Most Read Articles
1. Cattle prices reach record highs
2. Brazil chicken meat export sales boom 11.1%!
3. Inflation Pushes Mexico to Allow Beef Imports from Brazil
Bonus: External Economic Factors Impacting Agriculture: Challenges and Opportunities Ahead
Animal Nutrition Market News
Global sales of antibiotics for veterinary use have dropped almost a third since 2011, according to the World Organisation for Animal Health. Several major European countries and the UK have cut sales by more than 50%. While the US Food and Drug Administration has not set targets for reducing overall sales of antibiotics for animals, it advocates the judicious and appropriate use of antimicrobials in sick animals. By focusing on disease prevention, good nutrition and establishing an animal health management plan with a veterinarian, the need for antibiotics can be reduced. There are also many feed additives that can be used in combination to support animal health and reduce the need for antibiotics.
Animal Feed & Nutrition Company News
ADM and Marel have joined forces to construct an innovation center in the Netherlands for developing new alternative protein products. The center will allow food manufacturers to collaborate with experts, prototype, manufacture and market new protein products, and is expected to open in the second half of 2024, subject to regulatory approval. ADM and Marel will also provide training and workshops to support the growing demand for protein offerings that maintain ideal sensory experiences.
Corteva and Bunge have partnered to enhance the nutritional value of soybean meal, particularly for animal feed applications such as poultry, swine, and aqua feed.
Cargill is focused on increasing productivity for farmers in the Asia Pacific region. The company has made investments in the region, including building new plants and establishing an innovation center. Over the past four years, Cargill’s animal health and nutrition business has experienced significant growth in important countries throughout the area, with some experiencing growth rates in the double or triple digits.
Reskued, an app developed in Cargill’s digital lab, provides a marketplace for food distributors to help keep unused food out of landfills. The app will debut at the South by Southwest conference this week.
DSM Biomedical is introducing a Bio-Based Certificate for its Dyneema Purity UHMWPE fiber portfolio, which will be globally recognized by ISCC Plus Certification. The certificate will allow the medical device industry to move towards a circular, bio-based economy, reduce Scope 3 emissions and maintain identical quality and performance characteristics. The certification will be available from 2024, with no disruption to the supply chain, and will help DSM Biomedical achieve its goal of reducing the industry’s dependency on fossil resources.
Bernard Krone and Agravis Technik have had a successful partnership for a long time, and now Krone’s sales and service activities will be integrated into the Newtec Group. This move is an important milestone in Newtec’s growth strategy, and it includes expanding the existing network of locations to offer customers professional Krone sales and service quality. The NewTec Group is part of Agravis Technik Holding, which has a professional network of locations and around 400 employees representing its brand portfolio.
Meat Market News
Brazil’s chicken meat sales have seen an 11.1% increase in revenue, with $736.3 million generated in February 2023 compared to $663 million in February 2022. China remained the main destination for Brazilian exports, importing 111.7 thousand tons, a 23.2% increase from the same period in 2022. ABPA President Ricardo Santin believes that there is a rising international demand for Brazilian chicken meat, with traditional markets such as China and the European Union resuming their leading role in chicken meat shipments from Brazil, indicating a trend that is expected to continue in 2023.
New Zealand’s red meat exports have experienced a slow start to the year, with total export values dropping by seven per cent compared to January 2022, according to the Meat Industry Association (MIA). While the total volumes of red meat exports to all countries increased compared to January 2022, the value of exports to major markets including China, the US, Japan, and the UK decreased. Despite this, there was a small increase in fifth quarter exports, which were up one per cent to $157m for the month.
Meat Company News
Conagra is recalling over 2.5 million pounds of canned meat due to a packaging defect that may cause contamination without showing any outward signs. The recall, including brands such as Armour Star, Kroger, and Great Value, applies to meat and poultry products distributed nationwide between December 2022 and January 2023. Customers who have purchased the affected items should dispose of them or return them to the store.
Canadian poultry and protein company Maple Leaf Foods has reported losses of at least CA$23m (US$16.6m) due to a cybersecurity attack in 2022. The attack disrupted the company’s operations on November 4, 2022, and impacted the business in multiple ways, resulting in a net loss of CA$41.5m during the fourth quarter of fiscal year 2022. Despite a 5.8% increase in sales for the quarter, the company was forced to run entirely on a manual basis after the attack.
RCL Foods, a food and logistics company with brands such as Selati sugar, Ouma rusks, and Rainbow Chicken, has indicated that it may have a buyer for its Vector cold chain distribution business, according to its half-year results. The company, majority-owned by Remgro, reported a hit to its Rainbow Chicken brand in its interim results but remains committed to separating the Vector business from its other operations.
Sanderson Farms has agreed to pay $17.75 million in a settlement related to its involvement in several price-fixing lawsuits, according to a company spokesperson. However, the company maintains its position of no wrongdoing. The agreement was reached on Feb. 28, 2023, and it is noted that much of the antitrust allegations occurred before Sanderson Farms was acquired by Cargill and Continental Grain Co. Other poultry brands, including Tyson Foods, Mar-Jac Poultry, and Fieldale Farms Corp., have also settled similar cases in recent years.
Food distributor, Sysco Corp., is suing litigation funder, Burford Capital, claiming that the firm is interfering in its efforts to settle several antitrust cases in which Sysco is the plaintiff. Burford invested $140m in the price-fixing and related cases and obtained an arbitration ruling blocking Sysco from closing deals to resolve the lawsuits. Burford argues the settlements are too low compared to the value of the claims. Sysco accused Burford of “prioritising its greed over Sysco’s rights and interests as the plaintiff.” The case offers insight into the secretive world of litigation funding, in which disputes are often handled in closed-door arbitration.
Around 140 employees at the Weißenfels site in the Burgenland district may be affected by the closure of the Tönnies slaughterhouse’s export department for Asia at the end of the month. The closure is reportedly due to the African swine fever outbreak in Germany, which has led to import bans on pork from affected countries by China, Japan and South Korea. Although Saxony-Anhalt has not recorded any cases of the disease so far, Saxony, Mecklenburg-Western Pomerania and Brandenburg have reported several.
Thirty-four current and former employees of Tyson Foods meatpacking facilities in Arkansas have filed a lawsuit against the company for alleged mistreatment during the COVID-19 pandemic. The employees claim that Tyson did not take proper protective precautions in regards to the virus, did not provide masks or allow for workplace modifications that would have allowed for social distancing, and chose profits over its workers’ well-being. The lawsuit seeks damages for emotional distress and physical damages caused by Tyson’s actions. This lawsuit follows other legal filings from employees alleging that Tyson did not protect the safety of its workers during the pandemic.
Vion Food has revealed the renovation of its pig slaughterhouse in Germany, featuring modern technology such as the use of alternative gas mixtures for carbon dioxide stunning in pig slaughter, and artificial intelligence to ensure animal welfare. The plant also uses carbon dioxide as a secondary refrigerant, allowing it to avoid 90% of the ammonia pollution associated with conventional cooling systems and reduce its energy usage by 40%. The head of Agriculture of the Brandenburg region, Axel Vogel, attended the event and praised Vion Food’s commitment to local producers.
Half of WH Group’s ownership is held by its top 13 shareholders, while institutional ownership is at 25%. Individual investors own the most shares at 39%, indicating that key decisions may be influenced by shareholders from the larger public. The recent 3.4% decline in share price caused individual investors to suffer the most losses.
Seafood Market News
A report on the global frozen fish and seafood market predicts that it will grow by $28.58 billion between 2022-2027, with a Compound Annual Growth Rate (CAGR) of 7.26% during the forecast period. The report provides a comprehensive analysis of market size, trends, growth drivers, challenges, and vendor analysis covering around 25 vendors. The report cites a growing desire for convenience, demand for processed seafood, and increasing prominence of land-based fish farming as key drivers of the market. The report offers an up-to-date analysis of the current market scenario and the overall market environment.
Seafood Company News
Bumble Bee Foods and Conagra Brands are facing separate class-action lawsuits filed in federal district courts in California and Illinois, asking for at least USD 5 million in damages, over sustainability claims they made for their seafood products. The complaints also criticize the Marine Stewardship Council, alleging it violates its own standards and puts the ecosystem it feigns to protect in serious danger. The plaintiffs claim Bumble Bee uses unsustainable fishing practices and its Sustainability Promise, backed by the MSC Blue Tick, deceives and misleads reasonable consumers into believing its products are sourced from sustainable fishing methods.
Japan’s Kyokuyo plans to enter US surimi market but details remain unclear when…
Lyons Seafoods and workers’ union GMB are investigating allegations of bullying and psychological abuse in relation to the company’s factory in Warminster, UK. The allegations stem from an anonymous email from a former employee, who claimed that workers were treated unfairly and subjected to mental health issues as a result of the alleged bullying culture at the plant.
MOWI Brand, a North American seafood brand, showcases its expansion into various categories of farm-raised Atlantic salmon products at the Boston Seafood Expo North America. The brand was launched in March 2020 and has expanded to over twenty SKUs, including fresh, cold and hot-smoked, breaded, and frozen salmon. Despite launching during the pandemic, the brand has flourished and is set for further growth in North America.
Peter Pan Seafood
Peter Pan Seafood has signed a letter of intent to purchase Trapper’s Creek Smoking Co., a smoked salmon producer, in its effort to expand its value-added seafood product lines. This move is part of the company’s plan to reshape itself after being sold by Maruha Nichiro two years ago. The acquisition includes a smokehouse facility in Anchorage, Alaska, and several brands such as Copper River Smoking Company, Alaska’s Best, Trapper’s Creek, and Eat Like a Grizzly.
Royal Greenland has appointed Joanne Gibbons as managing director to lead its North America operations. Gibbons has over 20 years of experience in sales, product and category management, and is an expert in the snow crab industry. The company believes her appointment will strengthen its ability to serve customers seeking high-end seafood products such as snow and king crab, lobster, cold water shrimp, Chilean seabass, Greenland turbot, and Atlantic cod.
Thai Union Group
Thai Union Group is reportedly considering exiting its investment in Red Lobster as the global restaurant chain has been negatively impacting the company’s profits. Thai Union invested millions in the chain in 2016 and was part of a consortium that acquired it in 2020, but Red Lobster’s losses have continued to grow, with losses of THB 456 million ($13.1 million) in Q4 2022. Thai Union’s CEO has hinted that the first half of 2023 will decide whether the company will exit its investment in Red Lobster.
Logistics Company News
Jim Barber is reportedly the front-runner to become the new CEO of C.H. Robinson Worldwide, succeeding Bob Biesterfeld, who was fired on Jan. 3. Barber joined Robinson’s board in December 2022 and has a long history in the transportation industry, including serving as chief operating officer at UPS Inc. before his retirement in 2020. While reports suggest Barber is the likely choice, Robinson has not yet made an official announcement and other candidates remain in the running.
CMA CGM, the French container line owner, reported a net profit of $24.9bn for 2022 despite a sharp drop in container freight rates in Q4 2022. The company saw a decline in container volumes on east-west trade routes by 7.2% in Q4 2022 due to the impact of inflation on consumer spending, US inventory destocking, and an energy crisis in Europe. Despite the decline, CMA CGM is reinvesting for the future after a year of contrasting halves, characterized by high consumer demand and shipping capacity constraints in the first half and a demand shock in the second half of the year.
CMA CGM Group reported a 33% increase in revenue for 2022, reaching $74.5 billion, with revenue from other activities more than doubling. The group also reported a 44% increase in EBITDA to $33.3 billion, with an EBITDA margin of 44.7%. Net income for the year was $24.9 billion. Despite the positive results, the company experienced a decline in container volumes on east-west trade routes in Q4 2022 due to a demand shock caused by US inventory destocking, inflation, and an energy crisis in Europe.
Logistics service provider DB Schenker has taken delivery of the first pilot Volta Zero truck to participate in a European field trial, visiting the Volta Trucks contract manufacturing facility in Austria to view the final prototype of the electric vehicle. DB Schenker plans to operate a fleet of 150 Volta Zero trucks as part of the trial in its European terminals to transport goods to city centres and urban areas. The move forms part of the firm’s efforts to achieve an “e-fleet unmatched in the freight forwarding market” with more than 330 eTrucks and 70 cargo bikes across 124 cities in 22 countries.
DHL Global Forwarding reported record airfreight revenues of €10.4bn in 2022, up 18.7% YoY, despite a 9.3% decline in volumes to 1.9m tonnes. However, performance weakened as the year progressed, with air revenues down 22.8% YoY to €2.2bn in Q4, and volumes down 20% to 449k tonnes. The global forwarding market was volatile in 2022, influenced by factors such as the war in Ukraine, pandemic-related lockdowns in Asia, and high inflation. Additionally, with recovering capacity in the air and ocean freight markets, prices showed a quick decline in H2 2022. Revenues were largely boosted by higher freight rates, which weakened as the year progressed.
Maersk is expanding its footprint in Latin America with the addition of new warehouses in Chile and Peru, providing customers with value-added supply chain solutions. The expansion is part of Maersk’s investment in the region and its journey towards becoming a global integrator of container logistics. The new facilities, along with Maersk’s existing warehouses across the West Coast of South America, offer customers a simplified end-to-end offering of products and services, seamless customer engagement, and customised solutions to streamline their global supply chains.
Hudong-Zhonghua Shipbuilding has delivered the world’s largest container vessel to Mediterranean Shipping Company (MSC). The vessel, MSC Tessa, has a container capacity of 24,116 TEUs and measures 399.99 metres in length and 61.5 metres in width. MSC Tessa is the first of four same-size container ships that were purchased by the largest container line in the world. According to Hudong-Zhonghua, the other three vessels are expected to be delivered before August 2023.