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, aMPV, and Turkey REO virus crucial to understand and manage
15 September 2024
4 minute read
The U.S. turkey industry plays a significant role in the nation’s agricultural economy, with over 216 million turkeys produced annually, contributing to an economic impact of $103.4 billion (National Turkey Federation, 2019). Leading production states include Minnesota, North Carolina, and Arkansas, collectively yielding 5.55 billion pounds of turkey meat in 2023. Turkey meat production in 2021 was recorded at 5.558 billion pounds, underscoring its importance as a dietary staple (USDA ERS, 2024). With key export markets in Mexico and Canada, the industry remains a crucial component of U.S. agriculture. To maintain industry health, it is essential to understand diseases such as Highly Pathogenic Avian Influenza (HPAI), Avian Metapneumovirus (aMPV), and Turkey REO virus.
Highly Pathogenic Avian Influenza (HPAI) in Turkeys
HPAI, caused by influenza Type A viruses, leads to high mortality rates and substantial economic losses. Infected turkeys show symptoms such as sudden death, lethargy, lack of appetite, decreased egg production, swelling of the head, neck, and eyes, coughing, sneezing, and nasal discharge (Mumu et al., 2020; Swayne et al., 2000). The disease progresses rapidly, often resulting in significant flock mortality.
Since the outbreak began on February 8, 2022, approximately 90.89 million birds have been affected by HPAI across the United States, with 1,139 flocks (486 commercial and 653 backyard) spanning 48 states (USDA APHIS, 2024b). By the end of 2023, turkeys represented over 70% of the affected birds, causing significant financial strain due to the depopulation of millions of birds (Patyk et al., 2023). In 2024, the virus continues to spread, particularly in Minnesota, North Carolina, and Indiana, with severe economic repercussions impacting turkey product availability and livelihoods within the industry (USDA APHIS, 2024b).
Transmission of HPAI occurs through direct contact with infected birds or contaminated environments, with risk factors including poor biosecurity and wild birds near poultry farms. Depopulation remains the primary outbreak management method, while stringent biosecurity measures are crucial for protecting flocks from infection (Patyk et al., 2023).
Avian Metapneumovirus
Avian Metapneumovirus (aMPV) causes respiratory illness and reproductive issues in turkeys. Identified in the 1970s, aMPV has four known serotypes: A, B, C, and D (MacLachlan et al., 2017). Infected birds show respiratory distress, nasal discharge, swollen sinuses, and decreased egg production (Amine et al., 2023; Pringle, 1998), with high mortality rates and significant economic losses associated with outbreaks (Rautenschlein, 2020).
Diagnosis involves serology and PCR tests. There is no specific treatment for aMPV, making prevention and control paramount. Strategies include biosecurity, vaccination, and managing secondary bacterial infections with antibiotics (Nicholds et al., 2020). Both live and inactivated vaccines are used in areas where aMPV is common. Recent outbreaks have been reported in Virginia, North Carolina, and California, with increased serologic positives noted since early fall 2023. The National Veterinary Services Laboratories (NVSL) confirmed Avian Metapneumovirus subtype B in turkeys and broilers from Virginia, North Carolina, and subtype A in turkeys from California. The increase in serologic positives since late 2023 has been linked to high mortality events. Ongoing surveillance, improved diagnostics, and effective biosecurity practices are essential to mitigate the disease’s impact (USDA APHIS, 2024a).
Turkey REO Virus
The REO virus is a significant concern due to its widespread impact and limited treatment options. This virus primarily affects the leg joints of turkeys, causing lameness (Sharafeldin et al., 2016), swelling, and increased joint fluid. Symptoms include difficulty walking, lethargy, and swollen hocks, leading to welfare issues and economic losses due to increased culling, mortality, and reduced growth rates (Porter, 2018).
A survey by the National Turkey Federation (NTF) indicated that the REO virus consistently ranks among the top concerns for turkey producers. In 2019, approximately 2% of turkeys and 5% of toms were affected, resulting in higher production costs due to increased mortality and reduced feed efficiency (Graber, 2024). Transmission occurs vertically and horizontally, with oral exposure allowing the virus to infect intestinal epithelial cells and potentially spread to the heart, liver, intestines, and tendons (Nicholds et al., 2020).
Currently, turkeys have no specific treatment for the REO virus (Kumar et al., 2022). Management focuses on prevention and control through biosecurity measures, improved flock management, and ongoing vaccination research. The NTF Foundation actively funds research to develop better diagnostic tools and vaccines to reduce REO virus prevalence and impact (Graber, 2024).
Conclusion
The U.S. turkey industry’s fight against HPAI, aMPV, and REO virus underscores the need for stringent biosecurity, advanced research, and innovative technologies. Comprehensive biosecurity protocols are crucial for preventing outbreaks, while investment in vaccines and diagnostic tools enhances disease management. These efforts are vital for safeguarding flock health, maintaining productivity, and ensuring the industry’s economic viability. Continuous advancements in prevention and control will sustain and strengthen turkey production against emerging health challenges.
SARASOTA, FLA.— Boar’s Head confirmed on Sept. 13 that it plans to “indefinitely close” its Jarratt, Va., plant, which has not been running since July following the Listeria outbreak.
“This is a dark moment in our company’s history, but we intend to use this as an opportunity to enhance food safety programs not just for our company but for the entire industry,” Boar’s Head said in a statement.
The meat producer said that its investigation identified the root cause of the contamination as a specific production process that only existed at the Jarratt plant, which was used for liverwurst. Boar’s Head has now decided to permanently discontinue liverwurst.
“It pains us to impact the livelihoods of hundreds of hard-working employees,” the company said. “We do not take lightly our responsibility as one of the area’s largest employers. But, under these circumstances, we feel that a plant closure is the most prudent course. We will work to assist each of our employees in the transition process.
The United Food & Commercial Workers Local 400 union released a statement regarding the company’s decision.
The union noted that the company agreed to provide union members with the opportunity to transfer to other Boar’s Headed facilities or accept a severance package.
“Everyone agrees this unprecedented tragedy was not the fault of the workforce, so it is especially unfortunate that the Jarratt plant must close indefinitely and put so many men and women out of work,” UFCW Local 400 said in a statement. “Thankfully these workers have a union they can count on to always have their backs. We appreciate the extraordinary efforts Boar’s Head has made to keep our members on the job as long as possible and to ensure everyone is taken care of during this process.”
As investigations continue into the Listeria outbreak at the Boar’s Head Jarratt facility, the company announced on Sept. 13 that it would revise its food safety and quality measures.
In an updated statement on its website, Boar’s Head confirmed that it would appoint a new chief food safety and quality assurance officer (CFSO), with the company recruiting for the position now. The person will report directly to the president of Boar’s Head.
Along with the new position, the company announced it would establish a “Boar’s Head Food Safety Council,” which will be made up of independent food experts with some of them assisting the current investigation at the Jarratt plant.
“The Food Safety Council, which may evolve over time and as needed, will assist the company’s adoption and implementation of enhanced quality assurance (QA) programs and create a new standard for food safety in the industry,” Boar’s Head said in its statement. “The council will serve as advisors to the new chief food safety officer and to the company as a whole.”
Founding council members include Dr. David Acheson, president and chief executive officer of the Acheson Group, a global food safety consulting group. Before working in food safety industry roles, he served at the US Food and Drug Administration (FDA) for eight years, which included chief medical officer of the Center for Food Safety and Applied Nutrition to Associate Commissioner for Foods.
Next, Mindy Brashears, a food safety expert and academic, will also join the council. Brashears served as the USDA’s Undersecretary for Food Safety during the Trump Administration. She currently works as a professor of food safety and public health and director of the International Center for Food Industry Excellence at Texas Tech University.
Martin Wiedmann, DVM, a food microbiologist and academic, will serve on the council. He is the Cornell University Gellert Family Professor in Food Safety and the New York State Integrated Food Safety Center of Excellence co-director. With experience as a veterinarian and food scientist, Wiedmann researched foodborne pathogens and prevention.
Finally, Frank Yiannas, deputy commissioner for food policy and response at the FDA from December 2018 to February 2023, will also be on the council. While at the agency, Yiannas helped implement the Food Safety Modernization Act, collaborating with the Center for Food Safety and Applied Nutrition, the Center for Veterinary Medicine, and the Office of Regulatory Affairs.
Along with these appointments, Boar’s Head said it will enhance its companywide food safety and quality assurance program. The initiative will be led by the CFSO and developed in partnership with the council.
“We remain steadfast in our commitment to our customers and to the safety and quality of our products,” the company stated. “You have our promise that we will work tirelessly to regain your trust and ensure that all Boar’s Head products consistently meet the high standards that you deserve and expect. We are determined to learn from this experience and emerge stronger.”
Earlier this week, documents from the USDA indicated new details about food safety protocol going back two years at the Jarratt facility. While the USDA earlier disclosed 69 instances of noncompliance between Aug. 1, 2023, and Aug. 2, 2024, at the Jarratt facility, a more recently released report revealed violations as early as 2022. The second round of inspection citations covered the period between January 2022 and June 2023. One note from the USDA categorized the facility as an “imminent threat” before the outbreak.
The plant in Virginia remains closed as investigations continue.
The company also shared its USDA Notice of Suspension ti received for the Jarratt facility on July 31.
During July, Boar’s Head recalled 7 million lbs of meat and poultry products due to the Listeria contamination.
According to current numbers from the Atlanta-based Centers for Disease Control and Prevention (CDC), 57 people have been hospitalized and nine people have died as a result of the Listeria outbreak linked to sliced deli meat, including products from Boar’s Head.
Livestock analyst Jim Wyckoff reports on global protein news
13 September 2024
12 minute read
Weekly USDA US beef, pork export sales
Beef: Net US sales of 11,400 MT for 2024 were down 31 percent from the previous week and 41 percent from the prior 4-week average. Increases were primarily for South Korea (3,200 MT, including decreases of 300 MT), Mexico (1,900 MT, including decreases of 100 MT), Japan (1,500 MT, including decreases of 200 MT), Canada (1,100 MT), and Taiwan (1,000 MT, including decreases of 100 MT). Exports of 11,800 MT were down 21 percent from the previous week and 16 percent from the prior 4-week average. The destinations were primarily to South Korea (3,100 MT), Japan (2,600 MT), China (1,800 MT), Mexico (1,200 MT), and Taiwan (600 MT).
Pork: Net US sales of 29,700 MT for 2024 were up 43 percent from the previous week and 15 percent from the prior 4-week average. Increases were primarily for Mexico (14,200 MT, including decreases of 200 MT), Japan (4,300 MT), Colombia (2,400 MT, including decreases of 100 MT), China (2,000 MT, including decreases of 200 MT), and Canada (1,400 MT, including decreases of 700 MT). Total net sales of 100 MT for 2025 were for the Dominican Republic. Exports of 25,700 MT were down 8 percent from the previous week and 10 percent from the prior 4-week average. The destinations were primarily to Mexico (10,700 MT), Japan (3,800 MT), China (3,200 MT), Colombia (1,700 MT), and South Korea (1,600 MT).
Chinese meat imports have declined significantly compared to previous years
Through the first eight months of 2024, China imported 4.40 million metric tons (MMT) of meat products, down 13.9% from the same period in 2023. In August 2024, China imported 565,000 MT of meat, which was 9.9% lower than August 2023. Beef imports have been particularly affected, with volumes down 27% year-over-year in July 2024.
Several factors are contributing to lower Chinese meat imports in 2024:
Economic headwinds are impacting consumption of both pork and beef.
China has ample domestic meat supplies after building up stocks in 2023.
Pork production in China remains high, reducing import needs.
Chinese consumers are seeking cheaper protein options due to economic slowdown.
Import bans on some U.S. meat facilities have restricted supply.
Pork
Pork imports may grow marginally to offset a forecasted 3% decline in domestic production.
China’s pork output fell 0.4% year-over-year in Q1 2024, the first quarterly decline in nearly 4 years.
Beef
Beef imports are expected to decline in 2024 due to high year-end inventory and flat demand.
China’s share of global beef imports is forecast to be 5% below 2023 levels.
Poultry
Poultry meat imports accounted for $282 million in July 2024, resulting in a negative trade balance.
Impact on global trade
The U.S. has seen a fall in meat exports as China scales back imports.
Brazil has increased beef exports to China, up 10.2% in the first half of 2024.
Australia has shifted more beef exports to the U.S. and Japan as Chinese demand weakens.
Bottom line: While there have been some month-to-month fluctuations, overall Chinese meat imports remain well below 2023 levels as domestic production remains high and economic factors dampen demand. This has led to shifts in global meat trade flows, with exporters like the U.S., Brazil and Australia adjusting to changing Chinese import patterns.
Highlights of US pork group virtual briefing on key challenges
Bottom line issues for National Pork Producers Council:
Brian Humphreys, CEO of the National Pork Producers Council, said: We’re here to find solutions, not just discuss challenges. We need a 2024 Farm Bill — not an extension. We need a legislative fix to California’s Prop 12, resolutions to the labor shortage, and an active trade agenda. NPPC says moving a new farm bill this year with language restricting state animal welfare rules is the group’s top priority.
Need for new farm bill: “With all the stress on farmers now, it’s important that we get this moved now while we’ve got the opportunity,” Duane Stateler, president-elect of NPPC, said in the virtual briefing. “If the farm bill goes into next year, it starts all over. We have many good things in this farm bill which makes it imperative we get it done in 2024,” Lori Stevermer, NPPC president, said in the briefing.
Proposition 12: “The 2024 Farm Bill is a golden opportunity to address a top issue for pork producers across the country – California Prop 12,” Stevermer said. Proposition 12, a 2018 California ballot initiative, prohibits the sale of uncooked whole pork meat not produced according to the state’s arbitrary housing dimensions. The initiative places the cost and compliance burden on pork producers, who are nearly all located outside of California, and puts the industry at risk of significant consolidation, NPPC argues. The Supreme Court of the United States said this is an issue for Congress to solve, and NPPC has been urging passage of the farm bill which includes a federal solution to Prop 12. “We cannot continue down a path of unscientific rules and regulations,” Humphreys said on the call. “It’s not a question about what has happened, but it’s a question of how do we move forward and protect the U.S. from this patchwork of regulations? We appreciate the bipartisan solution in the farm bill to make that happen.” Stevermer said Prop 12 impacts extend beyond producers as it has also resulted in higher prices for consumers. “Pork prices are up on average 20% since Prop 12 went into place, and the supply is down about 20% so that’s not good for consumers, and it’s not good for farmers either,” she said.
Labor issues remain a concern, with the group presses for improvements to the TN skilled guestworker visa program. NPPC said policy concerns include addressing the persistent ag labor shortage and contending with inflationary impacts on production costs. While ag labor discussions often focus on the H-2A ag guestworker program for low-skilled farm laborers, pork industry officials said they also face difficulty using the TN visa program, which allows businesses to procure skilled workers from Mexico and Canada. The State Department recently made changes to the program aimed at streamlining it, but NPPC officials said they have effectively closed off the ability to use TN visas by the pork sector. “It just seems like every day there’s less and less TNs approved,” said NPPC Vice President Rob Brenneman. He explained that the program has become more important in helping producers secure the workers skilled in utilizing new production technologies that are difficult to find in the domestic labor market. “I think it’s absolutely absurd that we just keep getting TNs denied … we’ve been to the State Department, and we’ve been to the White House and had conversations, and it just seems like they’re doing everything in their power to do the opposite of what we’re asking because nothing’s changed,” Brenneman said.
Cost of production. NPPC officials said that besides labor shortages, producers also continue to grapple with higher production costs, though the growth in costs has slowed in areas like feed. Other fixed costs like transport, labor and utility bills mean overall production costs remain roughly 25% higher than they were three years ago, officials stressed. “While we’re getting a little relief on the feed side, we’re still seeing elevated costs of production,” said NPPC board member Scott Hays.
CAFOs: Officials were asked to weigh in on a lawsuit from environmental groups seeking to compel EPA to act on their petition seeking an overhaul of how the agency regulates concentrated animal feeding operations (CAFOs). NPPC and other livestock and poultry interests are backing EPA’s decision to deny the petition, as the question heads to federal court later this week. Calling the CAFO lawsuit “an attack on ag by activist groups,” NPPC’s Statler said, noting EPA was right to deny the petition. “What they’ve asked EPA to do was illegal.” Stateler praised EPA for engaging with stakeholders including NPPC on the issue to gather information before considering any additional action. “They decided to take a look and look at the facts, and they turned it over to explore the issues that are really involving all CAFOs and the ag groups, including NPPC, are participating in that process,” he added, saying the group looks forward to finding a solution that works for all involved.
Trade policy: NPPC continues to urge new trade agreements, but acknowledges new FTAs are unlikely. “We know that’s not how things are being done — in the manner that maybe they were, you know, 10 or 15 years ago,” Stevermer said regarding new FTAs, but she added that such agreements are not an end all be all for trade. Trade programs like the Generalized System of Preferences (GSP) and African Growth and Opportunity Act (AGOA), both pending renewal, are also important for the sector, she said.
US confirms first H5N1 case with no known animal exposure
A Missouri resident has been confirmed as the first case of the H5N1 virus with no known exposure to sick animals, according to the CDC. The individual, who was hospitalized and has since recovered, had no work-related contact with animals. The infection was identified through routine flu surveillance, rather than the targeted H5N1 program typically used for farm workers. This marks a shift in how the virus is being monitored and may indicate new patterns of transmission.
FAO food price index slips again in August
The UN Food and Agriculture Organization global food price index slipped 0.5% in August, the second straight small monthly decline, as decreases in sugar, meat and cereal grains outweighed increases for vegoils and dairy products. The August index was down 1.1% from last year. Compared to year-ago, prices declined 12.0% for cereal grains and 23.1% for sugar, while they rose 3.6% for meats, 14.3% for dairy and 8.1% for vegoils.
Weekly USDA dairy report
CME GROUP CASH MARKETS (9/06) BUTTER: Grade AA closed at $3.1750. The weekly average for Grade AA is $3.1594 (-0.0226). CHEESE: Barrels closed at $2.2750 and 40# blocks at $2.2700. The weekly average for barrels is $2.2588 (+0.0473) and blocks $2.2363 (+0.1083). NONFAT DRY MILK: Grade A closed at $1.3650. The weekly average for Grade A is $1.3550 (+0.0435). DRY WHEY: Extra grade dry whey closed at $0.5875. The weekly average for dry whey is $0.5725 (+0.0120).
BUTTER HIGHLIGHTS: In the West, butter demand varies from steady to stronger for the retail and food service sectors. In the Central region, butter demand is stronger for both as well with seasonal strength gathering. For the East, retail demand is stronger, and food service demand is steady. Cream supplies are looser with the holiday weekend contributing to market availability of loads. However, not enough to make cream volumes abundantly available throughout the country. Stakeholders convey cream availability remains relatively tight in the East. Butter production paces mostly vary from steady to stronger. Bulk butter overages range from minus 7 to 10 cents above market, across all regions.
CHEESE HIGHLIGHTS: Contacts relay cheese production schedules vary from steady to lighter throughout the U.S. In the East, milk availability for Class III processors is tempered by strong Class I bottling demand. Labor Day weekend freed up some spot milk temporarily, but contacts continue to share seasonally steady to lighter cheese manufacturing activity. In the Central region, contacts report spot milk prices ranging from $1/cwt to $2.50/cwt over Class III. That said, some cheesemakers relay getting no spot milk offers, and cheese production remains seasonally lighter. Some processors share they are shifting production focus away from blocks and back into barrels. Contacts in the West are running steady cheese production schedules despite tight spot milk availability. Some manufacturers share there are limited cheese inventories available for interested spot purchasers.
FLUID MILK: The unceasing milk production carried on across the country despite the holiday weekend. Farm level milk production proceeds to weaken over much of the East and Midwest. Processors there are feeling the pinch in production. Reported spot milk prices in the Midwest ranged from $1-over to $2.50 over Class III. Cooler temperatures are being seen over some parts of both regions, and farmers are anticipating the effects in the coming weeks. Arizona and the Pacific Northwest are also experiencing a dip in milk levels. Most of the mountain states have generally steady production. Increased levels of milk are being seen in California and New Mexico. Nationwide, school schedules have pushed Class I demand for bottling to its peak. Class II and III production is mixed as Class I draws on available milk supplies. Demands for cream and condensed skim are steady to strong. Spot loads of condensed skim are a rarity in most of the country. Cream supplies remain tight, but a small gain in cream availability was seen over the holiday weekend. It is not expected to last long, but Class IV manufacturers are making the most of it. Cream multiples range from 1.15 – 1.50 in the East, 1.16 – 1.34 in the Midwest, and 1.10 – 1.30 in the West.
DRY PRODUCTS: Low/medium heat nonfat dry milk (NDM) prices moved up at every facet in all regions this week. Clearly, markets have found some bullish tailwinds with stronger demand and tightening supplies. Dry buttermilk prices were steady in the Central/East regions, while moving higher in the West. Dry buttermilk Q4 demand has begun to stir potential market bulls. Central and West whey prices were steady to higher, while East whey prices held steady. Whey supplies are noted as very tight according to a number of processors. Lactose prices were steady to slightly lower, as international demand has been less consistent recently. Whey protein concentrate (WPC) 34% prices edged higher at every point this week on renewed interest from end users, particularly those who can alternate between WPC 34% and NDM. Dry whole milk prices were higher this week, as interest remains steady, but inventories are, and have been, noticeably tight. Rennet and acid casein prices were steady on quiet trading activity.
ORGANIC DAIRY MARKET NEWS: The first publication of the Pennsylvania Monthly Organic Dairy Report was released on September 6, 2024. The Vermont Monthly Organic Dairy Report covering June 2024 showed the weighted average price for fluid milk decreased from May, while the total volume and average daily production per cow also decreased. The USDA AMS National Organic Program (NOP) Organic Insider sent out on August 30th discussed an upcoming meeting of the National Organic Standards Board (NOSB) in Portland, Oregon in October 2024. Monthly export volumes for organic milk during July 2024 were up from the month prior, and up from July 2023. Total organic dairy ads increased in the week 36 retail ad survey. Every organic commodity present in last week’s survey, except sour cream, appeared in more ads this week. This week’s most advertised organic dairy product was milk. Organic cottage cheese, cream cheese, and ice cream appeared in this week’s retail ad survey after not being present last week.
US RETAIL REPORT: Conventional dairy advertisement totals slid 11 percent lower, while organic retail dairy ad totals increased 42 percent during week 36. Conventional ice cream, in 48-to-64-ounce containers, for the second consecutive week was not the most advertised dairy item, as that item’s ad totals decreased 43 percent from last week. Conventional sliced cheese in six-to-eight-ounce packages was the most advertised item this week, while half-gallon milk returned to its normal top spot among organic dairy items, after a 65 percent increase from last week’s ad totals.
A NEW economic desktop update has found that cost-to-operate for a typical Australian beef processing facility has risen 25 percent over the past eight years, with an average Australian beast now costing around $450 to kill, bone and pack.
That per-animal cost has risen by $90 from around $360/head in the industry’s original, more comprehensive cost-to-operate report published in 2016, exposing Australia’s chronic lack of competitiveness in this area.
There was a small difference noted in cost to operate on grainfed cattle ($478/head) than grassfed ($371) in the 2024 economic analysis completed recently by the Australian Meat Processor Corporation.
The latest analysis was based on an ‘average’ of a wide range of processing activity from hot-boning at one end to much more sophisticated chilled boning at the other where processors do a ‘lot more with the carcase.’
The 2024 update report stressed that costs will vary for individual processors depending on facilities, processes, location and availability of resources. A hot boning plant, for example, will have lower cost to operate than a chilled boning plant producing high quality beef.
This trend was confirmed by two large multi-site beef processors, who both told Beef Central that their own processing costs this year (representing both grain and grassfed) are closer to $500 a head than $450.
The highest cost increases noted in the latest report occurred in areas like energy (electricity and gas) and fuel, waste disposal and transport.
Labour cost rises were somewhat less impactful, however Australian labour costs remain higher than international competitors (see details below).
The report found that:
Utilities like electricity has risen 30.2pc in the past eight years; other fuel prices have risen 28.2pc; water and sewerage are up 9.8pc; and waste disposal is up 28pc.
Processing wages and salaries, and workers compensation have risen 22.6pc since the original report, while retirement benefits had risen 38.4pc
Other costs, including certification/audit costs* have risen 24.2pc; packaging is up 21.1pc; and transport of finished goods is up 27.4pc. Other items like repairs and maintenance and consumerables have risen 27.8pc.
Using grassfed processing as an example, total labour cost, measured on a per head basis, has risen from $180 to $223 over eight years, while utilities costs (energy for cold storage, heating, lighting and machinery) plus water, sewerage and waste disposal are up from $20 to almost $26 a head.
Minimum wages
This year’s report pointed out that that Australian minimum wages remain higher than all our meat exporting competitors, based on an OECD comparison of minimum hourly wages in real terms (2022 US dollars, Purchasing Price Parity). In 2022, the minimum wage in Australia was 3.2pc higher than New Zealand, 46.7pc higher than the United States and 82pc higher than Brazil (data not available for Argentina). Since 2017 the US minimum wage has declined in real terms, widening the gap between Australian and US labour costs.
Comparison of real minimum wages – US$ purchasing price parity, 2022 basis
The report authors stressed that the 2024 report is a preliminary update of the original, more comprehensive 2016 cost to operate report, and more detailed updates may be produced in the future, including updated comparisons with international competitors.
For comparative purposes, the 2024 analysis applied the same base assumptions on average carcase weight and daily throughput as the original report.
Comparisons with major beef export competitors
Unlike the original 2016 report, the 2024 update focussed only on Australian processing changes, and did not seek to analyse changes in processing costs in competing beef exporting countries like the US and Brazil.
The original Heilbron report from 2016 exposed a dramatic difference between cost-to-operate competitiveness in the Australian beef processing industry compared with other parts of the world. It found Australian processing ($360/head at the time), was dramatically more expensive than the US, when measured in A$ equivalent terms ($290), Brazil ($172, less than half of Australia’s cost) and Argentina ($206).
The original 2016 report found that average costs per head (excluding livestock purchase) incurred in Australian beef processing were 24pc higher than those in the US, more than twice the costs seen in Brazil and 75pc higher than those in Argentina. Specifically, Australian processing costs back in 2016 were:
1.32 times that in the US, based on grainfed cattle (A$93.35 a head in dollar terms)*
1.73 times the cost of that in Brazil for grassfed cattle (A$125.42 in a dollar terms)*, and
1.45 times that in Argentina for grassfed cattle) (A$91.74 in dollar terms)*
Of the costs incurred in Australian processing, the original report estimated that more than 54pc were due to some form of government regulation, significantly higher than any of the three comparison countries.
Australia’s regulatory cost burden in 2016 was estimated to be 2.75 times that of Brazil, 2.4 times that of the United States and 1.89 times more Argentina.
Click here to view Beef Central’s summary of the original 2016 Heilbron report.
* A transposition error occurred in the numbers identified with an asterisk above, when this article was first published. The numeral 1 and the decimal point disappeared in the comparisons. The article has now been corrected, and the correct numbers repeated below – Editor
1.32 times that in the US, based on grainfed cattle (A$93.35 a head in dollar terms)*
1.73 times the cost of that in Brazil for grassfed cattle (A$125.42 in a dollar terms)*, and
1.45 times that in Argentina for grassfed cattle) (A$91.74 in dollar terms)*
Nottighamshire pig farmer and two-time award winner Fred Allen reveals why he is such a big fan of the National Pig Awards.
So, the finalists have been announced for this year’s Pig Awards and a massive congratulations to all those who have made it this far. I know from my own experience that you must work incredibly hard to get shortlisted for this stage, so credit to everyone who has achieved this feat.
Those that haven’t made it as a finalist, please don’t be disheartened. We work in a fiercely competitive industry; I hope that you will use the whole exercise as a platform to build on and come back far stronger next year.
Making it as a finalist is a huge accolade, because not only do you get the opportunity to win, but you also get a free ticket to an unforgettable night later in the year at the Pig Awards. I must mention, before you read on, that I’m not being paid by the Pig Awards to promote it. I’m just a regular guy, who does regular things, but who happens to just bloody love the Pig Awards!
Shamefully, when I first began farming nearly a decade ago, I scoffed at the idea of an award ceremony based solely around pigs. It was only when I first went in 2022 that I realised how ignorant I had been. The whole occasion was mind-blowing, and I struggled to take it all in. So many like-minded, intelligent, hard-working individuals all under one roof all with the sole aim of getting dolled-up and getting loose. I couldn’t wait to go again.
Award tips
So, for those who haven’t been before, I want to give you a few tips to best ready yourselves for one of the most enjoyable nights of the industry calendar. It’s still a few months away, but there’s no harm in getting psyched up now.
Firstly, when the invite comes, read it properly. It’s not a black-tie event. I spent a lot of my evening apologising to my wife for choosing to wear an exuberant gold tuxedo on our maiden visit to the awards. I also spent a lot of my evening directing guests to the toilets, as the event staff were wearing the same gold tuxedo.
Secondly, don’t be daunted by the whole affair. If, like me, you’re more used to walking around a farm in wellies and overalls, it will feel a little odd getting dressed-up and heading to a lavish hotel in a plush area of London (or plush to me at least) on a workday. My advice is to embrace it.
Whilst the media like to paint us out to be monsters, we’re actually simple working people. And like all working people, we deserve the opportunity to put on our best glad rags, let our hair down and enjoy ourselves.
Thirdly, prepare to mingle. You might know less that a handful of people who are there, but by the end you’ll probably know fifty. For me, one of the main attractions for staying in the pig industry is the people who are involved.
Everyone is so lovely, and everyone wants to get to know everyone. And you’ll experience it for yourself, so long as you let your guard down and just talk to some strangers. The earlier you do it, the better, because you’ll probably be dancing to ‘Livin La Vida Loca’ with them later in the evening anyway.
The whole event makes me extremely proud to be part of our industry. I am especially proud this year too as one of my employees, Nicola, has made it through as a finalist in the ‘Stockperson of the Year’ category.
This is someone who I have helped to train, now following a similar path to the one I once took. She will now walk into that awards-ceremony in London, as I first did in 2022 and realise, herself, how amazing this industry is.
Unfortunately for her, she will also realise how embarrassing her boss is on the dancefloor.
Reunimer-Pecherie du Sud, a major integrated producer and exporter of Indian Ocean seafood to France, has been acquired by a European private equity for an undisclosed sum […]
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Live poultry market closures led to a decline in 2019
13 September 2024
2 minute read
China’s USDA post forecasts yellow broiler production in 2025 will be nearing the end of its decline and be relatively stable, according to a recent US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report. Yellow broilers previously dominated the market and flocks were maintained with domestic genetics. Due to live poultry market closures – the major market platform for yellow broiler sales – yellow broiler production has been in decline since 2019 and accounted for less than 30% of the market in 2023.
According to industry sources, yellow broiler production continued to decline through the first half of 2024. Though some large-scale producers increased production, a greater number of producers have lowered production or exited the market. Lower production volumes have resulted in higher yellow broilers prices in the first half of 2024. Due to higher yellow broiler prices and lower feed costs (see Chart 2), operations have generally become profitable in 2024.
In China, there are three large-scale, publicly traded yellow broiler breeding companies. According to their 2024 semi-annual financial reports, all the three are profitable and one reported almost 200% year on year profit growth. The three large-scale companies continued expanding production while small- and medium-sized yellow broiler producers exited the market. The total market share of the three producers was estimated at 50% in 2023 and post forecasts the overall production of the three producers will continue to expand in 2025. In the second half of 2024, there are more holidays and periods of increased consumption.
Assuming no outbreaks or shocks to feed prices or large capital expenditures, the companies should remain profitable through 2024 and will continue to gain market share. Post forecasts production gains in commercial operations will be offset by shrinking production volumes of numerous smaller producers, resulting in a bottoming out of the decline in total yellow broiler production in 2025. Smaller producers seemingly have lower production efficiencies and increased costs and some challenges meeting environmental regulations. Also, many of the smaller firms reportedly had prolonged losses in 2023 and less financing available to them to weather the difficult market conditions.
Comments on USDA’s proposed Federal Milk Marketing Order (FMMO) pricing formula changes close on Friday night, Sept. 13 at 11:59 p.m. EDT at the Federal Register Docket AMS-DA-23-0031-0002.American Dairy Coalition has prepared its official commentto file and invites others consider signing on.
USDA’s proposed milk pricing changes could reduce farm milk prices, and substantially so in some regions, where proposed increases in Class III make allowances would take $1.00 per hundredweight from the Class III price, but only half of the cheese and whey processors participated in the voluntary cost of processing survey used to determine this.
In its comment, ADC requests USDA’s reconsideration of these make allowance increases, which would be more fairly evaluated through mandatory, audited cost of processing surveys.
During an ADC webinar on Aug. 29, featured presenter Danny Munch, American Farm Bureau economist, charted the impact for each FMMO of all proposed changes in USDA’s Recommended Decision. The make allowance increases for the Class III and IV products would remove an estimated $1.25 billion annually from manufacturing class prices used in all FMMOs, according to AFBF’s static analysis of 2019-23 pool data.
USDA proposes implementing these make allowance increases for processors right away, but would delay for 12 months the proposed updates on milk composition that would benefit dairy farmers by adding what AFBF estimates is $200 million annually across all FMMO pools.
Because both proposals impact risk management, ADC questions why processors would receive their proposed new income from farmers right away, but farmers would have to wait 12 months for theirs.
The ADC comment also points out that the recommended decision brings back the higher-of method for setting the Class I base price mover, but introduces complexity with a two-mover system that would price extended shelf life (ESL) milk differently. ADC could find no definition in the hearing record for creating this new fifth class of milk. A two-mover system was not part of the hearing’s scope, and was not vetted with opportunities to present evidence.
Why is this important? The 2022 Ag Census showed a record drop in dairy farms, down 39.4% at 24,470 compared with 40,336 in the 2017 Census five years earlier. Large percentage declines in US dairy farms have been an on-going story, but the most recent decline stands out, according to a jointly authored paper by Ohio State University and Illinois State University economists. A major chunk of this five-year loss of dairy farm small businesses between the 2022 and 2017 Censuses includes the first three years in which the average-of method (plus a 74-cent adjuster) has been used to calculate the skim portion of the Class I base price mover instead of the previous higher-of method.
The industry saw the unintended consequences of the legislated change in the Class I mover to a new average-of method in 2019. Now, some milk will be priced using the previous higher-of, after a large volume of hearing testimony showed the losses and disorderly marketing that resulted. However, after the hearing concluded, USDA created a new and undefined class for ESL milk in its recommended decision, which would be priced using the average-of, with a 24-month rolling adjuster and a 12 month lag.
ADC’s comment points out that not only is this more complicated and less transparent, the new ESL class was not defined in the hearing, and the proposed two-mover system was not vetted.
Individual dairy farmers and organizations may sign on by filling out the form at this link
In addition, ADC has provided tools for farmers to individually comment. To read about how to do that and consider a template to personalize, go to this link
The pork industry continues to evolve, and leveraging data for efficiency and sustainability is more critical than ever. In an upcoming webinar on Tuesday, September 19, 2023, at 1:00 PM Central Time, experts will share insights on how producers can adapt to these demands while maintaining high production standards. The event will highlight innovative strategies in data management and sustainability practices that can help improve productivity and environmental outcomes in pork operations.
Webinar Details:
Date: Tuesday, September 19, 2023
Time: 1:00 PM Central Time
Platform: Zoom
This informative session will feature industry leaders discussing the latest technological advancements and practical applications to optimize pork production. Attendees will gain valuable knowledge on how to use data effectively, reduce waste, and ensure long-term sustainability in their operations.
The European Commission has approved an increase in advance payments of Common Agricultural Policy (CAP) funds to assist EU farmers facing severe liquidity challenges. This decision allows Member States to raise the advance on direct payments from 50% to 70%, and on rural development payments tied to area and livestock from 75% to 85%, starting 16 October. The move responds to ongoing financial pressures caused by extreme weather, high input costs, and elevated interest rates, which have impacted yields and financial stability in the sector. Several Member States had requested this action, aligning with the CAP’s role in providing economic stability for farmers. The Commission also underscored earlier measures in 2024 that offered additional flexibility for farmers, along with distributing the agricultural reserve to aid those affected by severe weather events.
September 13, 2024/ EC/European Union. https://europa.eu
