Livestock analyst Jim Wyckoff provides a comprehensive report on global protein news in his latest update on January 31, 2025. This weekly digest covers a range of topics from USDA US beef and pork export sales to significant industry developments.
In terms of beef sales, the United States saw net sales of 20,200 MT for 2025, with key markets including South Korea, Japan, Mexico, China, and Canada. Exports of 21,500 MT were primarily directed towards South Korea, Japan, the Dominican Republic, Mexico, and China. On the pork front, net US sales of 33,600 MT for 2025 were primarily for Mexico, China, South Korea, Japan, and Colombia, with exports of 34,100 MT going mainly to Mexico, the Bahamas, South Korea, Japan, and China.
One notable development in the industry is Cargill’s decision to close its turkey processing facility in Springdale, Arkansas, on August 1. The company plans to shift processing operations to plants in Missouri and Virginia while emphasizing its commitment to fulfilling contracts with growers. This move comes as part of Cargill’s broader efforts to reduce its global workforce by 5% following declining earnings in its meat, grain, and oilseed sectors. Other poultry companies have also closed plants in recent years, reflecting ongoing shifts in the market.
In terms of financial news, Smithfield Foods Inc. recently conducted an initial public offering that raised $522 million, with shares pricing below the marketed range. As the world’s largest pork producer, Smithfield remains a key player in the industry and will continue to be controlled by its owner, WH Group Ltd. This IPO marks a significant milestone for the company, showcasing its ongoing growth and development within the market.
On the cattle front, the United States has experienced a historic surge in cash cattle prices, with average prices reaching a record 209.19 last week. This marks the tenth straight weekly gain, driven by strong support from last Friday’s Cattle on Feed Report. While futures prices also reached all-time highs, there are signs that the market may be due for a pause, as prices finished lower than expected on Monday.
Finally, a recent study by Dr. Takaoki Saneyasu of Kobe University sheds light on the regulation of food intake in chicks within the poultry industry. This groundbreaking research explores the role of peptides, such as spexins and adipokines, as well as intracellular signaling mechanisms that influence food intake and feeding patterns in poultry. These insights provide valuable information for industry professionals looking to enhance their understanding of feeding regulation in poultry.
In conclusion, the global protein industry is constantly evolving, with key players making strategic decisions to adapt to changing market conditions. From shifts in processing facilities to record-breaking cattle prices and groundbreaking research in poultry feeding regulation, the industry remains dynamic and full of opportunities for growth and innovation. Livestock analyst Jim Wyckoff’s report serves as a valuable resource for industry professionals looking to stay informed on the latest developments in the global protein market. The poultry industry is a critical component of the global food supply chain, providing efficient and widely consumed animal proteins in the form of poultry meat and eggs. As such, advancing research to increase productivity in poultry farming practices is essential. Dr. Takaoki Saneyasu, an Associate Professor at the Graduate School of Agricultural Science, Kobe University, recently conducted a comprehensive review of physiological mechanisms governing food intake in chickens, with promising potential for improving both broiler and layer chicken farming.
Broiler chickens, genetically selected for rapid growth and meat yield, often face issues of overconsumption leading to fat accumulation and waste. Understanding the mechanisms of food intake regulation is crucial for enhancing feed efficiency and reducing waste in poultry farming. Dr. Saneyasu’s review focused on factors such as neuropeptides, adipokines, neurosecretory proteins, and cellular signaling to determine their impact on food consumption in chicks.
Neuropeptides, protein-like molecules involved in neuronal communication, play a crucial role in regulating various physiological activities. SPX, a type of neuropeptide found in chickens, acts on galanin receptors to reduce food intake in chicks. Adipokines, bioactive polypeptides secreted by adipose tissue, are essential for regulating appetite, metabolism, and inflammation. While leptin and adiponectin are major adipokines in mammals, their roles differ in chickens. Understanding these variations in feeding regulation via adipokines can lead to species-specific strategies for optimizing poultry diets.
Additionally, Dr. Saneyasu explored the role of neurosecretory proteins GL and GM, along with cellular signaling pathways, in food intake mechanisms in chickens. By studying the central feeding regulation in chicks through intracerebrovascular injections, researchers can gain valuable insights into enhancing poultry productivity. Future research should focus on peripheral adipokines and gut hormone production in neonatal chicks to further support these findings and develop species-specific strategies for sustainable poultry farming practices.
In other agricultural news, the USDA’s Cattle on Feed report indicated a decline in feedlot supplies, with placements falling below expectations. This bullish report, especially for deferred live cattle futures, suggests positive market conditions for cattle producers. Meanwhile, the Cold Storage Report showed neutral frozen beef inventories and mildly negative pork stocks, indicating mixed trends in the meat market.
Looking ahead, the USDA’s 2025 Food Price Outlook provides insights into recent trends in food prices based on CPI and PPI data through December 2024. Understanding these price trends is crucial for stakeholders in the food and agriculture industry to make informed decisions and strategies for the future.
In conclusion, ongoing research into physiological mechanisms governing food intake in poultry, along with market trends and price outlooks, are essential components for enhancing productivity and sustainability in the poultry and livestock sectors. By continuing to explore and understand these factors, researchers and industry professionals can work towards improving poultry farming practices and ensuring a stable food supply for the global population. Food price inflation has been a topic of concern in recent years, with key sectors such as eggs and beef experiencing volatility due to supply chain disruptions and input cost pressures. While overall inflation trends show a 2.5% increase in food prices year-over-year as of December 2024, with food-at-home prices rising by 1.8% and food-away-from-home prices increasing by 3.6%, forecasts for 2025 indicate a slight slowdown in food price growth.
In 2025, food prices are expected to rise by 2.2%, with food-at-home prices predicted to grow by 1.3% and food-away-from-home prices forecasted to increase by 3.6%. Category insights reveal that egg prices saw a sharp rise of 36.8% year-over-year in December 2024, with prices projected to climb by 20.3% in 2025 due to ongoing supply constraints. Beef and veal prices are expected to increase modestly by 1.5% in 2025, following a 4.9% rise in 2024. Pork and fats/oils prices are forecasted to decline in 2025, with decreases of 0.8% and 1.6%, respectively. Fresh fruit prices are anticipated to rise by 0.7%, while dairy product prices are expected to increase by 1.3%.
Producer Price Insights, which track wholesale prices, suggest continued volatility in farm-level and wholesale markets, with significant fluctuations predicted for eggs, milk, and fruits due to factors such as extreme weather and disease outbreaks. Farm-level egg prices are expected to see a sharp increase of 45.2% in 2025, reflecting uncertainty in the market. While food price growth is expected to moderate compared to recent years, specific categories remain susceptible to sudden price shifts driven by global and domestic factors.
In Nebraska, the largest feedlot project, Blackshirt Feeders, is underway in Southwest Nebraska, set to become the state’s largest cattle feeding operation. Operational as of January 2025, Blackshirt Feeders aims to house 150,000 cattle at full scale, with a phased implementation plan to reach full capacity by 2026. The project features innovative environmental technologies such as roller-compacted concrete bases and anaerobic digesters for methane production, emphasizing sustainability and economic impact. The feedlot is expected to create 120-130 jobs with a $25 million annual payroll, generating annual cattle sales projected at $300 million and a $366 million local economic impact.
However, challenges persist in Germany’s pork sector, as the country faces the first outbreak of foot-and-mouth disease in nearly 40 years, resulting in lost sales and bans on pork imports from major export destinations. The sector has also been impacted by African swine fever outbreaks since 2020 and rising feed and energy costs, intensified by global events such as Russia’s invasion of Ukraine. Declining domestic demand, driven by shifting dietary preferences and animal welfare concerns, has left the industry reliant on exports, with Spain surpassing Germany as Europe’s top pork exporter. Uncertainties in global trade dynamics and potential policy changes under a second Trump administration could further impact the sector.
In the dairy industry, the weekly USDA dairy report highlights fluctuations in butter, cheese, nonfat dry milk, and dry whey prices. Demand for butter remains steady in the East and Central regions, while cheese production schedules vary throughout the U.S. Milk availability ranges from steady to snug in the East region, with active cheese production schedules reported. Cheese demand is noted to be steady to lighter than usual in the Central region, while the West region sees steady to stronger cheese production trends. Milk handlers report healthy demand for milk from cheese manufacturers in the West region.
In conclusion, while food price inflation has slowed overall, certain sectors like eggs and beef continue to experience volatility. Ongoing supply chain disruptions and input cost pressures contribute to price fluctuations, highlighting the importance of monitoring global and domestic factors that impact food prices across various categories. The agricultural industry must adapt to these challenges by implementing innovative technologies, focusing on sustainability, and navigating changing market dynamics to ensure resilience and growth in the face of uncertainty.
