Impact of the Ukraine-Russia War on the Meat and Livestock Value Chain

Last week, National Pork Board hosted a Checkoff-funded webinar – The Ukraine-Russia War and the Meat Livestock Value Chain – to provide pork producers with an analysis of the current situation. Panelists included:

- Rupert Claxton, Gira
- Joe Kerns, Partners for Production Agriculture
- Dr. Steve Meyer, Partners for Production Agriculture

Impact of War Has Market Consequences Worldwide
Rupert Claxton shared the global economic impact of the Ukraine-Russia War on energy, fertilizer, feed and the livestock markets.

Fertilizer

Russia accounts for 13% of globally traded fertilizer value, producing...

NCBA and PLC Welcome Expansion of ELAP

The National Cattlemen’s Beef Association (NCBA) and the Public Lands Council (PLC) welcome the U.S. Department of Agriculture’s (USDA) decision to expand the Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program (ELAP) to cover a portion of the costs incurred from the transportation of livestock to feed sources.

“We are appreciative that the USDA Farm Service Agency (FSA) listened to requests from producers who are suffering through the continued impact of multiple years of unprecedented drought and skyrocketing input costs. We are also grateful for the efforts of Senator..."

AgriWebb Shakes Up the Livestock Industry with AgriWebb Connect

AgriWebb, creator of the world’s leading livestock enterprise management solution serving over 8,500 global farmers and 18 million animals, today announced the launch of AgriWebb Connect, an enhanced livestock enterprise management platform built uniquely for forward-thinking livestock supply chains.

AgriWebb Connect is the only supply chain management solution in the ag industry powered by real-time animal data. The platform arms future-forward market leaders with an understanding of their supply chain at every level of detail, from macro-level comparisons of key performance indicators all the...

Grand Island Fire Department Battles Blaze at JBS Beef Plant in Nebraska

On Sunday evening, a fire broke out at the rendering section of JBS’s beef plant in Grand Island, Nebraska. According to a recent tweet from the Grand Island Fire Department, fresh crews have been called to the scene to battle the blaze.

On a Facebook post, JBS stated, “As of this time fabrication and slaughter A and B shift will not be working September 13, 2021. We will...

Tyson Foods Categorically Rejects Conclusions Drawn by White House

Tyson Foods categorically rejects the conclusions drawn by the Secretary of Agriculture and the Director of the National Economic Council in a White House press briefing.

The U.S. Department of Agriculture recently published a report detailing the drivers of consumer inflation in the food sector, none of which are related to industry consolidation or scale. The report can be found here.

Increase in Beef Prices due to Unprecedented Market Conditions

As we have explained in great detail to the U.S. Senate Committee on the Judiciary, in testimony provided in August 2021, which can...

APHIS: Confirmation of COVID-19 in Deer in Ohio

The United States Department of Agriculture’s (USDA) National Veterinary Services Laboratories (NVSL) announced confirmation of SARS-CoV-2 (the virus that causes COVID-19) in wild white-tailed deer in Ohio. These are the first deer confirmed with the SARS-CoV-2 virus worldwide, although earlier studies have shown both that deer can be experimentally infected with the virus and that some wild deer had antibodies to the virus.

Samples from the deer were collected between January and March 2021 by The Ohio State University College of Veterinary Medicine as part of ongoing deer damage management activities. There were no reports of...

Beef Quarterly Q3 2021: Déjà Vu Argentina

In May this year, the Argentine government imposed a 30-day suspension on beef exports. After those 30 days, new limitations were placed on the volume and type of beef that could be exported. In our feature article, we look at what impact this will have on the Argentine beef industry and the global market.

Covid-19

Global confirmed case numbers began rising again in mid-June, after falling from a peak in late April. Numbers in Europe, the Eastern Mediterranean region, Africa, and the Western Pacific region have seen large rises. Food retail figures remain strong, and foodservice sales were still...

USDA Updates Pandemic Assistance for Livestock, Poultry Contract Producers and Crop Growers

The U.S. Department of Agriculture (USDA) is updating the Coronavirus Food Assistance Program 2 (CFAP 2) for contract producers of eligible livestock and poultry and producers of specialty crops and other sales-based commodities. CFAP 2, which assists producers who faced market disruptions in 2020 due to COVID-19, is part of USDA’s broader Pandemic Assistance for Producers initiative. Additionally, USDA’s Farm Service Agency (FSA) has set an Oct. 12 deadline for all eligible producers to apply for or modify applications for CFAP 2...

ANALYSIS: Lackluster Cattle Slaughter, Tight Supplies Lift Boxed Beef Prices

For those monitoring cattle slaughter levels, there is a common takeaway that processing capacity has not yet recovered to pre-pandemic levels. Production and distribution challenges due to ongoing labor shortages may...

USDA Adopts Market Transparency Policies Backed by NCBA

The U.S. Department of Agriculture-Agricultural Marketing Service (USDA-AMS) announced that it will begin publishing a National Daily Direct Formula Base Cattle report, which will provide greater information into the foundational prices used in cattle market formulas, grids, and contracts, and a National Weekly Cattle Net Price Distribution report, which will show the volume of cattle purchased at each different level of pricing within those formulas, grids, and contracts. NCBA has long urged USDA to adopt policies that increase transparency in the cattle markets and applauds this effort to provide producers greater insight into cattle transactions.

“USDA’s announcement is a significant step toward increasing transparency in the cattle markets,” said NCBA Vice President of Government Affairs Ethan Lane. “As Livestock Mandatory Reporting awaits...

North American Meat Institute Urges Massachusetts to Delay Enforcement of Animal Confinement Law

With less than five months before the Commonwealth of Massachusetts intends to enforce its proposed Regulations Implementing the Act to Prevent Cruelty to Farm Animals (the Act), the North American Meat Institute (Meat Institute), the largest and oldest trade association for packers and processors of beef, pork, lamb, veal and turkey, has urged the Commonwealth to delay enforcement and allow time for the proposed rule to be made final so livestock producers and packer processors can understand the final rule and make any required changes to their operations.

In comments submitted to The Commonwealth of Massachusetts Office of the Attorney General on the proposed act, Mark Dopp, Chief Operating Officer of the North American Meat Institute said:

“Before addressing the problems attendant with the proposed rules, the ‘elephant in the room’ needs addressing. The Act provides that the ‘The Attorney General shall promulgate rules and...

ANALYSIS: Cash Hog Prices Decline from Summer Peak But Remain Well Above Year Ago Levels

The summer peak for negotiated cash hog prices on a national basis was achieved on June 22 at $128.04/cwt. Since peaking, spot prices have since declined by around...

Tyson Fresh Meats Leader Testifies About Beef Industry at Senate Hearing

Shane Miller, group president of Tyson Fresh Meats, the beef and pork unit of Tyson Foods, testified about the beef industry during a hearing held today by the U.S. Senate Committee on the Judiciary. Below is Miller’s written testimony:

Chairman Durbin, Ranking Member Grassley, members of the Judiciary Committee, thank you for inviting me here today.

I proudly represent Tyson Foods, a company based in Springdale, Arkansas, and founded nearly a century ago by John W. Tyson, who started this business trucking chickens to markets across the Midwest...

USDA Announces Livestock, Poultry Producer Assistance for COVID-19 Related Losses

Livestock and poultry producers who suffered losses during the COVID-19 pandemic due to lack of access to processing can apply for assistance, the U.S. Department of Agriculture (USDA).

U.S. Ag Secretary Tom Vilsack announced the Pandemic Livestock Indemnity Program (PLIP) in remarks at the National Pork Industry Conference in Wisconsin Dells, WI.

PLIP is part of the USDA’s Pandemic Assistance for Producers initiative. Producers can apply for assistance on losses and the cost of depopulation and disposal through the USDA’s Farm Service Agency (FSA) starting on July 20...

NCBA Notes Introduction of Misguided Agriculture Bill from Senator Booker

The National Cattlemen’s Beef Association (NCBA) noted the introduction of misguided legislation entitled the Farm System Reform Act by Senator Cory Booker (D-NJ) and Congressman Ro Khanna (D-CA). NCBA Vice President of Government Affairs Ethan Lane gave the following response.

“In the past week, Democrats in Washington have put forward two starkly different proposals for strengthening the future of American cattle farmers and ranchers. One of these paths, namely the recent announcement from Secretary Vilsack, offers...

PODCAST: UK Beef Chats Episode 24

This week on UK Beef Chats, Market Report Mike Nesbitt discusses the rise of dead weight prices, shortage of cattle influencing the UK beef market, and plans to remove social distancing restrictions in the UK.

NCBA Thanks President Biden, Secretary Vilsack for Taking Steps to Strengthen Beef Supply Chain

President Biden signed an Executive Order which initiates several federal rulemakings and commits $500 million to expanding processing capacity in the beef industry. The National Cattlemen's Beef Association (NCBA) thanked President Biden and U.S. Department of Agriculture (USDA) Secretary Vilsack for acting rapidly to address key concerns impacting cattle and beef producers.

NCBA welcomed the announcement of rulemakings to improve the accuracy of the "Product of the USA" beef label and implement...

Rancher and NCBA Member Testifies Before Senate Agriculture Committee on Cattle Market Concerns

Mr. Mark Gardiner, the owner-operator of Gardiner Angus Ranch and an NCBA member, testified before the U.S. Senate Agriculture Committee on key market challenges that have long threatened the profitability of cattle and beef producers. He was joined by leading industry economists who NCBA has worked closely with to explore solutions to the current unsustainable market dynamics.

The hearing titled, “Examining Markets, Transparency, and Prices from Cattle Producer to Consumer” addressed a wide range of issues, including the urgent need for robust price discovery and...

Meat and Poultry Supply Chain Remains Resilient

In response to U.S. Secretary of Agriculture Tom Vilsack’s request for comments on efforts to improve supply chains for the production of agricultural commodities and food products, The North American Meat Institute (Meat Institute) said the meat and poultry food supply chain remains resilient despite extraordinary circumstances.

“The pandemic that began in 2020 and continues today may be the ultimate black swan event,” said Meat Institute Senior Vice President for Regulatory and Scientific Affairs Mark Dopp. “But its occurrence does not...

NCBA-Won Funds Going Toward USDA Grants for Small, Independent Processors

The U.S. Department of Agriculture (USDA) announced the creation of two new, competitive grant funding opportunities for small, regional, and independent meat processors using funds the National Cattlemen's Beef Association (NCBA) worked to secure at the end of last year. After fighting hard for several key priorities for cattle producers in the Consolidated Appropriations Act of 2021, NCBA praised USDA for putting $55.2 million of those funds toward the critical need for greater beef processing capacity.

The competitive grant funding will be available through the new Meat and Poultry Inspection Readiness Grant (MPIRG) program. The funds will support small beef processing facilities making the improvements necessary to...

Greenhouse Gas Emissions in Beef Supply Chains: Opportunities for Reductions and Leadership 

Beef supply chains account for about 6% of global greenhouse gas (GHG) emissions, of which about half are accounted for by the beef production stage of the supply chain. New and emerging technologies and management practices, covering feed production, cattle breeding, cattle feeding, and soil and pasture management, all offer significant opportunities to reduce emissions. Reduction of global beef supply chain emissions can be also achieved by transferring best practices from the most efficient beef supply chains to less efficient ones.

Food and agribusiness (F&A) company commitments to lower the supply chain GHG emissions of beef and other animal proteins are on the rise. Rabobank believes that in most regions these initiatives are likely to...

What Does Prop 12 Mean for Egg, Veal, and Pork Producers in 2022?

Set to begin on January 1, 2022, there has been much pushback and controversy surrounding the State of California’s Proposition 12: The Farm Animal Confinement Initiative, which California residents first voted to pass in 2018.

Under the new rule, veal calf producers are required to provide their animals with at least 43 square feet of usable floor space per calf. Sows must have a minimum of 24 square feet of usable space per animal and laying hens are required to be cage-free. Prop 12 prohibits the sale in California of meat, poultry, and eggs not raised in compliance with these regulations. Many industry participants and producers have voiced concerns that Prop 12 could...

NCBA and PLC Ready to Defend Progress on Clean Water Act

The National Cattlemen's Beef Association (NCBA) and Public Lands Council (PLC) issued the following statement in response to Environmental Protection Agency (EPA) Administrator Michael Regan's announcement that the agency intends to revise the Navigable Waters Protection Rule (NWPR).

"Livestock producers, who manage both their private lands and safeguard public lands, have a deep-seated commitment to protecting and improving our waterways — which is why it is so deeply frustrating when EPA opts for government overreach instead of effective, proven public-private partnerships. The NWPR was...

Cargill Joins U.S. CattleTrace Program with Aim to Develop Infrastructure for Disease Traceability

Cargill announced that it has joined U.S. CattleTrace as an official packer member. Cargill is the second beef processor to invest in the effort formed by multiple state cattlemen’s organizations to develop a national infrastructure for animal disease traceability in the U.S. cattle industry.

“Reducing the impact of disease is critical for the U.S. Beef herd which is why we’re excited to join the U.S. CattleTrace program and champion its efforts to improve global competitiveness and food safety across the value chain,” said Jarrod Gillig, business operations and supply chain lead for Cargill’s North American protein business. “At Cargill, we’ve long been focused on enhancing the traceability and resilience of our supply chains and...

USDA to Begin Work to Strengthen Enforcement of the Packers and Stockyards Act

The U.S. Department of Agriculture (USDA) will begin work on three proposed rules to support enforcement of the Packers and Stockyards (P&S) Act, the 100-year old law that was originally designed to protect poultry and hog farmers and cattle ranchers from unfair, deceptive, and anti-competitive practices in the meat markets. USDA’s pending action was noted in the Unified Agenda of Regulatory and Deregulatory Actions released by the White House Office of Management and Budget (OMB).

USDA intends to take three actions related to rulemaking in the months ahead. First, USDA intends to propose a new rule that will provide greater clarity to strengthen enforcement of unfair and deceptive practices, undue preferences, and unjust prejudices. Second, USDA will propose a new...

NCBA Joins Dialogue with Sec. Vilsack on Build Back Better Initiative

The National Cattlemen's Beef Association joined an agriculture industry call with U.S. Department of Agriculture (USDA) Secretary Vilsack to discuss the path forward for the recently-announced $4 billion Build Back Better initiative.

During the coalition call, there was a productive, positive dialogue on how funds could best be utilized to strengthen the security of the beef supply chain and increase opportunities for profitability for all sectors of the cattle industry.

In yesterday's announcement, USDA outlined four areas of focus for the program — food production, food processing, aggregation and...

Additional Cattle Markets Legislation Introduced in U.S. House

Representative Vicky Hartzler (R-MO-4) introduced the Optimizing the Cattle Market Act of 2021 in the U.S. House. The legislation builds on a growing consensus among cattle producers, industry leaders, and Members of Congress that the current market dynamics — which stunt producer profitability and put undue market leverage on the side of meatpackers — are not sustainable for the beef supply chain.

If enacted, the bill would direct the U.S. Department of Agriculture (USDA) to create a cattle formula contracts library, and increase the reporting window for "cattle committed" from...

NAMI to Supreme Court: Prop 12 Not Beneficial to Consumers and Increases Sow Mortality

The North American Meat Institute (the Meat Institute) said the State of California’s Proposition 12 (Prop 12 or the law) provides no benefit to consumers and increases breeding sow mortality according to the State’s own proposed rule.

“The recently proposed rule by the California Department of Food and Agriculture (CDFA) admits there are no benefits to Californians as a result of Prop 12. CDFA admits deaths of breeding sows will increase. Both are unintentional consequences of a costly and unconstitutional law,” said Julie Anna Potts, President and CEO of the North American Meat Institute. “Our petition to challenge the law has the support of more than...

JBS USA Confirms Equivalent of $11 Million Ransom Payment to Hackers

In a press release Wednesday, JBS USA confirmed it paid the equivalent of $11 million in ransom in response to the cyberattack last week which affected its North American and Australian IT systems. 

JBS USA was forced to temporarily close its beef and pork processing plants on June 1 following the Memorial Day weekend. Altogether, the company's facilities account for nearly a quarter of the total U.S. daily cattle and hog processing capacity. JBS's U.S. facilities resumed full operations by Friday and are maintaining normal operations so far this week. Week-to-date cattle slaughter is 154,000 head above the week prior. Week-to-date hog slaughter is up...

UFCW Sioux Falls Union Votes to Authorize Strike Against Smithfield

The Sioux Falls chapter of the United Food and Commercial Workers union has authorized a strike at the Smithfield Foods pork processing plant in South Dakota. The union met with company representatives Tuesday and said they hope to avoid a work stoppage.

The union is demanding that Smithfield increases its wages. UFCW Local 304A President B.J. Motley explained "We feel that during a pandemic year and after calling Smithfield workers heroes for coming to work on a daily basis to feed America, they haven't shown that appreciation at all during negotiations."

No deadline has been set yet for when a strike could happen. Hog slaughter operations are expected to...

ANALYSIS: Cattle and Hog Producers Weather Another Black Swan Event

In what was yet another black swan event, the cyberattack on JBS last week exemplified the severe impacts that extraordinary incidents can have on...

Lawmakers Urge Administration to Challenge Damaging Court Ruling

Congressional lawmakers are spearheading two letters to the administration, urgently requesting the U.S. Department of Agriculture (USDA) and the Department of Justice (DOJ) appeal a recent federal district court ruling that, left unchallenged, will cause tremendous financial harm to American hog farmers starting at the end of this month.

The National Pork Producers Council (NPPC) is urging USDA and the DOJ to quickly appeal the court ruling that, unless halted, will result in a 2.5 percent loss in pork packing plant capacity nationwide, and more than...

NCBA Pushes Congress to Address Areas of Concern in the Cattle Industry

the National Cattlemen’s Beef Association (NCBA) led a letter with the support of 37 affiliate state cattle organizations, urging the leadership of the U.S. Senate and House Agriculture Committees to address critical areas of concern in the cattle and beef industry.

Specifically, NCBA pushed Sen. Debbie Stabenow (D-MI), Sen. John Boozman (R-AR), Rep. David Scott (D-GA-13), and Rep. Glenn “GT” Thompson (R-PA-15) to consider swift Congressional action to...

Beef Quarterly Q2 2021: Record Prices, but Will They Last?

Many key beef production and consumption areas across the world are currently experiencing high or record prices for beef or cattle. We explore what is driving this and whether it will last. There are also several other issues affecting global beef markets at present.

Covid-19

The rollout of vaccines, the transition to robust economic growth, and the advance of the northern hemisphere summer see many areas experiencing lower Covid case numbers and higher economic activity. With restrictions being eased, foodservice sales are also...

ANALYSIS: Digesting the Latest USDA On Feed Data

In this latest report, year-over-year comparisons were skewed due to the COVID-19 disruptions including...