Livestock analyst Jim Wyckoff provides insightful updates on global protein news, shedding light on the latest developments in the industry. With a keen eye on market trends and emerging issues, Wyckoff’s reports offer valuable insights for stakeholders in the livestock sector.
In a recent article, the United States Department of Agriculture (USDA) updated the list of Central American countries affected by screwworm infestations. Guatemala, Honduras, Nicaragua, Panama, and Costa Rica have been added to the list, bringing the total number of affected countries to 124. The USDA’s Animal and Plant Health Inspection Service (APHIS) explained that these updates are based on screwworm detections reported by veterinary officials and credible sources. While Mexico is temporarily restricted due to screwworm concerns, the focus remains on monitoring and containing the spread of this harmful parasite.
On the international front, rival exporters from New Zealand, Australia, and the United States have accused Canada of dumping dairy products on global markets. These exporters claim that Canada’s milk pricing mechanisms incentivize surplus disposal at artificially low prices, creating unfair competition. In response, these nations have initiated trade negotiations and called for accountability under international trade agreements. As global milk production is expected to rise in 2025, trade disputes and market dynamics are intensifying, prompting calls for coordinated action to address unfair trade practices.
A recent study commissioned by the Iowa Pork Producers Association underscores the significant economic impact of Iowa’s pork industry. As the leading pork producer in the United States, Iowa plays a crucial role in supporting over 120,000 jobs and contributing $15.4 billion in economic value in 2024. The study, conducted by Decision Innovation Solutions (DIS), highlights the sustainability practices adopted by Iowa’s pig farms, emphasizing the role of hog manure in soil enrichment and the use of local feedstuffs for efficiency. Iowa’s pork industry serves as a model for self-sustaining agricultural practices that benefit local communities and strengthen the food supply chain.
In the realm of export sales, the USDA reported on weekly beef and pork export figures for the United States. Net sales of beef and pork for 2025 show a strong demand from key markets such as Japan, China, South Korea, Mexico, and Canada. These export sales reflect the competitive advantage of U.S. livestock products in the global market, highlighting the importance of trade relationships and market access for the industry’s growth and sustainability.
In conclusion, the livestock industry continues to evolve in response to changing market dynamics and global challenges. With insights from experts like Jim Wyckoff and data-driven analyses from government agencies like the USDA, stakeholders in the sector can make informed decisions and navigate the complexities of the protein market. As the industry strives for growth and sustainability, collaboration and transparency will be key in addressing emerging issues and seizing opportunities for development. In the latest report, exports of 38,200 metric tons (MT) were primarily directed towards key markets such as Mexico (16,300 MT), Japan (4,900 MT), China (4,000 MT), South Korea (3,900 MT), and Canada (2,300 MT). These figures demonstrate the strategic distribution of exports from the country to major global players in the meat and dairy industry.
However, the recent outbreak of foot-and-mouth disease (FMD) in Germany has raised concerns and impacted the country’s exports. Despite no new cases being reported, the first case since 1988 in a herd of water buffalo near Berlin has prompted swift action from authorities. The Agriculture Minister announced efforts to control the outbreak and collaborate with European Union (EU) partners to maintain export markets for unaffected regions. Non-EU countries like the U.S., Mexico, South Korea, and the UK have suspended imports of German livestock and related products as investigations into the outbreak’s origin continue.
In response to the FMD outbreak, the USDA has implemented import restrictions on German animal products. These restrictions include a ban on the import of cattle, sheep, swine, and goats, additional measures for horse import procedures, and stricter regulations for processed and unprocessed products from Germany. These measures aim to protect domestic livestock from the potential introduction of FMD and highlight the economic and agricultural risks associated with the disease.
The FMD outbreak in Germany has led to disruptions in exports, especially affecting meat and dairy products destined for markets outside the EU. Countries like South Korea have imposed immediate bans on German pork imports, impacting Germany’s position as a key player in the global pork market. The loss of FMD-free status under World Organization for Animal Health guidelines has further complicated export challenges for Germany.
Efforts are underway to mitigate the outbreak’s effects, including targeted vaccine development to control the spread of the pathogen. German authorities are working to support the agricultural sector and prevent further disruptions, emphasizing the need for regionalization agreements to prevent blanket bans on exports from entire countries.
In a separate development, the USDA has finalized a rule banning pay deductions for poultry growers from poultry companies, restructuring the industry’s tournament pay system. The rule aims to create a fairer payment structure for growers burdened by debt and limited control over inputs, setting a cap on performance-based pay and mandating transparency in capital improvement requirements for contract renewals.
Despite challenges and industry pushback, the USDA’s actions reflect efforts to support growers and create a more equitable system within the poultry industry. The withdrawal of a Biden-era overhaul of the Packers and Stockyards Act further underscores shifts in agricultural policy direction under the new administration.
In terms of meat exports, the US has seen strong numbers in pork and beef shipments in November. Pork exports reached a record high in November, while beef shipments also saw an increase compared to the previous month and year. The USDA has adjusted its export forecasts for pork and beef, reflecting changes in the market dynamics and trade patterns.
Overall, the global meat market continues to experience fluctuations, with China’s meat imports rising in December but falling overall in 2024. These trends highlight the importance of monitoring global trade dynamics and implementing strategies to navigate challenges and capitalize on opportunities in the meat and dairy industry. In 2024, China’s meat imports totaled 6.67 million metric tons, a decrease of 710,000 metric tons (9.6%) from the previous year. This decline in meat imports reflects a shift in global trade dynamics and consumption patterns.
The United States Department of Agriculture (USDA) recently released studies examining the impact of increased line speeds on worker safety in poultry and pork processing plants. The findings of these studies revealed significant risks to worker health and safety as a result of higher line speeds in both types of plants. In pork plants, 46% of evaluated workers were found to be at high risk for musculoskeletal disorders, while the poultry study indicated higher health risks for workers in plants with increased line speeds.
Industry reactions to the studies were mixed. The National Pork Producers Council appreciated the USDA’s efforts and found the studies to provide more certainty in an uncertain time. Some industry representatives viewed the results as reassuring, claiming that higher line speeds were not a leading factor in risks to worker safety. However, labor groups and food safety advocates expressed concerns about the potential increase in worker injuries and food contamination resulting from accelerated line speeds.
The United Food and Commercial Workers International Union (UFCW), representing 1.2 million workers across North America, responded to the studies by emphasizing the dangerous nature of essential food processing jobs and calling for robust safety measures to protect workers. UFCW President Marc Perrone stressed the importance of prioritizing worker safety to ensure the overall safety of the food supply chain.
House and Senate Agriculture panel leaders also reacted to the study results, expressing satisfaction with the outcomes and highlighting the need for collaboration between government officials and industry stakeholders to create strategies that ensure both worker safety and production efficiency in meat and poultry processing plants.
The regulatory implications of these studies are significant, as the USDA plans to use the findings to inform potential future rulemaking regarding line speed regulations. Current regulatory limits allow for higher line speeds under waivers, but the USDA has extended modified line speed waivers for further study and analysis. USDA Secretary Tom Vilsack emphasized the need for comprehensive data before making permanent decisions on line speeds.
In the dairy industry, the weekly USDA Dairy report highlighted price movements for various dairy products, including butter, cheese, nonfat dry milk, and dry whey. Production and demand trends for these products were discussed, with stakeholders providing insights into market conditions and inventory levels.
Overall, the studies on worker safety in meat processing plants and the ongoing debates surrounding line speed regulations underscore the complex balance between productivity and worker protection in the food industry. As stakeholders continue to navigate these challenges, collaboration and data-driven decision-making will be essential to ensure a safe and sustainable food supply chain. The dairy industry in California is experiencing a seasonal increase in milk production, leading to snug milk availability in all regions. Class I demand for milk is on the rise as bottling activity picks up and school districts require more bottled milk following winter breaks. Class III demand for milk remains steady in the West, while there has been an uptick in milk demand in the Central and East regions. Spot milk prices have risen from holiday levels, with Central spot milk prices ranging from Class III to $1-over Class III. Condensed skim is abundantly available nationwide, but demand for it remains light, prompting processors to seek out new avenues for distribution. Cream volumes are high and surpassing end user needs, with Class IV cream processing remaining stable. Cream multiples for all classes range from 0.75 to 1.20 in the East, 0.65 to 1.18 in the Midwest, and 0.70 to 1.20 in the West.
In the dry dairy products sector, market activity has picked up as the holiday season fades. Low/medium heat nonfat dry milk prices have remained stable in the Central/East regions but are mixed in the West, with Mexican buyers expected to increase their demands gradually. Dry buttermilk prices have risen across the country due to increased demand and tight supplies. Dry whole milk prices have decreased slightly due to subdued demand from confectioners. Dry whey prices have seen an increase in the Central and West regions, while remaining steady in the East. Whey protein concentrate 34% prices have stayed steady to higher on strong demand and limited supplies. Lactose prices have remained unchanged with quiet demand. Acid and rennet casein prices have held steady this week.
In the organic dairy market, the USDA AMS National Organic Program’s Organic Integrity Learning Center now offers a module on understanding the USDA Organic Certificate. The total number of organic retail ads decreased by 10 percent, with milk being the most advertised organic dairy commodity. FAS monthly export data shows a significant increase in organic milk exports, with November 2024 seeing a 206.7 percent jump from the previous month and an 8.3 percent increase from the previous year.
The national retail report indicates a 6 percent decrease in conventional dairy ads and a 10 percent decrease in organic dairy ads. Conventional cheese remains the most advertised conventional dairy commodity, while yogurt takes the second spot. In terms of organic dairy ads, milk is the most advertised item, with a premium of $4.40 for a gallon container.
Overall, the dairy industry is experiencing shifts in demand and supply across various dairy products, with some sectors seeing increased activity and others facing challenges in finding distribution channels for their products. It is essential for industry players to stay informed about market trends and adjust their strategies accordingly to navigate the evolving landscape effectively.