Poultry Industry News

 

Status of 2017 Corn and Soybean Crops

May 26, 2017

    

The USDA Crop Progress Report released Monday May 22nd  recorded the status of corn and soybean planting and emergence as expressed in the table below:-

 

                                                                            WEEK ENDING

Crop

MAY 14th

May 21st

5-Year Average

Corn Planted

         71%

           84%

           85%

Corn Emerged

          31%                        

           54%

           55%

Soybeans planted

Soybeans emerged

         32%

           8%

           53%

            19%

           52%

            21%

 

Parameter

v. Short

Short

Adequate

Surplus

Topsoil moisture:  Past Week

2

12

68

18

                              Past Year

3

12

71

14

Subsoil moisture:  Past Week

2

11

71

16

                              Past Year

2

12

74

11

   
 

Wayne Farms to Construct Innovation Center

May 26, 2017

    

Wayne Farms a subsidiary of Continental Grain Company has broken ground on a $5 million Customer Innovation Center in Decatur, AL. The facility will commence operation in early 2018.

The Center will extend over 15,000 ft2 will be equipped with a pilot plant to develop new products together with ovens, grillers, chilling and freezing areas and a digital conference center.

  

John Flood, Vice president and GM of Prepared Foods stated “Our customers are some of the largest and most respected restaurant and food service brands in the world, so the products we’re developing here are products that consumers are enjoying every day.”  He added, “This new facility allows us to take a chicken product from the idea stage to produce the item in the scale as need to meet demand.”

   
 

Formal Notice on Renegotiating NAFTA

May 26, 2017

    

U.S. Trade Representative Robert Lighthizer has addressed a formal notice to Congress advising that a 90-day consultation period has commenced in terms of fast-track trade legislation to renegotiate NAFTA.

Trade agreements and specifically NAFTA and TPP became major issues in 2016 leading up to the election.  Striking a consolatory note, Lighthizer observed that Mexican and Canadian trade counterparts were entering the process in good faith.

  

NAFTA was concluded in 1994 and has benefited investment services, agriculture and energy. In contrast the free trade resulted in a negative trade balance with Mexico specifically in relation to manufactured goods which it is claimed have deprived U.S. workers of employment. In addition Canada has strictly limited importation of eggs and poultry meat to support a domestic managed-production system.

In commenting on the NAFTA initiative, Dr. Sonny Perdue, Secretary of Agriculture issued a statement on May 19th emphasizing the value of NAFTA to U.S. agriculture.  He stated, “While NAFTA has been an overall positive for American agriculture, any trade deal can always be improved. As President Trump moves forward with re-negotiating with Canada and Mexico, I am confident this will result in a better deal for our farmers, ranchers, foresters, and producers.”  He added, “If our people continue to grow it, USDA will be there to sell it.” 

According to the USDA press release, every billion dollars in U.S. agriculture exports supports approximately 8,000 American jobs.  U.S. agriculture and food exports account for 20 percent of the total value of production.  Every dollar from exports creates $1.27 in business activity.

   
 

Tornados Destroy Wisconsin Turkey Barns

May 26, 2017

    

A series of devastating tornados in Baron, Jackson and Rusk Counties resulted in one fatality and injury to residents of a mobile home park near Chetek, WI. 

Six turkey barns were severely damaged or destroyed on a growing farm near Prairie Lake Estates located on the outskirts of Chetek.

  

   
 

CME Prices

May 26, 2017

    

On Friday May 19th at close of trading on the CME, the following rounded quotations for corn, soybeans and soybean meal were recorded.

  

COMMODITY

 

Corn (cents per bushel)

July ’17   372    

Sept. ’17     379  

Soybeans (cents per bushel)

July ’17   953    

Sept. ’17     953  

Soybean meal ($per ton)

July ’17  307

Sept’17       309 


Changes in the price of soybeans and soybean meal this week were:-

  • Corn:                     July quotation down by 1 cent from May.      (-0.3 percent)
  • Soybeans:            July quotation unchanged from May               ( Nil.)
  • Soybean Meal:   July quotation down by $2/ton from May      (-0.1 percent)                                  

 

For each 10 cent per bushel change in corn :-

  • The cost of egg production would change by 0.45 cent per dozen
  • The cost of broiler production would change by 0.25 cent per pound live weight

For each $10 per ton change in the price of soybean meal:-

  • The cost of egg production would change by 0.40 cent per dozen
  • The cost of broiler production would change by 0.25 cent per pound live weight

See posting on the April 12th edition of CHICK-CITE summarizing the April 11th USDA-WASDE Report #564 for a review of price projections and quantities of commodities produced during the 2016-17 season.

   
 

Weekly Broiler Production and Prices

May 24, 2017

    

The May 17th 2017 edition of the USDA Broiler Hatchery Report confirmed that 175 million day-old chicks were placed among the 19 major broiler-producing states during the week ending May 13th, two percent more than the corresponding week in 2016 Total chick placements for the U.S. amounted to 182 million.

Average hatchability was 83 percent for eggs set three weeks earlier. Cumulative placements for the period January 7th through May 6th amounted to 3.24 billion chicks, two percent more than the corresponding period in 2016. The USDA Livestock, Dairy and Poultry Outlook issued on April 17th documented a one percent difference in chicks hatched and the number placed for broiler grow-out.

  

For the processing week ending May 13th 164.33 million broilers were processed at an average live weight of 2.81 kg or 6.18 lbs. (2.75 kg. last week) and a yield of 76.0 percent. The number of broilers processed was 1.0 percent more than the corresponding week in 2016. Processed (RTC) broiler production attained 349,484 metric tons, 0.8 percent more than the corresponding week in 2016. Processed (RTC) broiler production in 2017 has attained 6,450,603 metric tons YTD, 0.5 percent more than YTD 2016.

The USDA Southern States (SS) benchmark prices in $ per kg. as reflected in successive weekly editions of the Broiler Market News Reports will be posted as the Georgia Dock benchmark has been terminated. 

   
 

Weekly Turkey Production and Prices

May 24, 2017

    

Poult Production and Placement:

The May 16th edition of the USDA Turkey Hatchery Report, issued monthly, documented 29.0 million eggs in incubators on May 1st 2017 (28.7 million eggs on April 1st) up 3 percent from May 1st 2016.

A total of 23.3 million poults were hatched in April 2017 (25.7 million in March) down 2 percent from April 2016.

  

A total of 22.6 million poults were placed on farms in the U.S. in April 2017, down 2 percent from April 2016. This suggests disposal of 6 percent of hen poults hatched during April or 3 percent of the total hatch.

For the period January through April 2017, 97.99 million poults were hatched and 91.08 million were placed. This suggests disposal of 6.91 million hen poults over 4 months representing 7 percent of the total hatch or 14 percent of hen poults hatched.

Turkey Production:

The May19th edition of the USDA Turkey Market News Report (Vol 64, No. 20) confirmed the following provisional data for turkeys slaughtered under Federal inspection:-

  • For the processing week ending May 13th 1.843 million young hens were slaughtered at a live weight of 8.4 kg or 18.5 lbs. (8.5 kg last week). During the corresponding week in 2016, 2.020 million hens were processed. Ready-to-cook hen weight for the week attained 11,687 metric tons, 14.4 percent less than the corresponding week of 2016. Dressing percentage was 80.5. Year-to-date RTC hen production has attained 194,165 metric tons, 12.8 percent less than YTD 2016.
  • For the processing week ending May 13th 2.583 million toms were slaughtered at 18.6 kg or 41.0 lbs. (19.3 kg last week) compared to 2.477 million toms during the previous processing week. For the corresponding week in 2016, 2.489 million toms were processed. Ready-to-cook tom weight for the past week attained 40,339 metric tons, 4.2 percent more than in the corresponding week of 2016.  Dressing percentage was 80.5.Year-to-date RTC tom production has attained 713,354 metric tons, 4.5 percent more than YTD 2016.
  • The National average frozen hen price during the past week was up 3 cents from the previous week to $2.26 per kg, 5 cents/kg below the three-year average.

   
 

Speakers at USAPEEC Annual Meeting

May 24, 2017

    

According to the USAPEEC MondayLine, circulated on May 20th speakers at the Forum will include:

  • Adriaan Weststrate, Vice Chairman of Global Corporate Clients for North America at Rabobank. He will provide a global overview on protein production and demand.
  • Dr. Paul Aho will review current economic realities in relation to production and export.
  • Dr. Adis Dijab, Animal Product Permitting and Negotiating Services and National Director for the Animal and Plant Health Inspection Service will discuss regulations.

The international marketing forum will include presentations by:

  • Keith Sunderlal of the SGS Group on prospects for U.S. exports to India.
  • Jose Manuel Samperio on USAPEEC programs for processors in Latin America.

The USAPEEC annual meeting will be held in Cancun, Mexico June 12-16th.

   
   
 

Administration Rethink on Agricultural Labor

May 24, 2017

    

Undocumented aliens comprise 26 percent of the farm labor workforce. This figure effectively excludes the poultry industry where both broiler and turkey operations must comply with Department of Homeland Security immigration requirements through the E-Verify process.

Undocumented laborers are mostly involved in cultivating and harvesting fruit and produce where hand and stoop labor is required. At a review meeting on April 25th between the President and representatives of agriculture, assurances were provided that modification to stated policy on immigration would be implemented.

The Administration now recognizes the disconnect between pre-election rhetoric and the realities of segments of U.S. agriculture.

  

   
 

Department of Labor Intervenes on Housing of Migrant Workers

May 24, 2017

    

The Department of Labor has filed a lawsuit against G Farms in El Mirage, Arizona, northwest of Phoenix. The Department alleges that G Farms housed laborers in a makeshift encampment using disused school buses, semi-trailers, cargo containers and open sheds. Toilet and showering facilities were substandard and represented a health hazard.

Workers were recruited in Sinaloa, Mexico to harvest onions. They are paid on a piecework basis and could theoretically earn $11 per hour over a 45 to 50 hour workweek. An attorney representing the Company has advised the Department that G Farms has relocated workers to apartments and motels.

  

The subject of housing workers was raised in relation to allegations against Case Farms in a recent New Yorker article. The Company stated that the deficiencies have long since been resolved.

An egregious example of substandard housing and exploitation concerned the Turner, ME. egg-production complex operated by “Jack” DeCoster. The 1995 case was resolved by an adverse ruling against DeCoster by the State Supreme Court and it was the subject of civil lawsuits settled out-of-court to the benefit of the Plaintiffs.   

   
 

USAPEEC Negotiates Solution to Change in U.A.E. Import Requirements

May 24, 2017

    

During the past week the USAPEEC successfully negotiated with the Emirates Standardization and Marketing Authority (ESMA) to obtain a verbal assurance that shipments to the U.A.E. prior to May 31will be allowed to enter the region irrespective of halal certifier.

The ESMA has been granted the authority to approve halal certifiers but due to deficiencies in communication within the UAE, there was uncertainty as to the status of shipments prior to May 31st.

  

The International Poultry Council addressed a letter to the head of the ESMA requesting clarification on productions dates and noted the lack of approved certifiers for shipments emanating from the U.S. and other nations.  Brazil and the U.S. represent 77 percent and 16 percent respectively of poultry consigned to the UAE.

The problem of certification arose following transfer of responsibility for halal integrity from the Ministry of Climate Change and the Environment to the Emirates Standardization and Marketing Authority.

Producers should recognize the efforts expended by the USAPEEC and the IPC in negotiating a satisfactory (interim) resolution to a potentially expensive and disruptive internal UAE administrative problem.

   
 

North Carolina Department of Agriculture Appoints Poultry Veterinarian

May 24, 2017

    

Following the retirement of Dr. Sara Mason, Dr. Michael P. Martin has been appointed as the Veterinarian in charge of Poultry Programs for the State of North Carolina.

In making the announcement, Dr. R. Douglas Meckes noted that the poultry industry in North Carolina is the leading agricultural employer with over 126,000 positions and the State ranks third nationally in poultry production with an annual ex-farm value approaching $40 billion.

  

Dr. Martin earned a veterinary degree followed by a Master’s degree in Preventive Medicine from  the School of Veterinary, Medicine University of California at Davis and he is a Diplomate of the American College of Poultry Veterinarians. He is currently an Associate Professor in the Department of Population Health and Pathobiology at the North Carolina College of Veterinary Medicine providing extension service to the industry in North Carolina in addition to his research and instruction responsibilities.

   
 

Case Farms Achieves Workplace Safety Goal  

May 24, 2017

    

An editorial regarding allegations of safety violations at Case Farms plants appeared in the May 17 CHICK-CITE. On the same day Case Farms released a statement that effective May 5th, the Goldsboro, NC. processing facility had achieved one million hours without recording an OSHA lost time accident.

 

Tim Singleton, Vice president and General Manager, stated “Our goal is to become the safety standard of the poultry industry in the state of North Carolina.” He added “We are extremely proud of our safety record throughout the years and continually strive for improvement.”

The company-wide worker safety program incorporates safety awareness training, direct supervision, daily worksite analysis and employee participation.

It is noted that the New Yorker article which formed the basis of adverse publicity, cited problems which existed in some cases more than a decade ago and did not consider more recent innovations and improvements in safety. The Case Farms release relates only to their company. It is unclear whether the one million hours without an OSHA-reportable accident reflected the performance of contractors associated with the decontamination shift, or harvesting.

   
 

Canada Imposes Restrictions on Antimicrobial Drugs for Livestock

May 24, 2017

    

Based on the perception that administration of antibiotics to livestock may induce transmissible drug resistance, the Government of Canada has issued new regulations governing the importation and use of antimicrobials.

According to Health Canada, changes to the Food and Drug Regulations include:-

  • Restricting importation of veterinary drugs for food-producing animals.
  • Requiring compliance with strict guidelines relating to the manufacture and quality control of pharmaceuticals for livestock.
  • Annual reporting of sales of medically important antimicrobial drugs by manufacturers and compounders.
  • Allowing risk-appropriate importation of alternatives to antibiotics.

In many respects these regulations parallel recent FDA Guidance Documents

   
   
 

U.S. Poultry and U.S. Poultry Foundation Approves $389,000 in Research Grants

May 24, 2017

    

In a press release dated May 18th, U.S. Poultry and U.S. Poultry Foundation approved $389,000 for five research grants based on recommendations the Foundation Research Advisory Committee.

   

The grants included:-

  • Characterization of viruses a possible cause of superficial pectoral myodegeneration and sclerosis. North Carolina State University, supported by an endowing gift from Case Farms.
  • Validating current broiler welfare auditing programs and advancing enrichment. Iowa State University, made possible by an endowing grant from Ozark Mountain Poultry.
  • Enhancing the antimicrobial efficacy of organic acid blends to kill Salmonella enterica and Campylobacter jejuni on broiler skin. Alabama A&M University, supported by an endowing gift from Ingram Farms.
  • Effect of peracetic acid in poultry processing wastewater treatment systems. Georgia Institute of Technology, made possible by an endowing gift from Cargill.
  • Cage-free housing:  Northern fowl mite impact on laying hens. Purdue University, made possible by an endowing gift from Cal-Maine Foods.        
   
 

EPA to Solicit Input on WOTUS

May 24, 2017

    

The contested Waters of the United States (WOTUS) Rule proposed by the Environmental Protection Agency under the previous Administration was placed on hold in January 2017. 

In a new approach, the Administrator of the Agency, Scott Pruitt, together with the U.S. Army Corps of Engineers is requesting input from the Governors of all 50 states and 5 territories in redrafting the Rule. 

  

The decision of Rapanos v United States rendered by the late Justice Antonin Scalia in 2006 will influence the definition of “relatively permanent” waters which must have a continuous service connection to rivers and streams to qualify for EPA jurisdiction.

In a letter addressed to Governors, Administrator Pruitt and the Assistant Secretary of the Army for Civil Works stated, “We believe this is an important step in the process prior to proposing regulations that may have implications on federalism as defined by the Agency’s policy for implementing the order.”

In commenting on the decision, Zippy Duvall President of American Farm Bureau Federation stated “EPA Administrator Pruitt’s decision to consult with the states before revising the Waters of the United States Rule marks a sharp break with the recent past.  He added, “this is an important, first step towards the restoration of law in environmental regulation. We look forward to working with the states, the EPA and Army Corps of Engineers to set things right once more.”

   
 

Costco Authorizes Nebraska Broiler Project

May 24, 2017

    

According the Omaha World Herald, Costco Wholesale has authorized construction of the proposed broiler integration to be located near the city of Fremont, NE.  The project is still subject to permits from the Nebraska Department of Environmental Quality.

 

Jackie Frank, Vice President of Real Estate for Costco noted that initial site clearing would begin during May and would continue for a few months before construction commences.

It is estimated that Costco will spend $300 million for a processing plant, hatchery and feed mill.  The project is intended to produce rotisserie broilers for Costco stores.

   
 

Rabobank Launches Innovation Fund

May 24, 2017

    

Rabobank has launched a venture capital fund to invest in innovative agricultural projects and companies in the U.S. and Western Europe. The Fund will address food security, changing demographics and consumption problems.

Lizette Sint, Global Head of Rabo Private Equity stated “Rabobank Food and Agri Fund focuses on companies that are aligned to Rabobank’s food strategy.”

  

Richard O’Gorman who will lead Rabo Private Equity stated “We consider investments all along the food and agriculture value chain with a particular focus on ambitious companies that operate in sectors in which we can optimally leverage Rabobank’s expertise, network and positon to help create shareholder value.”

Rabobank offers technical support, contacts and other benefits in addition to financing.  

   
 

Lidl to be up and Running in the U.S. during Summer

May 24, 2017

    

Lidl may represent serious competition to traditional grocers when it initiates operations in the U.S. during summer. The company has 10,000 European stores generating $100 billion in annual sales. Asda the Wal-Mart subsidiary in the U.K. together with other traditional high-street markets including Tesco asnd Sainsburys have lost market share to the deep discounters Lidl and Aldi.

  

The latter has a substantial foothold in the U.S. since entry in 1976. Aldi previously announced its intention to remodel 1,300 U.S. stores and build and additional 600 by the end of 2018 requiring expenditure of over $1.6 billion.

Lidl specializes in high-quality but low-price groceries similar to Trader Joe’s and will concentrate on affluent markets in the mid-Atlantic states and the Northeast with an island of development in Texas. It is anticipated that Lidl will operate 100 to 120 stores by mid-2018.

Although press reports tend to suggest that Wal-Mart might be impacted due to the proximity of planned Lidl stores to the supermarket leader, it is obvious that the most vulnerable company will be Whole Foods Market. This company has experienced declining same-store sales over successive quarters. The founder and CEO John Mackey is under considerable pressure to develop appropriate remedial strategies to respond to competition and ongoing deflation in food prices.

   
 

Allen Harim Strengthens Sales Team

May 24, 2017

    

Allen Harim has announced that Harry Tillman has been appointed Director of Sales and Marketing with specific responsibility for the No-Antibiotic-Ever line of chicken and products.

He joined Allen Harim at the beginning of 2017 as Senior Director of Business Development. Previously he filled positions of responsibility in management and marketing at Smithfield Foods.

  

With the promotion of Harry Tillman, additional appointments have been made including Paul Timlin who will join the marketing team as the Business Development Manager. He is also a veteran of Smithfield Foods. Mark Rutter will also serve as a Business Development Manager with a similar background to Timlin. Michael Hernandez and Nicole Hall will participate in sales as Account Managers.

   
 

McDonald’s Expands Home Delivery

May 24, 2017

    

McDonald’s Corp. has announced that 270 additional restaurants in Chicago and 700 nationwide will participate in the “McDelivery” program using the delivery service of  UberEats. Orders carry a delivery charge of $5.

The roll-out is based on the reality that 75 percent of the U.S. population lives within three miles of a McDonald’s restaurant.

  

Before initiating the program, McDonald’s worked with franchisees to achieve smooth assembly of orders and to ensure that food is delivered fresh and hot.

McDonald’s believes that McDelivery is a critical component of a plan to restore customer loyalty and build same-store sales. Other innovations include mobile ordering by the end of 2017, installations of kiosks, renovating restaurants and initiating table service.

   
 

Acquisition of AdvancePierre by Tyson Contested

May 24, 2017

    

According to a Wednesday, May 17th report, Stephen Bushansky, an investor, has filed suit in the U.S. District Court for the Southern district of Ohio to block the $4.2 billion acquisition of AdvancePierre Foods by Tyson Foods, Inc. 

The deal which was announced in late March would provide a 10 percent premium to shareholders. Since the IPO of AdvancePierre in 2016, which raised $390 million, the company issued a secondary offering in January 2017 which raised $338 million.  

  

Bushansky bases his opposition to the merger on the fact that the statement filed by AdvancePierre in early May omitted information on financial projections developed by Credit Suisse Securities. Bushansky is requesting an update of the financial projections and disclosure of all material information for transparency with regard to shareholders.

   
 

Agriculture Secretary Sonny Perdue Reorganizes USDA

May 24, 2017

    

Displaying predicted practicality, Secretary of Agriculture Dr. Sonny Perdue has restructured the USDA designating a Undersecretary for Trade denoting the importance of agricultural exports to farmers and the U.S. economy. 

Concurrently the Rural Development Mission was downgraded to Office status.  The Rural Development Mission, the Natural Resources Conservation Service, the Farm Services Agency and the Risk Management Agency will be combined under a Farm Production Conservation and Mission area. 

  

Sonny Perdue

The new organization structure reflects realities of modern agriculture and reverses the bias towards small-scale unprofitable farming enterprises favored by the previous administration and strongly supported by Secretary Tom Vilsack and his immediate reporting staff.

   
 

Lidl Commits to Texas Locations

May 24, 2017

    

Although Lidl appears to be concentrating on the mid-Atlantic region for entry into the U.S., market rumors have suggested that they may also be interested in Texas. 

The Dallas News reported that Lidl has spent $10 million to secure properties in Collin and Dallas Counties in the Frisco, Little Elm, McKinney, Wylie and North Richland Hills areas. 

  

Lidl plans to open the first of 20 U.S. stores in the Carolinas and Virginia during the summer of 2017 followed by as many as 100 locations.  Main rival Aldi has a considerable lead in the U.S. and entered Texas in 2010.  Both German-based deep discounters will represent considerable competition to existing brick- and-mortar stores that have experienced customer defections to on-line shopping.

   
 

Whole Foods Market Appoints New Directors

May 24, 2017

    

Faced with concerted criticism and opposition from investors including the Jana Group, Whole Foods Market has appointed five new independent directors:

  • Ken Hicks, former Chariman of FootLocker
  • Joe Mansueto, Executive Chairman of Morningstar
  • Sharon McCollam, former CFO of Best Buy
  • Scott Powers, Executive Vice President of State Street Corp.
  • Ron Shaich, Founder and Chairman of Panera Bread Company.
 

Gabrielle Sulzberger will chair the Board and Mary Ellen Coe will head the Nominating and Government committees.  Keith Manbeck previously of Kohl’s and Nike will serve as CFO replacing Glenda Flanagan.

   
 

IPC Policy on Antibiotics and Resistance

May 24, 2017

    

The USAPEEC MondayLine for May 8th confirms that the International Poultry Council (IPC) has adopted a policy platform on antimicrobial resistance.

Recognizing the global nature of the problem, the IPC advocates management practices to reduce antimicrobials “for which resistance could pose the greatest global risk.”

 

Jim Sumner of the IPC and the USAPEEC emphasizes the need to educate consumers regarding reduction of antibiotic use.

Ricardo Santin of the Brazilian Animal Protein Association noted “Stewardship in antimicrobial use is essential.” He added “as a sector, we must understand and control why and when we use antimicrobials, which antimicrobials we use, how much antimicrobial we use and transparency in communicating our actions.”

The IPC advocates responsible use of antibiotics under strict veterinary control.

The IPC will interact with the World Organization for Animal Health, the Food and Agricultural Organization of the UN, the World Health Organization and the Codex Alimentarius Commission to address a need for responsible administration of antimicrobials.

   
 

Revised USDA-ERS Projected Poultry Production for 2017 and 2018.

May 23, 2017

    

The USDA-Economic Research Service released the projections for broilers and turkeys for 2016 (adjusted), 2017 (updated) and 2018 (forecast) respectively on May 16th

  

Metric values are tabulated below:-

Parameter

  2016 (actual)     

    2017 (updated)             

2018 Difference (forecast) 
2017 to 2018       

Broilers

 

 

 

Production (m. metric tons)

18.497 

18.855

 19.216            +1.9

Consumption (kg per capita)

40.8

41.0

     41.5            +1.2

Exports (m. metric tons)

3.021*

3.171

   3.195            +0.8

Proportion of production (%)

16.3

16.7

     16.6            +0.6

 

 

 

 

Turkeys

 

 

 

Production (m. metric tons)

2.718

2.783

   2.843            +2.2

Consumption (kg per capita)

7.6

7.7

      7.8             +1.3

Exports (m. metric tons)

0.265*

0.283

  0.295             +4.2

Proportion of production (%)

9.8

10.3

    10.3                nil

*Depressed by import embargos due to HPAI

   
 

Nutriad to sponsor 21st European Symposium on Poultry Nutrition

May 19, 2017

    

Nutriad has announced that it will be a sponsor of the 21st European Symposium on Poultry Nutrition to be held May 8th through 11th in Tarragona, Spain. It is anticipated that 500 scientists and representatives of the poultry industry will attend.

Dr. Daniel Ramirez will present data on inclusion of coated butyrate in starter feed for broilers combined with Apex®5 Botanical in the grower finisher. Dr. Tim Goossens will consider making this associated with the beneficial effect of Adimex in preventing aquatic enteritis.

  

Further information can be accessed at www.nutriad.com.

   
 

Weekly Broiler Production and Prices

May 17, 2017

    

The May 10th 2017 edition of the USDA Broiler Hatchery Report confirmed that 174 million day-old chicks were placed among the 19 major broiler-producing states during the week ending May 6th, two percent more than the corresponding week in 2016 Total chick placements for the U.S. amounted to 181 million.

Average hatchability was 83 percent for eggs set three weeks earlier. Cumulative placements for the period January 7th through May 6th amounted to 3.24 billion chicks, two percent more than the corresponding period in 2016.

The USDA Livestock, Dairy and Poultry Outlook issued on April 17th documented a one percent difference in chicks hatched and the number placed for broiler grow-out.

  

For the processing week ending May 6th 161.87 million broilers were processed at an average live weight of 2.75 kg or 6.06 lbs. (2.80 kg. last week) and a yield of 76.0 percent. The number of broilers processed was 31.5 percent more than the corresponding week in 2016. Processed (RTC) broiler production attained 338,877 metric tons, 0.5 percent more than the corresponding week in 2016. Processed (RTC) broiler production in 2017 has attained 6,101,120 metric tons YTD, 0.5 percent more than YTD 2016.

The USDA Southern States (SS) benchmark prices in $ per kg. as reflected in successive weekly editions of the Broiler Market News Reports will be posted as the Georgia Dock benchmark has been terminated.

   
 

Weekly Turkey Production and Prices

May 17, 2017

    

Poult Production and Placement:

The May 16th edition of the USDA Turkey Hatchery Report, issued monthly, documented 29.0 million eggs in incubators on May 1st 2017 (28.7 million eggs April 1st) up 3 percent from May 1st 2016. A total of 23.3 million poults were hatched in April 2017 (25.7 million in March) down 2 percent from April 2016.

  

A total of 22.6 million poults were placed on farms in the U.S. in April 2017, down 2 percent from April 2016. This suggests disposal of 6 percent of hen poults hatched during April or 3 percent of the total hatch.

For the period January through April 2017, 97.99 million poults were hatched and 91.08 million were placed. This suggests disposal of 6.91 million hen poults over 4 months representing 7 percent of the total hatch or 14 percent of hen poults hatched.

Turkey Production:

The May12th edition of the USDA Turkey Market News Report (Vol 64, No. 19) confirmed the following provisional data for turkeys slaughtered under Federal inspection:-

  • For the processing week ending May 6th 1.771 million young hens were slaughtered at a live weight of 8.5 kg or 18.8 lbs. (8.2 kg last week). During the corresponding week in 2016, 1.960 million hens were processed. Ready-to-cook hen weight for the week attained 11,172 metric tons, 5.7 percent less than the corresponding week of 2016. Dressing percentage was 80.5. Year-to-date RTC hen production has attained 182,478 metric tons, 12.8 percent less than YTD 2016.
  • For the processing week ending May 6th 2.477 million toms were slaughtered at 19.3 kg or 42.5 lbs. (19.0 kg last week) compared to 2.509 million toms during the previous processing week. For the corresponding week in 2016, 2.129 million toms were processed. Ready-to-cook tom weight for the past week attained 38,720 metric tons, 16.9 percent more than in the corresponding week of 2016.  Dressing percentage was 80.5.Year-to-date RTC tom production has attained 673,075 metric tons, 4.2 percent more than YTD 2016.
  • The National average frozen hen price during the past week was up 5cents from the previous week to $2.23 per kg, 18 cents/kg below the three-year average.

   
 

Nutriad to sponsor 21st European Symposium on Poultry Nutrition

May 17, 2017

    

Nutriad has announced that it will be a sponsor of the 21st European Symposium on Poultry Nutrition to be held May 8th through 11th in Tarragona, Spain. It is anticipated that 500 scientists and representatives of the poultry industry will attend.

Dr. Daniel Ramirez will present data on inclusion of coated butyrate in starter feed for broilers combined with Apex®5 Botanical in the grower finisher. Dr. Tim Goossens will consider making this associated with the beneficial effect of Adimex in preventing aquatic enteritis.

  

Further information can be accessed at www.nutriad.com.

   
 

JBS Reports on Q1 of FY 2017

May 17, 2017

    

In a press release dated May 16th JBS SA (JBSAY) announced results for the 1st Quarter of Fiscal 2017 ending March 31st 2017.

  

The following table summarizes the consolidated company results for the period compared with the values for the corresponding quarter of the previous fiscal year applying a conversion of BR3.1=US$1. (Values expressed as US$ x 1,000 except EPS)

   
 

Alltech Acquires WestFeeds in Montana

May 17, 2017

    

Alltech has announced the purchase of WestFeeds, a feed manufacturer located in Montana.

Michael Castle, COO of Alltech stated “WestFeeds has a strong reputation of providing producers with high quality animal nutrition products.” He added “we believe that there is great benefit for our customers in our teams joining forces for the future.”

  

WestFeeds operates plants in Billings and Great Falls in addition to sales locations throughout the state.

Jerry Beggar, GM of the acquired company stated “WestFeeds is embracing the opportunity to join Alltech because we can see very clearly how our companies’ strengths complement one another to the benefit of our customers.”

   
 

Senate Confirms Lighthizer as U.S. Trade Representative

May 17, 2017

Robert Lightizer

    

The U.S. Senate confirmed Robert Lighthizer as the U.S. Trade Representative by a vote of 82-14.

Lighthizer has a distinguished career in trade and despite early statements will apparently be neutral in the apparent conflicts within the White House between protectionists and free-trade advocates.

The confirmation of Lighthizer was supported by most agricultural organizations with an interest in promoting trade.

The chairman of the Senate Agricultural Committee Pat Robertson (R-KS) stated “In talking with farmers and ranchers across the country, I continually hear that trade tops a list of priorities and Mr. Lighthizer assured me he will prioritize American agriculture.”

  

   
 

Demand for U.S. Broilers Increases in Mexico

May 17, 2017

    

According to the May 15, 2017 MondayLine, wholesale prices in Mexico increased during the first quarter of 2017 reflecting disparity between supply and demand. Wet-market prices increased from $1.65 per kg ($0.75 per pound) in January to $2.02 per kg ($0.92 per pound) in April. Mexico previously opened duty-free quotas for 300,000 metric tons of processed poultry to alleviate projected shortages.

  

 Imports from Brazil have been limited by current concerns over inspection and documentation. The U.S. although in a position to supply is at a disadvantage with regard to the unfavorable currency exchange rate. The entire export picture from the U.S. is dominated by uncertainty over renegotiation of the NAFTA.

USAPEEC documents retail distribution of broilers in Mexico as 38 percent live, 28 percent as rotisserie birds, 15 percent as New York dressed, 7 percent through supermarkets, 8 percent as portions and 4 percent in the form of added value products.

Mexico was the largest importer of U.S. broiler meat during the first quarter of 2017 with 148,179 metric tons (19 percent of volume) and a value of $119 million (16.9 percent of value) corresponding to a unit price of $809 per metric ton.

   
 

Florida AG Investigating Large Integrators

May 17, 2017

    

Tyson Foods, Pilgrim’s Pride Corporation and Sanderson Farms have all confirmed receiving an inquiry from the office of the Attorney General of Florida, Pam Bondi.  At issue are allegations of collusion arising from civil suits claiming that integrators attempted to fix prices by submitting selected data to the Georgia Dock Index.  In addition, Tyson Foods received a subpoena from the Securities and Exchange Commission regarding allegation of attempts to manipulate prices.

  

The Georgia Dock Index was compiled on the bases of sales data submitted by producers in the state.  As reported in CHICK-CITE the index corresponded closely with the USDA index and commercial benchmarks for many years but deviated from other indices rising significantly in 2015. Questions as to the authenticity of data submitted by companies resulted in the demise of the index. 

In actuality, the companies concerned based only a small proportion of their sales on the Georgia Index, with buyers negotiating prices based on commercial benchmark indices. This would invalidate the claim that collusion led to overcharging.  Although large companies dominate the industry, there is a high level of competition especially with regard to generic products.

   
 

Poultry Focus Session at the Alltech One17 Ideas Conference

May 17, 2017

    

During the Alltech One17 Ideas Conference to be held May 21 -24 in Lexington, KY., six presentation in a focus session will deal with aspects of poultry.  Speakers will include:-

  • Dr. Peter Ferket on in ovo feeding and vaccination
  • Dr. Karina Horgan on the possibility of CRISPR/Cas 9 to modify the chicken genome
  • Dr. Kayla Price on antibiotic-free programs
  • Dr. Paulo Rigolin on small-scale farming and specialty products
  • Dr. Eilir Jones on the impact of slow-growing broilers in relation to sustainability
  • Steve Elliott on organic trace mineral technology
 

   
 

Butterball Introduces No-antibiotics-Ever Turkey Products

May 17, 2017

    

Butterball® Foodservice will introduce a Farm to Family by Butterball™ no-antibiotics-ever turkey raised on an all-vegetarian diet.

The Farm to Family® line will comprise turkey burgers, ground turkey, turkey breast and ready-to-cook roasts.

  

   
 

Status of 2017 Corn and Soybean Crops

May 17, 2017

    

The USDA Crop Progress Report released Monday May 15th  recorded the status of corn and soybean planting and emergence as expressed in the table below:-

 

                                                                            WEEK ENDING

Crop

MAY 7th

May 14th

5-Year Average

Corn Planted

         47%

           70%

           70%

Corn Emerged

       15%           

           31%

           36%

Soybeans planted

Soybeans emerged

         10%

           -

           14%

             8%

           17%

            9%

 

Parameteer

v. Short

Short

Adequate

Surplus

Topsoil moisture:  Past Week

1

8

64

27

                              Past Year

3

11

69

17

Subsoil moisture:  Past Week

2

9

67

22

                              Past Year

2

12

73

13

 

   
 

Nutriad announces Management Appointments

May 17, 2017

    

Nutriad located in Belgium has appointed Jeroen DeGussem as Marketing Director and Joke Van De Velde as Marketing Communications Manager. They will function out of the Dendermonde headquarters.

CEO of Nutriad Erik Visser stated “In past years Nutriad has significantly grown market share. To ensure we continue working closely with customers, suppliers and our own technical staff in bringing new concepts to market, we constantly invest in people.”

  

DeGussem holds a Master’s degree in Biotechnology and Laboratory Animal Science and is completing an MBA degree. Van De Velde is an experienced professional in marketing and communications.

   






















 
Copyright 2017 Simon M. Shane