Weekly international protein digest – China bans poultry imports from RGDS in Brazil

9 August 2024

9 minute learn

Weekly USDA US beef, pork export gross sales

Beef: Internet US gross sales of 10,000 MT for 2024 have been down 43 p.c from the earlier week and 27 p.c from the prior 4-week common. Will increase have been primarily for South Korea (3,900 MT, together with decreases of 200 MT), Japan (1,900 MT, together with decreases of 400 MT), Mexico (1,200 MT, together with decreases of 100 MT), China (700 MT, together with decreases of 100 MT), and Canada (600 MT, together with decreases of 100 MT). Exports of 15,400 MT have been down 5 p.c from the earlier week and a pair of p.c from the prior 4-week common. The locations have been primarily to Japan (4,000 MT), South Korea (3,400 MT), China (2,700 MT), Mexico (1,600 MT), and Taiwan (1,200 MT).

Pork: Internet US gross sales of 34,600 MT for 2024 have been up 10 p.c from the earlier week and 24 p.c from the prior 4-week common. Will increase have been primarily for Mexico (14,800 MT, together with decreases of 400 MT), China (7,400 MT), Japan (2,900 MT, together with decreases of 400 MT), Colombia (2,500 MT, together with decreases of 100 MT), and Canada (1,700 MT, together with decreases of 600 MT). Complete web gross sales of 200 MT for 2025 have been for New Zealand. Exports of 33,200 MT have been up 10 p.c from the earlier week and 4 p.c from the prior 4-week common. The locations have been primarily to Mexico (14,400 MT), Japan (4,700 MT), China (3,100 MT), South Korea (2,700 MT), and Colombia (2,500 MT).

China’s July meat imports drop sharply from year-ago

China imported 540,000 MT of meat throughout July, up 25,000 MT (4.9%) from June however down 125,000 MT (18.8%) from final yr. By means of the primary seven months of 2024, China imported 3.835 MMT of meat, down 14.5% from the identical interval final yr.

China bans poultry imports from RGDS in Brazil

China’s customs authority banned imports of poultry and associated merchandise from Brazil’s Rio Grande do Sul because of an outbreak of Newcastle illness.

China halts imports of meat and meat merchandise from Swift Beef plant

The plant is in Grand Island, Nebraska–Lineage Logistics chilly storage services in Grand Island, Nebraska, and Windsor, Colorado, efficient July 30. This marks the second Swift Beef facility banned by China, following a Might 27 suspension of imports from the Swift plant in Greeley, Colorado.

No cause was given for the suspension, however some reviews sign the first cause for these suspensions could have been the detection of ractopamine, a feed additive used to advertise leanness and enhance weight in livestock. Ractopamine is banned in over 160 nations, together with China and the European Union, because of issues over animal welfare and potential human well being dangers. Within the case of the Greeley, Colorado, plant, U.S. officers reportedly discovered traces of ractopamine in meat destined for export to China, resulting in the suspension.

Weekly USDA dairy report

CME GROUP CASH MARKETS (8/2) BUTTER: Grade AA closed at $3.1050. The weekly common for Grade AA is $3.1100 (+0.0255). CHEESE: Barrels closed at $1.9300 and 40# blocks at $1.8500. The weekly common for barrels is $1.9635 (+0.0035) and blocks $1.9125 (-0.0085). NONFAT DRY MILK: Grade A closed at $1.2400. The weekly common for Grade A is $1.2425 (+0.0195). DRY WHEY: Additional grade dry whey closed at $0.6100. The weekly common for dry whey is $0.6090 (+0.0680).

BUTTER HIGHLIGHTS: Within the West, home butter demand varies from considerably stronger to barely weaker for each the retail and meals service sectors. For the Central and East areas, home butter demand is regular from the retail sector, whereas demand from the meals sector is lighter. Cream is tightening all through the nation. Butter producers point out combined demand for cream. Stakeholders convey some Central area butter churns are using cream sourced from the West. Butter manufacturing schedules are combined. Some producers point out bulk manufacturing strains are particularly gentle, but in addition inside anticipated seasonal developments and cozy. Bulk butter overages vary from minus 3 to 10 cents above market, throughout all areas.

CHEESE HIGHLIGHTS: Cheese manufacturing schedules are trending regular to lighter all through the U.S. Contacts within the East relay lighter cheese manufacturing schedules because of tightening milk availability. Retail and foodservice calls for are regular. Cheesemakers within the Central area are working energetic manufacturing schedules. Cheese inventories are tighter within the Central area. Spot milk costs ranged from flat to $2-over Class III. Cheese manufacturing is seasonally weaker within the West. Spot milk availability is total tighter within the area. Spot cheese hundreds can be found for spot consumers, however contacts share some contractual commitments are behind lead occasions. The NASS Chilly Storage report for June confirmed whole pure cheese shares have been down 1 p.c from Might and down 6 p.c from June 2023.

FLUID MILK: Milk volumes are seasonally trending decrease throughout most areas of america. Over many of the nation, excessive temperatures and humidity are urgent milk volumes decrease. Decrease volumes stretch from the Northeast and down the Atlantic Coast. Some bigger farms in Florida are seeing extra regular volumes, whereas different components of the state are seeing steep declines. Many of the West is coping with lighter milk manufacturing with the Pacific Northwest conveying a slight enhance. Demand for all Courses within the West has not modified and is steadily absorbing any multiples accessible. The Midwest will not be resistant to the doldrums of summer time. Farm stage milk continues to say no because the summer time temperatures climb. Spot milk within the Midwest is scarce and turning into tougher to search out. Class I demand is ticking up as areas put together for varsity to start out within the coming weeks. The identical could be stated for cream and condensed skim milk. All areas of the nation are experiencing robust demand and tight availability for cream and condensed skim milk. Some requests for condensed skim milk within the West couldn’t be stuffed for lack of accessible inventory. Class IV demand for cream is powerful with butter makers as they preserve busy manufacturing schedules. Class II and III calls for are regular. Cream multiples for all Courses are 1.30 – 1.50 within the East, 1.22 – 1.39 within the Midwest, and 1.18 – 1.37 within the West.

DRY PRODUCTS: Low/medium nonfat dry milk costs moved increased. Stakeholders point out spot availability is way tighter within the southwest portion of the nation. Excessive warmth nonfat dry milk costs additionally moved increased. Stakeholders observe shares are on the tight finish. Dry buttermilk costs on the Central/East and West areas’ worth ranges have been largely unchanged this week. Home demand is indicated as weak outdoors of contracted hundreds. Dry entire milk had slight upward worth motion. Inventories proceed to be tight. Dry whey costs climbed upward throughout all areas. Dry whey availability is tight. Whey protein focus (WPC) 34% costs are unchanged. Home demand for WPC 34% continues to be weak. Lactose costs have been largely regular. Lactose manufacturing is restricted with seasonally lighter milk intakes. Acid and rennet casein costs held regular. Calls for are combined.

INTERNATIONAL DAIRY MARKET NEWS: 

WEST EUROPE: Though EU milk output is mostly above final yr’s quantity for the primary 5 months of the yr, weekly milk collections are seasonally lowering. As milk volumes fade in the summertime warmth, cream has additionally develop into much less accessible. Business sources say cream costs have risen and so has demand for the contemporary market merchandise that use cream. Because the summer time holidays finish, market members count on an increase in demand for many dry dairy substances, butter, and cheese. The month-to-month weighted common worth for EU 27 farmgate milk has stayed close to 46 euros per 100 kg for a lot of the primary half of the yr, with many of the EU 27 nations having a pay worth between 40 and 50 euros per 100 kg within the month of June. Present weekly milk spot costs within the higher 50 euros per 100 kg are widespread. Whereas the upper milk pay costs and the decrease feed prices have helped farmer funds enhance, decrease numbers of dairy cows on the continent and tight provides of substitute heifers have slowed the potential development of milk output in some areas of Europe.

EAST EUROPE: Milk manufacturing in East Europe continues to develop yr over yr, at the same time as seasonal milk output slows. Decreases in feed prices, coupled with constantly supportive milk pay costs have assist keep farm financials, resulting in expanded milk manufacturing. The Might farm milk pay worth in Poland was 46.34 euros/ 100 kg in comparison with 45.90 euros/100 kg throughout the EU 27.

AUSTRALIA: In Australia, farmgate milk costs for the 2024 – 2025 season have been lower by round 15 p.c from a number of processors, amid rising competitors from imported dairy merchandise. A spokesperson for a dairy farming group inside Australia acknowledged enter prices have elevated in recent times and decrease milk costs will add additional strain on dairy producers, which might drive extra dairy farmers out of the market. A consultant from a processor inside the nation famous decrease priced butter and cheese imported into Australia is negatively impacting gross sales inside Australia.

NEW ZEALAND: Milk manufacturing information from New Zealand for June 2024 was not too long ago launched. This information confirmed whole June 2024 manufacturing was down 1.1 p.c on a tonnage foundation in comparison with a yr earlier. Export information for June 2024 was not too long ago launched for New Zealand. This information confirmed a mixed 10 p.c lower in worth for milk powder, butter, and cheese exported in June 2024 in comparison with June 2023. A bunch in New Zealand, which forecasts dairy manufacturing, is forecasting the quantity of milk solids produced in New Zealand in July to say no by 0.2 p.c from 2023, however they anticipate the quantity of milk solids produced within the nation to extend in comparison with final yr from August by October.

SOUTH AMERICA: Substantial seasonal will increase in milk manufacturing are but to be detected in South America. Contacts recommend favorable climate circumstances for cow consolation will spark will increase in milk manufacturing within the close to time period. In accordance with the USDA International Agriculture Service (FAS) Argentine Grain and Feed Replace revealed final week, corn manufacturing in advertising yr 2024/2025 is projected at 49 million tons, 2 million tons decrease than USDA estimates because of smaller planted acreage. Corn exports stay almost unchanged at 35.5 million tons. One other FAS report launched in July detailed the opposed results of inflation on the Argentine dairy business. Complete milk manufacturing for 2024 is anticipated to fall 7 p.c from 11.7 million tons in 2023 to 10.8 million tons. Rising costs for dairy merchandise have modified buying conduct, and home fluid milk consumption for 2024 is forecast to fall 7 p.c from 2024. Inflation and foreign money devaluation have prompted merchants in Argentina to query whether or not to protect shares or commerce on a world scale because of the competitiveness of present home worth factors.

NATIONAL RETAIL REPORT: The week 31 retail advert survey contained 8 p.c extra typical dairy advertisements, in comparison with the prior week, whereas the variety of natural dairy advertisements grew by 262 p.c. Probably the most marketed typical commodity this week was cheese, regardless of a 7 p.c decline in whole advertisements from final week. Probably the most marketed natural commodity in week 31 was milk, for which advertisements elevated by 800 p.c.