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...

Wholestone Farms to Build Pork Processing Facility in South Dakota

Wholestone Farms, a farmer-owned pork processor, has secured property in Sioux Falls, South Dakota, located near the intersection of I-229 and Benson Road within an appropriately zoned industrial park. Wholestone Farms plans to develop the purchased land into a new, state-of-the-art pork harvest and processing facility. The project value is estimated at over $500 million and will initially employ over 1,100 people.

"Wholestone Farms and its farmer-owners have a strong culture of corporate citizenship and with many of our members currently living and doing business in the area, we look forward to...

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...

Strong Momentum Continues for U.S. Beef and Pork Exports

Following a record-breaking March performance, exports of U.S. beef and pork continued to build momentum in April, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

April exports of U.S. beef set another new value record at $808.3 million, up 35% from a year ago, with export volume reaching 121,050 metric tons (mt) – up 23% year-over-year and the fifth largest on record. For beef muscle cuts, exports were the third largest ever at 94,656 mt (up 21%), valued at a record $726.7 million (up 36%). For January through April, beef exports moved 5% ahead of last year’s pace at 454,398 mt, with value up...

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...

FBI Attributes JBS Cyberattack to Russia-Linked Cyber Criminal REvil

JBS, the world’s largest meat processing company, is returning to normalized operations following a cyberattack over the weekend that affected its North American and Australian servers. 

On Tuesday evening, JBS released a press statement saying it had made “significant progress” in resolving the cyberattack and expected the “vast majority” of its plants to be operating on Wednesday. 

JBS is also a majority shareholder of Pilgrim’s Pride, a leading chicken producer. Pilgrim’s has operations in 14 U.S. states and can process...

Smithfield Foods Expands Sustainability Program in New Report

In addition to its industry-leading greenhouse gas (GHG) reduction commitment to become carbon negative in all U.S. company-owned operations by 2030, Smithfield Foods, Inc. today announced it will reduce GHG emissions across its entire domestic supply chain 30 percent by 2030. This new goal builds on the company's prior pledge to reduce greenhouse gas emissions across its domestic supply chain 25 percent by 2025. Smithfield also announced that it will obtain 50 percent of its electricity from...

Statement from the USDA on JBS USA Ransomware Attack

As noted earlier by the White House, USDA is aware of the ransomware attack against JBS, which is affecting the company’s operations, including its facilities in the United States. USDA continues to work closely with the White House, Department of Homeland Security, JBS USA and others to monitor this situation closely and offer help and assistance to mitigate any potential supply or price issues. As part of that effort, USDA has reached out to several major meat processors in the United States to ensure they are aware of the situation, encouraging them to...

JBS Informs White House that Cyberattack is Likely from Russia

JBS informed the White House that the cyberattack on the company that impacted its cattle and hog plants in the United States yesterday likely originated from Russia. 

White House spokeswoman Karine Jean-Pierre said the FBI is investigating the attack and has contacted Russia’s government. Jean-Pierre explained, "the White House has offered assistance to JBS and our team at the Department of Agriculture have spoken to...

Update: Some U.S. JBS Operations U.S. Affected by Cyberattack Today

JBS announced that they experienced a cyberattack over the weekend, forcing some shifts at its U.S. locations to be reduced or canceled altogether today. Industry sources report that JBS will not be operating any of its U.S. cattle plants today. This is expected to trim the day’s cattle slaughter by around 28,000 head from normal. 

On the hog side, three of JBS’s U.S. hog plants are said to be down today, while two are operating at reduced capacity. While it is difficult to gauge what today’s hog slaughter could be, the common consensus is in the area of 400,000 head or potentially less. Analysts note that this Saturday’s cattle and hog slaughter could be very large to make up for the downtime...

The duration and extent of processing plant disruptions at JBS's facilities due to the cyberattack is not yet known and will be monitored day-to-day. Adequate processing capacity for the current level of supply is already an issue for the livestock industry, especially on the cattle side.

Major Cyber Attack Impacts JBS' Global Operations

On Sunday, May 30, JBS USA announced that it was the target of a cyberattack. According to a media statement, “the company took immediate action, suspending all affected systems, notifying authorities and activating the company's global network of IT professionals and third-party experts to resolve the situation. The company’s backup servers were not affected, and it is actively working with an Incident Response firm to restore its systems as soon as possible.”

JBS media contact Nikki Richardson explained that a solution will take time and that transactions with customers and suppliers could be delayed. 

JBS Foods is the world’s largest beef and poultry producer and the second-largest global pork producer. The company has locations in the United States, Australia, Canada, United Kingdom, Mexico, Europe, and New Zealand...

ANALYSIS: Strong Demand Keeps Frozen Pork and Beef Inventories Tight 

According to the latest USDA monthly cold storage report, released Monday afternoon, frozen beef and pork stocks at the end of April remain...

ANALYSIS: Chicken Boneless Breasts and the Jumbo/Medium Spread

Since their inception to the Urner Barry price sheet back in late 2009, medium-sized boneless breast quotations have...

Cultivated Meat Likely to Make Up 40% of Future Meat Intake 

According to research published by the journal Foods, cultivated meat is likely to make up a major part of consumers' future diets. The study showed patterns of greater openness to trying such products by younger generational groups: 87-89% of Gen Z adults, 84-85% of Millennials, 76-77% of Gen X, and 70-74% of Boomers were at least somewhat open to trying cultivated meat.

Led by Keri Szejda, Ph.D., the researchers surveyed a large, representative sample of 2,018 US and 2,034 UK consumers, assessing indicators of adoption among the general population, and...

Record-Breaking Performance for U.S. Beef and Pork Exports in March

U.S. red meat exports ended the first quarter on a very high note, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF), with March beef and pork exports each posting the highest monthly value on record. Pork exports and shipments of beef muscle cuts also set new volume records in March.

Beef exports totaled 124,808 metric tons (mt) in March, up 8% from a year ago and the second largest of the post-BSE era. Export value broke the $800 million mark for the first time at $801.9 million, up 14% year-over-year. Beef muscle cut exports set new monthly records for both volume (98,986 mt, up 13% from a year ago) and value ($718.3 million, up 17%). For the first quarter, beef exports pulled even with last year’s pace at...

ANALYSIS: Pandemic-Related Issues Continue to Affect Slaughter Levels 

Pandemic-related issues including labor availability continue to affect cattle and hog processing levels more than a year after...

Tyson Foods Joins Cattle Traceability Program

Tyson Fresh Meats, the beef and pork subsidiary of Tyson Foods, Inc., is putting its support behind a cattle disease traceability program called U.S. CattleTrace.

This makes Tyson the first beef processor to invest in membership in the program, which was formed by multiple state cattlemen’s organizations to develop a national infrastructure for animal disease traceability in the U.S. cattle industry. The program is expected to assist animal health officials with an effective and quick disease response within the U.S. cattle herd in the event of a foreign animal disease occurring in the U.S., which is...

February Red Meat Exports Below Last Year, but 2021 Outlook Remains Strong

February exports of U.S. beef and pork remained below the rapid pace established in early 2020, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). However, exports were consistent with USMEF’s February projections and the federation still expects 2021 beef exports to increase substantially year-over-year, while pork exports are projected to narrowly surpass the 2020 record. ​

Beef exports totaled 103,493 metric tons (mt) in February, down 8% from a year ago, valued at $669.5 million (down 2%). This was due mainly to a decline in variety meat exports, as beef muscle cuts were steady with last year in value at $597.9 million on a volume of 82,530 mt (down 3%). Through February, beef exports were...

Poultry Quarterly Q2 2021: The Bumpy Road to Recovery

The outlook for the global poultry industry is gradually improving, but big differences remain between countries, and global poultry trade is still very competitive. The industry is facing major challenges due to Covid-19-related market disruption, very high and volatile feed prices, avian influenza (AI) in the northern hemisphere, and volatility coming from a bumpy recovery in countries affected by African swine fever (ASF). Key for producers will be to have a very disciplined supply growth, a focus on cost reduction via procurement, production efficiency, and feed formulation, as well as being prepared for big swings in demand driven by Covid-19-related government decisions.

As countries reopen foodservice, and while their control of Covid-19 improves, the poultry industry will start to recover. On average, 35% of global poultry consumption is via foodservice. “In countries where several of these disruptive factors come together, broiler prices have risen to high levels. Some governments have started to...

REPORTER: Industry Veterans Come Together to Open Colorado Lamb Processors

This article was originally featured in the Spring 2021 Edition of Urner Barry's Reporter magazine.

As Easter and Passover approach, one cannot help but to think about lamb when planning a holiday meal. This year, there’s a good chance you could be eating lamb that has passed through the country’s newest lamb harvesting facility—Colorado Lamb Processors in Brush, Colorado.

Colorado Lamb Processors, which opened in September 2020, is the first new lamb processing facility to be built in the...

National Beef to Expand Iowa Premium Facility

National Beef Packing Company, LLC, a leading beef processor in Iowa, announced plans to increase capacity and add a second production shift at its Iowa Premium beef processing facility located in Tama, Iowa. Total investment will be more than $100 million and will double the capacity of the plant to approximately 2,500 head per day.

“We are pleased to be making this investment in the growth of the Tama facility, and we appreciate the support of the local communities and the state of Iowa as we work together to make this expansion a success,” said Tim Klein, National Beef President and CEO. “This project will increase our capacity to...

Tyson Foods Expanding Case-Ready Meat Production with South Carolina Plant

As part of its strategy to increase production of consumer ready products, Tyson Foods, Inc. is expanding its case-ready meats business by repurposing plant capacity in South Carolina.

The company plans to reopen an idle Tyson-owned facility in Columbia and convert it into a meat-cutting facility that will produce retail ready, portioned packages of sliced, fresh beef and pork, as well as ground beef, for grocery and club stores in the eastern U.S.

“We’re pleased to bring operations back to Columbia and are very grateful for the strong state and local support we’ve received for this project,” said Nate Hodne, senior vice president and general manager of the...

Tyson Foods to Vaccinate Thousands of Workers in Arkansas, Kansas and North Carolina

Tyson Foods, Inc. will offer free, onsite COVID-19 vaccinations this week to thousands of frontline team members in Arkansas, where 20 percent of the company’s U.S. workforce is based, as well as Kansas and North Carolina. The vaccines are being provided in conjunction with Matrix Medical and local health departments in each of the three states, where food processing workers are among the priority group now eligible for vaccination.

“We’ve been working with Matrix Medical and health department officials to prepare for this moment and we’re ready,” said Tom Brower, senior vice president of Health and Safety for Tyson Foods. “We’re pleased to offer our team members convenient access to the vaccine, and we appreciate state leaders recognizing...

COVID-19 Meat Worker Case Rates More Than 5 Times Lower than General Population

The latest analysis of independent data reveals that COVID-19 infection rates among meat and poultry workers are more than five times lower than in the general U.S. population, 95% lower than peak case rates in the sector from May 2020.

According to data from the Food and Environment Reporting Network (FERN), the meat and poultry sector was reported to have an average of just 4.81 new reported cases per 100,000 workers per day in February 2021, compared with 26.15 cases per...

ANALYSIS: A Glance at End-January Pork and Beef Cold Storage Stocks

USDA monthly cold storage data released last week showed combined meat and poultry stocks held in the nation's freezer warehouses at the end of January at...

North American Meat Institute Welcomes Confirmation of U.S. Secretary of Agriculture Tom Vilsack

Julie Anna Potts, President and CEO of the North American Meat Institute (Meat Institute), congratulated U.S. Secretary of Agriculture Tom Vilsack on his confirmation and issued the following statement:

“Due to comprehensive protections instituted since the spring, independent data show that COVID-19 infection rates for meat and poultry workers are now more than four times lower than in the general population and 95% lower than when the pandemic hit the sector hardest in April, 2020. We welcome...

ANALYSIS: Q1 Production Outlook Lends Credence to Industry Expectations

The latest release of the USDA’s Livestock, Dairy and Poultry Outlook Report is slow to raise any eyebrows as the ready-to-cook (RTC) production forecast of most key lines continues to...

Extreme Winter Weather and Bitter Cold Disrupts Meat Processing Plants

Millions of Americans are currently under winter weather advisories as extreme weather continues to bring unprecedented low temperatures across parts of the southern Contiguous United States. Record cold temperatures, mainly in the South Central U.S., are expected today and can range between 35 to 45 degrees below normal, according to the National Weather Service. The Arctic air mass is forecast to modify on Wednesday with fewer record cold temperatures, but temperatures will still remain well below normal. 

These dangerously low temperatures not seen in decades coupled with snow and ice have created treacherous situations for the central and southern parts of the country. In Texas, millions of power outages have resulted from...

Perdue Farms Provides COVID-19 Vaccines to Associates at Virginia Plant

Perdue Farms associates received the first dose of the Moderna COVID-19 vaccine in partnership with the Virginia Department of Health. Eligible associates at Perdue’s Accomac, Va., operations received the vaccine, marking the beginning of the company’s COVID-19 vaccine distribution to its associates across the U.S.

The voluntary vaccines were administered free-of-charge to associates at the plant’s onsite Wellness Center. Perdue operates onsite Wellness Centers at its processing facilities, which are staffed by local healthcare providers and available free-of-charge to associates and their families. As more vaccines become available...

Butterball to Invest a Total of $8.7 Million in Two Arkansas Processing Facilities

Butterball, one of the largest producers of turkey products in the United States, announced that it is investing a combined $8.7 million and creating a total of 360 new jobs within three years in two processing facilities in Northwest Arkansas. The expansion includes a $4.7 million investment in Ozark where the company will create 160 jobs and a $4 million investment in Huntsville where it will create 200 new jobs.

“Having been a longstanding employer in Arkansas through our feed mills, turkey growing operations and production facilities, Butterball appreciates the continued support from the state of Arkansas as we look to...

Plumrose USA Announces Rebrand to Swift Prepared Foods

Plumrose USA, a branded packaged meat company and subsidiary of JBS USA announced that it is rebranding to become Swift Prepared Foods. This shift better aligns the heritage and future direction of the company, with a significant focus on innovation and prepared foods.

“Swift Prepared Foods represents our company’s promise to provide customers and consumers with diverse brands and a variety of food solutions,” said Tom Lopez, President, Swift Prepared Foods. “This shift positions us for success as we focus on...

Tyson Foods Partners with Matrix to Ensure Employees have Access to the COVID-19 Vaccine

Tyson Foods is partnering with Matrix Medical Network, a leading clinical services company, to ensure the company’s U.S. team members are educated about and have access to the COVID-19 vaccines.

Matrix will collaborate with Tyson Foods’ health services team to deploy mobile health clinics and expert clinical staff to support vaccine communications, administration and counseling at Tyson Foods facilities beginning in early 2021 and continuing throughout the year. Tyson Foods will provide team members with...

Anti-Meat Activist Poses as Smithfield Foods CEO on National Television 

Last week, animal activist Matt Johnson of Direct Action Everywhere, posed as the CEO of Smithfield Foods during a national television interview with Fox Business host Maria Bartiromo. On December 23, 2020, Bartiromo thought she was speaking with Smithfield Foods CEO Dennis Organ. However, she and her audience were being misled. 

During the interview, Johnson blamed animal agriculture for new infectious diseases and made false claims that the Centers for Disease Control has data proving that the livestock industry would...

Hormel Foods Opens its Newest Production Facility

Hormel Foods Corporation, a global branded food company, announced the opening of its newest production facility, Papillion Foods, located in Papillion, Nebraska, which will make dry sausage products for the company.

"We are excited to be opening up this facility to not only help meet the demand for our branded sausage products, but also provide fantastic career opportunities in our community," said Ed Finnegan, Papillion Foods plant manager. "We've been able to...

Strong October for Pork and Beef Muscle Cut Exports; Variety Meat Trends Lower

U.S. pork exports posted broad-based gains in October, solidifying 2020’s record pace, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Beef muscle cut exports were also higher than a year ago in October, though lower variety meat volumes pushed total beef exports slightly below last year.

October pork exports were up 8% year-over-year to 242,536 metric tons (mt), with value also increasing 8% to $641.1 million. Through the first 10 months of the year, exports were 15% ahead of last year’s record pace at 2.46 million mt, with value up...

Tyson Foods Goes on Offense Against New Waves of COVID-19 with Safety Measures, Testing

Tyson Foods, Inc. reports it is preparing to fight new waves of the coronavirus as it takes comprehensive protective steps, including the strategic testing of workers without symptoms.

The company has invested $540 million to transform its U.S. facilities with protective measures, from walk-through temperature scanners and workstation dividers to social distance monitors and always-on testing, as well as provide additional team member pay and benefits. It is also working with...

After Healthcare Workers, Essential Meat and Poultry Workers High Priority for COVID Vaccine

The North American Meat Institute (Meat Institute) urged federal authorities to highly prioritize COVID-19 vaccination for the men and women who work in the meat and poultry industry, following healthcare workers and those in long term care facilities.

Meat Institute President and CEO Julie Anna Potts commented:

"The men and women of the meat and poultry industry help keep America’s grocery stores stocked and our farm economy working. They should be...

ANALYSIS: Australian Beef and Veal Exports to USA Hit Record Low in November

This week the Australian Department of Agriculture (DAFF) reported total beef and veal shipments to the United States at...

Rabobank Global Animal Protein Outlook 2021: Emerging From a World of Uncertainty

After a year full of uncertainties, global animal protein is expected to rise again, as it looks for opportunities.

In 2021, Rabobank anticipates production growth in most regions, with the biggest change taking place in Asia, where the impacts of African swine fever (ASF) are fading. Pork is expected to lead that growth – with a gradual recovery process, as ASF is still active. Poultry and aquaculture are also forecast to grow, followed by beef. Wild-catch seafood, however, is expected to decline.

Global animal protein trade continues to create areas of opportunity and risk, with China...

Tyson Foods Announces Plans for Additional Production Facilities for Its International Business

Tyson Foods, Inc. announced plans to build new production facilities in China and Thailand, and expand its facility in the Netherlands. The latest expansions, adding over 100,000 metric tons of fully cooked poultry capacity, build on the company’s global growth strategy to become the leader in protein by serving emerging markets and strategic customers.

“Global population and income growth will continue to drive an increased need for protein,” said Dean Banks, president and CEO of Tyson Foods. “These investments allow us to increase our in-country operations and global export capabilities, helping us bring more safe, high-quality protein for...

Pork Exports Remain on Record Pace Through September; Beef Exports Trend Lower

September exports of U.S. pork increased 10% year-over-year, keeping 2020 exports on a record pace, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Beef exports were fairly steady with last year in major Asian markets but trended lower overall.

Pork exports reached 222,475 metric tons (mt) in September, with value increasing 6% to $563.2 million. Through the first three quarters of the year, exports were 16% ahead of last year’s record pace in both volume (2.22 million mt) and value ($5.69 billion). The increases were even stronger for pork muscle cuts, jumping 22% to 1.87 million mt valued at...

Red Meat Muscle Cut Exports Strong in August; Variety Meats Trend Lower

August exports of U.S. beef and pork muscle cuts were above last year’s strong volumes, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Variety meat exports were lower than a year ago, due in part to the lack of available labor required to harvest and export some items.

Led by record-large demand in South Korea and Taiwan, beef muscle cut exports were the largest in more than a year at 89,148 metric tons (mt), up 3.5% year-over-year, while export value increased slightly from a year ago to $611 million. Combined beef/beef variety meat exports were 109,752 mt in August, down 4.5% from a year ago. Export value was $673.8 million, down...

ANALYSIS: Lamb and Mutton Production Hit All-Time Lows

Yearly production has continued to lessen for lamb and mutton on the domestic front due to diminished interest in...

The Case for Capacity: Can the U.S. Beef Industry Expand Packing Capacity?

Rabobank’s analysis suggests that an additional 5,000 to 6,000 head daily beef packing capacity would help return US cattle supplies and packing capacity to an historical equilibrium without a sharp contraction in beef cow numbers, while still maintaining packer profitability.

Recent supply chain disruptions in beef packing and processing have amplified the discussion surrounding the need for and feasibility of US beef packing capacity expansion. Adding packing capacity would result in both a larger US beef industry over the long run and more balanced profitability throughout the supply chain. If the US can avoid...

Sanderson Farms Releases 2019 Corporate Responsibility Report

Sanderson Farms, Inc. has released its 2019 Corporate Responsibility Report detailing the company's commitment to social and environmental responsibility. This year, Sanderson Farms introduced reporting using the standards set forth by the Sustainability Accounting Standards Board (SASB) for the meat, poultry, and dairy sector.

"At Sanderson Farms, we believe strongly that we cannot fulfill our corporate purpose without conducting ourselves with total integrity," said Joe F. Sanderson Jr., chairman of the board and chief executive officer of Sanderson Farms. "We hope these disclosures will provide decision-useful information to...

Smithfield Foods to Become Carbon Negative by 2030

Smithfield Foods, Inc. announced a commitment to becoming carbon negative in all company-owned operations in the United States by 2030. A leader in sustainability for more than two decades, the company will go beyond carbon neutrality to effectively remove more carbon from the atmosphere than it emits. It will achieve this goal without purchasing carbon credits to offset emissions.

"As the world grapples with environmental challenges impacting our planet, consumers are looking to companies to take deliberate, bold action to address issues such as climate change," said Kenneth M. Sullivan, president and chief executive officer, Smithfield Foods. "The world is at an inflection point. To feed a growing world population, with finite resources available to grow and produce the food we need, we must...

Pork Exports Trend Lower in June but Remain on Record Pace; Another Tough Month for Beef Exports

June exports of U.S. pork fell below year-ago levels for the first time this year but exports remain on a record pace in 2020, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Beef exports were down sharply from a year ago in June, reflecting a lingering impact of a temporary slowdown in beef production combined with restrictions on foodservice and weakening economies in major import markets. June lamb exports trended higher, posting the second largest totals of 2020.

“We expected that the interruptions in red meat production would continue to weigh on June exports, but anticipated more of a rebound from the low May totals – particularly for...

Production Challenges, Economic Headwinds Slow Red Meat Exports in May

U.S. beef and pork exports trended lower in May, due in part to interruptions in slaughter and processing, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Beef exports dropped well below year-ago levels and recorded the lowest monthly volume in 10 years. Pork exports remained higher than a year ago but were the lowest since October 2019.

“As protective measures related to COVID-19 were being implemented, plant disruptions peaked in early May with a corresponding temporary slowdown in exports,” said USMEF President and CEO Dan Halstrom. “Unfortunately the impact was quite severe, especially on...