Category: Protein

Protein News covers the production, processing, and distribution of protein-rich foods derived from animals, including meat, poultry, seafood, eggs, and dairy. This section explores the entire supply chain, from farming practices and animal nutrition to processing methods and market trends. It also delves into sustainability, animal welfare, and innovations in protein sources, including alternative options like plant-based, insect, and lab-grown proteins. The Protein category is essential for understanding the role of all protein types in global nutrition, economic impacts, and evolving consumer preferences.

HPAI remains crucial to egg pricing

KANSAS CITY, MO. — Egg and egg product prices should continue to decline as cases of highly pathogenic avian influenza (HPAI) decline, Amy Smith, vice president, Advanced Economic Solutions, said June 6 at the Sosland Publishing Co. 45^th annual Purchasing Seminar.

“HPAI is the story,” Smith said, noting that the disease, carried by wild birds, was confirmed in all four North American flyways this year. Egg layers were the poultry segment most affected with about 30 million layers destroyed, 44% of which were in the top egg producing state of Iowa, with about 9% of the total US laying flock impacted. That compares with about 32.5 million layers affected by the 2015 HPAI outbreak. In contrast, only 2.36 million birds were culled from broiler flocks and about 5.5 million turkeys. To date, about 38 million total birds have been culled due to HPAI.

Smith noted that since June 2 (as of June 6) only one commercial flock and no laying flocks had been detected with HPAI.

“I think we’ve peaked,” she said.

The loss of laying hens sent egg and egg product prices skyrocketing from March to May. Prices for eggs have dropped sharply since mid-May, and prices for most egg products also have declined except for dried whole egg and yolk and liquid and frozen yolk. Smith noted that the industry entered the HPAI pandemic in 2022 with less dried egg product inventory than in the 2015 HPAI outbreak.

Smith forecast prices for large table eggs at $2.44 per dozen in the second quarter, at $1.93 per dozen in the third quarter and at $1.95 per dozen for the full year compared with $1.21 per dozen in 2021. She forecast dried whole egg prices at $13.70 a lb in the second quarter, $11.20 a lb in the third quarter and $9.10 a lb for the full year compared with $3.16 a lb in 2021. Dried yolk prices were forecast at $11.70 a lb in the second quarter, $8.58 a lb in the third quarter and $7.50 a lb for all of 2022 compared with $2.39 a lb in 2021.

It will take about 10 to 12 months for layer flocks to fully recover, Smith said, but the industry is facing more “headwinds” than in 2015, including more expensive pullets and feed and the move to cage-free eggs. Feed costs have risen sharply, gaining 28% from October 2021 to April 2022, Smith said. Some producers who had traditional commercial flocks may take the opportunity to convert to cage-free operations, she said.

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Mediator assigned for long-standing Oklahoma poultry lawsuit

OKLAHOMA CITY — Following negotiations in the last few months, a mediator was finally chosen in a yearslong poultry lawsuit in Oklahoma over environmental damage to the state’s water by poultry companies, specifically related to the Illinois River watershed and Lake Tenkiller.

US District Judge Gregory Frizzell in the Northern District of Oklahoma stated in the order of mediation that retired 10th Circuit Chief Judge Deanell Reece Tacha will oversee the proceeding going forward.

Oklahoma Attorney General Gentner Drummond requested the order from Frizzell following an impasse with negotiations.

In January, Frizzell ruled in favor of Oklahoma’s arguments of trespassing and public nuisance-related claims regarding several poultry companies that operated in Oklahoma.

Frizzell granted an extension in March but had a status conference scheduled for June 16.

Poultry companies recently included in the decision include Tyson Foods Inc., Cobb-Vantress Inc., Cargill Inc., George’s Farms Inc., Peterson Farms Inc., Simmons Foods Inc. and other Oklahoma subsidiaries.

The case was brought by Oklahoma in 2005 by then-Attorney General Drew Edmondson regarding improper poultry litter disposal.

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Foster Farms’ emergency service order declared moot

WASHINGTON — Foster Farms’ latest petition for an emergency service order that would direct the Union Pacific Railroad Company (UP) to deliver corn to the poultry processor’s California facilities was denied as moot by the Surface Transportation Board (STB).

STB will require UP to file weekly status reports through May 15.

In the summer, STB granted an emergency service order for Foster Farms. The company requested the order so that it could feed its livestock and maintain obligations to customers, which was proving difficult to do after delayed shipping issues.

After Foster Farms presented a second emergency service order request due to delivery issues with UP, STB ordered the distribution company on Dec. 30, 2022, to meet specific service commitments to the processor. According to UP, the deliveries were delayed due to “weather events.”

In January, Foster Farms received five trains so that all its facilities could be fully operational again.

STB said the docket will remain open for 180 days in case any further action is necessary.

“We appreciate the consideration of the Surface Transportation Board, and their continued interest in ensuring that grain delivery schedules are met,” said Ira Brill, spokesperson for Foster Farms.

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OSI becomes supporting member of Univ. of Wisconsin’s Food Research Institute | 2019-04-29

AURORA, Ill. – OSI Group LLC has joined the Univ. of Wisconsin’s Food Research Institute (FRI) as a supporting member. The center operates its own laboratories and conducts independent research on food safety issues to meet community, government and industry needs.

“We are pleased to add our support to the world class programs and faculty at FRI,” said Joe Holt, vice president, Food Safety and Quality for OSI. “We look forward to collaboration with our industry partners to continue to enhance food safety.”

FRI was founded in 1946 at the Univ. of Chicago. The Food Research Institute has been operating within the College of Agricultural and Life Sciences at Univ. of Wisconsin–Madison since 1966.

“The program’s mission is to catalyze multidisciplinary and collaborative research and promote education and outreach to enhance the safety of the food supply,” according to a release. “FRI is an industry resource for science-based decision making, and many of its projects address immediate concerns and new priorities for the food industry.”

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JBS sees improvement in poultry, pork during Q2

SÃO PAULO – JBS released its fiscal second quarter results for 2024, reporting improvements in some of its business segments, including Pilgrim’s Pride, JBS USA Pork, and Seara but officials said challenges related to the cattle cycle continued to hinder its beef business.

“The strength of our diversification puts JBS in a unique position in the industry,” said Gilberto Tomazoni, chief executive officer of JBS. “While the market environment in the United States remains challenging, our beef businesses in Brazil and Australia are benefiting from favorable cycles in both countries.”

In the fiscal second quarter, ended June 30, 2024, net revenue for the quarter increased by 6.8% to $19.3 billion compared to the second quarter of 2023.

The company’s gross profit for the quarter was reported at $2.97 billion, up from $1.99 billion during the second quarter of fiscal 2023. The net profit was reported as $329 million on the JBS earnings release.

JBS’ North American Beef segment reported net revenue of $5.99 billion during the quarter, up 3.1% from last year.

“Despite the more pressured margins due to the cattle cycle, JBS remains focused on its operational and commercial execution in order to protect its profitability,” JBS said. “Among the ongoing initiatives are the improvement of pricing, the optimization of the product mix, the increase in yield per carcass, greater capture of plant efficiency, among others. All of these implemented actions are fundamental to facing this most challenging cycle.”

Tomazoni added that JBS’ poultry and pork business has benefited from lower grain prices and a better balance between supply and demand, making for strong results in the United States, Mexico, and Europe.

Net revenues for the company’s US pork business increased by over 21% during the quarter to $2.16 billion compared to $1.77 billion during the same period last year.

“In addition to the improvement in commercial dynamics, profitability in the quarter was positively impacted by lower grain costs, continuous efforts aimed at expanding the value-added portfolio, in addition to the consistency of commercial, operational and logistical execution,” JBS said of the US pork business.

Pilgrim’s Pride Corp., a poultry business owned by JBS, exceeded its market expectations with net revenue of $4.55 billion, up 5.8% from the $4.3 billion in 2023.

“The global portfolio showed significant growth in profitability in the annual comparison,” JBS said of Pilgrim’s Pride. The company remained disciplined in executing its strategy and continued to expand relationships with key customers, further improving the level of service as market fundamentals became increasingly attractive.”

Pilgrim’s Pride also reported its highest quarterly EBITDA in history.

JBS’ Seara business recorded a net revenue of $2.2 billion, up 6.7% from last year. The company also saw a significant increase in the adjusted EBITA margin increase by 13.3% compared to the same period in 2023.

JBS Australia revenue for the quarter was $1.65 billion, an increase of 9.5% year-over-year.

For the quarter, JBS exports totaled $3.9 billion, which is 2.4% higher than the second quarter of 2023.

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Tomini turns to in-house management

Alpina Chartering

Tomini has begun the process of bringing the management of its vessels in-house.

The Dubai-based dry bulk shipowner has scrapped its commercial management agreement with Denmark’s Alpina Chartering and expects the shift of vessels to the new management structure to take place over the coming year.

The deal between the two companies stretched over 40 years, with Tomini managing ownership and technical operations while Alpina handled commercial management.

The transition will see Tomini take over full responsibility for all aspects of commercial management, including chartering, freight operations, and client relationships.

“This decision reflects Tomini Group’s commitment to further enhancing its operational efficiency in line with its long-term strategic goals,” the company said.

The Norwegian OTC market-listed privately owned group lists 24 ships on its website, comprising handysize, ultramax, kamsarmax and capesize bulkers. It has a crew management centre in Mumbai and Karachi and is also involved in the classic cars business.

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Cultivated meat company receives clearance to sell pet food products in UK

LONDON — Cultivated meat company Meatly announced on July 17 it received regulatory clearance to sell cultivated meat for use in pet food in the United Kingdom, making it the “first in the world” to receive authorization for cultivated pet food, according to the company. Additionally, the approval also makes Meatly the first-ever cultivated meat company approved for sale in any European country, according to Meatly.

To receive approval, Meatly closely collaborated with many of the United Kingdom’s regulatory bodies, including the Food Standards Agency (FSA), the Department for Environment, Food and Rural Affairs (DEFRA), and the Animal and Plant Health Agency (APHA). These regulatory bodies ensured that Meatly and its cultivated meat comply with all needed regulations. Additionally, Meatly has recently passed the APHA’s inspection process, and the company plans to continue to adhere to ongoing inspections.

The regulatory approval means that Meatly’s cultivated chicken for pet food can now be sold in the United Kingdom.

“Today marks a significant milestone for the European cultivated meat industry,” said Owen Ensor, chief executive officer of Meatly. “I’m incredibly proud that Meatly is the first company in Europe to get the green light to sell cultivated meat. We are proving that there is a safe and low-capital way to rapidly bring cultivated meat to market.”

In addition to meeting UK regulations, Meatly has also prepared a safety dossier and conducted extensive testing to ensure that its cultivated chicken is safe and healthy for pets. According to the company, the testing demonstrates that its cultivated chicken is free from bacteria and viruses, that the nutrients used to grow the ingredient are safe, and that the final chicken ingredient is safe, nutritious, and free from GMOs, antibiotics, harmful pathogens, heavy metals and other impurities.

“We’re delighted to have worked proactively alongside the UK’s regulators to showcase that Meatly chicken is safe and healthy for pets,” Ensor added. “Pet parents are crying out for a better way to feed their cats and dogs meat — we’re so excited to meet this demand. We can now continue our mission to give consumers an easy choice — ensuring we can feed our beloved pets the real meat they need and crave, in a way that is kinder to our planet and other animals.”

Meatly is currently a registered feed business operator in the United Kingdom, and its production facility has also received approval from the DEFRA and the APHA, enabling it to produce and handle cultivated chicken.

This regulatory approval follows extensive cultivated meat advancements by the company. In March, the company announced a partnership with sustainable pet food company Omni, creating a cultivated wet cat food product. Then in May, the company was able to decrease production costs of its cultivated meat to £1 ($1.25) per liter.

Following this approval, the company plans to launch the first samples of its commercially available pet food this year, making it the first cultivated pet food sold, according to Meatly. Additionally, the company plans to focus on lowering its production costs and scaling its production to reach industrial volumes during the next three years.

“Meatly’s regulatory approval is a landmark event for the industry,” said Jim Mellon, founder of Agronomics, an investor in Meatly. “Through its technological innovation and close work with governing authorities, Meatly is helping prove that we can succeed in commercializing cultivated products for pets across the United Kingdom. Our pets consume huge amounts of meat every day and so this development can play a crucial part in reducing the emissions, resource consumption and animal suffering caused by traditional meat production.”

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Rite Aid plans 100% cage-free eggs by end of 2022

NEW YORK, NY. – The US pharmacy chain, Rite Aid, announced its commitment to selling 100% cage-free eggs has accelerated progress toward that goal. The company initially pledged to source cage-free eggs across its 2,289 retail locations by 2025 but shortened that timeline by three years to the end of 2022.

“We commend Rite Aid for expediting its cage-free timeline to reduce the suffering of egg-laying
hens in its supply chains,” said Vicky Bond, president of The Humane League. “We’ve seen a trend
among socially responsible companies like Rite-Aid to stop sourcing eggs from hens kept in cruel
battery cages and to speed up the implementation of their cage-free policies.”

Rite Aid’s accelerated commitment comes on the heels of Walgreens’ and CVS Health’s recent pledge to sell 100% cage-free eggs by year-end 2022.

Rite Aid consulted with The Humane League, a global animal protection nonprofit with a mission to end the abuse of animals raised for food, before making this commitment.

Consumer demand for cage-free eggs continues to grow and over 2,000 companies worldwide have committed to cage free including Nestlé, Aldi, InterContinental Hotels, Sodexo, Kraft Heinz, Compass Group, Shake Shack, Famous Brands, Costa Coffee, Burger King, Dunkin’, Krispy Kreme, Unilever and Barilla.

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Butterball debuts new packaging next month

GARNER, NC. — Butterball LLC will introduce a new look for its portfolio of retail products next month, the first time since 2018. The redesign aims to upgrade consumer shopping experiences through incorporating consistency to the look and feel across all product lines. Easy-to-read labeling, a bright blue design and an interactive QR code will come together to boost shopper engagement with the brand.

“Butterball is always striving to provide a consistent shopping experience for consumers across our different product categories, so achieving that was top of mind for this redesign,” said Rebecca Welch, director of retail and international brand management at Butterball. “We also wanted the packaging to connect to Butterball’s core beliefs that everyone should feel great about what they eat, and that food connects people and gives them an opportunity to show they care. Our research found that we were able to convey these beliefs through the new design, as consumers reported they believe Butterball is a brand that cares and brings people together around high quality, good-for-you food.”

Butterball’s Insights team led the research process to inform the new packaging design. Consumer testing focused on readability, color, visual appeal, illustrations and product photography. The research and testing resulted in blue packaging with food photography and easy-to-read label information. Hand-drawn illustrations with phrases like, “You got this!” adorn the packaging — an expression of Butterball’s human-powered connection with loyal consumers. Research participants reported the unique look appeals to younger consumers and families with children, and overall the design establishes a cohesive master brand look.

“Our redesigned packaging is modern and ownable,” Welch said. “When shoppers see our products, they’ll immediately know it’s Butterball.”

In addition, the ground turkey tray packaging now offers 10% more product visibility to address consumers’ desire for more product visibility and instill confidence in the quality of their purchase. Consumers also can immediately engage with the brand and the specific product they are considering with the packaging’s external QR codes.

“The connected food packaging works harder for us on the shelf than traditional packaging,” said Valerie Saint Sing, consumer packaged goods brand manager at Butterball. “When the QR code is scanned, consumers will land on the specific product’s page at Butterball.com to view recipes, nutritional information, storage instructions and additional product varieties. However, because the QR code is dynamic, we can change the user journey instantly to create a different brand experience based on seasonality, active marketing campaigns and more.”

Butterball’s frozen turkey burgers will be the first to wear the newly designed packaging in August. After frozen turkey burgers, turkey bacon and fully cooked breakfast sausage will hit shelves in their new packaging, followed by fresh, raw products like ground turkey. Seasonal products like fresh and frozen whole turkeys will debut with the new look starting in 2025.

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Chicken companies to face price-fixing claims

CHICAGO – US District Court Judge Thomas M. Durkin ruled last week that large poultry producers must face antitrust litigation that accused them of conspiring to inflate chicken prices.

The in re Broiler Chicken Antitrust Litigation lawsuit accused poultry processors of conspiring and coordinating production dating back to 2008. This lawsuit was initially filed by retail, foodservice and institutional buyers of chicken products.

Durkin stated that jurors could find it likely that major poultry companies, including Pilgrim’s Pride, Sanderson Farms and Tyson Foods conspired for price fixing, throughout his 90-page decision.

“There are numerous examples of supposed competitors regularly exchanging sensitive production data with each other,” Durkin said. “A jury could find that such conduct is not the behavior of active competitors.”

Durkin also dismissed claims regarding the Sherman Act and RICO claims for Perdue Farms, Wayne Farms, Foster Farms, Case Farms, Norman W. Fries Inc., d/b/a Claxton Poultry Farms Inc. and Fieldale Farms Corp.

He later dismissed ongoing claims regarding Agri Stats Inc., which allegedly would monitor pricing and production for poultry companies.

Other companies that Durkin denied dismissal motions included Harrison Poultry, Koch Foods, Keystone Foods, Mountaire Farms, OK Foods, Pec Foods, Raeford Farms and Simmons Foods.

In his ruling, Durkin narrowed the timeframe for price-fixing allegations to be between 2008-2009 and 2011-2012.

He dismissed claims relating to supply cuts in 2015-2016 and alleged manipulation of the Georgia Dock broiler price index.

Last month, Simmons Foods was granted preliminary approval for an $8 million settlement regarding a direct purchaser price-fixing lawsuit.

Court documents said that if the Simmons agreement is approved, the total amount recovered for the direct purchaser lawsuit is $188.9 million.

A summary of recent coverage of price-fixing cases can be found on the MEAT+POULTRY website.

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