Livestock analyst Jim Wyckoff experiences on protein information from across the globe
19 July 2024
14 minute learn
China to probe EU pork for anti-dumping
China has put three firms from the European Union on the middle of its anti-dumping investigation into pork merchandise from the bloc. Beijing has chosen Danish Crown A/S, Vion Boxtel BV, and Litera Meat S.L.U. — the highest three exporters of pork merchandise within the area to China — to find out if dumping has occurred and assess the harm to the home sector, the commerce ministry stated. The investigation, which started June 17, will look into pork and its by-products imported from the EU after the bloc determined to impose anti-subsidy duties on Chinese language electrical autos.
China’s June pork imports proceed to lag
China imported 90,000 MT of pork in June, up 12.5% from Might however 33.5% lower than final 12 months. By way of the primary half of 2024, China’s pork imports totaled 520,000 MT, down 45.3% from the identical interval final 12 months.
Weekly USDA US beef, pork export gross sales
Beef: Internet US gross sales of 15,400 MT for 2024 have been up 85 % from the earlier week and 11 % from the prior 4-week common. Will increase have been primarily for China (4,700 MT, together with decreases of 100 MT), Mexico (2,700 MT, together with decreases of 900 MT), Japan (2,700 MT, together with decreases of 500 MT), South Korea (1,300 MT, together with decreases of 500 MT), and Indonesia (1,200 MT). Whole web gross sales of 100 MT for 2025 have been for South Korea. Exports of 15,600 MT have been up 9 % from the earlier week, however down 2 % from the prior 4-week common. The locations have been primarily to South Korea (4,100 MT), Japan (3,700 MT), China (2,300 MT), Taiwan (1,400 MT), and Mexico (1,400 MT).
Pork: Internet US gross sales of 23,700 MT for 2024 have been down 11 % from the earlier week and 35 % from the prior 4-week common. Will increase have been primarily for Mexico (8,500 MT, together with decreases of 600 MT), Japan (3,000 MT, together with decreases of 300 MT), China (2,800 MT, together with decreases of 100 MT), Colombia (2,100 MT, together with decreases of 100 MT), and South Korea (1,900 MT, together with decreases of 200 MT). Exports of 31,900 MT have been down 2 % from the earlier week, however up 7 % from the prior 4-week common. The locations have been primarily to Mexico (14,100 MT), Japan (4,600 MT), China (3,100 MT), South Korea (2,200 MT), and Canada (1,800 MT).
Investigation into the human instances of chicken flu (H5N1) in Colorado is ongoing
Federal and state authorities are working collectively to evaluate the scenario. Listed here are the important thing particulars:
- Confirmed instances: The Facilities for Illness Management and Prevention (CDC) has confirmed 4 human instances of extremely pathogenic avian influenza (HPAI) A(H5) virus an infection in Colorado. A fifth presumptive constructive case is pending affirmation.
- Affected people: All instances have been in farm staff concerned within the depopulation of poultry at a industrial egg layer operation experiencing an H5N1 outbreak.
- Signs: The employees reported gentle signs, together with conjunctivitis (pink eye), fever, chills, coughing, and sore throat/runny nostril.
- CDC response: A multidisciplinary workforce of 9 consultants from the CDC has been deployed to Colorado to assist the general public well being response. This workforce consists of epidemiologists, veterinarians, clinicians, and an industrial hygienist.
- Ongoing monitoring: There may be continued monitoring of staff, and extra specimens are being examined as a part of the evaluation.
- Threat evaluation: The CDC at the moment believes that the chance to the general public stays low. Nevertheless, these instances underscore the potential threat of publicity to contaminated animals.
- Genetic sequencing: Makes an attempt to sequence the virus from scientific specimens are underway on the CDC. This evaluation will assist decide if there are any genetic modifications that would alter the company’s threat evaluation.
- Historic context: These are the primary instances of H5 virus an infection in poultry staff in america since 2022.
- Precautions: The CDC recommends avoiding shut, lengthy, or unprotected exposures to sick or useless animals, together with wild birds, poultry, and different domesticated animals.
Missouri Lawyer Common Andrew Bailey will intervene in an antitrust lawsuit towards Tyson Meals
Bailey will assist poultry producers who declare that Tyson improperly offered a rooster processing plant in Dexter, southeastern Missouri, for conversion to an egg dealing with facility. The lawsuit, led by Grandview Farms on behalf of equally located rooster farms, alleges that Tyson Meals engaged in an “anticompetitive and fraudulent scheme to get rid of competitors” when it closed its Dexter plant. The closure, which occurred in 2023, affected 683 workers and a broad community of rooster farmers who had contracts with Tyson.
The core of the criticism is that Tyson offered the Dexter plant to Cal-Maine Meals, an organization that produces desk eggs relatively than processing broiler chickens. This transfer allegedly left many farmers who had constructed their operations particularly for rooster manufacturing “out within the chilly,” as they have been unable to proceed their current enterprise relationships.
The lawsuit additionally claims that Tyson misled each US Sen. Josh Hawley (R-Mo.) and Rep. Jason Smith (R-Mo.) about their intentions for the Dexter plant. Sen. Hawley had beforehand secured a dedication from Tyson’s CEO, Donnie King, pledging that Tyson would promote its Missouri plant to any occasion, together with rivals, to assist the greater than 2,000 Missourians who misplaced their jobs.
Lawyer Common Bailey’s determination to intervene within the lawsuit demonstrates the state’s assist for the affected poultry producers and its concern over potential anticompetitive practices within the trade. This transfer aligns with broader efforts to scrutinize and problem probably monopolistic behaviors within the meatpacking and poultry sectors, as evidenced by Senator Hawley’s introduction of the Strengthening Antitrust Enforcement for Meatpacking Act final September.
Backside line: The case highlights the advanced relationships between massive meals processing firms, native farmers, and state economies, in addition to the potential influence of plant closures and gross sales on rural communities and agricultural provide chains.
USDA proposes amendments to federal milk advertising and marketing orders after nationwide listening to
USDA issued a advisable determination proposing amendments to the uniform pricing formulation relevant in all 11 Federal milk advertising and marketing orders (FMMOs). This determination follows a nationwide listening to that happened from Aug. 23, 2023, to Jan. 30, 2024, in Carmel, Indiana, the place USDA heard testimony and obtained proof on 21 proposals from the dairy trade.
Key factors of the advisable determination embrace:
• Updating milk composition elements to three.3% true protein, 6.0% different solids, and 9.3% nonfat solids.
• Eradicating 500-pound barrel cheddar cheese costs from the survey and utilizing solely the 40-pound block cheddar cheese worth for figuring out month-to-month common cheese costs.
• Updating manufacturing allowances for cheese, butter, NFDM, and dry whey, in addition to the butterfat restoration issue.
• Revising the bottom Class I skim milk worth system and adopting a rolling month-to-month Class I prolonged shelf life (ESL) adjustment.
• Updating Class I differential values to replicate elevated prices of servicing the Class I market.
After the remark interval closes, USDA will evaluate all submitted feedback earlier than making a closing determination on the proposed amendments to the Federal milk advertising and marketing orders.
US beef group discusses implementation of USDA’s new illness traceability rule
The Nationwide Cattlemen’s Beef Affiliation (NCBA) lately held its Summer time Enterprise Assembly the place members mentioned the implementation of USDA’s new animal illness traceability rule, which is ready to take impact on Nov. 5, 2024. This new rule is a major replace to the present traceability necessities for cattle in america.
Key factors concerning the new traceability rule and its implementation embrace:
• Digital ID (EID) requirement: The rule mandates using digital identification tags for sure lessons of cattle shifting interstate, changing the earlier system that relied solely on visible tags.
• Scope of utility: The rule impacts roughly 11% of the U.S. cattle herd, particularly concentrating on sexually intact cattle 18 months of age or older, rodeo and exhibition cattle, and dairy cattle shifting throughout state strains.
• Transition interval: There can be a six-month interval earlier than the rule takes impact, permitting producers time to arrange and adapt to the brand new necessities.
• Funding assist: NCBA has secured $15 million in funding to assist offset the prices for producers implementing this alteration.
• Information safety: NCBA stays dedicated to safeguarding producers’ personal knowledge as a part of the traceability system.
• Illness outbreak prevention: The first objective of this rule is to reinforce the trade’s skill to reply shortly and effectively to potential international animal illness outbreaks, which might have devastating financial impacts.
• Financial implications: It’s estimated {that a} foot-and-mouth illness outbreak within the U.S. might result in $221 billion in financial losses, underscoring the significance of an efficient traceability system.
NCBA feedback. “The USDA rule strikes the cattle enterprise ahead permitting extra environment friendly and correct technique of tracing animal motion within the occasion of a illness outbreak,” stated NCBA President Mark Eisele. “USDA has made the choice to change from visually readable to each visually and electronically readable tags for sure lessons of cattle shifting interstate. NCBA has already secured funding to assist defray the price of making this alteration and we are going to proceed pushing for extra funding and privateness for producer knowledge,” he added.
China’s Q2 pork output declines
China’s pork manufacturing fell 3% from year-ago within the second quarter to 13.98 MMT, following a 0.4% decline within the first quarter. That marked the primary consecutive quarterly declines on an annual foundation in output since 2020. Throughout the first half of the 12 months, China’s pork output totaled 29.81 MMT, down 1.7% from the identical interval final 12 months. China slaughtered 363.95 million hogs through the first half of this 12 months, down 3.1% from final 12 months.
Colorado confirms 4 human H5N1 infections, fifth suspected
Colorado reported 4 confirmed infections of the H5N1 virus in poultry staff and is checking on the standing of a fifth suspected case, well being authorities stated on Sunday. The employees confirmed gentle signs, from conjunctivitis (pink eye) to respiratory indicators, although none have been hospitalized.
USDA month-to-month livestock report: world pork markets and commerce
Decline of China Pork Imports Continues in 2024
The revised 2024 forecast for China pork imports anticipates a 21 % decline 12 months on 12 months to 1.5 million tons, the bottom since 2019. If realized, 2024 imports will return to comparable ranges to earlier than China’s outbreaks of African swine fever (ASF), which started to influence China manufacturing on the finish of 2018. Regardless of forecast decrease imports, China is predicted to stay the biggest international pork importer. On the peak of ASF outbreaks in 2020, imports accounted for 13 % of China pork consumption. The import share of consumption has steadily declined since then as home manufacturing recovered from ASF and returned to pre-ASF ranges in 2022. For 2024,
China pork manufacturing is forecast 56 % increased than 2020 and 2024 imports are projected to account for under 3 % of consumption. Due partly to ample home provides, stubbornly low pork costs in China since early 2023 have weakened demand for imports. Common reported pork costs have been 10 % decrease through the first quarter of 2024 in comparison with the identical interval in 2023 and 56 % decrease than the primary quarter of 20201.
For a lot of main international suppliers, it’s troublesome for his or her exports to stay aggressive within the China market given low home costs. Main international pork suppliers to China – together with the European Union, Brazil, and america – are anticipated to hunt various markets. Nevertheless, these markets will solely partially offset decrease China demand. Consequently, competitors is predicted to extend in different massive import markets together with Japan, South Korea, and the Philippines.
China’s meat imports hunch in June
China imported 515,000 MT of meat throughout June, down 42,000 MT (7.5%) from Might and 150,000 MT (22.6%) from year-ago. By way of the primary half of this 12 months, China imported 3.3 MMT of meat, down 13.4% from the identical interval final 12 months.
USDA awards $110 million to broaden unbiased meat processing
USDA Secretary Tom Vilsack introduced practically $100 million in new grants to reinforce native and regional meat and poultry processing capability. This funding, a part of two initiatives, consists of over $83 million for twenty-four initiatives in 15 states underneath the Meat and Poultry Processing Growth Program (MPPEP) and $26.9 million via the Native Meat Capability (Native MCap) grant program for 33 initiatives in 23 states. These efforts align with the Biden administration’s targets for fairer, extra aggressive, and resilient markets. Responding to considerations from Home Ag Chair GT Thompson (R-Pa.) about new EPA laws, Vilsack famous that USDA has collaborated with EPA to reduce any influence on processing capability, suggesting that considerations concerning the laws are exaggerated.
Weekly USDA dairy report
CME GROUP CASH MARKETS (7/12) BUTTER: Grade AA closed at $3.1000. The weekly common for Grade AA is $3.1150 (-0.0206). CHEESE: Barrels closed at $1.8500 and 40# blocks at $1.8900. The weekly common for barrels is $1.9120 (+0.0276) and blocks $1.9485 (+0.0485). NONFAT DRY MILK: Grade A closed at $1.1800. The weekly common for Grade A is $1.1805 (+0.0030). DRY WHEY: Additional grade dry whey closed at $0.5100. The weekly common for dry whey is $0.4970 (+0.0064).
BUTTER HIGHLIGHTS: Within the West, home butter demand varies from regular to lighter. For the Central area, home butter demand is regular. Within the East, home retail butter demand is barely up. Cream is usually tightening throughout the nation. Some butter producers convey cream is beginning to worth itself out of its use in churning. Some cream sellers notice present and forecasted temperatures are negatively impacting willingness to accommodate spot load requests requiring prolonged transportation distances. Butter manufacturing is usually lightening to numerous levels all through the nation. Stakeholders point out salted butter is broadly obtainable, however unsalted butter is tight.
CHEESE HIGHLIGHTS: Cheese manufacturing schedules are blended all through the U.S. Contacts within the East say spot a great deal of milk obtainable for Class III processing are tightening, however cheese manufacturing schedules have largely held regular. Cheese inventories in chilly storage stay balanced with demand. Within the Central area, cheesemakers relay regular manufacturing schedules. Milk volumes proceed to tighten, as evidenced by spot milk costs starting from Class III to $1-over Class. Cheese demand stays sturdy. Cheese producers within the West share regular manufacturing schedules. Like in a lot of the U.S., although, milk availability is tightening week over week. Contacts notice cheese inventories can be found for spot consumers. Export exercise varies from regular to lighter resulting from present home cheese worth factors.
FLUID MILK: Throughout a lot of the nation, milk volumes are seasonally reducing. Whereas milk manufacturing volumes are trending flat to decrease via a lot of the East, comparatively cooler temperatures within the Northeast have stored milk output ranges extra secure. Persistent warmth and humidity proceed to have an effect on each farm degree milk outputs and milk elements throughout the West and Central areas. The East is experiencing regular to strong demand for all Lessons, preserving availability tight on elements. Demand within the Central area has processors seeking out spot milk or cream hundreds which may be obtainable. Some butter makers within the Higher Midwest are discovering that their common sources for spot cream wouldn’t have additional a great deal of cream obtainable. Availability of spot milk hundreds are blended within the West. The unplanned downtime of some producers has made spot milk hundreds extra broadly obtainable in California. Elsewhere within the West, milk volumes are tighter however assembly processing wants. Condensed skim availability is following go well with with milk. The supply of condensed skim has tightened, and demand is regular. Likewise, cream provides are tighter, with regular demand. Cream multiples are 1.25 – 1.50 within the East, 1.24 – 1.38 within the Midwest, and 1.08– 1.32 within the West.
DRY PRODUCTS: Low/medium warmth nonfat dry milk (NDM) costs have been blended between areas. Central and East costs inched increased, whereas Western costs moved down primarily based on lighter demand each domestically and from exporters. Dry buttermilk costs have been regular within the Central/East areas, however they moved decrease within the West. Dry buttermilk processing exercise is reducing with tighter cream obtainable for butter churning in many of the nation. Dry entire milk costs have been regular, as contacts say home worth ranges have introduced on reticence from international importers. Dry whey costs have been blended all through the areas. Availability is famous as tight to tightening in most areas of the nation, falling in keeping with seasonal milk output decreases. Central area exporters say globally aggressive costs are preserving dry whey volumes stateside. Whey protein focus 34% costs have been regular to barely decrease, as processing exercise is famous as quieter week over week. Lactose costs have been regular to increased. Lactose provides, like most dairy powder commodities, are reducing together with seasonal milk availability. Acid and rennet casein costs have been regular, however European contacts say rennet casein demand is quieting.
ORGANIC DAIRY MARKET NEWS: The Natural Insider despatched out on July tenth warned readers of phishing scams utilizing the USDA emblem and/or the INTEGRITY Database Banner, the publication famous that every one emails from the USDA, AMS, or the NOP will come from “usda.gov” domains. The Farmers.gov residence web page consists of essential dates for farmers together with the deadline to use for the Nationwide Natural Program’s Natural Certification Price Share Program on October 31,2024. The USDA lately announce expanded crop insurance coverage choices for specialty and natural growers for the 2025 crop 12 months. Overseas Agricultural Service (FAS) month-to-month export knowledge for natural milk (HS-10 code 0401201000) confirmed export volumes in Might 2024 have been up from the month prior from 2023. Natural retail advert totals elevated from the prior week, within the week 28 retail advert survey. Probably the most marketed natural dairy product this week was yogurt, after the variety of advertisements elevated from the week 27 survey.
NATIONAL RETAIL REPORT: Typical dairy advertisements decreased 38 %, whereas natural dairy advertisements elevated 44 %. Whole advertisements for all reported standard commodities decreased this week in comparison with the prior week. Typical 6-8 ounce packages of shredded, sliced and block cheese have weighted common marketed costs of $2.49, $2.47, and $2.57, respectively. Yogurt was the third most represented standard dairy commodity. The weighted common marketed worth for 4-6 ounce containers of standard Greek yogurt was $1.12. The weighted common marketed worth for 4-6 ounce containers of standard common yogurt was $0.61. The weighted common marketed worth for gallon containers of standard milk was $3.53
