Drought
The latest US Drought Monitor shows little improvement. In fact, the Midwest is experiencing an ongoing drought. The only region to show the greatest improvement was Arkansas, where drought conditions decreased from extreme drought conditions to severe drought conditions. Expect more drought conditions and higher beef prices in 2023.
USDA-ERS released international meat trade data for September. Beef exports fell significantly in September, totaling 275.78 million pounds, down 5.7% year-on-year. A decline in beef imports and exports was expected. Beef imports from Argentina, Brazil, New Zealand were all down double-digits in September. Imports from Australia and Mexico were both down 4%. Imports coming from Canada increased by 7% in September. Despite declines in September, beef imports are still 6% higher YoY.
Carbon emissions
JBS, has admitted to buying almost 9,000 cattle from a criminal described by prosecutors as one of the worst deforestation companies in Brazil between 2018 – 2022. 90% of the deforested land is used by cattle farming. JBS profits plunged 47.1% in the last quarter due to shrinking margins in the US, Net revenue grew 6.8%.
Research suggests that expanding soybean farming to unused cattle grazing land could help prevent large-scale deforestation and carbon emissions. Brazil is the world’s number one soybean producer and beef exporter, with enough unused pastureland to grow soybean production by more than a third without further deforestation.
JBS profits plunged 47.1% in the last quarter due to shrinking margins in the US, Net revenue grew 6.8%. Minerva is in discussion with the 50/50 Cargill Teys beef processing and cattle feeding operation in Australia, as it gears up towards satisfying the US demand in 2023.
The latest Bord Bia Beef Price Tracker has shown that Irish Beef Price has now fallen to 54c/kg behind the EU average beef price.
Read: Trending Protein Trade News
Disease
Foot and mouth disease has cost the U.S. cattle market more than $130 billion over the past decade. Foot and mouth disease has slowed down dramatically in Indonesia. 575,000 animals have been infected so far, but is only up about 1000 in the past few days. The UK’s main animal disease facility has been left to deteriorate to an “alarming extent” leaving the country vulnerable to major outbreaks on the scale of the devastating 2001 foot-and-mouth crisis, MPs have warned. CSIRO plans to import live foot-and-mouth disease virus for vaccine development as Australia strengthens its biosecurity capacity.
Lumpy skin disease has already infected over 2.4 million animals and has led to over 110,000 cattle deaths in India, according to latest data from the government. Alert sounded after cases of lumpy skin disease emerge among vaccinated cattle in Rayalaseema of Andhra Pradesh.
Company News
JBS profits plunged 47.1% in the last quarter due to shrinking margins in the US, Net revenue grew 6.8%. Minerva is in discussion with the 50/50 Cargill Teys beef processing and cattle feeding operation in Australia, as it gears up towards satisfying the US demand in 2023.
BRF’s third quarter results were basically in line with lowered expectations. High production costs are sapping margins, while high prices are killing volume demand, while revenue rose more than 13% year over year and about 5% quarter over quarter in the third quarter. Share prices fell 30% since August.
Find Tyson Foods latest financials.
The latest Bord Bia Beef Price Tracker has shown that Irish Beef Price has now fallen to 54c/kg behind the EU average beef price.
