9 March 2024

14 minute learn

Animal rights teams have submitted 37,000 signatures to qualify a poll measure in Sonoma County, California, alarming farmers.

The initiative, led by the Coalition to Finish Manufacturing unit Farms, seeks to ban concentrated animal feeding operations. To qualify for the November poll, they want 19,746 signatures. Supporters estimate that fifty to 60 agricultural operations in Sonoma County can be impacted, going through closure or important operational modifications. The native Farm Bureau warns of extreme penalties for Sonoma and probably different counties if related efforts are pursued elsewhere.

China points new rules to regulate hog numbers

China issued new rules to regulate the nation’s hog manufacturing capability after an aggressive growth of farms over the previous two years led to an oversupply, a transfer that might cut back the scale of the world’s largest pig herd. The retention of breeding sows shall be dynamically adjusted in accordance with modifications in pork consumption and pig manufacturing effectivity, the ag ministry stated. Regulatory measures shall be triggered when the variety of breeding sows rise or fall excessively to make sure a secure provide of pigs.

China final week lowered the nationwide goal for regular retention of breeding sows to 39 million from 41 million. Trivium China
stated, “If the variety of breeding sows falls by two million in keeping with the decrease nationwide goal, that would scale back China’s pig herd dimension by not less than 22 million, which is able to reshape the demand of feed grains like soybeans, corn and wheat.”

Background: China’s pig herds, which make up about half of the worldwide whole, have been devastated by an outbreak of African swine fever from 2018 to 2021, resulting in widespread culling, greater costs and a push for extra manufacturing that in subsequent years resulted in volumes recovering to the purpose of overcapacity. China’s pig inhabitants was 434 million in 2023, up considerably from a low of 310 million in 2019.

Of notice: Fitch, the score company, famous final week that “overcapacity in China’s hog breeding business is more likely to persist into the second quarter”, and that almost all breeders “are more likely to proceed going through losses.” It pointed to a “reluctance to downsize” throughout the market that “might partly stem from a need to keep up their [breeders’] main market positions and recoup earlier investments.”

USDA Dairy Margin Protection (DMC) funds for January shall be triggered

That is as a result of nationwide common margin reaching $8.48 per hundredweight (cwt). Farmers with protection ranges at $8.50, $9, and $9.50 will obtain funds, which shall be processed after March 4. The funds will quantity to 2 cents per cwt for the $8.50 protection degree, 52 cents per cwt for $9 protection, and $1.02 per cwt for $9.50 protection. DMC funds shall be sequestered by 5.7% — the sequestration discount is absolutely automated; subsequently, no motion is required by County Workplaces besides to confirm that it has been correctly utilized. USDA has opened signup for the 2024 DMC program, which was reauthorized by the extension of the 2018 Farm Invoice. These enrolling will mechanically be eligible for the January funds.

China lowers sow retention goal

China’s ag ministry adjusted the nationwide goal for regular retention of breeding sows to 39 million from 41 million head. It additionally adjusted the decrease restrict for regular fluctuations within the inventory of breeding sows to 92% from 95% of the conventional retention degree.

New York Lawyer Basic Letitia James recordsdata lawsuit in opposition to JBS

The world’s largest meatpacking firm is accused of constructing deceptive statements about its efforts to cut back greenhouse fuel emissions. The lawsuit alleges that JBS engaged in greenwashing by selling environmentally pleasant claims corresponding to attaining web zero emissions by 2040, regardless of missing confirmed agricultural practices to cut back emissions at its huge scale. The lawsuit is a significant setback for JBS, which relies in Brazil, because it pursues an inventory on the New York Inventory Alternate.

In a press release, JBS stated it disagreed with the legal professional common’s allegations. It stated that it might proceed to work with farmers and others “to assist feed a rising inhabitants whereas utilizing fewer assets and lowering agriculture’s environmental affect.”

USDA studies on European Union poultry business

Commodity: Rooster, Meat Manufacturing European Union (EU) hen meat manufacturing in calendar yr (CY) 2024 is forecast to develop by 0.4 p.c, following the 1.65 p.c enhance in CY 2023. Regardless of persevering with outbreaks of Extremely Pathogenic Avian Influenza (HPAI) in main EU producing international locations and growing competitors from imports, hen meat manufacturing continues to develop pushed by sturdy home demand. EU Rooster meat manufacturing has benefited from barely decrease vitality and feed costs in 2023, notably in Poland, now the main EU producer. In a number of international locations just like the Netherlands and Belgium, environmental rules corresponding to the brand new limits on nitrogen emissions constrain additional growth in manufacturing. French hen meat manufacturing additionally fell in CY 2023, as French prices of manufacturing stay comparatively excessive. Within the wake of the HPAI outbreaks, EU Member States are persevering with to strengthen surveillance and biosecurity measures on poultry farms. Some areas are even instituting momentary bans on free-range poultry farms. Consumption EU home consumption of hen meat is anticipated to extend by 0.9 p.c in CY 2024, buoyed by each retail gross sales and consumption within the HRI sector.

Over the long run, hen meat consumption is anticipated to develop as shopper preferences proceed to favor hen meat. Rooster meat is mostly extra reasonably priced than different animal protein. European shoppers additionally typically contemplate hen meat to be more healthy, extra versatile, and simpler to arrange. Commerce EU hen meat imports elevated by 2 p.c in CY 2023 and are anticipated to additional enhance by 3.5 p.c in CY 2024. The European HRI sector accounts for the biggest share of imported hen. Imports from Brazil stagnated in CY 2023, whereas imports from United Kingdom fell by 20 p.c because the EU imposed strict sanitary controls following Brexit. Imports from Thailand additionally confronted elevated competitors from Ukraine. EU imports of Ukrainian hen meat grew by greater than 50 p.c in CY 2023. Clearly, this commerce continues to profit from EU regulation 2023/1077 which renewed momentary commerce concessions below the Deep and Complete Free Commerce Settlement (DCTA) of 2011. Below this EU Regulation, Ukrainian hen meat is eligible to enter the European market with out tariffs or quotas.

This measure is momentary and, except it’s prolonged, it’s going to expire on June 5, 2024. Some EU international locations corresponding to Poland have already requested the EU to impose limits hen meat imports from Ukraine. In CY 2023, EU hen meat exports decreased by 1.8 p.c pushed by an 18 p.c drop in EU hen meat exports to the Democratic Republic of Congo and an 11 p.c drop in exports to Saudi Arabia, two main markets for EU hen. Different markets which noticed a decline in EU exports included Ukraine, Cuba, Liberia, and Malaysia. Despite the fact that EU export costs to Saudi Arabia decreased by 7 p.c in CY 2023, costs are nonetheless 16 p.c greater than in CY 2021. By comparability, in CY 2023, the Saudi import worth for Brazilian hen meat fell by 23 p.c. General, with rising manufacturing prices throughout the EU, EU hen meat exports at the moment are typically much less aggressive, particularly in African markets.

The UK stays the biggest marketplace for EU hen meat (up 1 p.c), pushed by sturdy exports from Poland and Germany that successfully compete with Thai, Brazilian, Chinese language, and Ukrainian hen meat. South Africa, which was once a significant buyer of EU hen (as much as 122,000 MT in CY 2019), imported lower than 2,300 MT in CY 2022. In CY 2023, South Africa imports of EU hen meat rose to 12,500 MT as HPAI restrictions eased commerce with the Netherlands, Spain, and Eire. EU hen meat exports to Ukraine in CY 2023 decreased by 14 p.c. As Russia’s ongoing warfare of aggression in opposition to Ukraine continues to disrupt commerce flows, the buying energy of Ukrainian shoppers could be very restricted. Mechanically separated meat (MSM), which was once exported from Poland to Ukraine, is now produced and consumed domestically. Excessive worth cuts produced in Ukraine are more and more exported to the EU to generate income.

HPAI outbreaks will doubtless proceed to affect EU hen meat exports. Whereas EU hen meat manufacturing prices have stabilized because of decrease vitality and feed costs, competitors from inexpensive Ukrainian hen meat will proceed to constrain alternatives for export. Thus, EU hen meat exports are anticipated to stay flat at CY 2023 ranges. Coverage COVID-19 Replace Extremely Pathogenic Avian Influenza (HPAI) State of affairs Replace HPAI outbreaks have plagued the EU poultry sector since autumn of 2021. The European Fee has reported an extended record of outbreaks, however getting into into 2024, there’s a decrease frequency of reported circumstances In 2023, France obtained EU approval to implement a vaccination scheme for its home duck flocks

China’s meat imports decline to begin 2024

China imported 1.101 MMT of meat throughout the first two months of 2024, down 197,000 MT (15.2%) from the identical interval final yr. China doesn’t break down meat imports by class within the preliminary knowledge, although pork accounts for the majority of incoming shipments.

Weekly USDA dairy report

CME GROUP CASH MARKETS (3/1) BUTTER: Grade AA closed at $2.7575. The weekly common for Grade AA is $2.8015 (-0.0016). CHEESE: Barrels closed at $1.6500 and 40# blocks at $1.5500. The weekly common for barrels is $1.6620 (+0.0520) and blocks, $1.5940 (+0.0721). NONFAT DRY MILK: Grade A closed at $1.1975. The weekly common for Grade A is $1.1910 (-0.0053). DRY WHEY: Additional grade dry whey closed at $0.4250. The weekly common for dry whey is $0.4485 (-0.0659).

BUTTER HIGHLIGHTS: Retail demand is mostly regular throughout the nation. Meals service demand varies. It’s famous as quiet within the East and powerful to regular within the West. Some stakeholders notice orders for spring vacation calls for are beginning. Cream continues to be available all through the nation. Butter makers are operating sturdy manufacturing schedules. Butter producers are busy constructing inventory for later quarter calls for and deliberate summer season downtime. Some producers say unsalted butter and bulk butter hundreds are tight for spot patrons. Bulk butter overages vary from 3 to fifteen cents above market, throughout all areas.

CHEESE HIGHLIGHTS: Farm degree milk manufacturing is trending barely greater within the Northeast. Cheese plant contacts share regular barrel manufacturing schedules regardless of quiet demand. Inventories stay comfy. Contacts within the Central area report quiet spot milk affords, however they anticipate spot availability to extend within the close to time period as Class I demand wanes because of faculty breaks and seasonal milk manufacturing will increase. Present spot milk costs are $0.25- to $2.50- over Class. Cheese demand stays lackluster, however some barrel makers share sturdy yr over yr demand. Within the West, contacts share regular to stronger manufacturing schedules. Class III spot a great deal of milk are tight in some components of the area. A number of producers notice spot cheese availability is tight by way of the rest of Q1.

FLUID MILK: Milk manufacturing is regular to sturdy all through many of the nation, although contacts within the Pacific Northwest notice weaker output in latest weeks. Within the mountain states of Idaho, Utah, and Colorado, milk manufacturing is blended as some contacts notice strengthening output, whereas others say milk volumes are reducing. Demand for Class I milk is softening within the East, Midwest, and California. Contacts in some areas notice spring break closures are contributing to lighter demand and say this can doubtless trigger a few of this Class I milk to maneuver into different processing channels. Within the Midwest this week, spot Class III milk costs ranged from $0.25- to $2.5-over Class III. In the meantime, within the mountain states of Idaho, Utah, and Colorado, some contacts reported spot a great deal of milk buying and selling as excessive as $4 over Class III. Cream is extensively out there within the Midwest, and contacts proceed to relay multiples transferring at flat market costs. Within the West, Cream is on the market in many of the area, and contacts report demand is regular to stronger. Cream a number of ranges for all Lessons are: 1.05 – 1.27 within the East, 1.00 – 1.27 within the Midwest, and 0.80 – 1.21 within the West.

DRY PRODUCTS: Low/medium warmth nonfat dry milk (NDM) costs moved decrease on the top quality within the Central and East areas, whereas costs moved decrease on the backside of the vary within the West. Excessive warmth NDM costs held regular all through every area. Costs for dry buttermilk have been regular within the Central and East this week. Within the West, the dry buttermilk worth vary contracted as the underside moved greater and the highest moved decrease. Demand for dry buttermilk is blended within the West, and spot hundreds stay out there. Dry buttermilk inventories are rising within the Central and East areas, however contacts notice demand is strengthening as properly. Dry complete milk costs held regular this week, whereas manufacturing has remained gentle, and demand is quiet. reported lighter demand from purchasers in Asia contributing to elevated spot availability. Within the East, dry whey costs held regular whereas stakeholders relayed regular demand and spot availability. Contacts within the West relayed greater dry whey costs throughout the vary this week. The whey protein focus 34% (WPC 34%) worth vary was unchanged this week. Demand for WPC 34% is robust however waning. Inventories stay considerably tight. Lactose costs moved greater on the backside of the vary, although the highest held agency. The underside of the acid casein worth vary shifted greater, whereas the highest and each ends of the rennet casein worth vary have been unchanged.

INTERNATIONAL DAIRY MARKET NEWS: 

WESTERN EUROPEAN OVERVIEW: Seasonal weekly milk manufacturing in Western Europe continues to extend, however it’s nonetheless under ranges of the earlier yr. Farm milk provides are comfortable in comparison with processing capacities. One giant milk cooperative within the EU not too long ago introduced a assured farm milk pay worth of 46.50 euros per 100 kilograms, up 0.50 euros from final month. The EU ended 2023 with little change in whole annual milk manufacturing from the earlier yr. In line with CLAL knowledge made out there to USDA, Yr-to-date EU cows’ milk delivered to dairies by way of December 2023 is estimated at 144,676,000 MT, unchanged when in comparison with January-December 2022 EU milk manufacturing. Farmer protests have tangled transportation and different actions in varied areas of the EU over the past month. Whereas the depth of the protests has ebbed and flowed in numerous places and at completely different instances, the fury of the farmers was once more stoked at a big agricultural truthful in Paris final weekend. Offended farmers disrupted the truthful, calling for presidency intervention to ease the elevated financial and regulatory pressures. The Farm Council of nationwide agricultural ministers from throughout the EU met on Monday in Brussels. Within the assembly, the officers set forth a simplification package deal, initiatives to attempt to ease governmental regulation and supply better help for farmers.

EASTERN EUROPEAN OVERVIEW: Czech and Slovak farmers have initiated protests and border blockages like their counterparts in Poland and Hungary, demanding fewer regulatory hurdles and improved protections from imported agricultural merchandise. Whereas supportive of the European Union and the help offered to war-torn Ukraine, farmers are voicing their anger over what they see as unfair competitors from imported items that wouldn’t have to satisfy the identical regulatory requirements, particularly Ukrainian items which are imported with out duties. A big dairy business group is looking on the Ukrainian parliament to offer further monetary help for the nation’s dairy processors. Most of the nation’s dairy processors are operating at 50 to 60 p.c capability, growing their manufacturing prices and growing the costs for shopper items.

OCEANIA: AUSTRALIA: In line with Dairy Australia, January 2024 milk manufacturing, 727.6 million liters, was up 5.2 p.c from January 2023. Queensland was the one state which noticed a decline in milk manufacturing in January 2024, in comparison with 2023 as milk output was down 0.2 p.c. Milk manufacturing from the beginning of the season in July 2023 by way of January 2024, 5,347.3 million liters, elevated 2.5 p.c in comparison with the identical timeframe a yr earlier. The cumulative quantity of milk produced from July 2023 by way of January 2024 was up from the prior season in each province.

NEW ZEALAND: Milk manufacturing knowledge from New Zealand for January 2024 was not too long ago launched. This knowledge confirmed whole January 2024 manufacturing was down 0.6 p.c on a tonnage foundation in comparison with January 2023. Whole milk solids have been additionally down in January 2024, reducing by 1.2 p.c from the earlier yr. Not too long ago launched export knowledge from New Zealand confirmed a rise in dairy exports by quantity of 12.5 p.c in January in comparison with a yr earlier. Regardless of this enhance, the worth of those exports was down 8.8 p.c. Elevated export demand was seen for many merchandise, although exported cheese volumes have been decrease than the yr prior.

SOUTH AMERICA: Climate has been comparatively useful to some key milking areas in South America throughout the sizzling summer season months. El Nino-wrought climate has offered some much-needed rainfall to some areas, however Argentina’s milk output continues to be hampered by dryness and warmth. As impartial climate patterns are anticipated to emerge near-term, Argentinian farmers are eager for elevated rainfall to offer heartier feedstuffs and elevated forage for his or her herds. That stated, per the Nationwide Oceanic and Atmospheric Administration (NOAA), the La Nina phenomenon is anticipated to return after what Argentinian farmers really feel was a really temporary hiatus, someday within the Southern Hemisphere’s winter months. Brazil’s milk output improved in 2023, in accordance with studies. Contacts anticipate this to proceed, if climate cooperates, because the nation continues to push extra self-reliance in the case of milk output and processing capability.

US NATIONAL RETAIL REPORT: Each whole standard dairy adverts and whole natural dairy adverts decreased this week. Cheese was essentially the most marketed dairy commodity. Typical 6-8 ounce sliced cheese, 6–8-ounce shredded cheese, and 6–8-ounce block cheese had weighted common marketed costs of $2.72, $2.29, and $2.26, respectively. Yogurt was the second most marketed dairy commodity. Typical yogurt adverts elevated by 14 p.c. One-pound packages of butter had a weighted common marketed worth of $4.65 this week, in comparison with $4.66 one week in the past. The weighted common marketed worth for half gallon containers of standard milk was $1.96 and natural milk was $4.31. This represents and natural premium of $2.35.