China’s Beef Prices Plunge
Chinese wholesale beef prices have dropped 18% from last year’s peak to around 62 yuan ($8.53) per kilogram. This decline is due to an oversupply as Beijing pushed for increased domestic beef production and imports. The slowing economy has further reduced prices to a five-year low, leading to a surplus in frozen storage.
US Red Meat Symposium Explores Mexican Market Potential
The inaugural U.S. Red Meat Symposium was held in Mexico City on June 13-14, focusing on the economic and political climate of the Mexican market. Key industry figures, including USMEF Chair Randy Spronk and Secretary/Treasurer Dave Bruntz, emphasized the market’s growth potential for U.S. red meat exports. The event featured networking opportunities, product displays, and discussions on U.S.-Mexico trade relations, agricultural production, and digital trends. Despite uncertainties, Mexico is seen as a developing market with significant growth opportunities as more Mexicans move into the middle class.
Chinese Pig Supplies Tighten Amid Decline in Sow Inventory
China’s sow inventory declined by 6.9% year-on-year to 39.86 million by the end of February, tightening pig supplies due to disease outbreaks and financial pressures. The FAO forecasts a 0.9% global pigmeat production decline in 2024, with China as a major contributor. Despite steady wholesale prices and seasonal uplifts, overall pigmeat imports dropped 48% year-on-year, while offal imports rose by 2%. The EU27 remains the dominant supplier, with Spain leading in pigmeat exports. An anti-dumping investigation by China into EU pork imports could impact global trade and prices.
Strengthening EU-China Dialogue in the Spanish Pig Sector
INTERPORC’s President, Manuel García, met with the Chinese ambassador to Spain, Yao Jing, emphasizing the need for enhanced dialogue between the EU and China to address the anti-dumping investigation by China. García highlighted the fair cooperation historically seen between the Spanish pork sector and Chinese authorities, stressing the efficiency and export success of Spanish pork. He reaffirmed the sector’s unity and willingness to collaborate with China to resolve the issue, underscoring the mutual trust and strong trade ties, with Spain being the leading pork exporter to China.
Slight Increase in Germany’s Pork Exports to Third Countries
In the first four months of 2024, Germany’s pork exports rose by 0.7%, reversing a downward trend. While exports to EU countries decreased by 2.2%, this was offset by a significant rise in exports to third countries, notably the UK, Vietnam, and South Korea. Germany exported a total of 708,000 tonnes of pork, including by-products, from January to April 2024, with 126,000 tonnes going to non-EU countries. The resumption of exports to South Korea after a regionalization agreement contributed to this increase.
Chilean Pork Export Strategy Targets Asian Markets
Chile’s pork exports to China, Japan, and South Korea make up 73% of the total value of Chilean pork exports. Rodrigo Castañon of ChileCarne joined the delegation led by SAG Director José Guajardo to advance zoning protocol negotiations for African swine fever and the reopening of poultry exports to China. Japan, South Korea, and China are critical markets, with significant pork export volumes. The delegation met with officials in each country to discuss agreements and protocols, reinforcing Chile’s strategic export position. Future efforts will focus on finalizing a Memorandum of Understanding with China to enhance meat export opportunities.
Butter Prices Hit Record High
Butter prices have reached a record high of $7,350 per metric ton, surpassing the 2022 peak of $7,086. This increase is driven by limited global supply ahead of the holiday baking season, with dairy processors focusing more on cheese production. The highly virulent bird flu virus affecting dairy cows has also contributed to the tight supply. Food and confectionery makers are struggling with high cocoa prices and inflation in other commodities. Despite this, butter prices may temporarily decline as they historically slump in early July.
USDA Plans Amendments to Federal Milk Marketing Orders (FMMOs)
The USDA has proposed several key changes to the FMMOs:
Updating Milk Consumption Factors to 3.3% true protein, 6.0% other solids, and 9.3% nonfat solids.
Removing 500-pound barrel cheddar cheese prices from the Dairy Product Mandatory Reporting Program survey.
Updating manufacturing allowances and proposing a butterfat recovery factor update to 91%.
Setting Base Class I Skim Milk prices at the higher of the advanced Class III or Class IV skim milk prices for the month.
Adopting a rolling monthly Class I extended shelf life (ESL) adjustment.
Updating Class I differential values to reflect increased servicing costs. A 60-day comment period will follow the plan’s publication in early July.
Tyson Pulls Back on Antibiotic-Free Beef
Tyson Foods Inc. is reducing its antibiotic-free beef offerings, following a similar move with chicken last year. The company has informed a major customer that it won’t be able to supply antibiotic-free beef from its Open Prairie Natural Meats brand starting in January.
FDA Study: Pasteurization Kills H5N1 Virus in Milk
An FDA study confirms that commonly used pasteurization time and temperature requirements effectively inactivate the H5N1 virus in milk products. This complements an initial retail sampling study where all 297 samples were negative for viable H5N1 virus.
USDA Hogs and Pigs Report: Hog Herd Expands
The USDA’s Hogs & Pigs Report estimates the June 1 U.S. hog herd at 74.486 million head, up 1.3% from last year. The breeding herd declined by 3.2%, but the market hog inventory increased by 1.7%. This suggests a 2% higher slaughter rate compared to last year through summer, slightly more than 1% higher through Q4 and early 2025.
USDA Announces Additional Aid for Dairy Herds Affected by HPAI
The USDA is offering aid to dairy producers affected by highly pathogenic avian influenza (HPAI) under the Emergency Assistance for Livestock, Honeybees, and Farm-raised Fish Program (ELAP). Aid covers a 21-day no milk production period and an additional seven days of reduced production.
USDA’s Proposed Rule on Fair and Competitive Livestock and Poultry Markets
The USDA has initiated a 60-day comment period on a proposed rule in the Federal Register aimed at fair and competitive livestock and poultry markets. The rule has received mixed feedback, with comments expected to reflect issues raised during OMB review meetings.
Weekly USDA Dairy Report
Butter: High temperatures have reduced milk production, tightening cream volumes. Butter production is steady in the West but slowing in the East. Demand for butter is slightly better in the Central region.
Cheese: Production schedules are mixed. Demand is steady to strong ahead of the holiday. Natural cheese stocks are down slightly from April but up 4% from last year.
Fluid Milk: Production is mixed, with weaker output in the Southeast, Central, and West regions due to high temperatures and humidity. Spot milk offers are less frequent.
Dry Products: Prices for nonfat dry milk, dry buttermilk, and dry whey are mixed. Tight supplies are reported for whey protein concentrate and lactose.
Organic Dairy Market News
Federal Milk Market Order 1: Utilization of organic whole milk increased in May 2024. U.S. sales of total organic milk products were up in April 2024.
European Market: Organic milk prices increased in Austria but decreased in France, Germany, and Bavaria. UK organic milk production declined in May.
Retail Ad Survey: The total number of organic dairy ads increased, with milk being the most advertised commodity.
May Milk Production (NASS)
Milk production in the 24 major States during May totaled 18.9 billion pounds, down 0.7% from May 2023. Production per cow averaged 2,122 pounds. The number of milk cows was 8.89 million head, 52,000 fewer than May 2023.
May Cold Storage (NASS)
Total natural cheese stocks were down slightly from April 2024 but up 4% from May 2023. Butter stocks increased by 5% from April and 3% from May 2023.
March Mailbox Milk Prices (FMMO)
March 2024 mailbox milk prices averaged $19.98 per cwt, up $0.35 from February but down $0.34 from March 2023. Butterfat, protein, and other solids components were reported at 4.25%, 3.32%, and 5.78%, respectively.
May Market Summary and Utilization (FMMO)
In May, 12.9 billion pounds of milk were received from Federally pooled producers, 4.5% lower than May 2023. Class I products made up 26% of the milk, with a weighted average statistical uniform price of $19.78 per cwt.
June Retail Prices (FMMO)
U.S. simple average prices:
Conventional whole milk: $4.37/gallon
Conventional reduced-fat 2% milk: $4.31/gallon
Organic whole milk: $4.82/half gallon
Organic reduced-fat 2% milk: $4.82/half gallon
National Retail Report
Conventional dairy ads increased by 13%, and organic dairy ads increased by 11%. Cheese and ice cream were the most advertised conventional items, while organic milk was the most advertised organic dairy item.
Australian Lamb Gains Traction in US Charcuterie Market
Australian lamb is now available in 73 Costco stores across the Southeastern US, thanks to a project by Meat & Livestock Australia (MLA) and Aussie Select. This initiative aims to tap into the growing US demand for ready-to-eat and deli meats. Despite a market dominated by turkey, pork, chicken, and beef, Australian lamb is gaining popularity. Aussie Select introduced four lamb products, including lamb pastrami, meeting market demands for taste, sustainability, and health. The project foresees a significant growth opportunity, projecting 3.7 million pounds of Australian lamb over the next five years.
American Seafoods Group Pauses Sale Process, Aims Focus on Business and Growth Prospects
American Seafoods Group, a leading at-sea processor of wild Alaska pollock and Pacific hake, has paused its sale process to concentrate on business operations and growth opportunities. CEO Einar Gustafsson highlighted the company’s strong performance and plans to revisit sale discussions when market conditions improve.
Norwegian Snow Crab Experiences “Record-breaking” 6 Months While King Crab Struggles
The Norwegian Seafood Council reported seafood exports worth NOK 80.6 billion for the first half of the year, with snow crab emerging as a top performer. Norway exported 6,302 tonnes of snow crab, ranking it among the top 10 species by value, despite an overall decline in seafood export value.
ANALYSIS: U.S. Shrimp Imports Reverse Slightly Higher In May
U.S. shrimp imports increased slightly in May, totaling 140.587 million pounds, a 2.4% rise from the previous year. Gains were seen from India, Ecuador, Vietnam, and Thailand, while Indonesia and Mexico experienced declines. Significant increases were also noted from countries like Sri Lanka.
Dunleavy Vetoes $10 Million for Alaska Seafood Marketing When Industry Needs it Most
Alaska Governor Mike Dunleavy vetoed state support for the Alaska Seafood Marketing Institute for the second consecutive year. The veto comes amid challenging market conditions for the seafood industry, canceling $230 million from the state’s operating and capital budgets.
Record Number of Pacific Salmon Harvested Last Year
Commercial fishers in the U.S., Russia, Japan, Canada, and South Korea harvested a record 1.1 million metric tonnes of Pacific salmon in 2023. Pink salmon dominated the catch, contributing to the total of 726 million fish, as reported by the North Pacific Anadromous Fish Commission.
In case you missed the previous report:
Explore inflation’s impact on U.S. beef exports, Argentina’s deforestation-free beef, record cattle slaughter, China’s potential EU pork measures, and U.S. pork export growth.
The post Weekly Protein Report first appeared on ESS-Feed.
The post Weekly Protein Report appeared first on ESS-Feed.
