Submit comment or question
Note: All comments are displayed with user's screen name. If screen name is not present, user's full name will be used. Please go to My Account to update your screen name.
Comment Policy: Urner Barry has made the comment feature available to encourage further discussion of our news stories. Defamatory or offensive comments, or comments deemed not relevant to the story will be removed, and if necessary, Urner Barry may restrict the right of individual subscribers to offer comments. In all cases, comments represent opinions of the poster only, and do not represent fact, news, opinions or estimates put forward by Urner Barry.
Email Address is required.
Password is required.
African Swine Fever Affects China's Pork Consumption
China’s pork consumption has dropped by 10% to 15%, year-to-date, by our estimates, driven by food safety concerns. The level of consumption change varies greatly between the different distribution channels. Looking forward, and reflecting on the current situation and trends, it is quite possible we have seen the ‘peak’ of pork consumption.
Pork Consumption in China has Dropped by 10% to 15%
The losses in China’s pig herd are very difficult to estimate – estimated losses range from 20% to 70%. Data from the Chinese Ministry of Agriculture and Rural Affairs (MARA) has the sow herd down by 22% in the year to April – this is one of the most optimistic estimates we have seen. However, hog and pork prices struggled in April and May, after a brief surge in March, raising significant questions...
Beef Quarterly Q2 2019: Changing of the Guard in the Beef Trimmings Market
The world’s largest beef importer, China, is at the centre of growth in beef trade in general, and trimmings trade specifically. Many of the cuts imported by China have been to satisfy the local cuisine. But as diets and foodservice change, this now includes a growing trend in trimmings trade.
The growing demand for trimmings from Asian countries will create additional competition for the US but it is not expected to shift the market yet. Suppliers of trimmings into the global market should be conscious of possible changes in the trade. While steady growth is evident in the Chinese market to date, a short-term demand increase across all proteins as a result of African Swine Fever will likely cause a spike in demand for trimmings...
Restaurant Food Costs: What does ASF Mean for Protein Prices in the US?
Rabobank expects food costs in the US to increase in the second half of the year, as protein prices are impacted by stronger export demand following the African Swine Fever (ASF) outbreak. Pork and chicken prices will be the most impacted. Beef will be the last to see increases materialize, but QSR patty prices are expected to be the most vulnerable component. If a trade agreement with China were to be brokered, price increases would be faster and steeper.
Restaurants Should Expect Rising Protein Prices
For the past two years, restaurants have been favored by a relatively benign food cost environment, which helped compensate for rising costs in other areas (labor, real estate). We expect this situation to change (for proteins) towards the second half of the year and...
Rabobank: China and Trade Restrictions Drivers for an Improving, but Volatile Global Poultry Outlook
Trade conditions are gradually improving for global poultry thanks to rising global demand – especially from China, which is expected to face a protein shortage this year.
In recent quarters, the global poultry market has gone through one of the most volatile periods in many years, due to a combination of factors, including trade and disease restrictions, along with the impact of the US-Chinese trade war. Production was at an exceptionally high level in many markets, including the US, the EU, and Thailand. Meanwhile, demand dropped because of a general market slowdown and constraints on access to international markets following trade restrictions. This resulted in a period of falling poultry prices between Q2 and Q4 2018.
“However," according to Nan-Dirk Mulder, senior animal protein analyst, "the outlook is changing, Rabobank is gradually becoming more optimistic that ...
Rabobank Beef Quarterly Q1 2019: China’s Trade Sending Waves through South-East Asia
Stricter border policing in China as a consequence of African swine fever is restricting the unofficial meat trade, with flow-on effects in other countries, according to the latest RaboReseach Beef Quarterly report.
Following the outbreak of African swine fever (ASF) in August 2018, the Chinese government strengthened border controls. Rabobank believes the increased enforcement measures have led to the sharp decline in the volume of trade through unofficial channels in Q4 2018. The increased Chinese border enforcement has slowed unofficial bovine trade from Hong Kong and Vietnam. Subsequently we have seen Vietnamese imports of Indian carabeef in Q4 2018 down 60% YOY at 120,370 tonnes and in turn Indian buffalo prices have dropped. But this could easily be reversed.
Other important developments include ...
Rabobank: The Impending Geopolitical G&O Bull/Bear Cycle
The outcome of the current US-China trade negotiations will be drastic and enduring. G&O commodity markets are not reflecting the high risk of extreme impacts of either ‘no-deal’ or ‘super-deal’. The G&O value chain needs to prepare for the next geopolitical bull/bear cycle.
Geopolitical decisions, more than global fundamental supply-and-demand dynamics, threaten to make or break the next G&O bull market. The trade war between the world’s largest producer (the US) and importer (China) of G&O upended global trade fundamentals and precipitated...
Pork Quarterly Q1 2019: Another Uncertain Year – with More Complex Disease and Trade Issues
As 2019 gets underway, we see another year full of potential in global pork, with growth in production and demand in many parts of the world. Yet this is overshadowed by the uncertainty created by complex disease and trade issues, as can be read in the just-released RaboResearch report ‘Pork Quarterly Q1 2019: Another Uncertain Year – With More Complex Disease and Trade Issues’.
Rising disease pressures are challenging the global market. “African swine fever (ASF) stands out as the single biggest challenge facing global pork in 2019,” according to Chenjun Pan, Senior Analyst – Animal Protein. “The changes ASF will bring create opportunities for some, and threats for others.” China’s need to lift imports will incentivise continued growth in key exporting countries, but how much pork China will import remains ...
Not to Be a Pest: Why Insects Are Gaining Popularity as Feed and Food
The insect industry is quickly ramping up, fuelled by recent capital flows. In the near term, we see more potential for insect proteins as (aqua-)feed than as food. In the longer term, if consumers fall in love with insects, we expect more insect-based products also on supermarket shelves.
Increasing investor interest is driving growth in the insect sector
Recent investment flows into the insect sector are enabling faster growth of insect protein production. The investments received by the sector in 2018 are 40% higher than the sum of investments received in the last four years. Some of the largest investments of 2018 were received by companies growing black soldier fly...
Rabobank: Global Food Price Stability in 2019 Threatened by Trade Wars, Disease and El Niño
A “melting pot” of risks – including US trade war with China, disease and extreme weather – threaten global food price stability next year, according to research from Rabobank, the specialist food and agribusiness bank.
In its annual Outlook reports, which analyse the prospects for more than 15 agricultural commodities, meat and seafood, Rabobank says that while the global food price environment remains relatively stable, ongoing geopolitical tension, the threat of El Niño weather system and diseases affecting livestock bring great uncertainty to the outlook for 2019.
Stefan Vogel, head of agri commodity markets at Rabobank and report co-author, said: “The agri commodity price environment may be relatively stable currently, but it’s difficult to remember a time there were so many threats to...
Continued Growth for China's Animal Protein IndustryChanging Consumer Patterns Are Driving Value-Based Growth
The Chinese animal protein market will continue to be a growth story, but growth will be driven by value rather than volume. Meat consumption will change in three dimensions, related to where, what, and how meat is consumed. Meat companies have three avenues to success – regionalisation, finding new markets, and adding value/providing a service.
The sheer size of China’s consumer base and its rising middle class seems to suggest that its animal protein market will continue to be a strong one, with many growth opportunities. In reality, China’s animal protein consumption has been volatile over the past two decades, with little evidence of a consistent growth trend. We forecast that, in the coming years, the average animal protein consumption growth will markedly slow ...
Rabobank Global Pork Quarterly Q3 2018: Global Pork Trade Facing Unprecedented Change
Escalating trade tensions between the US and China, and within North America, are expected to greatly impact global pork trade in 2H 2018, according to Rabobank’s latest Pork Quarterly report.
“The major changes in global pork trade reflect uncertainties arising from the increasing political and economic tensions between the US and China,” says Chenjun Pan, Senior Analyst – Animal Protein at Rabobank. “New tariff measures on agri products will put great pressure on several markets – mainly the US, China, and Mexico – although the nature of the pressure will depend on each trading position.”
In addition, increased production across the globe in 1H is expected to continue weighing on prices in 2H. Disease could add further uncertainty to supply and trade, as African swine fever (ASF) is spreading in Europe. Changes in feed prices in many regions could pressure margins. The Rabobank Five...
Rabobank: World Pork Trade Is Becoming Increasingly Complex and Competitive
Global pork trade will continue to grow, become more complicated and experience more competition, as can be seen in Rabobank’s World Pork Map 2018.
Rabobank's World Pork Map shows global pork production and consumption, and the extent of the largest pork trade flows around the world. “Global pork trade flows continue to change, both for exporting countries and destination countries,” says Jan Peter van Ferneij, Rabobank Senior Animal Protein Analyst. “And the pork products being traded also continue to adapt to the changing demand.”
The largest exporters – the EU, US, Canada, and Brazil – are increasingly competing in the same markets.
China has become the most important destination for pork and by-products. Other Asian destinations have also increased their demand for imports. These destinations are buying ...
Rabobank Poultry Quarterly Q3 2018: Trade Volatility, but Local Markets Bullish
Global trade has recently become highly volatile, and we have seen some major movements in trade streams and prices due to several important factors.
In April, the EU removed 20 Brazilian plants from the export allowance list due to violation of EU import requirements regarding salmonella control. This is affecting the global breast-meat market heavily, as the EU is the world’s key importer of these products, and other potential buyers like the US are not open to Brazilian poultry imports. Although the EU reduced imports over January-April by only 9%, Brazil’s imports were down 45%.
Saudi Arabia is in the process of implementing its new halal allowance standards, which have already led to a drop of 30% in imports in Q1 2018. Saudi Arabia is Brazil’s number-one export market and a key buyer for whole chicken.
China has now issued a special safeguard on imports of Brazilian poultry. This will lead to implementation of company-specific import levies and will certainly impact...
U.S. Pork Producers Seek Main Course, Not Crumbs
African Swine Fever Affects China's Pork Consumption
This Week in Retail: Looking Ahead to Father’s Day Spending
Fair Oaks Farms Founder Mike McCloskey Releases Statement Following ARM Undercover Video Release
Mintel Announces Five U.S. Flavor and Ingredient Trends
URNER BARRY INDICES