Packer
Packers aggressively sought inventory last week and cash fed cattle prices surged $2 per cwt., to instances of $3 higher for the week. Large trade volumes were reported in the North at $107 to $108 per cwt.
Agri Beef, a cattle feeding, farming and beef processing company in business since 1968, announced it plans to open a new beef packing facility in Jerome, Idaho.
USDA released Wednesday the long-awaited report on its investigation into cattle market disruptions following last year’s Tyson Foods packing plant fire and this spring’s impact from the coronavirus pandemic.
One impact of the coronavirus pandemic on the beef industry has been an increase in the number of carcasses grading Prime, but the shuttering of high-end restaurants that sell Prime beef, however, softened demand.
Montana Senator John Tester and Iowa Senator Chuck Grassley claim American farmers and ranchers face “a grave crisis, and it could hurt every family who buys meat at the grocery store.”
Iowa Senator Chuck Grassley asks Ag Secretary Sonny Perdue to publicly release findings from USDA’s investigation into beef pricing margins following the fire at Tyson’s plant in Holcomb, Kansas.
Tyson’s cooperation in the DOJ investigation of price fixing and bid rigging in the broiler industry is part of a request for formal leniency under the agency’s Corporate Leniency Program.
Missouri lawmakers told a hearing in Jefferson City last week they hope to form a working group to explore the idea of helping secure a beef harvest and processing facility in the state.
A Brazilian Superior Court ruled Tuesday Joesley and Wesley Batista can return to positions of management at J&F Holding, the parent company of JBS SA, the world’s largest meat packer.
Barring a major setback, it appears that America’s beef markets are moving past the worst of the COVID-19 disruptions that have caused upheaval in recent weeks.
“A lot of folks think we should mandate with a law—a federal LAW, mind you, because those always work out so well—that more feeders sell in the cash market. But tying feeders’ hands like this isn’t the answer.”
The President made a broad statement Tuesday about cattle imports, asking USDA Secretary Sonny Perdue to look into terminating bringing in cattle from other countries. However, a decision could come with consequences.
Industry analysts say there is a 1 million head backlog of cattle waiting for a harvest slot, and working through those heavy front-end supplies could take months.
Remote cow monitoring reaches the beef industry
No one can go watch their cows and heifers 24/7, but SenseHub™ Beef can, according to Allflex® Livestock Intelligence.
The South saw another wide trading range last week as prices ranged from $95 to $115 per cwt. for cash fed cattle with just two packers active in the negotiated cash market.
Tyson Foods said on Wednesday it will discount prices on certain protein products the remainder of this week, and some beef items could be discounted 20% to 30%.
Allflex® Livestock Intelligence FAQ about SenseHub™ Beef
Modeled after a set-aside program used in Canada after the BSE crisis in 2004, the Fed Cattle Set-Aside Program proposal would fund placing cattle on a maintenance diet for 75 days.
Light cash trade continued with a wide price range. Two of the major packers were active in the market, with one actively making an effort to support prices.
R-CALF USA has asked President Trump and House and Senate leaders to conduct a review the beef supply chain and consider “whether a physical and geographical restructuring of the meatpacking industry is required.”
“We need more small plants!”—-The tiny violin solo of the beef industry. To start: there are 853ish USDA beef kill plants in the US, the big four run 27 of them.
Cargill’s High River, Alta., beef harvest facility has slowed to one shift beginning this week to prioritize the health and safety of employees, reducing harvest to about 1,500 head per day.
Dozens of workers at Tyson’s Pasco, WA, beef plant have tested positive for COVID-19, but the plant will remain open under heightened health and safety procedures.
JBS USA says its Greeley, Colo., beef plant will be closed through Tuesday for “deep cleaning” in an attempt to stop the spread of COVID-19 among its thousands of employees. Two employee deaths have been reported.
Another steep decline in both fed cattle and feeder cattle was reported last week. Negotiated cash fed cattle sales were the second smallest since mandatory price reporting began in 2001.
Officials in Weld County , Colo., and Hall County, Neb., are monitoring cases of COVID-19 that are linked to JBS USA beef packing facilities.
Texas congressman Mike Conaway told AgriTalk radio he believes an investigation into packer profits is likely, but encourages cattlemen and processors to continue working to feed Americans during the COVID-19 crisis.
Some American beef packing companies are adding to worker’s hourly pay and sick leave in response to the COVID-19 emergency. Some will earn an additional bonus for working all their shifts through May 3.
Packer margin is significant. However, why is packer profitability the only focus, and we are not as outraged about the other “elephant in the room” issue within our market?