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Pork Quarterly Q3 2021: Looking for Growth Amid Uncertainties
Great volatility in Chinese hog and pork prices is rippling through the global market. China’s slaughter rates were unexpectedly high in Q2, pushing pork production up 35.9% YOY in 1H, according to official data. The sudden supply increase resulted in a sharp price decline and negative results in both farming and trading in 1H, pointing to low pork imports into China in Q3. While we expect hog and pork prices to rebound in Q3, the estimated high frozen pork inventory will impose a lot of downward pressure on prices. We expect the slowdown of imports in the coming months will reduce full year imports from 2020’s record levels by 10% to 20%. This will lead to a redistribution of pork trade in the global market and could place downward pressure on pork prices in exporting regions.
USDA Announces $500 Million for Expanded Meat and Poultry Processing Capacity
The USDA announced it intends to make significant investments to expand processing capacity and increase competition in meat and poultry processing to make agricultural markets more accessible, fair, competitive, and resilient for American farmers and ranchers. This is one of several key steps that USDA will take to increase competition in agricultural markets, pursuant to President Biden’s Executive Order on promoting competition and as part of USDA efforts to build a more resilient supply chain and better food system. Together, USDA’s actions will help farmers, ranchers, farmworkers and consumers all get a fair shake.
Specifically, USDA announced its intent to invest $500 million in American Rescue Plan funds to expand meat and poultry processing capacity so that farmers, ranchers, and...
VIDEO: Morning Market Roundup June 29
Urner Barry's reporters discuss hog slaughter, boxed beef cutout, and plant proteins for the grill.
USDA Invests to Increase Capacity and Expand Access in Meat and Poultry Inspection Operations
The U.S. Department of Agriculture (USDA) announced $55.2 million in competitive grant funding available through the new Meat and Poultry Inspection Readiness Grant (MPIRG) program. The new program is funded by the Consolidated Appropriations Act of 2021.
“We are building capacity and increasing economic opportunity for small and midsized meat and poultry processors and producers across the country.” Secretary Tom Vilsack said. “Through MPIRG, meat and poultry slaughter and processing facilities can cover the costs for necessary improvements to...
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...
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...
CHART: Industry Expectations for Weekly Hog Slaughter
The Urner Barry hog slaughter poll for the week ending May 29, 2021, resulted in an average industry participant response of 2,392,500 head. If realized, this figure would represent a .02 percent decrease from last week and 20.8 percent growth over last year due to the Memorial Day holiday three-day weekend.
The Urner Barry hog slaughter poll for the week ending May 22, 2021, resulted in an average industry participant response of 2,383,333 head. If realized, this figure would represent a .5 percent decrease from last week and 12 percent growth over last year.
ANALYSIS: A Critical Eye on Chicken Slaughter
Despite predictable seasonal advancements in demand from all traditional channels, the chicken trade environment remains anything but “normal” in the eyes of most players...
The Urner Barry hog slaughter poll for the week ending May 15, 2021, resulted in an average industry participant response of 2,394,000 head. If realized, this figure would represent a .6 percent decrease from last week and 12 percent growth over last year.
CHART: Industry Expectations for Weekly Cattle Slaughter
ANALYSIS: Pork Ribs Looming Near Historical Highs
Demand on all three fronts; retail, foodservice, and exports combined with labor constraints, diminished slaughter, and limited freezer stocks has supported...
ANALYSIS: March Pork Cold Storage Remains Lackluster
According to the March cold storage report from the USDA, total pork in cold storage was 26.8 percent below a year ago and noted...
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...
Australian Beef Seasonal Outlook: Green Grass and Empty Pens
With breeding cattle inventory recovering from the lowest levels in over 30 years, there’s a unique opportunity to assess and then act on the future for the Australian beef industry. A number of challenges currently confront the Australian beef industry, including high cattle prices, low supplies, and China trade access. Australia’s position in the global protein world needs to be considered in rebuilding the herd.
Is Australia to be a supplier to high-quality niche markets, commodity supplier (of lean beef) to global trade, exporter of live cattle, or exporter of value-added beef to trade markets? “Any or all of these options may apply, but choosing one sets a path for the future. Decisions taken this year are not just about...
ANALYSIS: Turkey Thigh Meats Get a Leg Up
With springtime now in full swing, seasonal outreach is beginning to develop...
ANALYSIS: Pork Ribs Soar into April
Pork ribs traditionally witness a rally starting in April which extends into the summer months as increased demand for grilling reaches its peak. This year however...
State of the Market Episode 13: Summer-esque Pork Highs
This week on State of the Market, Market Digest host Laura Zinger and Market Reporter Russ Barton discuss the pork market. Russ details summer-esque highs for many items including bellies and trimmings due to low cold storage supply, light slaughter levels, strong retail demand, and more.
January Red Meat Exports Below Year-Ago Levels Amid Transportation, Labor Challenges
U.S. beef and pork exports opened 2021 below the large volumes posted a year ago, according to January data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).
Beef exports totaled 105,047 metric tons (mt) in January, down 2% from a year ago, while value slipped 3% to $653 million. The decline was due mainly to lower beef variety meat shipments, as muscle cut exports were steady with January 2020 at 81,398 mt, valued at...
ANALYSIS: Boneless Breasts: Searching for Seasonality
Most key lines within the chicken complex have performed quite admirably so far this year and jumbo boneless breasts are no exception...
ANALYSIS: Cash Cattle Prices Are Stuck in Limbo
The weekly USDA five-area direct average fed steer price last week was $114.07/cwt, steady with the previous week but $0.78/cwt less than...
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...
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...
ANALYSIS: Do Large Forward Sales Help Future Spot Prices -- Strip Loin Rally in 2021
The January rally in strip loins has been fierce, with gains of 27 percent so far since the start of the year, compared to...
ANALYSIS: Steer Carcass Weights Begin 2021 in Contra-Seasonal Uptrend
Cattle feeders are currently contending with a large number of front-end supplies, as highlighted by the most recent USDA carcass weight data. The latest available information for the week ended January 23 showed...
ANALYSIS: Chiming In on Chicken Leg Quarters
Those with exposure to chicken back half items are no stranger to this year’s uninspiring and highly volatile trade environment...
ANALYSIS: Pork Butts at Decade Lows for December
Bone-in pork butts have witnessed pressure in the market since the beginning of October, following almost...
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...
UK Government Consults on Ending Live Animal Exports for Slaughter
Plans to ban the export of live animals for slaughter and fattening have been unveiled by the Environment Secretary today, in the start of a renewed push by government to strengthen the UK’s position as a world leader on animal welfare.
These proposals form part of an eight-week consultation, launched in England and Wales, seeking views on how to better protect animal welfare during transport.
Live animals commonly have to endure excessively long journeys during exports, causing...
ANALYSIS: Cash Cattle Prices Could See Pressure in Q1
Boxed beef prices appear to be seasonally topping after staging an impressive rally throughout November. Although some primals continue to be...
ANALYSIS: Weighing in on Turkey Drums
With much of the turkey industry now focused on satiating whole-body bird demand, supply side tightness, particularly within...
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