Poultry - General

The Shrinking Slice: Farmers Receive Less Than 6 Cents of Every Food Dollar

Tue, 31 Mar 2026 20:30:42 GMT

For the past two years, USDA has estimated farmers and ranchers received less than 6 cents of every food dollar. In 2023, that was 5.9 cents, and using the latest data from 2024, it’s 5.8 cents.

“Our oldest data point right now is 2007 [USDA updated the data series] and that’s 14.7 cents per dollar, and now we’re down all the way to 11.8 cents per dollar,” says Faith Parum, economist with the American Farm Bureau Federation. “So we’ve really seen that decline year after year. It reflects how much of the value of things in the grocery store or when you go out to eat is going to other parts of the supply chain and not necessarily to farmers and ranchers.”

Livestock vs. Crops: A Widening Gap

The aggregate decline masks a widening gap between sectors. While the overall farmer share is down, livestock and crop producers are seeing divergent trends:

Crop Farmers: Share dropped from 2.9 cents to 2.5 cents (a 2.5% year-over-year decrease).
Livestock Producers: Share increased from 3 cents to 3.3 cents.

“Overall, the farmer share is down. But we have those two markets really at odds,” Parum says. “We’ve seen that tale of two farm economies where our livestock producers maybe have seen a little bit of better days than they had had in the past, while our row crop farmers and our specialty crop farmers are really facing strong headwinds in the market.”

Effect at the Farm Gate

As highlighted by USDA, farm finances are quickly strained when farmers/ranchers are capturing a small percentage of the food dollar and even modest swings in commodity prices and/or input prices take place.

Parum adds, “when we talk about the health of our farms and the health of future generations on the farm, and being economically viable and sustainable and being able to keep their operations open, the trends we’re seeing right now are really hard for those farmers. Our ranchers are seeing a little bit of better days right now with high beef prices, but that’s not going to last forever, and with production expenses continuing to increase, we’re really going to see that that question come up of, what is sustainable if, if these dollars we’re spending in the grocery store aren’t making it back to our farmers.”

Where Does the Money Get Distributed?

The key takeaway: farmers produce the raw commodities that make food production, however, the price is clearly more determined by what happens after the products first leave the farm.

The USDA Food Dollar Series tracks how each dollar is spent by consumers and then divides it across the industries contributing to the value in the supply chain, such as farming, food processing, transportation, packaging, wholesaling, retail and food service. As noted by the USDA, with each step in the process, the additional services, labor, transportation and infrastructure add value and increase costs to the final food product.

USDA’s Economic Research Service Food Dollar Series shows in 2024, farmers received 11.8 cents of every dollar spent on domestically produced food, the remaining 88.2 cents of the food dollar went toward the ‘marketing bill’, which includes costs associated with food processing, transportation, packaging, wholesaling, retailing and food service. Over time, this shift illustrates how an increasing share of food spending is driven by services and supply chain activities rather than farm production itself.

Groceries Leave the Most on The Table For Farmers

Farmers’ share of consumer food spending varies widely depending on the type of food purchased. For example, the farm share of the food-at-home dollar was 18.5 cents in 2024, up slightly from 18.4 cents in 2023. But even in this category it means only than one-fifth of what consumers spend on groceries goes back to farmers.

As you may expect, products with minimal processing, require less of the value to be retained in that part of the food system, and therefore return a larger share of the food dollar to producers.

“The highest commodity that gets the most of that food dollar is fresh eggs,” Parum notes. “That’s just because there’s limited labor to process that food.”

Examples include:

Fresh Eggs: 69.1 cents (+6% from 2023)
Beef: 52.2 cents (+4.8%)
Fresh Milk: 50.8 cents (+5.6%)
Pork: 23.7 cents (+7.2%)
Poultry (+3.1%)
Fish (+2.8%)
Tree nuts and peanuts (-1.7%)
Fresh fruits and vegetables (unchanged)
Bakery Products: 4.8 cents (-9.4%)
Soft Drinks/Bottled Water: 1.3 cents (-7.1%)

Iowa Farmer Battles Today's Pests While Eyeing Tomorrow's 'Mean Sixteen' Threats

Fri, 12 Dec 2025 18:55:16 GMT

For Worth County, Iowa, farmer Sarah Tweeten, the list of high-priority agronomic threats isn’t a political abstract — it’s a harsh reality she deals with every season.

Farming with her parents, Brian and Julie, and her uncle Roger, Tweeten has been steering the partnership toward more resilient cropping practices since joining the operation in 2021. This includes shifting from conventional tillage to strip tillage and splitting nitrogen applications.

The changes are part of a broader mindset: Protecting yields today from weeds, disease and insects while aggressively preparing for the next generation of agronomic threats. This forward-thinking approach is what led Tweeten to Washington, D.C., earlier this week as a Farm Journal Foundation farmer ambassador to help introduce a new report: “ The Mean Sixteen: Major Biosecurity Threats Facing U.S. Agriculture and How Policy Solutions Can Help. ”

Today’s Battles and Tomorrow’s Warnings
Researched and developed by Stephanie Mercier, PhD, the report takes an in-depth look at 16 significant pest issues U.S. farmers face now or could realistically in the future.

Tweeten is already battling a couple of the problems that underpin the urgency behind the research. For example, Palmer amaranth (pigweed) is gaining ground in her fields and across Iowa. The pervasive broadleaf weed can drastically reduce yields, with studies showing corn yield reductions between 11% and 91% and soybean yield reductions of 17% to 68%.

“We’ve struggled with pigweed as it continues to establish more resistance to our herbicides in our toolkit,” Tweeten says.

Two additional agronomic issues the report details include:

1. Asian Soybean Rust. First detected in the U.S. in Louisiana in 2004, this fungal disease has spread to southern states like Georgia and Mississippi. Scientists warn that warming winters could enable its migration to the Midwest, adding to existing disease pressures.

2. Corn Ear Rot. It can lead to aflatoxin production, making corn unmarketable and posing risks to humans and livestock. Aflatoxin is an issue Pickens County, Ala., farmer Annie Dee says is an ongoing problem for corn growers in her area.

“If we have aflatoxin, it can be impossible to sell the corn,” says Dee, also a Farm Journal Foundation Farmer ambassador.

A more recent threat she references is the impact of Highly Pathogenic Avian Influenza (bird flu) on local poultry farms.

Since January 2022, HPAI has been confirmed in a commercial or backyard poultry flock in all 50 states.

(USDA)

“An important market for us is poultry feed meal, so that’s a constant worry. The trickle-down effect is if we can’t move our corn then we can’t meet our financial obligations,” Dee adds.

Despite agricultural R&D offering a high ROI — $20 in benefits for every $1 spent — the Farm Journal Foundation report notes public funding for ag research has been declining over the past two decades.

“Farmers urgently need sustained support for aflatoxin research and prevention because these risks threaten our yields, our markets and the trust consumers place in American agriculture,” Dee says.

U.S. public spending on ag research and development has been falling for two decades.

(USDA-ERS)

African Swine Fever Has ‘Devastating Potential’
Looking to the future, Tweeten says she is concerned about African swine fever (ASF) and its potential to impact crop farmers as well as hog producers. The highly contagious swine disease hasn’t been detected in the U.S. mainland, but it isn’t far away. ASF has been confirmed in the Caribbean countries of Haiti and the Dominican Republic, roughly 700 miles from Miami, Fla.

“Being a farmer from Iowa, where we have probably eight times the amount of pigs as we do people, an outbreak of ASF would be just devastating to our state,” Tweeten says.

Hogs are among the biggest customers for the corn and soybeans Tweeten and her family grow. If African swine fever were to shut down hog production or exports, it wouldn’t just be a blow to livestock producers – it would hurt the entire agricultural community, she contends.

Read about 5 livestock diseases that could impact U.S. food security and economic stability.

Food Security Is National Security
When it comes to justifying funding for ag research, Tweeten knows there’s competition for every federal dollar. But she believes agriculture deserves a front-row seat — not only because of its economic weight and impact on farmers, but because of its role in national security.

“There’s that argument that food security is national security,” she says. “If there’s one thing COVID made us aware of, it’s that a disruption to our food chain can be terrifying, quite frankly.”

The pandemic made consumers and policymakers more aware of supply chain vulnerability. In 2020, the shock to the supply chain came from a human disease and logistical bottlenecks.

(Sarah Williams Photography)

Next time, Tweeten says, the disruption could just as easily come from animal or plant disease — whether African swine fever in hogs, Asian soybean rust or some other pathogen in crops. She worries about scenarios where farmers could face a fast-moving disease or crop pest while critical tools are still hung up in regulatory delays.

Her message: Farmers need a full toolbox, not one that’s half-built by the time a threat arrives.

“Ag needs to be in a good position when these sorts of emerging diseases and pests come into the country,” she says, “to have the tools in our toolbox ready for farmers to pull out.”

About the Farm Journal Foundation
The Farm Journal Foundation is a farmer-centered, non-profit, nonpartisan organization established in 2010. It works to advance agricultural innovation, food and nutrition security, conservation, and rural economic development.

Why We're Seeing More Bird Flu Infections Earlier

Tue, 18 Nov 2025 16:21:56 GMT

According to the USDA-APHIS dashboard , there have been 36 commercial flocks of poultry infected with highly pathogenic avian influenza (HPAI) in the past 30 days. Including backyard flocks, it totals more than 1.8 million birds.

Rebecca Eifert Joniskan, president of the Indiana State Poultry Association, says the disease has arrived earlier than “usual” as wild birds spread the virus with their seasonal migration patterns.

“We typically don’t see avian influenza until January or February,” she says. “This year we started October 9.”

Matt Makens of Makens Weather says weather patterns play a role in bird movement, and therefore virus transmission.

“In winters like this. our temperatures will be very volatile. There’ll be swings of very, very warm days. And then very, very cold days. And I think there is a connection to bird flu spread in those warmer periods,” he says.

Indiana is a poultry powerhouse for commercial production, ranking No. 1 in duck (60% of the U.S. duck produced), No. 3 in eggs, No. 4 in turkey, and a large-scale epicenter for broiler production as well.

While HPAI has been a renewed biosecurity concern for poultry since Feb. 2022, the infection has set into a seasonal pattern—creating some predictability. However, the early onset of birds being infected this fall has Joniskan and industry members concerned a long and difficult season is ahead.

“Typically, it fades over the summer. The virus burns itself out with birds in the Arctic,” she says. “That hasn’t been happening. The virus isn’t following the rules. It’s back, and it’s early.”

The first infections in Indiana were in northern countries and affected ducks and free-range egg layers. Currently, Indiana has the most reports of HPAI infection in commercial and backyard flocks for the past 30 days.

States reporting recent infections in commercial flocks are: California, Georgia, Indiana, Michigan, Minnesota, North Dakota, and South Dakota.
The past decade has brought an increased focus on biosecurity and disease prevention.

“When we had avian influenza in 2015 and 2016, there were a lot of learnings on how to reduce the risk of introduction of the virus on your farm,” she explains. “There were changes put in place, including annual biosecurity reviews.”

She says poultry producers in Indiana have taken the virus risk seriously and are actively preventing its introduction while also being ready to respond to it.

“Our companies across the state have taken the learning from ‘15/’16 and what we’ve learned since 2022, and they’ve doubled down to try to reduce any opportunity for introduction wherever they can. It’s difficult, but it’s less expensive and trying than the dealing with an infection,” she says.

Once a flock is infected, the birds don’t recover from the virus, and depopulation is the end result.

California Has 'Gone Rogue,' Consumers Pay the Price Under Proposition 12, Rollins Says

Fri, 11 Jul 2025 15:00:07 GMT

President Donald Trump’s administration sued California on July 9 over its regulation of eggs and chicken farms, saying these California laws impose burdensome red tape on the production of eggs and egg products nationally in violation of the Supremacy Clause of the U.S. Constitution.

“California has gone rogue and caused real harm to consumers under its cage-free egg commitments,” U.S. Secretary of Agriculture Brooke L. Rollins said in a statement frollowing the announcement of the Trump Administration’s lawsuit. “By not allowing consumer choice, Californian’s are forced to buy more expensive eggs. California’s actions under Proposition 12 fly in the face of Federal jurisdiction and regulation over food production and safety under the Egg Products Inspection Act.”

The Department of Justice filed a lawsuit against the State of California, Governor Gavin Newsom, Attorney General Rob Bonta, and other state officials. The lawsuit, filed in Los Angeles federal court, argues that the federal Egg Products Inspection Act of 1970 pre-empts state laws related to eggs. The federal law authorizes the USDA and Health and Human Services to regulate eggs in order to protect consumers’ health and welfare, and it also requires “national uniformity” in egg safety standards, the lawsuit says.

“It is one thing if California passes laws that affects its own State, it is another when those laws affect other States in violation of the U.S. Constitution,” Secretary Rollins said. “Thankfully, President Trump is standing up against this overreach.”

Secretary Rollins has worked diligently to support American poultry and egg producers, combat avian flu, and lower the cost of eggs for consumers, USDA pointed out in a statement. In February, she announced a five-point plan to combat the avian flu and lower egg prices which has been applauded by agriculture and government leaders across the country. Since the five-point plan was announced, the price of eggs has decreased 63%.

“It is great to see the Trump administration taking decisive action to protect the country from California’s overreaching policies, but Americans facing high food costs cannot afford to wait for years of court appeals. Congress could—and should—pass legislation tomorrow to get us there sooner,” Jack Hubbard, executive director of the Center for the Environment and Welfare (CEW) said in a release. “Recent polling shows California voters now regret the passage of Proposition 12, and there is strong bipartisan support for a legislative fix to nullify California’s inflationary farm mandates.”

(YouTube)

In May, CEW launched a public education campaign urging Congress to stop the far-reaching consequences of Prop 12. According to Consumer Price Index data, national egg prices have spiked 103% since Prop 12 went into effect in 2022. Meanwhile, in California, the cost of eggs has tripled and pork prices have increased by between 20 and 40%.

Grassley: I Still Support Trump, But Congress Should Lead On Trade, Tariffs

Mon, 07 Apr 2025 21:09:41 GMT

With financial markets spiraling deeper into the red, Senator Chuck Grassley (R-Iowa) is pounding the table in support of a bill that would wrestle back the executive branch’s authority to enact unilateral world trade decisions without Congressional approval.

The senior senator from Iowa has long held the belief the U.S. Constitution gives Congress direct oversight in regulating foreign commerce. Grassley says the legislature has deferred this authority to the executive branch since the 1960s, and it’s time to claw that power back within the walls of Congress.

“The impression is that I’m doing this because of what Trump did last week. It has nothing to do with that,” Grassley told AgriTalk host Chip Flory on Monday. “This president is doing what Congress gave him the power to do, right? I felt the same way in 2019 and I tried to get some changes then.”

Now, Grassley says he is simply piggybacking on the heightened awareness of trade tariffs after last week’s “Liberation Day” announcements from the Rose Garden. He still supports the President’s overall agenda and is hoping for the best-case scenario – which would entail a worldwide negotiation process to balance trade deficits among the U.S. and its trade partners.

“If he’s successful in putting tariffs on other countries to get them to sit down at the table to bring all tariffs down, I’m going to say he did a better job than my approach of negotiating tariffs down,” Grassley says, adding that the administration can immediately help farmers by supporting a new 5-year Farm Bill and directing the EPA to approve year round E-15 fuel availability.

Under the proposed bipartisan legislation – which is co-sponsored by a handful of U.S. Senators from across the nation – the Trade Review Act of 2025 would require congressional approval of new unilateral tariffs proposed by the executive branch within 60 days.

Over the weekend, senior Trump administration officials, including USDA chief Brooke Rollins, made the rounds on the Sunday morning political TV programs to try to assure corn and soybean farmers – who have suffered profit line hits from two years of inflated operating expenses and low commodity prices – that the President’s tariff strategy would eventually pencil out to long-term gains in domestic manufacturing and crop export markets.

Then, on Monday morning, Trump posted on social media saying he will impose an additional 50% in tariffs (on top of the current 54% rate) on China by April 9 if the country did not back off the 34% retaliatory tariffs it enacted on American goods. Ag economists say the China tariffs will have a devastating impact on U.S. crop and meat exports, and many believe the tariffs have effectively handed Chinese feed and fiber demand to Brazil.

Related: As China Retaliates and Hits U.S. With a New 34% Tariff, What’s the Possible Impact on Ag?

(iStock/Lori Hays)

The U.S. today is China’s largest ag trading partner, but 2024 import data shows that relationship could be fading fast: shipments of U.S. farm goods into China nearly halved from 2022 levels, when China purchased almost $43 billion in U.S. ag products. Last year, that figure plummeted to $29 billion, and many expect the tariffs will slash that figure even lower. China has also torn up or suspended several trade deals with U.S.-based poultry producers, and some experts fear a decrease in demand for U.S. pork products could be devastating to American hog farmers.

Related: Pork Producers Resist Urge to Panic, Respond to New Tariffs

Overall, despite alarm bells being sounded from basically every corner of the economy, the senate’s current longest-tenured member is hopeful there’s a light at the end of this long, roller coaster tariff tunnel for America’s farmers and ranchers.

“If we can export our stuff in a free way, it’s going to help the economy of the United States, and it’s going to help our consumers if we don’t have tariffs on products coming into the United States,” Grassley says. “I’m supportive of the President’s effort to get a better deal for Americans, especially for our farmers because we export about a third of our production, and that’s where farmers want to get it.”

Your Next Read: Ag Markets Try to Recover Early Monday, Except Cattle

More Funding Going to Tackle HPAI H5N1, Egg Imports are Now Underway to Stabilize Supply

Thu, 20 Mar 2025 18:05:23 GMT

On Thursday morning, USDA Secretary Brooke Rollins gave an update on progress the Trump administration is making on the five-prong strategy it unveiled Feb. 26 to combat avian influenza virus type A (H5N1).

Speaking to industry stakeholders, media and offices of elected officials, Rollins focused on the administration’s work to lower egg prices and improve supply, while also emphasizing the importance of biosecurity in protecting U.S. poultry flocks from the virus.

Regarding egg prices, she said wholesale prices are down nearly 50% from their peak in late February from $8.53 then to $4.08 currently.

However, Rollins said she realizes that wholesale prices don’t automatically show up as reductions in retail prices.

“I know for some of us who are shopping that we’ve seen egg prices drop immediately, which has been true for me. But then we’ll hear from people in other parts of the country where they have yet to see that reduction on their grocery store shelf.”

With Easter just a few weeks away, she acknowledged that egg demand is always “unusually high during the season,” and that egg prices could potentially move back up.

To help address the egg shortage, Rollins noted that shell egg exports have declined by 8%, “keeping more eggs in the U.S. and lowering prices.”

In addition, the Trump administration is allowing egg imports as a temporary measure to stabilize prices and supply. Rollins’ chief of staff Kailee Buller said this measure would likely be discontinued once those measures were achieved.

USDA Focuses On Biosecurity For Poultry Operations
Rollins said biosecurity in poultry flocks will continue to be a major part of the Trump administration’s plan to address H5N1, moving forward.

“Our pilot programs have proven that biosecurity is the most important thing our farmers can do to protect our flocks against the disease, at least right now,” she said.

The USDA is working closely, she said, with its federal partners including the U.S. Department of Health and Human Services (HHS), Centers for Disease Control (CDC), National Institutes of Health (NIH), and the Food and Drug Administration (FDA) to “combat avian flu as a unified federal family.”

On Wednesday, USDA announced it is expanding the availability of its biosecurity assessments to commercial poultry producers.

“These assessments, which were previously available on a limited basis have been extremely successful in improving biosecurity on individual premises and preventing the introduction or spread of avian influenza,” Rollins said.

While USDA is exploring the viability of vaccinating poultry for H5N1, she said the use of any vaccine for poultry or any animal species has not been authorized at this time.

“I know there has been some misreporting on that,” Rollins said. “The day we rolled out the plan, I actually talked about the fact that we’re not ready to vaccinate. We need to do some more research, and so that has not changed, but I do look forward to this next process of learning more about getting more research done and perhaps seeing what makes sense for the country moving forward, once that is concluded.”

Dairy Is Not Part Of USDA’s Primary H5N1 Focus
No information was offered during the conference call to address the issue of H5N1 in dairy cattle or other livestock or animal species.

Mike Watson, administrator of USDA-APHIS, said right now USDA is focused on the poultry vaccine.

“We’re looking for a vaccine that has sterilizing immunity but also an opportunity for us to have different introduction methods for the vaccine right now, as injections are the only possibility,” he said. “We need new tools, whether it’s water based, aerosol based, those kind of things. We’re looking for manufacturers to really look at what those options might be, to really provide us with a vaccine that matches the current strain but also is highly effective. And again, this is really focused on poultry.”

Buller said there is already quite a bit of research at USDA on the topic in dairy.

“Please rest assured, we are thinking of you all (in dairy). We know you all are impacted. But for this particular strategy, we have been hyper-focused on the poultry side. USDA has separate work streams as we’re working through this on the cattle and dairy side.”

One of the media asked whether Sec. Rollins had talked further with HHS Sec. Robert F. Kennedy Jr. regarding his idea of letting H5N1 burn through poultry flocks to identify birds that might have immunity or show resistance to the virus.

Buller answered the question, as Rollins had stepped away from the call. “I have not been engaged specifically with those conversations with the Secretary and Secretary Kennedy,” she said. “They are talking very regularly and you are aligned on the approach, but in terms of that specific topic, there’s no further light I can shed on that at this time.”

Assessments Available To Poultry Operations
USDA is offering two different, free, voluntary biosecurity assessments for poultry operations not currently affected by HPAI.

The first is a wildlife biosecurity assessment. The second is a general biosecurity assessment. Poultry producers can request one or both of these free assessments.

Per the wildlife biosecurity assessment, Rollins said USDA will conduct on-farm assessments at poultry facilities and provide recommendations to producers for facility repairs and wildlife management techniques. The assessments include a series of regular engagements, including wildlife hazard identification surveys, wildlife abundance surveys and wildlife management on the premises.

“USDA has assessed approximately 130 facilities to date (in 2025), and plans on doing significantly more moving forward and expanding that program,” she said.

For the general biosecurity assessment, USDA will work with poultry producers to review biosecurity plans and physical measures.

“This is a proactive resource for premises that are outside of avian flu control areas to identify and mitigate potential biosecurity gaps,” she said.

Funding Is Ramped Up To Address HPAI In Poultry
The USDA announced on Thursday that up to $100 million in funding will be available to support projects on avian influenza, prevention, therapeutics, vaccines and research.

“USDA will invest up to $100 million in these projects, which will identify and foster innovative solutions to fight avian flu and directly support American producers,” Rollins said during the conference call.

Funding is available through a competitive process to for-profit organizations, including manufacturers of vaccines, biologics and therapeutics, as well as states, universities, livestock producer organizations and other eligible entities, she noted.

USDA will prioritize one or more of the following. First, it will support the development of novel therapeutics to address HPAI in poultry. Second, it will support research to further understand the risk pathways of avian influenza for producers and to inform improved biosecurity and response strategies.

“Let me just say, as a quick aside, I’ve had multiples and multiples and multiples of conversations with some of our chicken farmers across the country —many of them have been highly successful at not having the bird flu infect their populations,” Rollins said. “Better understanding of risk pathways and realizing what best practices are is a big part of (this work).”

The third focus is on the development of novel vaccines to protect poultry from H5N1 while promoting biosecurity.

“That will all be part of the research funding opportunity that we announced about an hour and a half ago,” Rollins said.

USDA will test the efficacy of therapeutic interventions to prevent the virus and treat infected flocks.

“USDA, in consultation with HHS, has already had multiple conversations with Secretary Kennedy and leaders in the NIH and CDC, but will also be exploring prevention strategies to promote biosecurity in agriculture and in humans, to ensure limited impact on American farmers,” Rollins noted.

USDA is offering a webinar to assist interested applicants in learning more about the funding opportunity and how to submit a proposal on Tuesday, April 1 at 12 p.m. Eastern. No details on how to participate in the webinar have been communicated yet.

“As we try to do everything under this president and here at USDA, we will be as fast and efficient and effective as we can possibly be, working around the clock,” Rollins said.

Buller added that Sec. Rollins and her staff will continue to host update calls regularly.

“It’s very important to Sec. Rollins that we are showing progress on this five-prong plan and being honest and open with the public about what we’re up to and the progress and potential challenges that we have ahead,” Buller said. “We have an open door here, and we remain open to having conversations and hearing from stakeholders.”

Iowa Secretary of Ag Weighs In on The H5N1 Battle, Vaccine Potential And Trade Sensitivities

Wed, 29 Jan 2025 13:43:49 GMT

Eggs continue to be a hot topic in the news as supplies are down, prices are up – and expected to go even higher – and consumers are understandably concerned.

At the center of the issue, fanning the on-going problem for poultry and dairy producers as well, is the Highly pathogenic H5N1 avian influenza A virus (HPAI H5N1).

AgriTalk Host Chip Flory broached the topic with Iowa Secretary of Agriculture Mike Naig on Tuesday.

At the heart of their conversation was a two-part question – how does the U.S. address the virus and, in the process, prevent any potential negative ramifications on trade?

Naig says the federal government is taking what he described as a three-legged stool approach to addressing the problem in both industries.

He described the three legs of the stool as being USDA’s Animal and Plant Health Inspection Service (APHIS), individual state animal health officials and industry.

“We work very closely with APHIS on this, meaning that they’re the ones that are providing the indemnity payments to producers. They are providing the disposal and cleanup assistance, but they must work in close collaboration with the states and state animal health officials,” Naig says. “And then, of course, you’ve got to have the third leg, which is industry.”

Biosecurity Measures
Naig noted that while the virus hit the poultry industry hard in 2015, it struck even harder in 2024.

“It’s not just in the Midwest or West, it’s been really all across the country now, affecting the egg laying industry, broilers and turkey production,” Naig says.

A significant positive, Naig says, is that biosecurity measures in the poultry industry appear to be preventing farm-to-farm spread. “The industry continues to get high marks for that, which wasn’t the case in 2015, which was so devastating because we didn’t have those strategies in place.”

“I believe, and our experience has been, that our USDA partners in this regard have been very strong,” he adds.

As Naig addressed the three-legged stool approach the U.S. is taking to addressing the virus in dairy, he says the three partners have more work to do.

“Frankly, there’s been a lot of criticism to share around the three legs, if you will, on how states have reacted, or how strongly USDA should have reacted, and what the industry is doing to try to contain that virus. So, I would say on the dairy side of things, it’s a different story (than in poultry). There’s a lot more work that’s yet to be done to even understand how that virus is impacting those (dairy) herds.”

What Is The Role For Vaccines?
Flory asked Sec. Nagy whether he believes a vaccine could be part of the solution to the virus or whether that would set up too many trade barriers. Flory also asked whether the virus is stable enough for a long enough period of time for a vaccine to be developed that would work effectively.

Both are questions the U.S. is grappling with as it tries to get ahead of the virus in dairy and poultry.

Earlier this month, Reuters reported the U.S. will rebuild a stockpile of avian influenza vaccines for poultry that match the strain of the virus circulating in commercial flocks and wild birds, citing the Department of Agriculture.

Naig told Flory that he believes a vaccine could be developed, with regard to poultry specifically, and its use negotiated into trade agreements.

“Those are challenges, and yet those are things that can be worked on and can be done, but it’s not easily done. I would want to put a flag there,” Naig says.

“I’m supportive of developing … we should try to figure out whether this can be an effective tool. If you’re in the broiler business or if you’re in the turkey meat business or if you’re in the egg business or maybe you’re in the genetics business, those are very different in terms of how you view that vaccine.”

Naig explains part of the different viewpoints on vaccine use have to do with the difference between poultry business segments.

“We need to recognize that those sectors are different in how they’ll view and potentially use a vaccine,” Naig says.

“Don’t treat them all the same. It’ll make way more sense for some than others.”

Naig did not weigh in on vaccine development for the dairy industry specifically.

The full conversation between Naig and Flory on AgriTalk is available below.

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Oregon Identifies 3 Human Cases of Avian Influenza in Farm Workers from Washington State

Fri, 01 Nov 2024 18:36:31 GMT

Avian influenza (bird flu) has infected three more people from Washington state after they were exposed to poultry that tested positive for the virus, according to health authorities in Washington and in Oregon, where the human cases were identified.

A total of 39 people have tested positive in the U.S. this year, including nine from Washington, as the virus has infected poultry flocks and spread to more than 400 dairy herds, federal data show. All of the cases were farm workers who had known contact with infected animals, except for one person in Missouri.

The people from Washington cleaned facilities at an infected chicken farm after birds were culled to contain the virus, the Washington State Department of Health said in an email on Thursday.

Officials tested workers who had symptoms, including red eyes and respiratory issues, and those with potential exposure to the birds, the department said. People with symptoms were told to isolate and given antiviral treatment, it added.

Oregon identified the three new cases after the people traveled to the state from Washington while infected, the Oregon Health Authority said in a Thursday statement. They have since returned to Washington, where public health staff are monitoring them, according to the statement.

There have been no infections among people living in Oregon and is no evidence of human-to-human transmission, the Oregon Health Authority said. It said the risk for infection to the general public remains low.

Since 2022, the virus has wiped out more than 100 million poultry birds in the nation’s worst-ever bird flu outbreak.

H5N1 bird flu was confirmed in a pig on a backyard farm in Oregon, the first detection of the virus in swine in the country , USDA said on Wednesday.

(Reporting by Tom Polansek; Editing by Lincoln Feast)

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Hemp Seed Livestock Meal Receives Green Lights On Way to Federal Approval

Fri, 27 Sep 2024 18:07:07 GMT

After years of work and regulatory paperwork, the The Hemp Feed Coalition announces Hemp Seed Meal for laying hens has been recommended by FDA-Center for Veterinary Medicine and voted by AAFCO into their Ingredient Definition Committee for the final step in the approval pathway.

The definition allows hemp seed meal up to 20% into feed mixes for laying hens. This marks the first hemp feed ingredient to get federal recommendation and uptake by AAFCO.

Wendy Mosher, CEO at New West Genetics and vice president of Hemp Feed Coalition, says this is something that has been in the works for at least four years.

“There’s a lengthy process for any new crop to get ingredient approval, but it’s worth it, you can’t have commodity crop without a feed opportunity for that crop,” Mosher says. “Federal approval gives us a leg up into adoption and scale.”

Mosher says before deregulation in 2014, hemp acres were zero, then by 2020, climbed to a peak of around 400,000 acres. Today, total U.S. hemp acres are reported around 55,000.

“I think this is a positive thing—it shows with the right incentives crops can be expanded rapidly, and that those participants with long term vision are still here, and are building the markets in a sustainable fashion. Hemp is a great opportunity for the crop rotation as well as soil health” Mosher says. “Hempseed meal as a feed ingredient contributes to the risk mitigation of planting the crop—it’s another place for the crop to go.”

As a feed ingredient, the coalition cites hemp grain providing essential vitamins, minerals, healthy oils, and a complete protein profile. For egg production, this can lead to a value-added product with higher omega 3 content. It has been verified that any potential cannabinoid contaminants do not transfer into the egg product.

With the regulatory obstacles starting to be removed, Mosher is optimistic about the educational opportunities for the market to increase in size.

“Hemp can serve the same basic protein and oil markets that currently use soybeans or canola,” she says. “Feed manufacturers are seeing success, including Wenger Feeds in Pennsylvania who make hemp feed for Kreider Farms’ eggs. In the next year we hope to get some additional adoption by some larger players.”

Mosher highlights her company, New West Genetics, has been developing improved hemp varieties to double grain yield.

“We’ve got momentum in hemp as we are providing high yielding and adapted genetics for hemp production in the U.S., and the industry is also near the finish line on this feed approval,” she says. “It’s a moment we’ve been waiting on for 10 years. In the not so distant future, we hope to see hemp on the million acre scale.”

Why You Need to Pay Attention Now to EPA’s Proposed Rodenticide Mitigation Measures

Fri, 27 Sep 2024 01:18:52 GMT

Out of sight, out of mind. That theory works for a while until it doesn’t, especially when it comes to rodent control.

“Rodenticide use is like using insecticides. If you don’t see any cockroaches, you don’t worry about them. But once you see one, you throw the bomb at it,” says Larry Delozier, director of national poultry account sales for QC Supply.

Similarly, once you see a mouse or rat, it’s likely you have a big problem on your hands , explains Steve Von Haden, Midwest business manager for Motomco.

“Always assume you have rodents, and you should be putting bait out,” Von Haden says. “All agricultural buildings or structures will have rodents of some type. You just don’t want it to get to such high peaks it causes structural damage, diseases and contamination of food sources .”

Pending regulation could mean agriculture loses critically important tools to protect food security. EPA is proposing significant changes to rodenticides that would result in the canceling of products and uses, add more requirements to the labels, and reclassify some products to restricted use pesticides .

“Regardless of whether you are a livestock producer or citrus grower or manager of a golf course, this will have an impact on your ability to effectively manage a destructive farm pest,” says John Walt Boatright, director of government affairs at American Farm Bureau Federation (AFBF). “It’s one more challenge in a regulatory environment where challenges continue to grow for the American producer.”

What is EPA Proposing?

On Nov. 29, 2022, the EPA released for public comment new proposed mitigation measures for 11 rodenticides, which if implemented, will have a major impact on all currently available rodenticide products, the Agricultural Retailers Association (ARA) said on its website . The agency’s proposals are the most significant changes to rodenticides in 15 years that will result in the canceling of products and uses, add more requirements to the labels, and reclassify some products to restricted use pesticides, ARA noted.

EPA’s recommended changes are included in four Proposed Interim Decision documents (PIDs) that cover: 1) the seven anticoagulant rodenticides; 2) bromethalin and cholecalciferol; 3) strychnine; and 4) zinc phosphide.

“EPA’s proposal is quite wide-ranging, and it is going to impact any user of rodenticides and how rodenticides are applied,” Boatright explains. “The challenge is many of EPA’s proposed mitigation measures introduce additional challenges for on-farm application. I don’t know that they will have the intended effect that EPA thinks they’ll have.”

Boatright says this should be very concerning for everyone in the agricultural supply chain who apply rodenticides. Michael Formica, chief legal strategist for the National Pork Producers Council (NPPC), says it will also have a negative impact in urban areas where rodent infestation is a major problem.

“This is an example of one area where rural communities can build positive engagement and cooperate with urban communities. As much as rats and rodents are pests on the farm, they are even more so in an urban area,” Formica says. “In the back alleys in DC, you see rats that look like cats racing from one building to another, running around at night. People don’t want to live with them.”

And they shouldn’t have to, Delozier says. Rodent control companies have made effective, safe bait under EPA’s existing stringent restrictions. EPA’s proposed measures will add great cost and will likely be prohibitive for many.

What Does This Mean for Farmers?

If this proposal is enacted, rodenticide users will see many new restrictions.

“The average livestock farmer wouldn’t be able to use them, you would have to go through certification and training in your state,” Formica explains. “If you’ve got a row crop or grain operation, a lot of folks have that certification because they spray pesticides. But most livestock farmers don’t have all those different certifications.”

Certifications would be required annually, which takes a lot of time, paperwork and training.

“If you don’t have that certification, you would need to hire exterminators to come out. That’s expensive and creates its own biosecurity problem because you’re having people come out not just to apply the rat poison, but also pick up the dead rats,” Formica says.

Pick up dead rats? Yes, that’s part of the new measures, too.

“The proposal talks about mandatory carcass searches in the field. That seems to be quite a challenge to expect a farmer or a farm worker to stop what they’re doing and search for rodent carcasses in potentially hundreds or thousands of acres,” Boatright says.

Once the rodent carcasses are found, farmers would be required to not just log them, but also pick them up and dispose of them.

Another limitation of these measures includes the requirement of single-use base stations, which would create a lot of garbage, Formica adds. The bait stations being used today are refillable.

What Will Happen if Rodent Bait Goes Off the Shelves?

“The more regulation you put on farmers, the more resistance you will have and that’s not conducive to the economic engine that is farming and food in the U.S.,” says Mike Slegl, vice president of product sales for QC Supply.

Farmers aren’t misusing product with the intent of controlling other things, Slegl adds. Some believe EPA is rushing to do this because of pressure from environmentalists for Endangered Species Act concerns.

“There is a potential major negative impact of an additional EPA regulation on the true sustainability of livestock production and the livelihood of farms,” Slegl says. “If it’s one more forced hand that overnight becomes more expensive to something they’re already doing, there’s going to be major resistance and people will push towards non-compliance.”

Delozier fears EPA’s rodenticide mitigation measures will ultimately increase the cost of goods to the consumer.

“Whenever we add requirements, there is always a cost that goes into the food system and will eventually cost the consumer more, too,” Delozier says. “Farmers are already using rodenticides that have to be EPA-approved.”

Darrin Karcher, a poultry specialist and associate professor at Purdue University, says it could be a double-edged sword.

“With the larger integrated companies, if they have to pay someone else to do it, they will pay someone because it has to be taken care of. Where it may catch are those individuals doing it themselves who may not have financial depths to pursue having other people take care of application,” Karcher says. “The question becomes, can they find a way to do that?”

An Increased Biosecurity Risk

And what if they can’t? Rodents present a major biosecurity risk for farms. With devastating diseases like Highly Pathogenic Avian Influenza (HPAI) in the poultry industry and the threat of deadly foreign animal diseases like African swine fever (ASF) in the pork industry, leaders fear how this could impact the health of the nation’s livestock herds.

“The restricted-use pesticide designation concerns me,” says Matthew Galloway, Midwest sales manager for ag rodenticides with Liphatech Inc. “For the broiler and breeder side of the poultry industry, there are hundreds of thousands of barns all over the U.S. One contract grower often has four or five barns and there may be several thousand barns within each company. If farmers don’t get their license, they will have to hire an outside applicator. Then you run into the risk of biosecurity breaches. We can’t have applicators running through multiple farms over a week’s time, otherwise we’ll really see a massive problem.”

It’s also a major problem if rodents get out of control because farms can’t afford the added cost.

“You can put all the filters you want on the ventilation systems in your barns and be as biosecure of a facility as possible, but if rats can get in and out, they will find a way. They aren’t showering,” Formica says.

What Can You Do?

Every 15 years, pesticides are reviewed by EPA. This rodenticide review is part of a pilot project for EPA as they’re implementing their Endangered Species Act work plan. These mitigation measures seek to achieve compliance with their statutory directives at EPA, following recent court cases directing EPA.

“We will see this approach in reviewing other pesticides as well. Folks need to be prepared to provide input,” he says.

This is a proposed interim decision, Boatright explains. EPA will take comments through Feb. 13 and review them. They will then promulgate a final rule at some point in the future.

“Make your voice heard,” Liphatech’s Galloway says. “We’ve got to do everything we can. Submit comments to EPA.”

Both NPPC and AFBF are gathering feedback and information from its members and will be submitting comments to EPA by the Feb. 13 deadline.

“Weigh in and let elected officials know you value these products. The best thing you can do is call your member of Congress. We’re just coming out of three years of COVID, and there are tremendous human health issues of taking rodenticides off the market,” NPPC’s Formica says.

Read more about the rodent problem.

USDA’s Latest Farm Income Data Looks Brighter Than Early 2024 Numbers

Thu, 05 Sep 2024 21:17:51 GMT

USDA–Economic Research Service (ERS) has released updated projections for 2024 farm income, and though it’s still anticipated to decline, the outlook doesn’t look quite as dim as it did earlier this year.

The new numbers show net cash farm income for the 2024 calendar year will fall $12 billion, which is about 7% down from 2023, and net farm income will fall $6.5 billion or 4.4%. This is compared to projections released in February of this year that suggested net farm income would fall 26%.

“There are a lot of factors going on here, but to me, the primary ones are that the revisions reflect expectations that animal and animal product cash receipts will increase while production expenses will fall,” says USDA–ERS economist Carrie Litkowski. “This is largely due to the incorporation of new data.

Litkowski shares the primary cause for the fall in 2024 farm income comes from commodity prices. Cash receipts or sales are expected to decrease by $27.7 billion. When combined with the inventory adjustment for crops, the value of crop production is forecast to decrease $25.6 billion from 2023. The largest decline comes from corn and soybeans, though wheat producers are expected to have a nearly 50% decline in average net cash farm income in 2024.

USDA ERS Row Crop Cash Receipt Projections 9-5-24

(USDA ERS)

But it’s not all bad news for crop farmers. Fertilizer expenses are expected to fall almost 10%.

Better News in Livestock
The outlook for livestock producers is more positive. Total animal and animal product recipes are expected to increase by $17.8 billion, or 7.1%, with the main driver coming from egg prices.

“Receipts for eggs are perhaps the biggest story here, in that they are forecast to see the largest increase in 2024 at 35%, or about $6 billion. Eggs alone account for a little more than half of the total increase in animal and animal product receipts,” Litkowski says. “Back in February, we did not anticipate that egg prices were going to increase as much as they have. That’s due to supply restraints we’re seeing due to the avian flu.”

Dairy farm businesses can expect to see the largest increase in average net farm income at 47.2%. Litkowski attributes this to higher milk receipts and lower expenses in 2024.

Farm businesses specializing in hogs are forecast to have an 11% increase but remain low relative to prior years. Beef farm businesses are projected at a 9.7% increase and poultry will see an 11.7% increase.

USDA ERS Livestock Cash Receipt Projections 9-5-24

(USDA ERS)

These operations should see big savings in feed as well, with an anticipated decline of 12%.

Geographic Breakdown
Looking at the data by region, six of USDA’s nine regions will see lower average net cash farm income. Farmers in the heartland states will be hit the hardest with a 23% decline.

Income increases are forecast for producers in the northern crescent and fruitful rim regions — between 1% and 4%. Litkowski says this is where many dairy farms are located and can be attributed to the expectations for higher dairy receipts and lower expenses.

“Regional performance of farm businesses can vary considerably due to the strong geographic concentration of certain production specialties or average farm size,” she explains. “Across all farm businesses, average net cash farm income is forecast to decrease 9% from 2023 to 2024 in nominal dollars.”

USDA ERS Farm Income By Region 9-5-24

(USDA ERS)

Household Income Remains Unchanged
Total farm household income is projected to increase 1.7% in 2024 to $99,683. However, when inflation is taken into consideration, Litkowski says she categorizes it as “relatively unchanged”.

“1.7% is less than the expected rate of inflation in 2024, so it’s really more like a decline of 0.7% in real dollars,” she explains.

The Big Picture
While this year’s income projections may have producers concerned about their bottom line, USDA–ERS stresses the importance of looking at the numbers with the past 20 years in mind.

“The farm sector balance sheet is projected to remain strong,” Litkowski says. “Net farm income fell 22% from 2022 to 2023, and in 2024 net farm income is forecast to fall nearly 7%. Even with these expected declines, both sectors in 2024 are forecast to remain above their 20-year-average.”

USDA ERS Farm Income 20-year Average 9-5-24

(USDA ERS)

Click here for the full report.

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Cargill Internal Memo Describes Structural Overhaul to Streamline Company

Fri, 09 Aug 2024 13:51:27 GMT

Global trading house Cargill will undergo structural changes after missing internal earnings goals, with plans to streamline operations into three units instead of five, according to an internal company document seen by Reuters and two company sources.

Agricultural merchants like privately held Cargill are facing challenges as prices of the commodity crops they trade approach four-year lows and crop processing margins have fallen.

“Our recent performance and the market trends unfolding in front of us have proven a clear and pressing case for change,” the memo sent to staff by Cargill CEO Brian Sikes on Wednesday read.

Beginning Sept. 1, Cargill will transform from five enterprises into three: Food, Ag & Trading and a Specialised Portfolio, the memo said.

A Cargill spokesperson said in a statement to Reuters the company has laid out a clear plan to evolve and strengthen its portfolio. The spokesperson gave no specifics.

Cargill’s competitors Archer-Daniels-Midland and Bunge Global recently missed Wall Street estimates for second-quarter earnings. Cargill does not publicly release quarterly earnings statements.

The memo said less than a third of Cargill’s businesses met their earnings goal in fiscal year 2024.

“We will reduce our costs and optimize our capital investments,” the memo said, promising to “streamline and simplify the organization.”

Jon Nash, currently head of Cargill’s protein and salt enterprise, will lead the new Food enterprise while Roger Watchorn, who is leading the agricultural supply chain, will become the head of Ag & Trading, the document showed.

David Webster will head the new Specialized Portfolio.

The new Food enterprise will combine Food & Bio and Protein & Salt teams, while Cargill Risk Management and Metals will be moving into the new Ag & Trading enterprise.

“At our core, we will always been a food and ag company. As such, these two enterprises are highly interconnected and will be supported by an independent operating system that builds our deep expertise, connections across the supply chain, and unique position at the heart of the global food system,” the memo read.

Specialised Portfolio will largely focus on Animal Nutrition & Health.

The U.S.-headquartered trading house has recently seen movement of senior executives.

Paul Ruston, Cargill’s metals trading lead, will leave the firm at the end of August and another Cargill veteran, Ross Hamou-Jennings, will retire at the end of this year as Asia-Pacific chair and enterprise leader for financial services and metals (FSM).

Julian Chase will also retire by late December from his role as head of Cargill’s Business Operations and Supply Chain, according to the memo.

(Reporting by Amy Lv and Naveen Thukral; Editing by Caroline Stauffer and David Gregorio)

It's Starting: Why Recent Processing Plant, Farm Closures Signal Major Consolidation is Now Underway for Pork and Poultry

Tue, 15 Aug 2023 19:03:18 GMT

Talk to any farmer who used to raise pigs, and they’ll more than likely tell you it all changed in 1998. That’s the year that draws memories of agony and financial pain for many. Hog margins bled red, and it spurred mass consolidation.

The reality today is margins for hog producers could be worse than 1998, and it’s spurring what some think could be a similar situation to 1998: more consolidation in pork and poultry.

Tyson Foods’ decision to shutter four poultry processing plants yet this year and into early 2024, combined with Smithfield Foods closing 35 pig farms, are strong signals consolidation is already occurring, according to ag economists.

“It has been decades since the last time we’ve seen these kinds of signs of consolidation, and that just tells you where the industry is today,” says Scott Brown, an extension livestock economist with the University of Missouri.

Of the four Tyson poultry processing sites that will soon close, two are located in Missouri. Those two plants alone result in the loss of nearly 2,200 jobs. Smithfield’s pig farm closures will cause the loss of 92 jobs.

Not only are rural communities grappling with the possible effects and job vacancies the announcements will leave, but producers are also forced to find a new home for their birds, with some poultry and livestock producers possibly forced to exit the industry all together.

“With the Tyson announcement, I think some growers will likely have their contracts will be bought out, and they’ll no longer be growing under contract for Tyson,” says Brown. “I think in other cases, and if you look at some of the information that’s the Tyson’s put out there, it seems like some growers are going to have the opportunity to be growers for other plants that are nearby to their facilities.”

Crumbling Margins for Pork and Poultry Producers

Whether it’s poultry or pork, economists say the decisions are being driven by economics today.

“If you look at recent USDA data, it would suggest margins to broiler production have fallen 60% from July of 2022, to July of 2023,” says Brown.

Pork producers are coping with similar economic headwinds, with pork margins crumbling as pork prices remain low and feed prices stay high.

Iowa State University’s Model for Profitability, which is shows farrow to finish operators in Iowa aren’t just losing money, forecasted 2023 margins look to be record-low.

“This is the worst annual year poor producers will ever have,” says Lee Shulz, an extension livestock economist with ISU who manages the Model for Profitability. “We always talked about 1998 as the worst year ever, but 2023, collectively, will be worse than in 1998.”

Iowa State’s data shows in 1998, the last time the industry saw mass consolidation, farrow to finish operators were losing $26.88 per head. This year, projections are those losses will hit $29.95 per head, more than $3 per head worse than 1998.

“And we’re going to piggyback that with the next year, with at least what we’re forecasting, is 2024 will be well below breakeven level,” Shulz says. “So, two consecutive years of large negative profits in pork production.”

The Expectation for Accelerated Consolidation

It’s pure economics that are producing such strong signals of consolidation, and possibly why announcements from major processing companies are already taking place. Economists warn that consolidation could not only continue, but only accelerate in the coming months.

“Packer owned hogs in the U.S. is up to 40% of the U.S. herd, and that’s a number that’s continued to increase,” says Shulz. “We could see increases in packer owned hogs, and if that continues, we’ll see consolidation with farms getting larger.”

Shulz says while last week’s announcements are a sign of consolidation, trouble started showing up in 2021 when Smithfield announced the closure of a 10,000 head a day pork processing facility in Virginia. Since then several more have closed, both in the U.S. and Canada.

“When you look at ongoing packing plant closures, both in the United States and Canada, it is a signal that we continue to see some contraction in the industry, as well as now we’re seeing some farm closures that that are obviously impacting inventory levels,” says Shulz. “And this is really potentially the start of it, as you look out the next year to 18 months, as I mentioned, with those rather negative returns in the industry.”

Lack of Labor

As structural changes accelerate, economists say labor is another pain point today for both pork and poultry.

“Lack of labor availability is not a new issue, but I think it continues to be a problem for the for the poultry industry of, ‘Do I have enough labor to run that plant as efficiently as possible?’ And I think in many cases, the answer is ‘no,’” says Brown.

Purchasing Power and Negative Impact on Demand

Labor availability is a major hurdle for processors, but so is the fact pork prices are low today.

“My data through June shows poor prices are down 5% compared to June of last year,” says Shulz. “But when we adjust for inflation, it’s even worse. Pork Prices are down 8% compared to the same time last year when you adjust for inflation.”

Even on a national level, the Bureau of Labor Statistics numbers shows retail pork and poultry prices are also lower than a year ago, a sign of inflation impacts on shoppers.

“We’ve had at least a 10% pullback in most of those categories, and particularly the chicken and the pork complex,” says Glynn Tonsor, a livestock economist with Kansas State University. “Why is that? It’s certainly not because costs of production have changed a lot. They’re still elevated, but consumer buying power has been squeezed.”

Tonsor tracks meat demand in a Monthly Meat Demand Monitor. He says the Monitor shows consumers still want to buy protein, they’re just not able to buy as much right now.

“The Meat Demand Monitor project, that’s Beef and Pork Checkoff funded here at K-State, continues to show strong interest in keeping meat protein in your diet. So that isn’t the narrative here. Rather, I think it is an issue with purchasing power,” Tonsor explains.

Shulz says consumer demand is driven by consumer incomes, prices of other protein substitutes, as well as taste and preference. Today, he says it’s the consumer income piece that’s faltering, which may be a product of the Covid-19 pandemic and the amount of money that poured into the U.S. economy.

“We really inflated consumer incomes during the pandemic,” says Shulz. “We pumped a ton of money into the economy, money supply increased roughly 40% in two years, consumers had a lot of money to spend and they spent it on protein, including pork, and they had a lot less things to spend it on during the pandemic.”

Now that incomes have tightened with no more pandemic related relief and assistance being sent out to Americans, as well as inflation and higher interest rates pinching their pockets, it’s impacting how much protein consumers can afford to buy.

“It’s not just pork, but when we look at pork, this is the third consecutive quarter that we’ve seen pork demand below year ago levels,” says Shulz. “And so while 2022 will really stood out as a very strong pork demand year, and really helped offset a lot of the higher costs we had, we’re starting to see that that pork demand decline.”

Tyson Foods’ CEO told Yahoo Financial during an interview last week, that this current period is one of the most challenging macro environments he’s ever seen in his four decade-long career.

Tyson Foods (TSN) stock slips after reporting an earnings miss, underperforming with

In an exclusive interview, Tyson Foods CEO Donnie King told Yahoo Finance that there has never been “a more challenging time” in his 40 years in the business. “The macro environment is challenging, and it’ll continue to be challenging for a bit,” King added.

What makes today more challenging than even during the COVID pandemic? Shulz says it’s actually tied back to the pandemic.

“You can think about this as just a really long tail on to that because you got to think about all the outside forces that are impacting pork producers,” says Shulz. “You have higher interest rates still inflation well above, you know, the 2% that the federal reserve benchmarks, you have employment issues, consumer incomes are obviously being impacted health of the general economy questions on if we will enter a recession, fiscal policy, monetary policy, they’re all impacting producers’ profits.”

Cell-Cultured Chicken Gains Final USDA Approval

Thu, 22 Jun 2023 17:06:00 GMT

USDA’s Food Safety and Inspection Service has given final approval to three California-based cultivated meat companies. USDA announced Wednesday it issued grants of inspection to Upside Foods, Good Meat and Good Meat’s manufacturing partner, Joinn Biologics. The companies may begin producing and selling lab-grown chicken.

Earlier this month USDA approved Good Meat’s and Upside Foods’ labels to include the term “cell-cultivated chicken” for packaging. Last fall the Food and Drug Administration declared a meat product developed by Upside to be safe for human consumption, paving the way for products derived from real animal cells, but that don’t require an animal to be slaughtered, to be sold in grocery stores and restaurants.

An FSIS spokesperson told Alt-Meat, a Meatingplace publication, “FSIS thoroughly reviews every application for a grant of inspection. Applications are approved following a rigorous process, which includes assessing a firm’s food safety system. After an establishment receives a grant of inspection, FSIS conducts inspection activities at the facility at least once per shift to verify the production of safe and properly labeled product.”

Upside plans for its products to be first available at a restaurant: Bar Crenn in San Francisco. Good Meat will also debut in restaurants, with acclaimed chef José Andrés ready to serve it at one of his dining rooms in Washington, D.C., according to the Washington Post.

While the products may appear on restaurant menus, it may be years before these companies are ready to supply products to regional grocery store chains that can compete on price with traditional animal agriculture products.

Egg Prices See Largest Monthly Drop in 72 Years, But Still Aren't Back to Normal

Tue, 13 Jun 2023 20:20:35 GMT

Egg prices have sent shoppers on a rollercoaster this year. May’s CPI shows inflation slowed, but food prices, housing prices and the cost of used vehicles are all attributing to current inflation.

The most sizable drop came with egg prices. The CPI shows egg prices now average $2.66 per dozen, which represents the following changes:

13.8% lower month-over-month
That represents the largest monthly decline since January 1951
Year-over-year, prices are only down 0.4%

Before shoppers get too excited, some historical perspective shows egg prices are still higher than average. A decade ago, egg prices were $1.91 per dozen. Even in 2020, egg prices were lower, averaging $1.51, which is more than $1 lower than what grocery shoppers are paying today.

While the sudden decline may seem like shoppers are getting a bargain, it’s similar to what drivers experience with gas prices. When prices for a gallon of gas go from $2 to $4, then come back down but only to $3, it feels like prices are much cheaper, when in reality, prices are still higher than they were before the rapid spike.

Why Did Egg Prices Spike Higher Earlier This Year?

According to economists, the rapid rise in egg prices was a function of supply and demand . In January, avian influenza caused U.S. egg producers to lose more than 50 million birds, many of those being commercial laying flocks. Couple that with high holiday demand for things like baking, and the two factors clashed to create higher prices at the store.

“We’ve had a significant reduction in supply from depopulation this spring and again in the fall and winter,” Lusk told AgWeb in January. “Couple that with inelastic demand for eggs, and you get the price spikes we’re seeing.”

Expensive Eggs Ate Into Bacon Demand

The CPI shows the price of bacon and related products fell 9.8% year-over-year. It’s also a 1.4% decline in a month. Prices may be on the decline, but one livestock economist thinks it’s possible the high egg prices also caused shoppers to buy less bacon.

During World Pork Expo last week, Steve Meyer of Partners for Production Agriculture, explained why he has a bleak outlook for the pork producers’ profits this year . One reason is demand. Meyer also explained it’s not just due to the 35% spike in input costs compared to 2019, but also lower hog prices.

Part of the problem is a decline in domestic demand, which is driven by wholesale demand, among four other factors. One of those four is the price of complementary goods, like eggs. As the rapid run-up in egg prices caused some shoppers to scale back on buying as many eggs for breakfast, that decision also hurt bacon demand and prices, as well.

The Real Winner of the 2023 Egg War

Higher egg prices did bode well for backyard flocks. More Americans decided to try their own hand at raising a backyard flock, and as a result, chicken suppliers like Tractor Supply cashed in.

According to Forbes, Tractor Supply , which is America’s largest seller of live poultry, could top the all-time record set in 2020. During the pandemic, more people had time at home, and Tractor Supply reportedly sold 11 million birds. This year, Tractor Supply’s foot traffic jumped 60%.

Tractor Supply also acquired Orscheln Farm and Home this year. The announcement came last fall, but the transition took place this year, adding more than 80 stores under the Tractor Supply brand. Last year, Tractor Supply’s CEO said the acquisition means Tractor Supply would now have more than 2,100 stores and 50,000 employees. The company also projected an excess of $14 billion in annual revenue.

Tyson Foods Plant Closure Raises Antitrust Concerns Among U.S. Farmers and Experts

Fri, 24 Mar 2023 15:10:08 GMT

Tyson Foods Inc gave its chicken suppliers two months’ notice of its plan to shut a Virginia processing plant in May, raising concerns among farmers and legal experts about the company’s compliance with antitrust regulations requiring it to give 90 days’ notice before ending a contract.

The planned closure of the plant has left dozens of Virginia chicken growers scrambling to find new buyers in a region with few other options. It could also expose Tyson to fines under the century-old Packers and Stockyards Act (PSA), the U.S. antitrust law requiring the minimum advance warning, according to Peter Carstensen, a professor of law emeritus at the University of Wisconsin-Madison Law School who previously served in the antitrust division at the U.S. Department of Justice.

Tyson told Reuters the company is not canceling any farmers’ contracts and instead has committed to paying the growers for the full-term of their remaining contracts, keeping in compliance with federal regulations.

Antitrust issues, particularly in meatpacking, have been a priority for the U.S. Department of Agriculture (USDA) under President Joe Biden, who in 2021 directed federal agencies to tackle consolidation. Four companies, including Tyson, control 55% to 85% of the beef, pork, and chicken markets.

Tyson alerted Virginia farmers by phone on March 13 and later by mail that it will shut its Glen Allen plant on May 12, according to three poultry farmers who supply the plant. The company said there are 55 farmers with 73 contracts who supply the plant with chickens raised for meat.

Tyson owns chickens it slaughters and pays the farmers to raise them. The company hatches baby birds and trucks them to farmers. The farmers then raise the birds for about six weeks, until they reach the size to be slaughtered and are trucked to the processing plant.

Tyson spokesperson Alicia Buffer confirmed farmers received notice last week of the May 12 closing, and said Tyson intends to stop supplying them with chicks after March 28.

She said that instead of canceling their contracts, Tyson is offering farmers a voluntary buyout package, or the option to retain them and be paid through their duration.

The three farmers interviewed by Reuters have between three and 10 years left on their contracts.

Farmers told Reuters they felt pressure to accept the buyout option because they were not sure how the contract could remain in force after the plant is shut and the chicks stop coming.

Roger Reynolds, a farmer in Crewe, Virginia, said retaining his July 2012 contract with Tyson is not a viable option, in part because it would prevent him from selling to another poultry company if one entered the region.

Another farmer with a contract to supply the plant, who asked not to be named, said they may eventually have to sell their third-generation farm as the buyout offer would not cover long-term expenses like property taxes.

Carstensen, of the University of Wisconsin-Madison Law School, said it was unclear if Tyson’s approach would absolve it of its requirement to provide farmers 90 days’ notice before ending a purchase contract, because closing the plant means it won’t be processing chickens there anymore.

PSA violations can carry a $29,270 fine, according to the USDA website, and Carstensen said fines could apply for each contract.

The USDA, which enforces the PSA, told Reuters it is “closely monitoring” Tyson’s planned plant closure.

‘WE’RE DONE’

Under normal circumstances, Tyson supplies farmers with chicks, while farmers assume the costs of land and chicken houses.

Documents reviewed by Reuters show the company’s proposed buyout package offers payment to farmers based on their average payment per flock in 2022.

They also show that farmers opting to retain existing contracts instead of accepting the buyout would have to meet Tyson’s contractual requirements for their facilities even after the company stops providing chicks.

Tyson said those growers would have to perform “routine and preventive maintenance” to meet contract requirements and called the options generous.

Farmers must choose between the options by the end of March, according to the document.

On Monday, about 20 Tyson farmers and local government officials gathered in a fire station in Burkeville, Virginia, and raised concerns about Tyson’s short timeline for closure of the plant, attendees said.

Taylor Lee, a farmer in DeWitt, Virginia, who attended the meeting, said he built two new chicken houses in 2017 and raised about 400,000 birds annually for Tyson, and is unclear what will happen to his investment.

“When we’re done growing chickens (for Tyson), we’re done, unless somebody else steps in,” Lee said.

The nearest chicken plants to Glen Allen are 100 to 150 miles away, outside the ideal radius of 60 miles, said Hobey Bauhan, Virginia Poultry Federation president. Longer distances hike transportation costs and health risks to chickens.

(Reporting by Leah Douglas in Washington and Tom Polansek in Chicago; editing by Richard Valdmanis and Nick Zieminski)

5 Crop and Livestock Charts to Ponder from USDA’s 10-Year Outlook

Wed, 15 Feb 2023 21:49:34 GMT

What will the next decade hold for your farm? What factors should you use to weigh investments or crop planning?

Each year USDA provides a 10-year outlook for major crop and livestock commodities. Known as the Agricultural Baseline Projections , this report guides agricultural investments in Washington, D.C., and is helpful for farmers as it shines a light on current and future trends.

The latest baselined is built on the years 2023/24 to 2032/33. Here are five trends and data sets to ponder.

U.S. Crop Acres Stay Steady

High commodity prices typically expand total planted acres for the eight major field crops (barley, corn, cotton, oats, rice, sorghum, soybeans, and wheat). But total acres dipped to 249.5 million in 2022/23 from 253.4 million in 2021/22 largely because weather prevented plantings last crop season.

Did You Know? Corn, soybeans, wheat and upland cotton comprised more than 94% of the eight-crop total in 2022/23.

For 2023/24, USDA projects corn acres to rise by 3.4 million to 92 million. In a decade, USDA predicts corn acres to taper down to 89 million.

For soybeans, acres this year are projected at 87 million. By 2023/24, soybean acres are projected to be 86.5 million.

For wheat, acres are projected to jump 4% and hit 47.5 million this year. In the next decade, USDA projects wheat acres to decline to 46 million.

Cotton acres are expected to drop to 9.5 million in 2023/24, down from 13.6 million in 2022/23 (and among the lowest since 1960).

Higher yields are expected to more than compensate for reduced planted acreage, resulting in record-high production for corn and soybeans and increased wheat production.

The national average corn yield is projected at 181.5 bu. per acre in 2023/24, up from 171.9 bu. in 2022/23, when drought zapped yields.

Did You Know? USDA projects the national average corn yield to hit just under 200 bu. by 2032/33.

Soybean yields are expected to recover from a four-year low of 49.8 bu. per acre in 2022/23. For this season, soybean yields are expected to average 52 bu. per acre and hit 56.5 bu. by 2032/33.

Wheat yields are expected to return to more typical levels this year — 49.2 bu. per acre, and to continue rising through the projection period, ending at 52.7 bushels per acre in 2032/33.

Domestic and International Crop Demand Are Expected to Grow

In the next decade, domestic demand for corn, soybeans, wheat, and cotton are all expected to grow over the next decade. Also, exports of the four crops are expected to increase over the next decade, reaching record highs for upland cotton and near record levels for corn and soybeans.

Corn:

Driven by growth in pork, chicken and beef sectors, domestic corn use is expected to grow from 12.5 billion bushels in 2023/24 to 13.4 billion bushels by 2032/33. Use of corn for food, seed and in industrial applications, including ethanol, is projected to decline slightly over the same period.
U.S. corn exports are expected to rise nearly 20% from 2023/24 to 2032/33, ending at 2.7 billion bushels, which would be the second-highest corn export volume on record.

Soybeans

Soybean crush is expected to rise from 2.3 billion bushels in 2023/24 to 2.5 billion bushels in 2032/33.
Soybean exports are expected to rise 8% over the projection period.

Wheat

Domestic use of wheat is projected to remain relatively steady, rising 2.4% through 2032/33.
U.S. wheat exports are projected to jump 15% in the next decade.

Crop Prices Go Down, then Stabilize

After hitting near-record highs last year, corn, soybean and wheat prices are all expected to decline in the short term.

Corn prices are expected to drift down to $5.70 per bushel this year and continue drifting down before stabilizing at $4.30.

Soybean prices follow a similar trend, falling to $13 a bushel this year and continue dropping until prices stabilize at around $10.30 per bushel.

Wheat prices are expected to drop from a record $9.20 a bushel in 2022/23 to $8 in 2023/24. By 2032/33, prices are projected to settle near $5.70 per bushel.

Livestock Production Set to Expand

Beef production is projected to grow through 2032, after contracting in 2023 and 2024. Commercial slaughter volumes and weights are expected to increase, expanding production to record levels by 2032. Beginning at 26 billion pounds in 2024, production is estimated to grow to 28.1 billion pounds in 2032.

Pork production is also projected to increase over the 10-year projection period, driven by rising hog inventories as producers increase supply to meet processor demand. Total commercial production of pork is projected to grow from 27.6 billion pounds in 2024 to a record 30.9 billion pounds in 2032 — a 12% increase.

Chicken production is expected to follow a similar pattern, growing 10% over the projection period to a record 52 billion pounds in 2032.

Did You Know? The U.S. sends a surplus of higher value cuts of feedlot-finished beef to Europe and Asia and imports lower value lean beef to supplement the domestic production of ground beef.

A Mixed Bag for Livestock Prices

In the near term, farm prices for all animals and animal products are projected to fall from recent record or near-record levels set in 2022.

Cattle: After an initial decline, cattle prices are expected to rise steadily after 2026.
Pork: Hog prices are expected to decline through most of the projection period, with the farm price for hogs in 2032 almost 5% lower than in 2024.
Chicken: By the end of the projection period, chicken prices are expected to approach record levels, with farm prices for broilers (young chickens) rising 19%.

Why Have Egg Prices Spiked 60% Since Last Year?

Thu, 12 Jan 2023 19:37:54 GMT

The Labor Department’s latest Consumer Price Index (CPI) showed annual inflation cooled in December, with food prices up 0.3%. And while some food costs are showing signs of improvement, the cost of staple ingredients like eggs, are seeing high price spikes year-over-year.

The consumer price index, which measures the cost of a wide array of goods and services, declined 0.1% month over month. The latest data beat forecasts, thanks to a drop in gasoline prices that offset other cost increases.

The annual inflation rate in the U.S. cooled for a sixth straight month to 6.5% in December. Farm Journal Washington Correspondent Jim Wiesemeyer points out that’s the lowest since October of 2021.

Looking at just food prices, that segment increased 0.3% in December. While goods like bacon, ham and beef saw year-over-year declines, items like eggs showed sticker shock. The CPI showed year-over-year:

Egg prices are up 60% year-over-year
Combined dairy product prices are up 15%
Butter climbed 31%
Margarine is 44% higher
Canned vegetables increased 17%
Lettuce climbed 25%
Flour is 23% higher

Americans aren’t getting much relief from inflation at the grocery store.

Eggs 🍳 60% 🔺(YoY) ❗️

Butter 🧈 31%

Lettuce 🥬 25%

Flour 🌾23%

Hot dogs 🌭 18%

Coffee ☕️ 16%

Ice cream 🍨 15%

Chicken 🍗 11% pic.twitter.com/H6mKQ9Swfk
— David L. Ortega (@dlortega) January 12, 2023

If you’ve been to the store lately, the price of eggs may have shocked you. So, why the big jump in the price you’re now paying for eggs? Jayson Lusk , head of the Department of Agricultural Economics at Purdue University, says the answer is simple: highly pathogenic avian influenza (HPAI), otherwise known as bird flu.

“We’ve had a significant reduction in supply from depopulation this spring and again in the fall and winter,” Lusk told Farm Journal. “Couple that with inelastic demand for eggs, and you get the price spikes we’re seeing.”

Lusk says higher feed and energy costs don’t help the equation either, but he says the impact avian flu had on our nation’s laying flock is significant.

“If I take the total number of egg laying hens that were hit by bird flu in 2022, it’s about 11% of the total 2021 inventory numbers,” says Lusk. “Of course some producers have been able to expand a bit as others have been hit, so overall production is running about 6% to 7% lower than last year.”

USDA says U.S. egg inventories were 29% lower in the final week of December 2022 when compared to the beginning of the year. And the agency says 43 million egg-laying hens were impacted by the disease since the start of the outbreak in February 2022. Those losses were either from birds being directly hit with the disease, or producers forced to depopulate to get the disease under control.

“Losses were spread across two waves: from February to June (30.7 million hens) and from September to December (12.6 million hens),” USDA reports. " On constrained supplies, wholesale egg prices (the prices retailers pay to producers) were elevated throughout the year. The HPAI recurrences in the fall further constrained egg inventories that had not recovered from the spring wave.”

USDA points out the latest wave occurred as holiday season demand stemming from more baking picked up.

“The average shell-egg price was 267 percent higher during the week leading up to Christmas than at the beginning of the year and 210 percent higher than the same time a year earlier,” says USDA.

USDA does expect wholesale egg prices to decline. USDA says during the last week of 2022, as flocks started to recovery, wholesale egg prices started to fall.

There was some good news in the month-to-month comparison in food prices. Eggs jumped 11% from November to December, but poultry prices dropped 0.6%. Milk prices declined 0.1%. The price shoppers paid for oranges dropped 7%. Ham prices declined 6%.

Overall, food at home prices are up 10.4% year over year, but 0.3% from November to December. Food away from home, which includes eating out at restaurants, is up 8.3% in a year and 0.4% when compared to a month earlier.

Vilsack Lists USDA's 4 Policy Objectives for 2023

Wed, 11 Jan 2023 14:16:20 GMT

USDA Secretary Tom Vilsack has a history of making key announcements during visits, and that was the case during his appearance at the American Farm Bureau Federation’s annual meeting in Puerto Rico.

Some of them include:

1. ERP Phase 2

Vilsack announced Phase 2 of the ERP, which will provide help to producers for production and quality losses of eligible crops, utilizing calculations of a producer’s decrease in gross revenue.

Those were about to be released months ago but were pulled back at the last minute due to lawmaker and farmer complaints. USDA eventually announced anyway.

USDA said in documentation on file at the Federal Register that using that approach will reflect the losses “without requiring the more extensive calculations and documentation required under previous programs” for disaster-related crop losses. USDA said this streamlines the aid to minimize the burden on producers and processing of applications by county FSA offices. Using that process also means it will address losses for a qualifying disaster event whether it happened before or after harvest.

ERP Phase 2 will be available for a decrease in gross revenue in 2020 or 2021, primarily to those with losses not covered by Federal Crop Insurance or the Noninsured Assistance Program (NAP).

The application period is Jan. 23-June 2. USDA has already paid out $7.31 billion under ERP Phase 1 as of Jan. 8, up from $7.28 billion the prior week, including $6.23 billion for non-specialty crops ($6.21 billion prior) and $1.09 billion for specialty crops ($1.08 billion prior). A total of $10 billion was earmarked for ERP.

USDA projects outlays for ERP Phase 2 payments will be $1.2 billion and will likely be pro-rated as USDA projects total gross outlays at $1.5 billion.

Phase 2 Reflection

Phase I was highly successful and it worked well. Phase 2 has tons of problems. Comparing schedule F in relevant years to past years doesn’t reflect losses. A farmer may have had to sell land or livestock when they didn’t want to. They may have sold a previous year’s crop in the year in question. These and other things skew the schedule F. There is also the issue of forcing farmers to share schedule F info with local FSA offices.

2. Pandemic Assistance Revenue Program (PARP)

Vilsack announced PARP payments for producers that suffered a 15% or greater decrease in allowable gross revenue for the 2020 calendar year compared with either 2018 or 2019. This effort, Vilsack said, aims to “fill in gaps” for losses covered by either Phase 1 or Phase 2 of ERP.

The payments will have a factor of 80% (90% for underserved farmers and ranchers) and will be reduced by 2020 ERP payments, and pandemic assistance under either the Coronavirus Food Assistance Program (CFAP) 1 or 2 and other pandemic aid.

Payments will be limited to $125,000 per person or entity and USDA may set a lower maximum payment amount per person if total payments exceed available funding and USDA expects that to be the case — PARP outlays are projected at $250 million with gross outlays pegged at $2.66 billion.

USDA also will expand payments under prior efforts such as CFAP 2 and others. The total payments USDA projects under the ERP Phase 2, PARP and expanded other programs is $1.82 billion with gross amounts at $4.54 billion.

3. U.S.-Made Fertilizer

USDA will seek public comment on 21 potentially viable projects totaling up to $88 million to boost U.S. fertilizer production via the first round of USDA’s Federal Production Expansion Program, a $500 million effort announced earlier this year.

The projects are in Alabama, Arizona, Colorado, Florida, Iowa, Louisiana, Massachusetts, Minnesota, Missouri, Montana, Ohio, Oregon, Texas, Washington, and Wisconsin. USDA is seeking comments through Feb. 8 on the environmental impacts of the projects.

4. Meat and Poultry Processing

Vilsack announced three projects in Ohio, Michigan and Minnesota which will expand independent meat and poultry processing capacity via the Meat and Poultry Processing Expansion Program.

The projects total $12 million and are in addition to other recently announced efforts in the sector.

More on policy:

We Have ERP Phase II
Policy and Payments: What Producers Can Expect in 2023

French Insect-Based Ingredients Maker Ynsect Expands in North America

Tue, 13 Dec 2022 19:36:54 GMT

French company Ynsect said on Tuesday it had signed deals to build insect ingredient production sites in the United States and in Mexico as the firm kicks off what it says will be the world’s largest insect farm.

Ynsect breeds mealworms that produce proteins for aquaculture, livestock, pet food, fertilizers and human nutrition.

The company signed the U.S. agreement with flour milling company Ardent Mills to build a factory next to one of its U.S. MidWest sites - yet to be determined - by the end of 2023.

The two new sites will cost at least 100 million euros ($106.57 million) each and output should eventually rise to about 200,000 tonnes of insect-based ingredients per year, Ynsect CEO Antoine Hubert told Reuters.

Ardent Mills, a joint venture between ConAgra Foods, Cargill Inc CARG.UL and CHS Inc, would supply milling by-products to feed the insects.

In Mexico, Ynsect teamed up with food and general services provider Corporativo Kosmos. The factory would be located near Mexico City and export to the U.S. market.

“The U.S. market is strategic for us, it is the first market in the world for pet food, pork and poultry feed, fertilizers and on sports and human nutrition they largely stand out,” said Hubert.

Ynsect entered the U.S. market in late 2021 through a deal with Pure Simple to supply premium food for dogs. In March it purchased mealworm producer Jord Producers, allowing it to enter the fast-growing backyard chicken feed sector.

The company is discussing about 10 other deals in Europe, the Middle East and Asia and expects additional agreements next year.

“In 2023 we estimate that we should have additional financing for Ynsect because today we don’t have the means to finance new projects,” Hubert said.

Ynsect built what it says will be the world’s largest vertical farm in Amiens, northern France, which started earlier this year.

Ynsect has so far raised about $450 million, mainly used to build its giga-farm in Amiens and for its recent acquisitions, which also include the takeover of Dutch firm Protifarm last year.

It is considering a stock market listing in appropriate conditions.

“It would make a lot of sense on many aspects including reinforcing our credibility towards other industrial partners,” Hubert said.

($1 = 0.9384 euros)

(Reporting by Sybille de La Hamaide; Editing by Josie Kao)

Are Diets Based on Plants or Meats Better for Kids?

Thu, 05 May 2022 13:58:59 GMT

Did your parents pack your lunch in middle school? I recall a classmate who led a vegetarian diet, while I ate school lunch. We held a daily barter—her fruit rollup for my fresh bread roll. Despite our tastebuds, are diets based on meat or plants better for kids?

Researchers at St. Michael’s Hospital of Unity Health in Toronto, Canada recently published a study of 9,000 children—aged 6 months to 8 years—showing kids who eat a vegetarian diet had similar measures of growth and nutrition compared to children who consume meat.

The TARGet Kids! study showed children who consumed meat maintained similar body mass index (BMI), vitamin D, iron, height and cholesterol levels when compared to vegetarian participants.

However, the study found children with a vegetarian diet had higher odds (1.87% increase) of being underweight compared to children who consumed meat.

According to Cleveland Clinic Pediatric Registered Dietitian Jennifer Hyland, children qualify as underweight if they’re in the bottom 5th percentile for weight compared to their height. She says children of the same age are compared on a height and weight basis to determine whether one child is proportionately underweight compared to another.

“This study demonstrates that Canadian children following vegetarian diets had similar growth and biochemical measures of nutrition compared to children consuming non-vegetarian diets,” says Dr. Jonathon Maguire, pediatrician and lead author of the study. “Vegetarian diet was associated with higher odds of underweight weight status, underscoring the need for careful dietary planning for children with underweight when considering vegetarian diets.”

TARGet Kids! suffered one limitation—researchers didn’t assess the quality of the vegetarian diets consumed by each child. Maguire acknowledges vegetarian diets come in different forms, yielding various growth and nutritional outcomes.

Maguire believes vegetarian diets appear to be “appropriate” among most children, but says further research is needed in vegetarian—as well as vegan—diets to quantify growth and nutrition outcomes.

More on dairy and meat:

> Nutrition Research Improves Public Perception of Beef
> 22 Reasons to Keep Dairy in Your Diet for 2022
> Dan Murphy: Doctor’s Orders - Eat Meat!

Avian Flu Pressures Easter Egg Supply and Price

Fri, 01 Apr 2022 18:40:52 GMT

Easter egg supplies could be at risk due to the expanding outbreak of Highly Pathogenic Avian Influenza (HPAI). Analysts with CoBank are saying outbreaks and depopulation within the U.S. layer flock are adding stress to egg supply chains, many of which haven’t fully recovered from the disruptions caused by COVID.

While egg production has stabilized in recent months, it is still well below pre-pandemic levels and egg availability could be limited leading into Easter, according to a new research brief from CoBank’s Knowledge Exchange .

“U.S. egg producers have been hard-pressed to align supplies with market demand over the last two years,” reports Brian Earnest, lead animal protein economist with CoBank. “The U.S. layer flock typically expands ahead of the surge in demand for Easter and contracts during the summer months. But recent losses due to HPAI have combined with high feed costs and other challenges that are severely limiting flock size management.”

Watch this report from AgDay:

The U.S. table egg layer flock itself is shrinking, from a record of more than 340 million head in April 2019 to about 322 million head as the ongoing cage-free transition has complicated operations. The decline in supply stems from extreme shifts in consumer behavior during 2020.

The lack of packaging equipment and supplies needed for grocery sales led to empty store shelves, sky-high retail prices, and ultimately, lower egg consumption. Compounding the pandemic challenges, producers also faced increased input costs of grain, energy and transportation.

The latest blow to U.S. egg supplies is the worst outbreak of HPAI in years. At least 11 million layers have been lost in recent weeks, CoBank reports. With USDA reporting new cases almost daily and depopulation of operations ranging from in the tens of thousands to more than 5.3 million birds,1 estimating the total expected losses is challenging.

While egg production has stabilized in recent months, it is still well below pre-Covid levels. USDA’s recent weekly shell egg demand indicator shows about five days of inventory are currently on hand. This suggests a tight, but not alarmingly tight supply, CoBank reports. However, it does not appear that supplies will be able to accommodate the reduction in layers as a result of HPAI outbreaks, especially at a regional level.

Wholesale prices for cartoned eggs usually range about $0.75 per dozen to $1.50 per dozen. The last time the egg market took flight was during consumer runs on product in the early stages of COVID-19. In March 2020, wholesale values were just over $1 per dozen, and went over $3.00 per dozen in just two weeks.

The bottom line: Expect to pay more for eggs this Easter.

Second Mistrial In Poultry Price-Fixing Case

Thu, 31 Mar 2022 19:37:42 GMT

The U.S. Justice Department has tried and failed twice in its efforts to prove price-fixing among chicken industry executives.

A federal judge in Denver has declared a second mistrial after a jury deadlocked over whether 10 chicken company executives had conspired to fix prices. The first trial ended in December 2021.

U.S. District Judge Philip Brimmer ended the case on March 29 after jurors said they were unable to reach a verdict after four days of deliberations. The 10 executives had worked for Pilgrim’s Pride Corp., Perdue Farms LLC, Claxton Poultry, Tyson Foods Inc., Koch Foods Inc., Case Farms and George’s Inc.

The DOJ alleged the executives engaged “…in a continuing combination and conspiracy to suppress and eliminate competition by rigging bids and fixing prices and other price-related terms for broiler chicken products sold in the United States.”

Should the government seek a third trial as they have indicated, Judge Brimmer is demanding an explanation from the head of the DOJ’s Antitrust Division, Assistant Attorney General Jonathan Kanter.

“I am going to order that the head of the antitrust division come in here within the next week and look me in the eye and explain to me why the government is going to retry this case,” Brimmer said Tuesday according to a Bloomberg report.

“If the government thinks that the 10 defendants and their attorneys and my staff and another group of jurors should spend six weeks retrying this case after the government has failed in two attempts to convict even one defendant, then certainly Mr. Kanter has the time to come to Denver and explain to me why the Department of Justice thinks that that is an appropriate thing to do,” Brimmer said.

The DOJ had alleged an eight-year conspiracy to fix prices, but the two mistrials suggest the difficulty in government efforts to police competition in food markets. The men had faced up to 10 years in prison and $1 million fines if convicted.

Jurors in both trials heard from Robert Bryant, a longtime Pilgrim’s Pride employee who’s currently on leave. As the government’s star witness, Bryant testified an industry-wide agreement existed to share price and bid information to inflate profits or limit losses, depending on the market.

Undermining Bryant’s testimony was the fact he appeared under grant of immunity from prosecution as he admitted that he had lied to the FBI “multiple times” on matters unrelated to the price-fixing probe.

Another prosecution witness was Tyson sales manager Carl Pepper, who told jurors about coordinating prices among the competitors.

Lawyers for the defendants argued that both men had lied to avoid prison. The defense argued that it’s not illegal simply to share pricing information and that the government can’t prove that the defendants all agreed to participate in a single, overarching conspiracy.

Related stories:

Judge Declares Mistrial In Chicken Antitrust Case

Is the Food Supply Chain Actually Breaking?

Thu, 28 Oct 2021 19:17:59 GMT

Tyson Foods bought a full-page advertisement in the New York Times on Sunday. The overriding message by Tyson Foods board chairman John Tyson: “the food supply chain is breaking.”

The ad sparked a nationwide question: Is the food supply chain actually breaking?

“I have a little different view,” says Jayson Lusk, a Purdue University agricultural economist. “I think by and large, throughout this crisis, the food supply chain has responded remarkably well. Yes, we had a short period for some grocery store shelves were empty, but by and large, food was available. It might have been a different variety or different brand than you’re accustomed to buy. But the foods system responded remarkably well to a completely unexpected and unprecedented event. We certainly have some very serious challenges coming up in the meat sector, but that doesn’t mean the entire system is broken.”

Lusk says while the chain may not be broken, there is a severe strain on it, especially when it comes to moving animals through processing plants.

“Wholesale meat prices are increasing for beef,” Lusk says. “Choice box beef prices are as high as we’ve seen in a couple of decades. At least for pork, we’ve seen dramatic increases, but we’re actually still below where we were last year. Pork prices are a reflection of scarcity. So, I think there’s cause for some optimism, but I think you have to be realistic and say the system is under some very severe strain at the moment.”

Lusk says as processing protein becomes under even more stress, he thinks the next week or two will be “touch and go” when it comes to the food supply chain.

As pork and beef packing plants either close or slow, President Donald Trump took action this week to keep packing plants open. However, some economists say that action may be only a piece of the overall solution needed right now.

“It may be part of the fix in the sense that we need to get resources directed to packing plants and this critical infrastructure to maintain continuity within this this supply chain,” says Lee Schulz, economist at Iowa State University.

Schulz says any action that moves the industry in the right direction could address the immediate need to process pork and beef. However, he says order a packing plant to stay open is one thing, and ordering the packing plant to operate is a separate issue.

“We can’t necessarily make those workers work, but if they are available to do work,” he adds. “I think the more attention and the more resources that we can get to help resolve the situation in the form of safety measures, in the form of testing, will allow us to potentially move to getting these packing plants either back on line or getting up to capacity level that allows us to move or hogs through this.”

Packing Plant Bottleneck

Both economists say the packing plant closures are a serious strain on the supply chain and could reveal just how much of a bottleneck there is in the processing sector.

“In good times, these large packing plants serve us well,” Lusk says. “They efficiently process animals, provide affordable meat to food consumers, but when you have 60% of all hogs going through the top 15 plants or 60% of all cattle go into the top 10 plants, that gets to be a real choke point when you start getting a one, two, three or four, these shut down. And that’s what we’re sort of seeing now.”

With some meatpacking plants temporarily shutting down due to #COVID19, how will it affect our food supply?@JaysonLusk, department head of @PurdueAgEcon, and Candace Croney, director of @pucvm's Center for Animal Welfare Science, discuss the impacts. https://t.co/TvH38uRuP9 pic.twitter.com/cZcJId9LZs
— Purdue Agriculture (@PurdueAg) April 28, 2020

That is the critical bottleneck that right now, Schulz says. “We have a monumental challenge of getting hogs off the farm and into the packing plants at the moment.”

Schulz says the packing plant portion of the food chain isn’t the only bottleneck occurring. He says there are other ramification up and down the supply chain, which were sparked by COVID-19. However, if packing plants don’t ramp back up production quickly, pork could be in short supply at stores soon.

“We are working potentially towards a shortage,” Schulz says. “I’d like to call it more of an availability issue.”

He says the issue isn’t a shortage, because there is pork. In fact, he still expects pork production to be up overall in 2020.

The challenge is getting that livestock into a consumable product.

“I think it’s important we have pork at the grocery store, but it just might not be currently in the form or products that consumers are used to buying,” Schulz says. “So it may be in larger packages. There may be certain cuts that aren’t available. Prices have increased, but there isn’t a shortage. Now the longer this lasts, we could move into some of that territory where we do see potential shortages in some particular places.”

Lusk thinks it’s not just product that looks differently in stores post COVID-19. He thinks the shopping experience may also change.

“We may have grocery stores that look a little different five or 10 years from now and more focused on meat and fresh fruits and vegetables,” he says. “We may have more of our packaged products coming direct to our homes. These things tend to be pretty gradual, but this event shook hings up in a hurry and we may get those changes faster than we anticipated.

Lusk says with all the strain and stress, it’s also opened up consumers eyes to just how much the food system is reliant upon a solid supply chain.

“It’s opened our eyes to how much we depend on farmers and on a well-functioning food supply chain,” Lusk says. “That includes on those processors in the middle, in how much we count on the fact that we’re well-fed. We’ve just taken food security for granted. And hopefully people will come away from this with a greater appreciation of just how intricate and how much work goes into supplying a bountiful and secure supply of food. “

Where Are Easter Eggs Produced?

Wed, 11 Nov 2020 06:15:28 GMT

This week, kids across the country will be delighted to hunt for eggs that they colored and left to be hidden by the Eastern bunny.

Lucky for consumers, egg prices did not experience a seasonal bump, according to American Farm Bureau Federation economists. Instead, an increase in the supply of eggs has placed downward pressure on retail prices.

“At 79 cents per dozen, retail egg prices showed a moderate price decline two weeks prior to Easter, rather than the normal seasonal bump,” explained AFBF Economist Michael Nepveux. In March, wholesale large egg prices averaged 93 cents per dozen, a 56 percent decline compared to a year ago.

Where were those eggs produced? According to the 2017 Census, these five states are home to the most laying hens in the country: Iowa, Ohio, Indiana, Pennsylvania and Texas. Check out the map below. Hover over each state to see how many hens are laying eggs in that state.

New Suspect in $100K Chicken Heist May Be Linked to $400K Meat Theft

A second suspect has been arrested in connection with the theft of a tractor-trailer containing approximately $100,000 worth of poultry products. Police say he’s also a suspect in a separate $400,000 meat theft.

Jorge Lyen Blanco-Diaz, a 38-year-old man from Hialeah, Fla., was arrested Monday on charges including grand theft of cargo, grand theft of a vehicle and unlawful use of a communications device, records show, NBC Miami reports.

A second man, 49-year-old Raul Bello, was arrested earlier in October on the same charges in connection with the chicken theft that occurred on Sept. 15 when a tractor-trailer was stolen near the driver’s home in Miami.

The truck driver said he’d been alerted by his sister that the truck, worth $60,000, and trailer, worth $80,000, were gone. In addition, $100,000 worth of assorted frozen poultry was inside the trailer, too.

Cameras caught the tractor-trailer heading twice being followed by a white Nissan NV200 van, the report said. Police tracked down the van and began surveillance. They discovered Bello driving the van, the article said.

Cell phone information showed Bello in the area of the tractor-trailer theft. The information also showed he had communicated with a number associated with a co-defendant in the tractor trailer theft, NBC Miami reports.

Co-defendant Blanco-Diaz was already on house arrest with a GPS ankle monitor related to two other cases. Ankle monitor data showed Blanco-Diaz was at the theft location the date of the crime before and during the time the truck and trailer were stolen.

Blanco-Diaz, identified as being part of a major theft organization and suspect in another cargo theft case from September 2023 involving a truck and semi-trailer loaded with assorted meat products worth around $400,000, was taken into custody.

Bello, who is on probation until November 2030 in a case involving burglary, assault and possession of illegal weapons, was taken into custody when he drove the Nissan van to the Florida Department of Corrections Probation and Parole Services Office, NBC Miami reports.

Both men were booked into jail. Attorney information wasn’t available.

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