Market News: Includes Avian Flu, Beef Import/Export Stats, Cheese Market Growth & Norways Seafood Surge

Meat Industry News

WHO Reclassifies Macrolides: Implications for Antibiotic Use

The World Health Organization (WHO) has reclassified macrolides from highly important (HP-CIA) to critically important antibiotics (CIA), posing potential risks to antibiotic stewardship in agriculture. While efforts to reduce antibiotic use in food-producing animals have shown positive results globally, the reclassification might lead to increased use of macrolides, which remain critical for treating diseases. This shift in classification emphasizes the need for continued vigilance in antibiotic use to prevent resistance and ensure the effectiveness of these vital drugs.

Avian Influenza Outbreak and Its Impact

The current avian influenza outbreak poses a significant threat to the egg industry, with recent detections in Iowa and beyond. The USDA has implemented strategies to manage the virus within poultry herds, including mandatory testing and financial incentives for improved biosecurity. The outbreak’s severity has led to extensive flock losses, highlighting the critical need for stringent biosecurity measures to protect the industry and support affected farmers in recovery.

China Blocks Beef Shipments from Two U.S. Facilities

China has blocked beef shipments from two U.S. facilities, Swift Beef Company in Greeley, Colorado, and Cool Port Oakland in Oakland, California. The delisting, effective May 27, is reportedly due to traces of ractopamine found in beef from the Greeley plant, according to JBS, the world’s largest meat processor. JBS is cooperating with U.S. and Chinese authorities to resolve the issue. No other JBS beef plants in the U.S. have been affected. Ractopamine is a controversial feed additive used to promote lean muscle growth in animals but is banned in many countries, including China, due to food safety concerns. In conjunction with the JBS suspension, the USDA also reported that meat and poultry products originating from Cool Port Oakland, a major hub for storing and shipping perishable goods, were barred from export to China effective May 27.

China Lifts Ban on More Aussie Beef Exporters, Allows Some Russian Beef Imports

China has lifted bans on imports from five major Australian beef processing facilities, according to the Australian government. Restrictions have been removed for eight Australian beef plants, while two are still banned from making shipments. China was Australia’s second-biggest beef export market last year, receiving 240,000 MT worth around $1.6 billion, according to Australian trade data. Additionally, China will allow imports of Russian beef from cattle under 30 months of age and permit shipments of by-products including frozen beef tendons and hoofs, stomach, and cartilage.

ASF in Germany and Global Pork Trade

Germany confirmed a case of African swine fever (ASF), impacting global pork trade as China maintains its import ban on German pork. This ongoing issue highlights the need for stringent biosecurity measures and international cooperation to manage disease outbreaks. The ripple effects of ASF are being felt across the global supply chain, with significant economic implications for exporters and importers alike.

US Pork Exports Reach Record High

US pork exports reached a record high in April, the highest volume and value in nearly three years, according to data from the USDA and the US Meat Export Federation (USMEF). Pork exports totaled 277,910 tonnes in April, up 14% from a year ago and the fifth largest on record. Export value jumped 18% from a year ago to $778.8 million, equating to $72.46 per head slaughtered, 7% higher than last year.

April Beef Shipments Reach Highest Levels Since June 2023

Mexico’s imports surged, contributing to these highs. April beef shipments totaled 111,580 tonnes, marking a slight increase from last year and the largest volume since June 2023. The export value increased by 5% to $898.7 million, also the highest since June. Shipments to Mexico achieved their highest value in over three years. The USMEF highlighted that a severe drought and surging corn imports led Mexico to export more feeder cattle to the U.S. and import more U.S. beef. Exports to other Western Hemisphere markets, Japan, and the Middle East also increased year-over-year.

Argentine Exports Beef to Hungary for the First Time

The Argentine Foreign Ministry announced a significant milestone in trade relations with Hungary: the first direct export of chilled Argentine beef to the Hungarian market. This achievement was a result of collaboration between the Ministry of Foreign Affairs, International Trade and Worship, the Secretariat of Bioeconomy of the Nation, and SENASA. The shipment included select cuts such as loin, wide steak, and heart of rump, facilitated by a partnership between Winehub and MUGE, with support from the Argentine Embassy in Hungary. This new trade route strengthens Argentina’s presence in the European market.



Dairy Industry News

H5N1 Virus Detected in Iowa Dairy Herd

A case of H5N1 avian influenza was detected in an Iowa dairy herd, marking a significant development in the spread of the virus. The USDA’s strategy involves containing the virus within infected herds until it dissipates naturally, with additional measures to prevent further spread. This detection underscores the importance of ongoing vigilance and proactive measures to safeguard dairy herds and maintain public health.

USDA Proposes Bulk Testing of Milk for Avian Influenza

The USDA is proposing to allow bulk testing of milk, rather than testing milk from individual cows, before approving shipments. This proposal follows a requirement from late April that lactating cows test negative for highly pathogenic avian influenza (HPAI) before being transported across state lines. A pilot program for bulk testing could start in June, with officials in six states reviewing the plan. The International Dairy Foods Association (IDFA) supports the initiative, stating it could help reduce the threat of H5N1 in dairy herds, protect farm workers, and secure the milk supply. Farmers favor bulk testing as it is more efficient for large herds.

Global Cheddar Cheese Market Set for Rapid Growth, Forecast to Reach $133.1 Million by 2030

The global cheddar cheese market is poised for substantial growth, with projections showing an increase from $84 million in 2023 to $133.1 million by 2030, reflecting a 6.8% CAGR. This growth is driven by flavor innovation, health-conscious consumer trends, and e-commerce expansion.

Brazil’s Dairy Trade Balance Improves as Imports Decline and Exports of Key Products

In May 2024, Brazil’s dairy trade balance showed significant improvement as imports dropped sharply and exports of key products increased, according to the Foreign Trade Secretariat (SECEX). The trade balance deficit narrowed to 142 million liters in milk equivalent, an improvement of 43.5 million liters from April.



Seafood Industry News

Norway’s Seafood Exports Surge

Norway’s seafood exports soared to new heights in May, reaching NOK 14 billion, marking an 8% increase compared to the same period last year. This substantial growth was primarily driven by the increased export volumes and prices of salmon and trout, according to Christian Chramer, CEO of the Norwegian Seafood Council. Salmon, as the largest and most significant species, surpassed NOK 10 billion in export value for the first time in May. This achievement was fueled by a growth in volume for the first time in 2024, contributing to the record-high export value. Furthermore, there was a notable increase in the export of fresh and frozen fillets, with fresh fillet exports witnessing a 40% increase and frozen fillet exports up by 13%.

Trout also had a historic month, with its export value reaching an all-time high in May. Despite accounting for only 5% of the total value of farmed salmonids, trout saw significant growth, with its value increasing by 65% compared to the same period last year. While salmon and trout thrived, other species faced challenges. Cod, for instance, experienced a decline in export volume for both fresh and frozen products. However, price growth for several fresh, frozen, and conventional cod products helped compensate for this decline. In terms of markets, the European Union (EU) played a crucial role, with three EU countries—Spain, Portugal, and the Netherlands—experiencing the highest growth in May. Spain, in particular, saw a 25% increase in export value, driven by strong domestic consumption and a resurgence in tourism.

Looking at the overall trend for the year, Norway has exported seafood worth NOK 68.5 billion so far, indicating a 2% increase compared to the same period last year. This growth, despite economic challenges, reflects the continued demand for Norwegian seafood globally. The future looks promising for Norwegian seafood exports, with ongoing developments in trout and the steady performance of salmon. These factors, along with the resilience of the industry in challenging times, bode well for the continued success of Norway’s seafood sector on the international stage.

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