Industry news from farm to fork.
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Animal Feed
Russia to agree to an extension of Ukrainian grain exports. If there are no objections, the contract will be extended on November 19th. Moscow said its approval was contingent on provisions ensuring that its grain and fertilizers could be exported… continue to article.
Recent findings: Insect animal feed can reduced cost by 20%! The gross profit margin, cost-benefit ratio and return on investment of feeding birds with BSFL meal varied significantly, demonstrating that insect-based feeds can successfully and cost-effectively replace fish meal up… continue to report.
Soybean and corn prices have fallen in recent weeks as harvest numbers come in higher than expected.
Poultry & Eggs
U.S. broiler exports for the first three quarters of 2022 reached an all-time high in volume and value, according to new trade data released by the USDA Foreign Agricultural Service. Continue to: US poultry exports breaks all the records this year
After a record breaking start, wholesale skinless bone-in breast prices averaged about $3.50 per pound in May 2022, an all-time high, according to the USDA. Last month, the price had fallen to just over $1 per pound. The high prices drove the collapse in demand as consumer switched to more affordable cuts and alternatives. Producers were achieving record profits and now are showing losses, which is unsustainable. However, in the last quarter chicken production increased 3% and it is expected to increase a further 5% this quarter. While Rabobank expect a decline in feed costs, concern over the spread of AI is still a factor. The US chicken industry provides 1,517,797 jobs, $94.9 billion in wages, $417 billion in economic activity and $25.5 billion in government revenue.
The US Poultry and Egg Society (USPOULTRY) and the US POULTRY Foundation distribute approximately $400,000 in research grants to five institutions. Comprehensive research program grants were approved by the Group… continue to article.
Brazil’s poultry industry is reportedly at risk due to road blockages. In 22 states and federal districts, totalling 460 roadblocks. There were 3 bottlenecks from feed shipments, animal shipments to processing plants and finished product distribution. Reports suggest that 45% of the poultry processing capacity and the poultry farm was on the brink of collapse, having to sacrifice 25 million day old chicks and scrap the hatching of eggs. Continue to the article.
Over the next two years, UAE poultry production is expected to recover gradually from 40,000 tons in 2021 to 44,000 tons in 2022 and 46,000 tons next year. Read: The latest on UAE poultry industry.
Canada to compensate $4.8bn to dairy and poultry producers Canada’s supply-driven sector will result in government compensation of more than C$4.8 billion (C$3.6 billion) to milk, poultry and egg producers and processors to be allocated over the next few… Continue reading.
1,936 HPAI outbreaks have been recorded in commercial poultry flocks across Europe. This is based on the latest updates of the European Commission (EC) Animal Disease Information System. 22 countries covered by the EC have had one or more outbreaks in the past year from early 2022. Mainland France had the highest number of HPAI outbreaks in poultry in the EC this year (1,392 cases). Hungary (207th), Germany (79th), the Netherlands (75th) and Denmark registers bird flu too.
By early November, the outbreak of bird flu in the US had killed more than 50 million birds from Maine to Oregon and sent egg and poultry prices, including holiday turkeys, skyrocketing. Continue to: Turkey shortage in North America. Bird flu forces Iowa Department of Agriculture and Land Stewardship (IDALS) to reinstate the moratorium on bird exhibitions.
Interesting Review: South African Poultry Master Plan Progress & Industry Review
Beef & Dairy
Australian red meat exports rose 2% from year-ago levels to 127,706 tonnes in October, driven by high lamb export volumes, as beef exports fell slightly from October 2021 volumes to 72,979 tonnes.
Scotland double beef exports to EU Scottish Beef is exporting 100% more beef to Europe this year than in 2021, with demand continuing to grow in Italy, France, the Benelux countries and Germany. Continue to article.
U.S. beef exports averaged over $1 billion per month through September, a record year, a fact that plays a significant role in the value of cattle for U.S. ranchers. Continue to article.
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. Forecast indicate a decline in beef cattle numbers of about 4% to 5% in 2022. Continue to US beef 2023 outlook article.
Pork
World pork production led by China, the EU, and U.S. has declined and is not expected to improve for the next year. Continue to article: The current pork situation around the world.
Russian pig farmers have seen a rebound in export supply in recent months after a slump in the first half of 2022. Russian pork exports increased by the end of 2022, Russia is expected to export 170,000 tonnes of pork, up from 210,000 tonnes in 2021.
Mexico approves Brazilian pork plants in the state of Santa Catarina, which was the only region in Brazil to be free of foot-and-mouth disease by the World Animal Health Organization (WHOA) at the time it applied for access to the Mexican authorities. Continue reading: Mexico approves Brazilian pork plants
African swine fever (ASF) has been detected in wild boar for the first time in the district of Oberspreewald-Lausitz, Germany.
Seafood & Aquaculture
Read: Sharp decline in India seafood exports
Norwegian seafood worth NOK 15.4 billion ( 1 NOK – 0,097 EUR) was exported in October. The highest value ever in a single month and an increase of NOK 3.3 billion, or 27 per cent, from the same month last year. The export value in October was NOK 727 million higher than the previous record month, which was September 2022.
A new UBC study finds that growth in the global aquaculture industry peaked in 1996, highlighting the importance of rebuilding wild fish stocks to meet future demand. A study found that if we rely solely on aquaculture to meet demand for seafood by 2030, global production will need to grow three times faster than current projections.
Read: The USDA enhances traceability record requirements
Spike in pangasius sales in Europe part of effort to ‘keep fish on shelves,’. After dropping pangasius from their lineups are now reintroducing it as whitefish supplies dry up. European retailers are scrambling to secure alternatives as whitefish supply chains struggle to adapt to the ongoing fallout from Russia’s invasion of Ukraine.
Vietnam is expected to reach US$10 billion by November. This is a record milestone for Vietnam’s seafood industry, which has been entering the global market for over 20 years. By the end of the year, it’s expected to hit nearly $11 billion, up 25% from 2021. Continue reading: Vietnam seafood exports to South America increases
Iceland cod prices remain flat as catches increase, causing concern for any correction during 2023 with a reduction of 13 000 tons in quota.
Prices for large and medium-sized seabass from Turkey, Greece and Spain, as traded in Spain, rose to €13.30/kg and €6.80/kg for the first time in several weeks.
The European Commission has proposed 23 actions to unlock the potential of algae in the European Union, where the demand is expected to reach €9 billion a year by 2030.
Recent Report: Aquaculture production is declining.
Plant Based & Cultured Meat
The latest on possible FDA lab grown chicken approval On Wednesday the FDA viewed chicken grown from cells as safe to eat, bringing cultivated meat closer to U.S. grocery store shelves. The FDA said it had completed a pre-market… continue reading: The latest on possible FDA lab grown chicken approval.
Despite constraints, plant-based companies have adapted and continue to launch new products and grow sales. Grand View Research projected that the global plant-based meat market size, which was valued at USD 5.06 billion in 2021 is expected to expand at a compound annual growth rate (CAGR) of 19.3% from 2022 to 2030.
Recent study found the only 34% of consumers in the Middle East of heard or know of cultivated meat, representing huge potential for the future. Shares of Beyond Meat Inc. BYND, -8.17% shed 8.17% to $14.49 Wednesday, on what proved to be an all-around dismal trading session for the stock market.
New lines of plant based seafood products developed by partners Konscious Foods, Merit Functional Foods and Canadian Pacifico Seaweeds are about to enter the market.
Plant-based meat filling dumplings were introduced to China by Beyond Meat in earlier this month.
Interesting Article: Is hybrid meat the future?
Container Shipping News
Spot container shipping freight rates fell sharply again over the last week dropping a further 9% driven down by the Asia – Europe trade. Shipping companies warn of more cancellations and reduce capacity by 15% for the quarter.
Interesting article: Container shipping from famine to feast.
According to Allianz Global Corporate & Specialty (AGCS) the long-term positive safety trend for the global shipping industry continues – total losses and marine insurance claims have more than halved over the past decade.
The possibility of a US rail strike is starting to loom again as three unions members reject a tentative deal hammered out in September.
Company News
Major US retailers sue Big 4 US meat packers Several major retailers and wholesalers (including Sysco, US Foods, Kroger, Hy-Vee, Albertson, Associated Grocers, Subway, SuperValu, and Cheney Brothers) announced in April 2019 that R-CALF USA and National Farmers recently… Continue to article.
Fourteen of the world’s largest food companies, including JBS, presented at COP27 a shared roadmap on how they will work to reduce emissions from land use change in their operations. To address this crucial issue, the CEOs of leading global agricultural trading and processing companies had pledged a year ago, during COP26 in Glasgow, to develop this shared roadmap, focusing on the palm oil, soy and livestock sectors, protecting also global food systems and the livelihoods of producers.
Vion acquires Hausner in Germany. The acquisition of Hausner GmbH is expected to close in the first quarter of 2023.
Seara’s revenue increases 22.3% in Q3 YoY. JBS’s Brazil-based poultry and pork division, reported a net profit of $2.21 billion.
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.
Chinese hog breeder Jiangxi Zhengbang Technology will undergo restructuring of one of its breeding businesses in an effort to restore cash flow. The company said creditors had applied to local courts for reorganization of some of its business units. Zhengbang produced almost 15 million hogs for slaughter in 2021, up 56% from the previous year. When hog prices fell in the second half of 2021, the company suffered a loss.
Leroy Seafood’s operating profit before fair value adjustment related to biological assets was NOK 831 million for Q3 2022, up 44% compared with the same period of 2021. Strong demand for seafood, including a substantial increase in prices realised for the Group’s main products, is the key reasons for improvement compared to Q3 21.
Grieg Seafood Group’s third-quarter 2022 operational earnings before interest and taxes (EBIT) fell NOK 4 million (USD 401,000, EUR 389,000) year-on-year to NOK 145 million (USD 14.5 million, EUR 14.1 million), despite a larger harvest in the three-month period. Grieg Seafood has decided to halt another salmon farming project in Norway as the company continues to adjust operations due to uncertainty surrounding the proposed tax set to impact fish farming companies. Nova Sea is set to cut 18 staff on a filleting line due to the government’s plan to add a 40% tax on the sector.
Nippon Suisan Kaisha (Nissui)-owned UK processor and trader Flatfish has acquired fellow Grimsby-based home delivery seafood supplier Regal Fish for an undisclosed sum. Japanese seafood giant Nissui acquired a 75 percent stake in Flatfish for an undisclosed amount in May 2019.
BioMar Group posted increased revenue for the third-quarter of this year, with higher market prices more than making up for lower sales volumes in the three-month period.
Last but not least… Who is really guilty of meat methane emission?
Combined methane emissions from the world’s 15 largest meat and dairy companies are higher than some of the world’s largest countries, including Russia, Canada and Australia, according to a new… continue to article.
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