Packer
The antitrust class-action lawsuit alleging America’s largest beef packers conspired to fix cattle prices has been dismissed by a federal judge in Minnesota.
Automation in packing plants is most frequently trying to solve challenges related to manual labor, process efficiency, product quality and food safety.
Working off a big trade the previous week and slowed production, packers were reluctant to purchase cattle but the futures market took a dip and buyers stepped in at steady money and gathered inventory.
Eight beef packing projects are in various stages of completion that could add 10% to total industry capacity; is it needed? What potential headwinds might these ventures face?
USDA issued a proposed rulemaking on Monday that would effectively close the “Product of the U.S.A.” loophole that has been in effect since the repeal of COOL in 2015.
A federal ban on price gouging does not address the real causes of inflation, says Meat Institute President and CEO, Julie Anna Potts.
Cattle feeding margins declined last week with a rollback in cash prices. Calf producers remain in the driver’s seat with tight supplies and no expansion in sight. Pork breakevens are the lowest in four years.
Margin pressure continues to challenge beef packers. That’ll inevitably lead to less capacity in due time. And that’ll likely mean some long-run ramifications for the business.
Recession fears brought volatility to all markets early last week and offered packers leverage to reduce their bids.
Beef packers were forced to pay up to acquire inventory last week and the result was a boost to feedyard profits and increasing packer losses. Pork prices and margins saw little change.
Last week saw a continuation of cattle drifting North to their final destination helping tighten the North-South price spread.
While wholesale beef values have declined recently, price movement within boxed beef products reflect the unusual environment in today’s cattle and beef markets.
The summer slump has cut average industry cattle feeding margins by a third yet profits remain historically large. Pork margins also retreat from recent highs.
The CyberStrike debacle that grounded planes and shuttered various operating systems likely contributed to the stumbling futures market that incited early week cattle trades.
With light trade the norm for weeks, packers pushed for inventory, unusual behavior for a packer when the market is working lower.
It’s a good sign for the supply chain as analyst estimates of packer margins suggest profits in the $20 per head range in recent days.
When any government agency starts the rule-making process, particularly when it concerns markets, it is time to pay attention.
Last week’s market reached new all-time highs and asking prices will be higher this week.
The outside trades of $186 in the South and $193 in the North are a telling sign that leverage is there for the cattle feeder. Given the chance to capitalize with multiple bidders the market should respond favorably.
Cash prices leaked $1 lower but Friday evening trades suggest packers still scramble to meet their needs and are willing to add freight to do so.
JBS said on Wednesday that Beijing blocked U.S. beef shipments from the company’s plant in Greeley, Colorado, because traces of the feed additive ractopamine were identified in beef destined for China.
The use of camera grading in America’s beef plants has improved the accuracy, precision and consistency of grading from plant to plant and from lot to lot of cattle, regardless of where they were harvested.
A solid rally for cash fed cattle coupled with declining total feeding costs helped boost cattle feeding margins nearly $85 per head above the previous week. Pork margins now over $40 for the fourth consecutive week.
Shorter production and processing schedules have produced the desired effect for packers – a rally in wholesale beef markets. Feeders gain more marketing leverage.
Shares of Brazil’s JBS SA rose 7% in early morning trading on Wednesday after the world’s largest meatpacker reported strong first-quarter results in spite of headwinds faced by its large U.S. beef business.
The Meat Institute has updated its Animal Handling Guidelines and Animal Welfare Audit to include scores for each criterion allowing members to set goals.
Harvest picks up and packers are now finding themselves trying to bridge the gap between yearlings and calves. Smaller showlists create a challenge for packers.
The Meat Institute has worked to educate member companies to improve age and identity verification and develop new programs and technology to detect identity fraud and more.
Batista brothers have been elected to JBS SA board of directors.
This growing beef-on-dairy health problem is costing packers two major things – time and money.