the industry needs to be part of the conversation.

Convenience will also be a driver in 2023, helping consumers make mealtime easier and quicker in their homes.

As a whole, Rodriguez explains that there will likely be shifts and changes within the grocery stores in the coming months, where some aisles and departments “win” and others “lose.”

As a producer, what can you do to help be part of the conversation and encourage consumers to favor the meat case?

The McRib May Be On Its Farewell Tour, So We're Showing Love to the Birthplace of the Beloved McRib

Tue, 25 Oct 2022 14:37:04 GMT

The McRib is back . It’s news that’s being blasted on social media sites and gaining traction this year -- not just because it’s back for a limited time, but some are speculating it could be back for the last time.

Before we get into the fact this just may be the farewell tour for the McRib Sandwich, let’s travel back to the birthplace of the McRib. According to the University of Nebraska, researchers within the Meat Sciences Department actually created the McRib. The credit goes to Roger Mandigo, who created the technology for the McRib Sandwich.

In the 1970s, the National Pork Producers Council asked Mandigo to create a product with pork trimmings, one that could be sold by a fast-food chain (The U.S. Pork Checkoff wasn’t established until 1986.). That’s when Mandigo went to work in the lab. While the technology was advanced, it can be simplified to almost the same process as making sausage. The meat scientist used salt to extract proteins from the muscle, and those proteins then helped hold the smaller pieces of meat together.

Mandigo says McDonald’s actually chose the shape, but it’s the technology that was essential in creating the McRib that’s credited to Mandigo. In fact, Mandigo earned induction into the Meat Industry Hall of Fame for his invention of “restructured meats.”

100 Years of Meat Science at University of Nebraska

The fact the University of Nebraska was such a key piece of the McRib phenomenon doesn’t come as a surprise to Gary Sullivan, associate professor of Meat Processing at the University of Nebraska-Lincoln (UNL).

“The University of Nebraska has a strong tradition of meat science,” says Sullivan. “Our first meat scientist was Professor (William) Loeffel, and the meat lab we’re standing in today is actually named after Professor Loeffel. He started here at University of Nebraska in 1919, so we have over 100 years of tradition of meat science.”

Sullivan says the goal of the meat processing focus at UNL is to “help promote that the industry can solve problems and add value to the whole food chain.” While the history of the department dates back more than a century, researchers are still working to not only remain relevant, but uncover tastes that could become popular around the world.

“We have a long tradition of meat science research here at the University of Nebraska,” he adds. “The technology behind the McRib was developed at the University of Nebraska, identifying the flat iron steak, those are a couple things that some of my predecessors from our department worked on.”

The Farewell Tour for the McRib?

Now, let’s get to the newest portion of the news: McDonald’s says this will be the last season the fast-food chain offers the McRib seasonal sandwich. The sandwich was put on pause in 2005 but then was brought back. The restaurant issued a press release suggesting it could be the sandwich’s final hurrah.

“Get one while you can because this is the McRib Farewell Tour,” McDonald’s wrote on its website . “Enjoy our famous pork sandwich as if it’s your last!”

The McRib made its debut in Kansas City, Kan., in 1981. When McDonald’s brought the McRib back in 2019, it first returned to 10,000 of McDonald’s 14,000 U.S. locations. Then, in 2020, it was reintroduced nationwide.

Read more:

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Munching on Mealworms: The Next Meat-Alternative Snack?

Wed, 05 Oct 2022 18:44:12 GMT

While plant-based meat alternatives seem to have lost their hype, scientists are working to develop another protein alternative—mealworms.

Over 2 billion people across the globe consume insects as part of their diet, according to the Food and Agriculture Organization of the United Nations, while the thought of eating mealworms, grasshoppers and beetles sounds rather unappealing to most people in the U.S.

A recent Science Daily article claims, “insects are edible and could be a healthful alternative to traditional meat protein sources.”

With the rising cost of animal proteins such as beef , pork and lamb, as well as environmental concerns, the project’s principle investigator, In Hee Cho, Ph.D., explains there has been an increased interest in eating insects.

Containing high amounts of fatty acids, vitamins, minerals, fiber and high-quality protein, insects can be considered both a nutritious and healthy food source, the article claims.

Yet, the idea of munching on a mealworm remains unappetizing for a majority of meat-eaters.

Meat-like Mealworms

Scientists have set out to understand the insect’s flavor profile, comparing aromas of its lifecycle in egg, larva, pupa and adult stages.

Through a variety of cooking techniques, the mealworms gave off a diverse range of aromas. For instance, raw larvae had wet soil-like, shrimp-like and sweet corn-like aromas, while roasted or fried larvae had shrimp-like and fried oil-like attributes and created flavor compounds similar to those formed when meat and seafood are cooked.

Additionally, the mealworms were cooked with sugar to create caramelization reactions, producing meat-like and savory flavors.

Though mealworms will not likely take down the livestock industry any time soon, Cho is hopeful that the study’s results “will contribute to the commercial development of meat-like and savory flavorings and seasonings, and will encourage the convenience food industry to include edible insects in their products.”

Beef jerky, pork rinds or mealworm mix? Someday that could be up to you to decide.

Food Inflation Makes Your Super Bowl Party Cost More

Fri, 23 Sep 2022 21:14:16 GMT

The economists at Wells Fargo, led by Dr. Michael Swanson, have some insights on how this year’s snacks for the Super Bowl are reflecting the trend of food inflation.

“Food inflation is a hot topic,” Swanson says noting that overall prices in the category are running at 6% higher than a year ago, whereas typically year-to-year food inflation is 1%.

The economists pulled data from USDA, Bureau of Labor Statistics, Nielsen data at the supermarkets, and insights from the bigger team at Wells Fargo.

Broadly, the categories more dependent on packaging and general logistical resources show the highest increases comparing at-store prices this year to last year.

By category here are some key takeaways from their findings:

Chips are only up 1%.

“We’re a great potato growing country, and so we have a good supply of potatoes this year. The chip manufacturers are very efficient at turning them into potato chips. And so even though they’ve had challenges with their packaging and their labor and their freight, they’ve kind of kept a lid on the potato chip and chip prices,” Swanson says.

Two popular dips, two different stories.

Guacamole is only up 1%.

“Avocados and guacamole have become really popular. Most people should know but maybe they don’t that most of our avocado is coming from Mexico and Peru. And we’ve seen a lot of expansion down there. They’ve found it profitable to grow avocados and turn them into guacamole,” he says. Salsa is up 6%.

“It wasn’t so much in the tomato and chilies, but it’s the packaging and labor and transportation that caught up with salsa prices,” Swanson says.

Go for bulk packaged vegetables

Swanson shares as a category you can evaluate vegetables as either bulk goods or the pre-package convenience options. He shares to save a bit on the inflationary costs, go with bulk carrots and celery and wash and chop them yourself so you are only exposed to 2 to 3% higher prices. He says the packaged salads and other such products are seeing higher cost increases.

Proteins are more expensive—some showing double digit higher prices

“We’ve seen almost every protein jump up,” Swanson says. “This is where we’re starting to see some double digit, you know, between 15 and 25% type increases depending on what protein and cut you’re talking about. So far pork has really been the bargain, in terms of increases. You can still find some really good values in the pork category,” he says.

And popularity has propelled one poultry product very high.

Wells Fargo economists quote USDA data showing prepared chicken wings are up 14% to 26% (bone-in and boneless respectively). The IQF (individually quick frozen) chickens are up 26%. So IQF wings are $3.57 per pound, and $7.24 per pound is the average for prepared wings.

Double dip on cheese, perhaps

“The American dairy complex and American dairy producers have really stepped up,” Swanson says. “We’re actually seeing about a 7% decline as a cheddar cheese from a year ago. Dairy is a category where it’s actually helping control the budget, without any runaway inflation.”

Some beverage categories quench your thirst with less inflation

Swanson’s team evaluated the costs of soft drinks, beer and wine. The report shows how packaging and logistics have swelled soft drink prices by 14%. However, market dynamics have kept beer and wine inflation more in check. He says beer prices have only increased 4%--mostly due to diversification in the market with more craft breweries in production. Wine prices are up only 3% thanks to a global market supply of products from Australia, Chile, South Africa and Europe.

CDC Prioritizes Frontline Meat Workers for COVID-19 Vaccination

Thu, 22 Sep 2022 00:57:00 GMT

The Centers for Disease Control (CDC) agrees that frontline meat and poultry workers should be some of the first vaccinated after health care workers and those in long-term care facilities.

Federal guidance was approved on Sunday by CDC’s Advisory Committee on Immunization Priority (ACIP).

“Priority access to vaccines is a critical step for the long-term safety of the selfless frontline meat and poultry workers who have kept America’s refrigerators full and our farm economy working,” said North American Meat Institute (Meat Institute) President and CEO Julie Anna Potts in a statement. She applauded ACIP’s guidance and urged state governments to follow CDC’s decision.

$1.5 billion in COVID-19 preventions and supports implemented since the earliest days of the pandemic have reversed COVID-19’s impact on meat and poultry workers, the release said. Meat Institute members have distributed tens of millions of pieces of personal protective equipment, implemented health and temperature screening, radically modified facilities, conducted testing, preemptively paid leave for high-risk and quarantined employees, enhanced air sanitation and ventilation, and much more.

Because of these efforts, COVID-19 infection rates in meat and poultry workers are now more than 8 times lower than in the general population, the Meat Institute reported.

“Meat Institute members stand ready to support vaccination for our diverse workforce, which will also deliver wide-ranging health benefits in rural and high-risk communities. Meat and poultry leaders may also be able to aid vaccination for all Americans, for example by offering state-of-the-art cold storage for these precious vaccines,” Potts said.

Prioritizing vaccination for frontline meat and poultry workers is not only supported by leaders across industry, unions and civil rights organizations, but it has also been a key consideration in multiple other countries’ vaccine distribution planning, the Meat Institute reported.

On Oct. 1, Smithfield Foods urged government leaders to prioritize COVID-19 vaccine distribution to food and agriculture workers alongside the nation’s healthcare workers and other first responders.

“Food and agriculture workers are heroes. They have been on the frontlines of the pandemic, ensuring Americans have access to safe, nutritious and affordable food, and they should be at the front of the line for a COVID-19 vaccine as well,” Smithfield wrote to government leaders.

Read more from Farm Journal’s PORK:

Smithfield Urges Prioritization of COVID-19 Vaccine to Ag Workers

Deep-Fried Fantasies: 10 Big Tex Choice Award Finalists Announced for Texas State Fair

Fri, 12 Aug 2022 19:32:43 GMT

Everything’s bigger in Texas. And when it comes to the Texas State Fair, everything’s fried, too.

The State Fair of Texas 2022 has officially announced its 10 Big Tex Choice Awards finalists of 2022, and the list is nothing short of mouth-watering.

Along with the traditional fair food favorites we know and love, many Texas State Fair food vendors have gone above and beyond to create masterful dishes and treats for this year’s event.

Three winners will be announced in areas of the best-tasting sweet and savory dishes and the most creative concession item on Aug. 28, 2022, reports The Dallas Morning News.

Here’s a look at the Top 10 Big Tex Choice Award finalists :

2022 Savory Finalists

• Deep-fried BLT—It’s a traditional BLT made with a bacon and cheese quesadilla! Also, served with Garlic Parmesan chips for a side!

• Chicharron Explosion Nachos—Cajun seasoned pork rinds smothered in queso and chopped beef make for a great meal or a treat to share!

• Deep-fried Lasagna—Italy meets the fryer with this finalist, guaranteed to be a savory favorite!

• Fried charcuterie board—It’s all of the charcuterie board essentials wrapped in a wonton and fried with goat cheese and honey drizzled on top!

• Holy Biscuit—Smoked brisket, street-corn queso, bacon, Texas honey and fried pickles—what’s not to love?

2022 Sweet Finalists

• Cha-Cha Chata—Beat the heat with a milkshake, including cinnamon galletas de gragega, deep-fried bites of arroz con leche and a churro straw!

• Deep-Fried Rocky Road—Served with a scoop of ice cream, rocky road fudge is dipped in a sweet batter, fried and drizzled with chocolate syrup and sweetened condensed milk. Plus, some extra mini marshmallows and cinnamon-glazed nuts finish off the dish.

• La Bluebonnet—Named after the color of the Texas flower, this drink mix of citrus juice, blueberries and sugar are sure to be a hit!

• Peanut Butter Paradise—It’s a candy lover’s dream, including a deep-fried honey bun injected with caramel, topped with peanut butter, Reese’s Pieces, crushed Butterfinger, peanut butter cups, more caramel and powdered sugar.

• The Ultimate Brookie Monster—This takes the original “brookie” to the next level, combining brownies and cookies, along with Oreos, marshmallows and cheesecake—deep fried of course.

Which would you choose first?

Peanut M&M’s are ‘Healthier’ than Beef and Pork, Bill Gates-Funded Study Claims

Thu, 11 Aug 2022 20:38:09 GMT

Bill Gates and his meat-alternative agenda rise again through his recent funding in a study, claiming some candy and cereal are ‘healthier’ than pork, chicken and beef.

Dr. Dariush Moaffarian, a cardiologist, nutrition researcher and dean at the Tufts University Friedman School of Nutrition Science and Policy, was funded in part by the Bill and Melinda Gates Foundation to conduct research on more than 8,000 different foods and beverages to create a “Food Compass” that rates each food on nine nutritional values and gives each one a score on a scale of 0-100.

The nine nutritional values include:

• Nutrient Ratios—Unsaturated: Saturated fat, Fiber: Carbohydrate, Potassium: Sodium

• Vitamins

• Minerals

• Food ingredients

• Additives

• Processing

• Specific Lipids

• Fiber and Protein

• Phytochemicals

According to Moxaffarian’s scale used in the Food Compass, food or beverages with the following scores should be consumed accordingly:

• 0-30: limited consumption

• 31-69: consume in moderation

• 70-100: highly encouraged, no limitations

Moaffarain has been advising government officials and healthcare professionals across the world throughout his career, according to his curriculum vitae. He is co-chair of a task force preparing to present to the White House at the Conference on Hunger, Nutrition and Health next month.

Food Compass

Found in the list of foods, some traditionally considered “junk food” and less desirable, wild game meats rank higher than ground beef, pork chops and even skinless, sauceless chicken breast.

In order,from “best”to “worst,” the following foods and scores, among many others, include:

• Cereal, General Mills Cocoa Puffs – 64

• Chicken Breast, grilled, skinless, sauceless – 61 • Opossum, cooked – 57

• Potato chips, sour cream and onion flavored – 56

• Squirrel, cooked – 56

• Corn chips, flavored or plain (Fritos) – 55

• Chicken breast, rotisserie, skin on – 48

• Bear, cooked – 46 • Beaver, cooked – 43

• Chicken wing – 38

• M&M’s, peanut chocolate candies - 35

• Beef, roast, roasted, lean only – 29

• Reese’s Peanut Butter Cup – 28

• Ground beef, cooked – 26

• Cheese, cheddar – 26

• Pork bacon, smoked or cured, cooked – 24

• Pumpkin pie – 23

• Chocolate milk, made from syrup with whole milk – 23

• Pork roast, smoked or cured, cooked, lean and fat – 21

• Pork chop, smoked or cured, cooked lean only – 21

• Pork and beef sausage – 1

Regardless of the score, it might be a hard sell to say that a Reese’s Peanut Butter Cup or Peanut M&M’s are considered ‘healthier’ than ground beef or lean pork roast.

However, considering the Gates’ standing agenda for meat alternatives, it’s no surprise to see many animal agriculture meats fall to the bottom of the list.

Trucker Blockade Shuts Down Major California Seaport for Second Day

Fri, 22 Jul 2022 14:58:49 GMT

By Lisa Baertlein and Tom Polansek

Truckers protesting California’s new “gig worker” law blockaded the state’s third-busiest seaport for a second day on Thursday, stalling agricultural exports and threatening to worsen U.S. supply chain backups.

The operator of the largest marine terminal at the Port of Oakland closed it for business on Thursday, while the three other marine terminals on the property had some on-ship labor underway, port spokesman Robert Bernardo said.

Independent truck drivers have been picketing terminal gates and choking truck traffic on the port since Monday in protest of California’s new labor law formally known as AB5.

Backers say AB5 aims to clamp down on labor abuses and push companies to hire drivers as employees - which would enable them to join unions and collectively bargain with employers.

The law was a win for unions but is broadly opposed by big rig drivers who say it would make it more expensive for them to remain independent and push them to become company employees.

Protesters and the trucking industry want California Governor Gavin Newsom to delay enforcement of the law. Some organizers say the protesters - whose rally call is “The cargo won’t flow ‘til AB5 goes” - won’t stop until they get a sit-down with Newsom.

In a rebuff on Thursday, the governor’s office said: “No one should be caught by surprise by the law’s requirements. The industry should focus on supporting this transition.”

The eighth-busiest U.S. container seaport - a key hub for agricultural trade - was already working to clear a pandemic-fueled cargo backup before the trucker protests began. The knock-on effects of the occasionally confrontational protests are already rippling beyond trucking.

“It’s not just this as a one-off,” Shawna Morris, senior vice president for U.S. Dairy Export Council and National Milk Producers Federation, said of the blockade.

ADDING TORNADO TO HURRICANE

Dairy farmers and other food producers have struggled to get products on the water because container shipping lines prioritized more lucrative, pandemic-fueled imports from Asia to the United States.

“We’ve added a tornado to the hurricane that the industry has been trying to endure for the last almost two years now,” Morris said.

It also complicates matters for the International Longshore and Warehouse Union (ILWU), which is in-high stakes U.S. West Coast port labor contract negotiations with terminal operators. The ILWU supports AB5 and said its dock worker members didn’t cross the blockade line for safety reasons.

“We’re not going to put our members in harm’s way to pass through the line of truckers,” said Farless Dailey, ILWU Local 10 president.

“We have dispatched 450 workers in the past three days who haven’t been able to get in to move cargo for the day, and they don’t get paid when they don’t get in,” Dailey said.

When trucks and dock workers don’t move cargo, the port clogs and ships don’t move - exacerbating backups and amplifying risks for shippers who rely on the port.

Oakland handles about $1.86 billion in exports per month at this time of year. Two thirds of the value of those are agricultural products, and perishables will take the biggest hit from the shutdown, said Jock O’Connell, international trade advisor at consultancy Beacon Economics.

That puts at risk California’s $20 billion-plus agriculture export industry and shipments of everything from almonds and rice to milk powder and wine.

The clock is also ticking for the $18 billion U.S. pork and beef export market, said Joe Schuele, spokesman for the U.S. Meat Export Federation.

Fresh U.S. beef and pork producers transport products hundreds of miles to the Oakland port because it is the preferred launch point for cargo ships bound for Asian countries like Japan and South Korea, Schuele said.

If port delays drag on more than a few days, the refrigerated meat may need to be frozen to prevent it from spoiling, which lowers its value while adding frozen storage costs, he said.

“You don’t have a lot of time to spare,” Schuele said.

(Reporting by Lisa Baertlein in Los Angeles, additional reporting by Tom Polansek in Chicago; Editing by Mark Porter and Diane Craft)

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How Much Do Consumers Love Meat? Rising Prices Will Soon Tell

Thu, 28 Apr 2022 19:40:36 GMT

Despite higher prices stemming from increased production costs and supply chain limitations, U.S. consumer demand for retail meat remains exceptionally strong, analysts say in a new report from CoBank’s Knowledge Exchange . Unfortunately, consumer demand for meat will be tested once again after the full effects of producer price inflation finally hit retail meat cases.

“Retail meat prices will remain elevated throughout 2022,” Brian Earnest, lead animal protein economist with CoBank, says in a release. “The sharply higher costs for feed, energy and labor have yet to fully impact wholesale and retail meat prices, but that will soon change. And as consumers notice their dollar is not going as far as it used to, they may trade down at the meat case, with chicken being the primary beneficiary.”

With combined cutout values of beef, pork and chicken climbing 22% year-over-year for the first quarter of 2022, consumers are all but certain to see higher prices in the meat case, CoBank says.

“Beef consumption has not yet declined in the face of higher prices. But as overall inflation takes a bite of consumers’ purchasing power, we may finally see a significant change in their willingness to pay for red meat,” Earnest says in a release.

If that turns out to be the case, he believes the U.S. broiler industry may be well positioned once again for modest growth and strong margins.

There’s no question the primary drivers of higher and more volatile meat prices are shifting consumer purchasing patterns and market uncertainties stemming from the pandemic. But Earnest says supply challenges have also played a role. The temporary closure of beef and pork plants in 2020 led to backups in fed cattle supplies that still remain in some places today.

The nation’s beef cattle inventory remains in decline, due in part to the ongoing drought conditions in the Western U.S. and modest feeder calf prices, CoBank reports. As well, the combined cow and replacement heifer inventory has dropped by 12% since 2017. In a similar fashion, the nation’s sow herd is contracting and is down nearly 6% over the past three years, primarily due to losses sustained in 2018-19. USDA is forecasting a 2% decline in U.S. beef and pork production in 2022.

“Price volatility across the animal protein sector has become a daily headache for procurement teams to manage. While prices started 2022 in post-holiday doldrums, wholesale values were still elevated compared with pre-pandemic levels. Volatility in wholesale markets remains an obstacle for promotional planning,” CoBank says in a release.

Increased volatility in spot markets and supply instability “handcuffed” retail marketing of proteins during the 2020 grilling season.

“Featuring activity rebounded substantially in 2021 as grocers sought to hold onto the sales they gained during the pandemic. For 2022, a flight to safety from higher meat prices may be to feature value items like ground beef, hot dogs and sausage items,” Earnest says in the report .

It is likely that retail meat departments’ focus will shift to profit margin over volume sales this year, as grilling season enters full swing. This means consumers will see increased creativity in the meat case, CoBank reports.

“Rather than vying for consumer dollars through aggressive price points, ‘no price’ features will be an attractive solution,” Earnest says.

More from Farm Journal’s PORK:

Pork Producer Margins This Year Could Rival 2021, CoBank Says

Rising Uncertainty Equals Weaker Global Pork Industry Growth in 2022

USDA Partnership to Ease Port Congestion, Restore Disrupted Shipping

Mon, 31 Jan 2022 22:10:24 GMT

U.S. Secretary of Agriculture Tom Vilsack announced plans to increase capacity at the Port of Oakland in Oakland, Calif., and improve service for shippers of U.S. grown agricultural commodities, USDA said in a release.

USDA is partnering with the Port of Oakland to set up a new 25-acre “pop-up” site to make it easier for agricultural companies to fill empty shipping containers with commodities. Fewer containers have been made available for U.S. agricultural commodities and ocean carriers have circumvented traditional marketing channels and rushed containers back to be exported empty and as a result, many of these carriers have suspended service to the Port of Oakland. USDA plans to take action to reduce these shipping disruptions that have prevented U.S. agricultural products from reaching their markets.

“COVID-19 revealed vulnerabilities across our supply system, both at our ports and in the agricultural sector,” Vilsack said in the release. “As the economy has made an historic recovery, it has put additional strain on the supply chain. The Biden-Harris Administration is using creative approaches to improve port operations while elevating American-grown food and fiber. This partnership with the Port of Oakland builds on our aggressive approach to addressing challenges within the supply chain and sends a strong signal that we are committed to working across the Administration and with state, local and private partners to mitigate complex port capacity and congestion issues and to keep American agriculture on the move.”

The site will provide space to prepare empty containers beginning in March. Agricultural companies and cooperatives will have easier access to these containers, which they will fill with commodities, restoring shipping services to agricultural products while relieving congestion, the release said. The new site will also have a dedicated gate with the ability to pre-cool refrigerated shipping containers to receive perishable commodities, all while avoiding bottlenecks that would have resulted from entering the main area of the Port.

“This creative partnership with USDA and the Port of Oakland will help American farmers and agricultural producers move their product to market while also making better use of empty containers that are causing congestion at the ports,” U.S. Transportation Secretary Pete Buttigieg said in the release.

Pressure Mounts

Buttigieg and Vilsack urged the world’s leading ocean carriers in December to help mitigate disruptions to agricultural shippers by restoring reciprocal treatment of imports and exports and improving service. However, ocean carriers have made fewer containers available for U.S. ag commodities, repeatedly changed return dates and charged unjust fees as the ocean carriers short-circuited the usual pathways and rushed containers back to be exported empty, USDA noted in the release.

USDA has been actively developing options to alleviate market disruptions for agricultural producers and companies using the Commodity Credit Corporation (CCC) resources set-aside last fall, with a special focus on transportation challenges such as ports and trucking.

USDA will cover 60% of the start-up costs using Commodity Credit Corporation funds. USDA said it will also help cover additional movement logistics costs at $125 per container.

This project is designed to enhance marketing of U.S. agricultural products through quicker pickup of empty containers as the main terminal is bypassed, access to available equipment and fewer unpredictable congestion surcharges for trucks.

The U.S. Meat Export Federation said it appreciates the efforts of USDA, the Port of Oakland and other agencies to address a situation that continues to frustrate U.S. exporters.

“We realize there is no magic solution to the shipping difficulties confronting exporters at U.S. ports, but improving access to containers is certainly a step in the right direction. The Port of Oakland is an essential, strategic outlet for U.S. red meat exports, especially for chilled product destined for our key Asian markets, and our members look forward to utilizing the new container site,” said USMEF President and CEO Dan Halstrom.

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FTC Investigates Supply Chain Disruptions; Enlists Tyson, Walmart and More

Wed, 01 Dec 2021 18:41:34 GMT

Tyson Foods, Inc., is one of nine large retailers, wholesalers and consumer good suppliers ordered by the Federal Trade Commission (FTC) to provide information that will help the FTC investigate ongoing supply chain disruptions – specifically how disruptions are causing hardships for consumers and harming competition in the U.S. economy.

In addition to Tyson, the orders are being sent to Walmart Inc., Amazon.com, Inc., Kroger Co., C&S Wholesale Grocers, Inc., Associated Wholesale Grocers, Inc., McLane Co, Inc. Procter & Gamble Co., and Kraft Heinz Co. The companies will have 45 days to respond from the date they receive the order, FTC said in a release .

The study will also examine whether supply chain disruptions are leading to specific bottlenecks, shortages, anticompetitive practices or contributing to rising consumer prices.

The companies will be required to detail the primary factors disrupting their ability to obtain, transport and distribute their products; the impact these disruptions are having in terms of delayed and canceled orders, increased costs and prices; the products, suppliers and inputs most affected; the steps the companies are taking to alleviate disruptions; and how they allocate products among their stores when they are in short supply.

Companies must provide internal documents regarding the supply chain disruptions, including strategies related to supply chains; pricing; marketing and promotions; costs, profit margins and sales volumes; selection of suppliers and brands; and market shares, FTC said in a release.

The agency welcomes comments on how supply chain issues are affecting competition in the consumer goods market, allowing market participants an opportunity to surface additional issues and examples of how supply chain disruptions are affecting competition.

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PepsiCo, Beyond Meat Partner to Develop New Plant-Based Snacks

Tue, 26 Jan 2021 17:59:32 GMT

Jan 26 (Reuters) - PepsiCo Inc and Beyond Meat Inc said on Tuesday they would form a joint venture to develop and sell snacks and beverages made from plant-based protein.

Beyond Meat’s shares, which gained about 65% last year, were up 22.4% in premarket trading, while those of PepsiCo were up 1%.

Plant-based meat alternatives, such as burger patties and sausages from Beyond Meat, have gained in popularity in recent years as curious health-conscious consumers look to broaden or shift from chicken, pork and beef-based diets.

Beyond Meat suffered a surprise loss in its last reported quarter as demand for its products at restaurants and grocery stores tapered after an initial surge at the start of the COVID-19 pandemic.

The new partnership with PepsiCo will give the faux meat maker access to the beverage giant’s distribution and marketing resources and allow it to expand into new product lines, Beyond Meat Chief Executive Officer Ethan Brown said.

PepsiCo, which apart from its namesake soda owns the Lays, Quaker and Gatorade brands, has also been looking to expand its portfolio of health-focused snacks and beverages.

“Plant-based proteins represent an exciting growth opportunity for us, a new frontier in our efforts to build a more sustainable food system,” said Ram Krishnan, PepsiCo global chief commercial officer.

The financial terms of the partnership were not disclosed and the operations will be managed through a newly created entity, PLANeT Partnership LLC.

(Reporting by Uday Sampath in Bengaluru; Editing by Shounak Dasgupta)

China To Suspend Tariff Hikes On Pork And Soybeans

Fri, 20 Nov 2020 05:51:31 GMT

Some good news on Friday for U.S. pork and soybean producers: China will suspend punitive tariff hikes on those and some other farm goods, according to an Associated Press (AP) story that referenced the country’s Xinhhua News Agency.

The Agency, citing the Cabinet planning agency and the Commerce Ministry, said that Beijing “supports domestic companies in purchasing a certain amount of U.S. farm produce.”

“China has a huge market, and the prospects for importing high-quality U.S. farm produce are broad,” Xinhua said. “China hopes the United States will be true to its word, make progress on its commitments and create favorable conditions for bilateral agricultural cooperation.”

The decision by China comes after President Trump decided to not impose additional tariffs on Chinese goods that had been scheduled for Oct. 1, moving the date to Oct. 15.

Additional details on the tariff suspension and timing are not yet available.

The commodity markets took off on Thursday after Reuters reported Chinese importers bought at least 10 cargoes of U.S. soybeans. It equals about 600,000 mt of soybeans.

Brian Splitt of AgMarket.net talked with AgDay’s Clinton Griffiths about the rumor. Splitt said, “There’s a rumor today that there’s business being done out of the PNW. I’ve heard as little as five cargoes of soybeans and I’ve heard as much as 5 million tons. It’s probably somewhere in the middle. I think 5 million tons is quite a bit.”

China did show up in the USDA Weekly Export Sales report as well. It purchased about half of the week’s total of U.S. pork sales. Of the net sales of 21,900 mt, China purchased 10,900 mt. Splitt said, “They’ve been drawing down their domestic stocks of pork in storage and so they may be at the point where they need to start actually procuring U.S. pork, so hog futures opened limit up today.”

Trump Announces Trade Deal With Mexico, Says He'll Ditch NAFTA

Thu, 19 Nov 2020 03:10:15 GMT

by Eric Martin, Jennifer Jacobs, Josh Wingrove and Andrew Mayeda

(Bloomberg) -- President Donald Trump said he would terminate the North American Free Trade Agreement and sign a new trade accord with Mexico, potentially leaving Canada out of the bloc.

Trump announced the agreement with Mexico in a hastily arranged Oval Office event Monday with Mexican President Enrique Pena Nieto joining by conference call. Pena Nieto said he is “quite hopeful” Canada would soon be incorporated in the revised agreement, while Trump said that remains to be seen.

Trump said he would speak with Canadian Prime Minister Justin Trudeau “in a little while” and hoped to begin negotiations with him “almost immediately.”

As he announced the move, Trump said he would drop the name Nafta from the accord because of its unpopularity.

“We’re going to call it the United States/Mexico Trade Agreement,” he said. Nafta “has a bad connotation because the United States was hurt very badly by Nafta for many years.”

The president hailed the Mexico agreement as “a big day for trade.”

The peso rose ahead of Trump’s remarks. U.S. stocks also advanced, with auto suppliers and rail companies among the top gainers.

There is no deal reached yet with Canada, people familiar with the agreement said. The northern neighbor has been on the sidelines of the talks since July as Mexico and the U.S focused on settling differences.

A spokesman for Canadian Foreign Minister Chrystia Freeland issued a statement on Monday that warned against jumping to conclusions. “Canada’s signature is required,” spokesman Adam Austen said in an email. “We will only sign a new Nafta that is good for Canada and good for the middle class” and “we will continue to work toward a modernized Nafta.”

Nieto said in a tweet on Monday that he spoke with Trudeau and stressed the importance of Canada rejoining Nafta talks.

Bilateral Pact

Still, an accord between the U.S. and Mexico is the biggest development in talks that began a year ago, punctuated by Trump’s repeated threats to quit altogether. Significant breakthroughs came during the past several days of bilateral talks on automobiles and energy. The three countries trade more than $1 trillion annually, much of it under the pact.

There is one difference left to iron out, Mexican Economy Minister Ildefonso Guajardo told reporters early on Monday as he entered the Washington office of the U.S. Trade Representative’s office where negotiations are going on. He declined to identify the issue.

Canada Approval

Talks to update Nafta began a year ago, but in recent weeks have been held between just the U.S. and Mexico. The U.S. president says the deal has led to hundreds of thousands of lost American jobs, and he promised to either change it to be more favorable to the U.S., or withdraw.

The U.S. push to finish Nafta talks comes at the same time it’s in a spiraling trade war with China, and has threatened to place tariffs on cars imported from major manufacturing centers in Asia and Europe -- efforts that have created new uncertainty for many businesses and investors.

Talks between the U.S. and Mexico had focused largely on cars. The U.S. wanted to bring back auto manufacturing jobs that had gone to Mexico. The countries are said to have agreed that automakers who don’t comply with the new Nafta rules will pay a 2.5 percent tariff, the same as they would if they skirted the existing Nafta, while any new Mexican plants wouldn’t have a guarantee. That could potentially expose them to U.S. auto tariffs of between 20 percent and 25 percent, which Trump is considering under national security grounds. The new rules would also likely require key components to have more domestic content.

Jesus Seade, the Nafta representative for Mexican president-elect Andres Manuel Lopez Obrador, has predicted that the nations will agree on a softened version of a so-called “sunset clause,” an automatic expiration after five years -- a key U.S. demand. The recent push for a deal is in part to have it signed before the new president takes office in December.

That would be essential, as the sunset clause was a major sticking point -- erupting, for instance, at the Group of Seven summit in June. Other key issues are Chapter 19 anti-dumping panels, which the U.S. wants to kill but which may be a deal-breaker for Canada, as well as Canada’s protected dairy sector, which Trump is targeting to dismantle.

How quickly Canada will rejoin talks remains unclear, Canada’s Freeland is in Europe this week. Even once Canada agrees, any Nafta deal between the three countries would have to be ratified. Timelines set out under U.S. trade law mean that would almost certainly be done by the next U.S. Congress, raising the prospect of further hurdles.

COPYRIGHT© 2018 Bloomberg L.P

Vilsack Discusses Drought Assistance, Meat Packer Profiteering Accusations

Wed, 15 Sep 2021 22:13:12 GMT

USDA Secretary Tom Vilsack recently made the announcement that USDA was updating the emergency assistance for livestock, honeybees, and farm-raised fish (ELAP) to help cover transportation costs incurred during the drought. On AgriTalk Monday Host Clip Flory asked Vilsack how livestock producers could step up and apply for this relief.

First, Vilsack says, they’ve got to be in an area that qualifies, which means that they have to be in the drought-stricken area that’s been D2 designated for eight consecutive weeks or D3 or D4 at any point in time.

“The second thing is that they need to understand what we’re looking at is helping to defray the expenses for longer hauling more than 25 miles away from home, less than 1,000 miles away,” he says. “We’re going pay 60% of the difference for most producers of what they would normally incur for transportation expense versus what they are now going to incur. So they’ll be working with their local farm service folks to make sure that they get the paperwork and the application process in.”

Flory also asked Vilsack about how the White House and USDA planned to respond to the blog posted by the members of the Council of Economic Advisers last week accusing meatpackers of pandemic profiteering.

“What we can do is to strengthen packers and stockyards and create greater price discovery with a number of studies that we’re engaged in,” he says. “We can work with Congress on any bills that would provide for greater transparency and create resources to support existing smaller and very small processing capacities so there’s competition and expand the amount of processing capacity in the country, which is why we’ve pledged $500 million to partner with a number of interests across the country.”

Vilsack shared a story of what he’s hearing from producers as he travels around the country.

“In Council Bluffs a producer comes up to me and says, ‘Secretary, I just sold my cattle. I lost $150 a head. The processor that bought my cattle is going to make $1,800 a head. And consumers are going to pay 8%, 9% more for the beef at the market.’ Well, I don’t know, man, that doesn’t seem fair to me. What we’re concerned about is a fair shake for the producer and fair prices for the consumer,” Vilsack says.

Flory pressed Vilsack about the availability of those funds.

“We have requested information from the from producers and from producer groups as to how they think it should best be managed. We’re going to be coming out very soon with a framework,” Vilsack says. “And we’ve already begun the process of reaching out to potential processing deals and projects that are on the drawing board to determine how best to structure these resources, and we expect and anticipate will start making some decisions later this year, or in the first part of next year.”

Industry Mourns Loss of McRib Technology Innovator Roger Mandigo

Roger Mandigo, well known for creating the technology that made McDonald’s McRib possible, passed away on Jan. 24. Although he received the most public recognition for his work in restructured pork, which led to the development of the McRib, his body of work led to many breakthroughs that influenced the meat industry.

In the 1970s, the National Pork Producers Council asked Mandigo to create a product with pork trimmings , one that could be sold by a fast-food chain (The U.S. Pork Checkoff wasn’t established until 1986). Mandigo developed a technology similar to the sausage-making process. The meat scientist used salt to extract proteins from the muscle, and those proteins then helped hold the smaller pieces of meat together, according to a Farm Journal story in 2022 .

Mandigo grew up in Pomona, Calif., and later received his bachelor’s degree at California State Polytechnic University at Pomona in 1961, his master’s degree at New Mexico State University in 1963 and his Ph.D. degree at Oklahoma State University in 1967. He joined the University of Nebraska faculty as professor of meat science in 1966 and served the university for 45 years.

He was passionate about teaching and taught Meat Industry Study Tour, Meat Processing, Meat Technology and Meat Investigations in addition to advising graduate students. He served as the major professor to 55 master’s and 21 Ph.D. graduates. He taught at meat industry processing schools and short-courses for a variety of organizations across North America, South America, Europe and Asia.

Not only was he influential in meat manufacturing, processing, and product development research, but he was a prolific author, publishing hundreds of peer-reviewed scientific articles, books, magazines and abstracts along with receiving over 170 research grants in the course of his 45-year career.

He served as president of the American Meat Science Association in 1991-1992. He also received the R.C. Pollock Award, the highest award of the American Meat Science Association, and was named to the second-ever class of the Meat Industry Hall of Fame and the Nebraska Hall of Agricultural Achievement.

The family has asked that memorials be directed to First United Methodist Church – Waverly or the Roger Mandigo Meat Science Graduate Student Excellence Fund at the University of Nebraska Foundation.

Mandigo is survived by his wife of 54 years, Wanda; sons Kevin (Shalla) and Brian (Zayani) Mandigo, and daughter Tiffany (John) Medley-Eggert; sister Margaret Mandigo; and grandchildren Lunden Mandigo, Layla Mandigo, Greta Mandigo, Adelaide Medley, Brayden Medley, and Courtlynn Medley-Eggert. He is preceded in death by his parents.

Read More: The McRib May Be On Its Farewell Tour, So We’re Showing Love to the Birthplace of the Beloved McRib