Poultry - General

China, U.S., and Brazil Lead Global Feed Surge Amid Regional Shifts

Tue, 21 Apr 2026 19:46:39 GMT

A newly released global feed survey estimates world feed production increased in 2025 by 2.9% to 1.44 billion metric tons.

In the 2026 Agri-Food Outlook released by Alltech , data shows most regions and sectors experienced growth.

“The numbers suggest a strong recovery phase for animal agriculture; but the data show that growth was uneven, increasingly regionalized and driven less by herd expansion than by structural change, productivity gains and shifts in how production is measured and recorded,” Alltech reports.

In North America, operational efficiency gains, sustainability pressures, formulation optimization and consolidation among feed mills continue to reshape the feed industry across the region. Feed tonnage contracted modestly, primarily due to a historically tight cattle cycle and declining beef herd dynamics. Alltech says the region still saw some selective, species-driven momentum, with growth concentrated in broilers and dairy. While pork feed stabilized, the egg and turkey sectors remained in recovery following health-related disruptions.

The survey collected data from 142 countries and 38,837 feed mills in late 2025. By analyzing compound feed production and prices, the survey provides a comprehensive snapshot of global feed production. Alltech says these insights serve as a barometer for the overall livestock industry, highlighting key trends across species, along with regional challenges and opportunities for growth.

Top 10 Feed-Producing Countries

The top 10 feed-producing countries produced 65.2% of the world’s feed in 2025. The survey also showed 47.7% of all global feed tonnage was produced in the top three countries: China, U.S. and Brazil.

Global Feed Volume by Species

More Regional Results

Asia: 559.297 million mt

Asia reigns as the global center of feed production, with growth via industrialization and price-conscious consumers increasing the demand for poultry and aquaculture in 2025. The survey shows continued shifts from on-farm mixing to commercial feed, especially in China. In addition, Southeast Asia experienced a recovery of the sow herd which lifted pork output. Poultry feed tonnage also remained strong.

Europe: 274.061 million mt

Europe’s feed sector in 2025 was differentiated, yet broadly resilient, growing by 1.0%, Alltech notes. Lower raw material prices, supported by large global harvests of soybeans, rapeseed, wheat and maize, improved margins and stimulated production in several key markets. The region stabilized overall even with ongoing disease pressure and regulatory constraints. Modest gains in dairy and broilers offset challenges in other segments.

Latin America: 204.446 million mt

Latin America solidified its position as the world’s premier “protein basket” in 2025. Compound feed demand expanded 2.8% year over year, rising by 5.536 million mt, supported by strong export markets and lower grain prices. Growth was broad-based across the poultry, pork and aquaculture sectors. However, local disruptions in parts of the Andean and Caribbean sub-regions tempered overall expansion.

Africa and the Middle East: 102.549 million mt

Africa expanded strongly (+11.5%) on commercialization and rising compound feed penetration as the Middle East entered a structural plateau (+1.1%). Across both sub-regions, Alltech says three forces shaped performance: protein affordability, input vulnerability driven by grain prices and currency volatility, and continued disease disruptions — particularly related to foot-and-mouth disease and avian influenza.

Oceania: 11.104 million mt

Oceania experienced broad-based gains last year, with an overall 3.4% increase supported by population growth, resilient livestock sectors and strong export demand. Absolute increases were at their strongest in the broiler, layer, beef and pig sectors, the report says. High feedlot numbers and elevated cattle inventories sustained record beef production, particularly in Australia (+11%), with more moderate growth in New Zealand (+1.6%). Recovery in layer feeds following an avian influenza outbreak, along with steady demand for chicken and pork, led to a balanced regional expansion.

FAQs

Q: What was the total world feed production in 2025?
A: 1.44 billion metric tons.

Q: Why did U.S. feed production decrease?
A: Production fell by 0.8% due to a tight cattle cycle and declining beef herd dynamics.

Q. Which countries are the top producers of animal feed?
A. The top three feed-producing countries are China (330.06 million mt), the United States (267.38 million mt), and Brazil (89.90 million mt). Together, they account for 47.7% of the world’s total feed tonnage.

Q. Which livestock species saw the highest growth in feed demand?
A. Aquaculture experienced the highest growth rate at 4.7%, followed closely by the broiler sector at 3.7%.

Q. What is driving the growth in the global feed industry?
A. According to Alltech, growth is being driven by structural changes, productivity gains, and shifts in production measurement rather than simple herd expansion.

Q. Which global region had the highest percentage of growth in feed production?
A. Africa saw the most significant growth at 11.5%, fueled by increased commercialization and the rising use of compound feed.

The compound feed production totals and prices reported in the 2026 Alltech Agri-Food Outlook were collected in the first quarter of 2026 with assistance from feed mills and industry and government entities around the world. These figures are estimates and are intended to serve as an informative resource for industry stakeholders. To access more data and insights, visit alltech.com/agri-food-outlook .

The Shrinking Slice: Farmers Receive Less Than 6 Cents of Every Food Dollar

Tue, 31 Mar 2026 20:30:44 GMT

For the past two years, USDA has estimated farmers and ranchers received less than 6 cents of every food dollar. In 2023, that was 5.9 cents, and using the latest data from 2024, it’s 5.8 cents.

“Our oldest data point right now is 2007 [USDA updated the data series] and that’s 14.7 cents per dollar, and now we’re down all the way to 11.8 cents per dollar,” says Faith Parum, economist with the American Farm Bureau Federation. “So we’ve really seen that decline year after year. It reflects how much of the value of things in the grocery store or when you go out to eat is going to other parts of the supply chain and not necessarily to farmers and ranchers.”

Livestock vs. Crops: A Widening Gap

The aggregate decline masks a widening gap between sectors. While the overall farmer share is down, livestock and crop producers are seeing divergent trends:

Crop Farmers: Share dropped from 2.9 cents to 2.5 cents (a 2.5% year-over-year decrease).
Livestock Producers: Share increased from 3 cents to 3.3 cents.

“Overall, the farmer share is down. But we have those two markets really at odds,” Parum says. “We’ve seen that tale of two farm economies where our livestock producers maybe have seen a little bit of better days than they had had in the past, while our row crop farmers and our specialty crop farmers are really facing strong headwinds in the market.”

Effect at the Farm Gate

As highlighted by USDA, farm finances are quickly strained when farmers/ranchers are capturing a small percentage of the food dollar and even modest swings in commodity prices and/or input prices take place.

Parum adds, “when we talk about the health of our farms and the health of future generations on the farm, and being economically viable and sustainable and being able to keep their operations open, the trends we’re seeing right now are really hard for those farmers. Our ranchers are seeing a little bit of better days right now with high beef prices, but that’s not going to last forever, and with production expenses continuing to increase, we’re really going to see that that question come up of, what is sustainable if, if these dollars we’re spending in the grocery store aren’t making it back to our farmers.”

Where Does the Money Get Distributed?

The key takeaway: farmers produce the raw commodities that make food production, however, the price is clearly more determined by what happens after the products first leave the farm.

The USDA Food Dollar Series tracks how each dollar is spent by consumers and then divides it across the industries contributing to the value in the supply chain, such as farming, food processing, transportation, packaging, wholesaling, retail and food service. As noted by the USDA, with each step in the process, the additional services, labor, transportation and infrastructure add value and increase costs to the final food product.

USDA’s Economic Research Service Food Dollar Series shows in 2024, farmers received 11.8 cents of every dollar spent on domestically produced food, the remaining 88.2 cents of the food dollar went toward the ‘marketing bill’, which includes costs associated with food processing, transportation, packaging, wholesaling, retailing and food service. Over time, this shift illustrates how an increasing share of food spending is driven by services and supply chain activities rather than farm production itself.

Groceries Leave the Most on The Table For Farmers

Farmers’ share of consumer food spending varies widely depending on the type of food purchased. For example, the farm share of the food-at-home dollar was 18.5 cents in 2024, up slightly from 18.4 cents in 2023. But even in this category it means only than one-fifth of what consumers spend on groceries goes back to farmers.

As you may expect, products with minimal processing, require less of the value to be retained in that part of the food system, and therefore return a larger share of the food dollar to producers.

“The highest commodity that gets the most of that food dollar is fresh eggs,” Parum notes. “That’s just because there’s limited labor to process that food.”

Examples include:

Fresh Eggs: 69.1 cents (+6% from 2023)
Beef: 52.2 cents (+4.8%)
Fresh Milk: 50.8 cents (+5.6%)
Pork: 23.7 cents (+7.2%)
Poultry (+3.1%)
Fish (+2.8%)
Tree nuts and peanuts (-1.7%)
Fresh fruits and vegetables (unchanged)
Bakery Products: 4.8 cents (-9.4%)
Soft Drinks/Bottled Water: 1.3 cents (-7.1%)

ADM and Alltech Launch Akralos Animal Nutrition Joint Venture

Mon, 02 Feb 2026 18:39:37 GMT

A new animal feed and nutrition company, Akralos Animal Nutrition, launched on Feb. 1. This company, formed through a joint venture between global agriculture leaders ADM and Alltech, combines Alltech’s U.S.-based Hubbard Feeds and Canada-based Masterfeeds businesses with ADM’s U.S. feed operations.

“Akralos brings together proven scale, innovation and infrastructure with a deep commitment to service and results,” Akralos chief executive officer Brian Gier says in a release. “From day one, our focus is on delivering nutrition our customers can rely on, support they can count on and partnerships that help their animals and businesses thrive.”

Through an extensive network of more than 40 feed mills across North America and more than 1,400 team members, Akralos plans to deliver reliable, high-quality feeds, minerals and supplements through its trusted brands, backed by advanced nutrition expertise, leading-edge science and personalized service, the company says.

“Akralos is dedicated to helping customers gain a measurable advantage, bringing together passionate teams, proven products and shared values. Its experienced team works closely with customers to deliver tailored solutions, consistent performance and actionable insights, supported by leading-edge research and development, broad logistical capabilities and strong connections across the agri-food value chain,” Akralos says.

ADM and Alltech’s longstanding relationship goes back to 1980 when ADM was Alltech’s first customer. Akralos brings together both company’s complementary strengths to form a unified organization with a mission to serve as an advanced nutrition partnership committed to delivering a competitive edge for producers, retailers and animal owners across North America.

“With the unique strengths and shared values of Alltech and ADM, we can deliver deeper expertise, broader support and a stronger portfolio of nutrition solutions and services, all designed to help our customers build more profitable and resilient operations,” said Akralos chief operating officer Brad Dalke, an animal feed industry veteran who has served in numerous leadership roles at ADM over the past 27 years.

Akralos will be headquartered in Lexington, Ky., with a footprint including feed manufacturing, research and laboratory facilities.

Hubbard and Masterfeeds remain Akralos’ core customer-facing brands, preserving continuity for customers across North America, the company says.

“Our vision is to become the most trusted name in animal nutrition by delivering high-performance feeds and partnerships that drive results,” Gier says. “We’re here to listen, collaborate and use science to solve real-world challenges — nourishing advantage for all of our customers and partners.”

Tyson Names New COO as Supply Chain Chief Departs Over Conduct Violation

Wed, 03 Sep 2025 19:28:26 GMT

Tyson Foods, Inc., announced the appointment of Devin Cole as chief operating officer (COO) overseeing the company’s business segments, including poultry, beef, pork, prepared foods and international.

Devin Cole

(Beth Hall/Tyson Foods)

“We have strong momentum as we head into our new fiscal year, and we remain committed to executing our long-term strategy and operating the company guided by our culture and Core Values. I am confident that under Devin’s leadership our business will continue to thrive,” Donnie King, Tyson Foods president and chief executive officer, said in a release. Cole will report to King.

With more than 30 years of experience in the industry, Cole’s appointment reflects Tyson Foods’ commitment to robust succession planning and operational excellence, the company said. Most recently, Cole served as group president of poultry and international, where he delivered the company’s third consecutive quarter of volume growth in poultry and improved profitability to Tyson’s international business by driving efficiencies and cost controls.

Stewart Departs Tyson Effective Immediately
Meanwhile, chief supply chain officer Brady Stewart has left the company after violating internal rules. This marks the second senior executive departure for improper behavior in just over a year.

According to the company, certain actions taken by Stewart violated the Tyson Foods Code of Conduct.

The Supply Chain, Food Safety, Health and Safety, Environmental and Transportation functions will now report directly to King.

The company said it will share further leadership and organizational updates prior to Sept. 28 – the start of its 2026 fiscal year – consistent with its established succession planning and governance processes.

How Much Meat Will the U.S. Eat in 2025 and 2026?

Fri, 22 Aug 2025 15:48:45 GMT

Domestic availability of red meat, poultry and eggs is projected to increase in 2025, driven by gains in chicken and pork availability, and is expected to rise further in 2026, reports the USDA Economic Research Service (ERS). This increase stems from USDA’s forecast of per capita supply available for use on the domestic market.

How are these numbers determined? ERS says availability, also known as disappearance, serves as a proxy for consumption and includes fresh and processed meat and eggs sold through grocery stores and used in restaurants.

“The latest USDA data indicate 226 lb. of red meat and poultry and about 22 dozen eggs are available per U.S. consumer in 2025. By 2026, per capita availability is forecast to increase to 227 lb. for red meat and poultry and to 23 dozen eggs,” ERS reports.

Data for 2025 and 2026 are forecasts. Per capita meat availability serves as a proxy for consumption and does not reflect indirect uses, such as pet food or food waste.

(Data: USDA)

Chicken Projected to Be Most Consumed Animal Product
For chicken, per capita availability of broiler meat has been growing for many years and is projected to reach 102.7 lb. in 2025 and 102.8 lb. in 2026, ERS says. This will make it the most consumed animal product in the U.S.

However, availability of turkey has been falling in recent years and is projected to reach a low of 13.0 lb.per person in 2025 but increase to 13.6 lb. in 2026.

Per capita table egg availability for 2025 is projected at 21.5 dozen and is projected to increase to 22.9 dozen per person in 2026.

Pork and Beef Projections
ERS reports that pork availability per capita is projected at 49.7 lb. in 2025 and 50.9 lb. in 2026, up from 49.9 lb. in 2024.

Meanwhile, per capita beef availability for 2025 is projected to be slightly lower than 2024 at 58.5 lb., but is projected to decrease further to 56.9 lb. per person in 2026.

Global Feed Production Rebounds, Says Alltech in Agri-Food Outlook

Tue, 13 May 2025 16:06:03 GMT

Global feed production rebounded in 2024 after a stagnant 2023, increasing 1.2% from 1.380 billion metric tons (mt) to 1.396 billion mt. This growth, achieved despite challenges that included highly pathogenic avian influenza (HPAI), climate fluctuations and economic uncertainty, underscores the resilience and adaptability of the international agriculture industry, Alltech reports in the 2025 Agri-Food Outlook.

The annual report includes the results of the company’s 14th annual global feed production survey with data collected from 142 countries and 28,235 feed mills in 2024. Through an analysis of compound feed production and prices, the survey provides a comprehensive snapshot of global feed production.

Alltech says these insights serve as a barometer for the overall livestock industry, highlighting key trends across species, regional challenges and opportunities for growth.

Top 10 Countries
The Top 10 feed-producing countries in 2024 produced 65.6% of the world’s feed, with 52% of global feed production concentrated in only four countries (China, U.S., Brazil, India).

The Top 10 include:
1. China: 315.030 million mt of feed, down 2.03% from 2023
2. U.S.: 269.620 million mt; up 0.68%
3. Brazil: 86.636 million mt; up 2.43%
4. India: 55.243 million mt; up 4.56%
5. Mexico: 41.401 million mt; up 1.38%
6. Russia: 38.481 million mt; up 8.53%
7. Spain: 35.972 million mt; up 1.46%
8. Vietnam: 25.850 million mt; up 3.41%
9. Türkiye: 24.502 million mt; up 4.83%
10. Japan: 24.297 million mt; up 0.14%

Species Highlights
Poultry feed experienced an increase in production, both for broilers (up 1.8%) and layers (up 1.4%). Broiler feed is the largest species segment, accounting for 27.6% of the total feed tonnage in the world.

“As a ‘budget-friendly’ protein option, the broiler industry benefits from surges in red meat prices,” the authors of the report share. “Affordability drove demand in Asia-Pacific and Latin America, while rising incomes boosted growth in Africa.”

Although HPAI was a persistent issue for poultry production, broiler feed volumes are expected to continue seeing moderate growth in 2025 because of broiler meat’s affordability and export opportunities, the report says.

The slow 1.4% growth rate of layers reflected the challenges facing the industry, including the disruptions by avian influenza and oversupply in some regions, Alltech points out.

Global pig feed production experienced a loss in 2024 of 0.6%, leading to a decreased total of 369.293 million mt, the report notes. Growth in the European, Latin American and North American pork segments was counterbalanced by downturns in Africa and the Middle East, Asia-Pacific and Oceania.

“These trends were partly dictated by how well producers in each region continued to recover from outbreaks of African swine fever (ASF), with export demand allowing Europe and Latin America to reclaim lost ground,” the authors explain. “Survey respondents were divided in their outlook for pig feed production, which recorded the highest amount of pessimism among all feed segments.”

The report adds that disease management and stabilized feed costs will continue to be critical for the pig feed sector to achieve growth throughout the world.

Dairy feed tonnage increased by 3.2%, to 165.500 million mt. Analysts attribute this to robust consumer demand, favorable milk prices and a shift toward more intensive farming practices, with Asia-Pacific, Europe, Africa and Latin America all displaying growth.

“While dairy feed production remained stable in North America, Oceania’s reliance on abundant pasture led to a slight dip in its feed tonnage,” the authors say. “Despite challenges that ranged from disease pressures to volatile weather conditions, the global dairy sector continues to exhibit strong resilience and growth potential. The modernization and intensification of production and higher milk yields are expected to foster further increases — but lower farmgate prices in China could limit global gains overall.”

Beef feed tonnage rose from 131.6 million mt in 2023 to 134.1 million mt in 2024. Alltech says this reflects a global increase of 1.8%. North America, Latin America, Africa, Europe and Oceania all recorded gains thanks to a rise in demand for beef exports due to tight supply elsewhere around the world.

“Scarce forages in parts of North America, Latin America and Australia drove cattle producers to rely more heavily on commercial feeds. The decline in beef feed tonnage seen in Asia-Pacific and the Middle East was attributed to oversupply and lower prices,” the report says.

Access more data and insights from the 2025 Alltech Agri-Food Outlook here.

Editor’s Note: The compound feed production totals and prices reported in the 2025 Alltech Agri-Food Outlook were collected in the first quarter of 2025 with assistance from feed mills and industry and government entities around the world. These figures are estimates and are intended to serve as an informative resource for industry stakeholders.

Your next read: A Pinch of This, A Dash of That: It’s Time to Update Pork’s Recipe for Sustainability

New Food Security and Farm Protection Act Protects Farmers and Consumers From Government Overreach

Wed, 09 Apr 2025 16:24:08 GMT

After the U.S. Supreme Court left an open invitation for Congress to strike down California’s Proposition 12, U.S. Senator Joni Ernst (R-Iowa) says it’s time to end this “unjustified and burdensome regulatory overreach” in order to protect family farms and bring down prices for U.S. consumers.

On April 8, Ernst and fellow Senate Agriculture Committee members Senators Chuck Grassley (R-Iowa) and Roger Marshall (R-Kan.) introduced The Food Security and Farm Protection Act that prohibits any state or local government from interfering with commerce and agricultural practices in another state outside their jurisdiction.

“Proposition 12 is dangerous and arbitrary overregulation that stands in direct opposition to the livelihoods of Iowa pork producers, increases costs for both farmers and consumers, and jeopardizes our nation’s food security,” Ernst says. “I’m proud to be leading the charge to strike down this harmful measure and will keep fighting to make sure the voices of the farmers and experts who know best – not liberal California activists – are heard.”

Pig Farmers Speak Out
This policy averts a disastrous patchwork of contradictory state-by-state farm regulations that would hit hardest small and medium-sized pork producers, says National Pork Producers Council (NPPC) President Duane Stateler, a pork producer from McComb, Ohio.

“U.S. pork producers have just suffered the worst 18 months of financial losses in history, and many farm families are contemplating whether they can pass along their farm to the next generation,” Stateler says. “We urge the Senate to take up this legislation immediately to provide us much-needed relief.” Learn more about Stateler’s story here.

Without certainty from the Food Security and Farm Protection Act , NPPC says there will be many consequences, including:

Widespread, damaging consequences for farmers and consumers alike.
Significant fees forced on producers to pay for outside regulators to audit their farms due to the whims of consumers outside their state’s borders.
Risk of putting farm families out of business by significantly increasing the cost of raising pigs.
Increased prices at the grocery store , as much as 41% for certain pork products.

A Dangerous Patchwork of Regulations
For reasons like these and more, bipartisan support for providing relief from a patchwork of state laws continues to grow with support from President Donald Trump, former President Joe Biden, and their respective Agriculture Secretaries Brooke Rollins and Tom Vilsack, NPPC said in a release.

“The United States is constantly faced with non-tariff trade barriers from protectionist countries, which hurts American agriculture’s access to new markets. The last thing we need is for states like California imposing its will on ag-heavy states like Kansas with regulations that will also restrict our ability to trade among the states,” Marshall says. “Midwest farmers and ranchers who produce our nation’s food supply should not be hamstrung by coastal activist agendas that dictate production standards from hundreds of miles away.”

And it’s not just the pork industry rallying around this legislation.

“Iowa soybean farmers are grateful for Senator Ernst’s leadership to address challenges Prop 12 creates for Iowa farmers,” says Iowa Soybean Association President and farmer, Brent Swart. “Not only do the increased costs of compliance threaten to put pork farmers out of business, Prop 12 increases the price of pork at the grocery store by as much as 40%. Higher prices for pork dampen demand for this high-quality protein which negatively impacts market demand for soybeans used for pig feed. This legislation gives us a chance to protect our farms, our livelihoods, and ultimately, families that need affordable food.”

Iowa Cattlemen’s Association President, Rob Medberry, points out that the Iowa Cattle industry has made it clear that government overreach and overregulation is incredibly burdensome to industries that provide safe, quality and sustainable products for the world.

“Proposition 12 has the potential to further dismantle the livestock industry with the lack of science-based measures. Proposition 12 has already proven to be an unfunded mandate with consumers unwilling to pay premiums for the products that must be compliant with the proposition,” Medberry says. “The inherent cost to become compliant is overbearing and the simple fact of dollars and cents does not add up.”

Opponents Strike Back
Opposition such as the Humane World Action Fund, formerly called Humane Society Legislative Fund, argue against this legislation.

“This bill would hand over sweeping power to a narrow segment of the agriculture industry, overriding the will of voters, dismantling state laws and eliminating hard-won voter-supported protections for the humane treatment of farm animals, food safety and farm workers,” says Sara Amundson, president of Humane World Action Fund. “Let’s be clear: this is a federal overreach that serves Big Pork, not the American people.”

Amundson claims this legislation has been driven by a small group of pork industry lobbyists.

It’s Not Just About Pigs
But Iowa Corn Growers Association (ICGA) President Stu Swanson disagrees.

“With barriers like Proposition 12 cutting off our ability to supply fellow Americans with Iowa grown pork, it’s not only those families who are being affected, but also our farm families here in Iowa,” Swanson points out.

Iowa Turkey Federation Executive Director Gretta Irwin adds that these inconsistencies create unnecessary burdens for farmers operating across state lines, hinder efficient production, and undermine well-established, science-based practices developed in coordination with industry experts.

Swanson says this is an issue for all of agriculture and one his organization plans to continue to work on with their livestock partners until it gets resolved.

“Consistent with its authorities under the Commerce Clause, it’s time for Congress to solve this problem by passing legislation,” Grassley says. “Our bill will end California’s war on breakfast and make sure delicious Iowa pork can be sold everywhere.”

Stay up to date on Prop 12 here.

Grassley: I Still Support Trump, But Congress Should Lead On Trade, Tariffs

Mon, 07 Apr 2025 18:33:07 GMT

With financial markets spiraling deeper into the red, Senator Chuck Grassley (R-Iowa) is pounding the table in support of a bill that would wrestle back the executive branch’s authority to enact unilateral world trade decisions without Congressional approval.

The senior senator from Iowa has long held the belief the U.S. Constitution gives Congress direct oversight in regulating foreign commerce. Grassley says the legislature has deferred this authority to the executive branch since the 1960s, and it’s time to claw that power back within the walls of Congress.

“The impression is that I’m doing this because of what Trump did last week. It has nothing to do with that,” Grassley told AgriTalk host Chip Flory on Monday. “This president is doing what Congress gave him the power to do, right? I felt the same way in 2019 and I tried to get some changes then.”

Now, Grassley says he is simply piggybacking on the heightened awareness of trade tariffs after last week’s “Liberation Day” announcements from the Rose Garden. He still supports the President’s overall agenda and is hoping for the best-case scenario – which would entail a worldwide negotiation process to balance trade deficits among the U.S. and its trade partners.

“If he’s successful in putting tariffs on other countries to get them to sit down at the table to bring all tariffs down, I’m going to say he did a better job than my approach of negotiating tariffs down,” Grassley says, adding that the administration can immediately help farmers by supporting a new 5-year Farm Bill and directing the EPA to approve year round E-15 fuel availability.

Under the proposed bipartisan legislation – which is co-sponsored by a handful of U.S. Senators from across the nation – the Trade Review Act of 2025 would require congressional approval of new unilateral tariffs proposed by the executive branch within 60 days.

Over the weekend, senior Trump administration officials, including USDA chief Brooke Rollins, made the rounds on the Sunday morning political TV programs to try to assure corn and soybean farmers – who have suffered profit line hits from two years of inflated operating expenses and low commodity prices – that the President’s tariff strategy would eventually pencil out to long-term gains in domestic manufacturing and crop export markets.

Then, on Monday morning, Trump posted on social media saying he will impose an additional 50% in tariffs (on top of the current 54% rate) on China by April 9 if the country did not back off the 34% retaliatory tariffs it enacted on American goods. Ag economists say the China tariffs will have a devastating impact on U.S. crop and meat exports, and many believe the tariffs have effectively handed Chinese feed and fiber demand to Brazil.

Related: As China Retaliates and Hits U.S. With a New 34% Tariff, What’s the Possible Impact on Ag?

(iStock/Lori Hays)

The U.S. today is China’s largest ag trading partner, but 2024 import data shows that relationship could be fading fast: shipments of U.S. farm goods into China nearly halved from 2022 levels, when China purchased almost $43 billion in U.S. ag products. Last year, that figure plummeted to $29 billion, and many expect the tariffs will slash that figure even lower. China has also torn up or suspended several trade deals with U.S.-based poultry producers, and some experts fear a decrease in demand for U.S. pork products could be devastating to American hog farmers.

Related: Pork Producers Resist Urge to Panic, Respond to New Tariffs

Overall, despite alarm bells being sounded from basically every corner of the economy, the senate’s current longest-tenured member is hopeful there’s a light at the end of this long, roller coaster tariff tunnel for America’s farmers and ranchers.

“If we can export our stuff in a free way, it’s going to help the economy of the United States, and it’s going to help our consumers if we don’t have tariffs on products coming into the United States,” Grassley says. “I’m supportive of the President’s effort to get a better deal for Americans, especially for our farmers because we export about a third of our production, and that’s where farmers want to get it.”

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Don't Be Deceived: Wildlife Pose Serious Threat to Livestock Producers

Tue, 01 Apr 2025 14:30:52 GMT

At first glance, the house sparrow may not seem all that intimidating. But now that highly pathogenic avian influenza (HPAI) is endemic in the wildlife waterfowl population, this tiny bird could become a huge problem for U.S. livestock producers, USDA’s David Marks said at the 2025 American Association of Swine Veterinarians annual meeting in San Francisco in March.

“Ducks and geese waterfowl are a reservoir for highly pathogenic avian influenza (HPAI),” says Marks who serves on the staff of USDA Animal and Plant Health Inspection Services (APHIS) Wildlife Services (WS). “They brought it over here in 2022 from Europe and Asia, and now it is circulating in waterfowl. HPAI is a foreign animal disease in North and North America, but now it’s endemic in wildlife. It’s not a good situation.”

Peri-domestic birds like the house sparrow and the American robin are attracted to the same water sources as these ducks and geese, which can result in peri-domestic birds carrying the disease back to the livestock barns, Marks explains.

“Keep your farms tight,” he says. “HPAI is mixing and reassorting in our waterfowl. Every time it gets in these birds, it’s mutating. Over 85% of positive farms now are from wildlife introductions.”

When it comes to managing wildlife disease threats, there are basically three options: manage the site itself, manage the wildlife, or install a barrier to keep wildlife out.

How Big of a Problem Do We Have?
Since the outbreak in poultry in 2022, APHIS has worked with state animal health officials to identify and respond to detections and mitigate the virus’ impact on U.S. poultry production and trade. Marks says more than 105.2 million birds in 1,197 flocks in 48 states have been affected by the virus since then. In response to this current outbreak, USDA has spent over $1 billion, paying for indemnity, cleanup and disinfection of facilities, diagnostics and other aspects related emergency response.

“More than 75% of infections have been directly related to new introductions of virus of wildlife origin and not related to lateral transfer between facilities, employees and equipment as in previous HPAI outbreaks,” Marks says.

WS developed the Midwest Wildlife Biosecurity Assessment Pilot Project in response to the continued outbreaks of HPAI across the country. Four states (Iowa, Minnesota, North Dakota and South Dakota) were selected as the focus for this project based upon the high number of infections and re-introductions of facilities during calendar year 2022 from within this area.

Earlier this month, USDA announced it is expanding the availability of its biosecurity assessments to commercial poultry producers.

“These assessments, which were previously available on a limited basis have been extremely successful in improving biosecurity on individual premises and preventing the introduction or spread of avian influenza,” USDA Secretary Brooke Rollins said.

The goal of the assessments is to take a proactive approach to managing potential disease transfer and improve the wildlife biosecurity of commercial poultry facilities in the U.S., thus reducing the number of facilities that become infected with HPAI and other diseases of concern to the poultry industry, Marks explains.

Wildlife biosecurity assessments are through evaluations of all buildings, external operations and wildlife population use and movements that occur on and near commercial poultry facilities. These reports are directly provided to facility managers and include long-term management recommendations for mitigating any identified risks related to wildlife.

The formal WBA process is comprised of three main components: Wildlife hazard identification surveys, wildlife abundance surveys, and in most cases, direct control and continued monitoring for attractants, hazards, and wildlife.

Barn swallow nest

(USDA Wildlife Services)

Step 1: Wildlife Abundance Surveys
What species are there in the first place? Marks says wildlife abundance surveys (WAS) simply determine what wildlife species one could expect and that one finds on an operation.

“A farm in northwest Iowa might be different than a farm in southeast Iowa or Texas,” he points out. “WS conducts WAS at different times during the day (morning, midday, evening, and night) to understand the different species present in and around the facilities at these times.”

After establishing multiple survey points to represent all habitats and cover the perimeter, WS conducts standardized wildlife point counts at each survey point and revisits those monthly to create population trend data. These maps show areas of wildlife activity for each facility.

Standing water is an attractant for wildlife.

(USDA Wildlife Services)

Step 2: Wildlife Hazard Identification Surveys
Wildlife hazard identification survey (WHIS) take place at all facilities as they enter the program, he says. These reports provide a detailed list of all the wildlife biosecurity hazards found within the perimeter buffer area of the facility, and categorizes hazards into three tiers, with tier 1 being of the greatest concern. Examples of Tier 1 hazards include holes in barn exterior walls, exclusionary netting, or other breaches that would allow direct contact with wildlife and poultry.

Lower Tier hazards include wildlife attractants and potential sources for indirect transmission routes, such as standing water and food sources. WS conducts the first WHIS during an initial facility site visit and generates the report for the producer shortly after. WHIS reports contain photographs of all hazards identified and their locations represented on an aerial photo. WS designs the reports so producers can quickly identify and mitigate any hazards found.

WS personnel conduct subsequent WHIS quarterly to monitor progress. They also monitor for additional hazards continuously while on site, and any additional hazards found are recorded and relayed to producers in real time. Formal quarterly WHIS reports help track hazards and mitigation over time.

Starling on a barn roof.

(USDA Wildlife Services)

Step 3: Direct Control
The next step is to develop a plan for routine direct control actions. This includes both lethal (removal) and nonlethal (habitat management, exclusion, harassment) management of wildlife present at the facility, Marks explains.

“WS records all direct control activity results, along with wildlife observations while on site,” he says. “These are not standardized data, but over time are very valuable in showing trends and we expect a direct inverse correlation to result from wildlife abundance surveys (ie, the more wildlife managed, the lower the wildlife abundance on site). Similar to wildlife abundance data, direct control trend data can be depicted on a map of a facility to show areas of wildlife activity.”

After the first six months of participation in the program, WS generates a comprehensive report for the facility, which summarizes all WS personnel activities.

While on site, WS personnel collect samples from wildlife species for HPAI testing, he adds. Sampling strategies focus on facilities that have recently become positive for HPAI because of the increased likelihood of the virus being present in non-reservoir species. WS processes samples and submits them to the diagnostic lab for analysis, and all influenza A detections are forwarded to the USDA National Veterinary Services Laboratory for confirmation and genomic sequencing. Additionally, WS collects samples from a subset of wildlife collected from non-infected facilities.

What Can You Do Now?
Although the biosecurity assessments and audits are offered to poultry producers only at this time, WS does offer financial support to help dairy producers enhance biosecurity and offset costs associated with Influenza A testing, veterinary expenses, personal protective equipment purchases, milk disposal and milk losses.

“The wildlife exclusions and barn setups are similar between swine and poultry facilities,” Marks says. “Biosecurity is a critical tool for disease prevention for all species.”

USDA encourages all producers to review their biosecurity plans and take action now to prevent disease from reaching their herds. While the actual assessments may not be available to pork producers right now, USDA does offer biosecurity resources for swine producers here .

Your Next Read: Is the Swine Industry Ready for H5N1? Texas Veterinarian Says “No”

Consumer Meat Sales Are Higher Than Ever

Mon, 24 Mar 2025 20:51:39 GMT

Consumers are buying more meat than ever. In 2024, meat sales hit a record high of $104.6 billion and pounds sold increased 2.3%, according to the 20th annual Power of Meat report released on March 24 at the Annual Meat Conference by the Meat Institute and FMI—The Food Industry Association.

“With most Americans (74%) so confident in meat as a nutrient powerhouse that is top of mind for protein needs, it’s no surprise people are buying more meat than ever,” says Meat Institute President and CEO Julie Anna Potts. “Meat Institute members are committed to making the nutrient-dense meat Americans need and keeping America’s farm economy thriving, today and for generations to come.”

Sales and purchase dynamics data provided by Circana for the 52 weeks ending Dec. 29, 2024, show that consumers, on average, purchase meat more than once per week. This keeps meat as the largest fresh department in grocery, according to the report.

Nearly all of American households purchase meat (98%). Meanwhile, 73% of Americans view meat as an overall healthy choice, Circana data shows.

In addition, the report shows that getting enough protein is very/somewhat important to 90% of Americans, and animal proteins, including eggs (83%), chicken (82%) and beef (76%), top the list of foods that most consumers view as protein-rich foods.

The average American shops for meat 54 times per year and spends $16.12 on meat per trip, Circana data highlights. The top three purchases for refrigerated meat include beef, chicken and pork and the top three purchases for prepared meat include lunchmeat, bacon and sausage.

Priorities among meat shoppers include preparing comfort meals, having quick prep options, and getting creative with ingredients. Americans prepare 4.8 dinners per week at home and 90% include meat, the report says.

“As shoppers’ definition of value has expanded to include price, quality, relevance, convenience and experience, they are including meat in 90% of home-cooked dinners and looking for various options to suit their schedules, tastes and interests,” says Rick Stein, vice president of fresh foods for FMI. “Whether shoppers are looking for the convenience of new ground meats or incorporating semi-prepared options in their meal prep, the meat department delivers.”

Editor’s Note: The Power of Meat study was conducted by 210 Analytics on behalf of FMI—The Food Industry Association and the Meat Foundation and sponsored by CRYOVAC Brand Food Packaging.

More Funding Going to Tackle HPAI H5N1, Egg Imports are Now Underway to Stabilize Supply

Thu, 20 Mar 2025 18:57:13 GMT

On Thursday morning, USDA Secretary Brooke Rollins gave an update on progress the Trump administration is making on the five-prong strategy it unveiled Feb. 26 to combat avian influenza virus type A (H5N1).

Speaking to industry stakeholders, media and offices of elected officials, Rollins focused on the administration’s work to lower egg prices and improve supply, while also emphasizing the importance of biosecurity in protecting U.S. poultry flocks from the virus.

Regarding egg prices, she said wholesale prices are down nearly 50% from their peak in late February from $8.53 then to $4.08 currently.

However, Rollins said she realizes that wholesale prices don’t automatically show up as reductions in retail prices.

“I know for some of us who are shopping that we’ve seen egg prices drop immediately, which has been true for me. But then we’ll hear from people in other parts of the country where they have yet to see that reduction on their grocery store shelf.”

With Easter just a few weeks away, she acknowledged that egg demand is always “unusually high during the season,” and that egg prices could potentially move back up.

To help address the egg shortage, Rollins noted that shell egg exports have declined by 8%, “keeping more eggs in the U.S. and lowering prices.”

In addition, the Trump administration is allowing egg imports as a temporary measure to stabilize prices and supply. Rollins’ chief of staff Kailee Buller said this measure would likely be discontinued once those measures were achieved.

USDA Focuses On Biosecurity For Poultry Operations
Rollins said biosecurity in poultry flocks will continue to be a major part of the Trump administration’s plan to address H5N1, moving forward.

“Our pilot programs have proven that biosecurity is the most important thing our farmers can do to protect our flocks against the disease, at least right now,” she said.

The USDA is working closely, she said, with its federal partners including the U.S. Department of Health and Human Services (HHS), Centers for Disease Control (CDC), National Institutes of Health (NIH), and the Food and Drug Administration (FDA) to “combat avian flu as a unified federal family.”

On Wednesday, USDA announced it is expanding the availability of its biosecurity assessments to commercial poultry producers.

“These assessments, which were previously available on a limited basis have been extremely successful in improving biosecurity on individual premises and preventing the introduction or spread of avian influenza,” Rollins said.

While USDA is exploring the viability of vaccinating poultry for H5N1, she said the use of any vaccine for poultry or any animal species has not been authorized at this time.

“I know there has been some misreporting on that,” Rollins said. “The day we rolled out the plan, I actually talked about the fact that we’re not ready to vaccinate. We need to do some more research, and so that has not changed, but I do look forward to this next process of learning more about getting more research done and perhaps seeing what makes sense for the country moving forward, once that is concluded.”

Dairy Is Not Part Of USDA’s Primary H5N1 Focus
No information was offered during the conference call to address the issue of H5N1 in dairy cattle or other livestock or animal species.

Mike Watson, administrator of USDA-APHIS, said right now USDA is focused on the poultry vaccine.

“We’re looking for a vaccine that has sterilizing immunity but also an opportunity for us to have different introduction methods for the vaccine right now, as injections are the only possibility,” he said. “We need new tools, whether it’s water based, aerosol based, those kind of things. We’re looking for manufacturers to really look at what those options might be, to really provide us with a vaccine that matches the current strain but also is highly effective. And again, this is really focused on poultry.”

Buller said there is already quite a bit of research at USDA on the topic in dairy.

“Please rest assured, we are thinking of you all (in dairy). We know you all are impacted. But for this particular strategy, we have been hyper-focused on the poultry side. USDA has separate work streams as we’re working through this on the cattle and dairy side.”

One of the media asked whether Sec. Rollins had talked further with HHS Sec. Robert F. Kennedy Jr. regarding his idea of letting H5N1 burn through poultry flocks to identify birds that might have immunity or show resistance to the virus.

Buller answered the question, as Rollins had stepped away from the call. “I have not been engaged specifically with those conversations with the Secretary and Secretary Kennedy,” she said. “They are talking very regularly and you are aligned on the approach, but in terms of that specific topic, there’s no further light I can shed on that at this time.”

Assessments Available To Poultry Operations
USDA is offering two different, free, voluntary biosecurity assessments for poultry operations not currently affected by HPAI.

The first is a wildlife biosecurity assessment. The second is a general biosecurity assessment. Poultry producers can request one or both of these free assessments.

Per the wildlife biosecurity assessment, Rollins said USDA will conduct on-farm assessments at poultry facilities and provide recommendations to producers for facility repairs and wildlife management techniques. The assessments include a series of regular engagements, including wildlife hazard identification surveys, wildlife abundance surveys and wildlife management on the premises.

“USDA has assessed approximately 130 facilities to date (in 2025), and plans on doing significantly more moving forward and expanding that program,” she said.

For the general biosecurity assessment, USDA will work with poultry producers to review biosecurity plans and physical measures.

“This is a proactive resource for premises that are outside of avian flu control areas to identify and mitigate potential biosecurity gaps,” she said.

Funding Is Ramped Up To Address HPAI In Poultry
The USDA announced on Thursday that up to $100 million in funding will be available to support projects on avian influenza, prevention, therapeutics, vaccines and research.

“USDA will invest up to $100 million in these projects, which will identify and foster innovative solutions to fight avian flu and directly support American producers,” Rollins said during the conference call.

Funding is available through a competitive process to for-profit organizations, including manufacturers of vaccines, biologics and therapeutics, as well as states, universities, livestock producer organizations and other eligible entities, she noted.

USDA will prioritize one or more of the following. First, it will support the development of novel therapeutics to address HPAI in poultry. Second, it will support research to further understand the risk pathways of avian influenza for producers and to inform improved biosecurity and response strategies.

“Let me just say, as a quick aside, I’ve had multiples and multiples and multiples of conversations with some of our chicken farmers across the country —many of them have been highly successful at not having the bird flu infect their populations,” Rollins said. “Better understanding of risk pathways and realizing what best practices are is a big part of (this work).”

The third focus is on the development of novel vaccines to protect poultry from H5N1 while promoting biosecurity.

“That will all be part of the research funding opportunity that we announced about an hour and a half ago,” Rollins said.

USDA will test the efficacy of therapeutic interventions to prevent the virus and treat infected flocks.

“USDA, in consultation with HHS, has already had multiple conversations with Secretary Kennedy and leaders in the NIH and CDC, but will also be exploring prevention strategies to promote biosecurity in agriculture and in humans, to ensure limited impact on American farmers,” Rollins noted.

USDA is offering a webinar to assist interested applicants in learning more about the funding opportunity and how to submit a proposal on Tuesday, April 1 at 12 p.m. Eastern. No details on how to participate in the webinar have been communicated yet.

“As we try to do everything under this president and here at USDA, we will be as fast and efficient and effective as we can possibly be, working around the clock,” Rollins said.

Buller added that Sec. Rollins and her staff will continue to host update calls regularly.

“It’s very important to Sec. Rollins that we are showing progress on this five-prong plan and being honest and open with the public about what we’re up to and the progress and potential challenges that we have ahead,” Buller said. “We have an open door here, and we remain open to having conversations and hearing from stakeholders.”

Hormel Foods Forecasts Annual Sales, Profits Below Estimates on Tepid Demand

Wed, 04 Dec 2024 15:06:58 GMT

Hormel Foods forecast annual sales and profit below estimates on Wednesday, hurt by slowing demand for its snacking and meat products, including its Jennie-O Turkey brand.

Shares of the company fell nearly 4% premarket after Hormel also posted fourth-quarter results in line with Wall Street expectations.

Jennie-O Turkey is one of Hormel’s key brands, contributing about 12% to sales in 2022. However, demand for turkey, which is more expensive than chicken or pork, has taken a hit as consumers keep a tight grip on their wallets.

“Considerable volume declines in turkey exports resulted in lower volumes compared to the prior year,” Hormel said in a statement.

In recent quarters, price hikes have weakened volume growth for salty snacks across the U.S., hurting sales of companies like Hormel, Campbell’s CPB.O and PepsiCo PEP.O.

Hormel has flagged a hit from a production disruption which has been ongoing since the last quarter at its facility in Suffolk, Va., due to a food safety issue. This has lowered production of its Planters snack nuts.

The company expects fiscal year 2025 sales between $11.9 billion and $12.2 billion, compared with analysts’ expectation of 12.23 billion, according to data compiled by LSEG.

Hormel also expects adjusted profit of $1.58 to $1.72 per share, the mid-point of which is below estimates of $1.68 per share.

Excluding one-off items, the company earned 42 cents per share in the fourth quarter while sales fell 2% to $3.14 billion.

Sales in Hormel’s international segment rose 1%, benefiting from growing demand in China after several quarters of weakness.

(Reporting by Aamir Sohail in Bengaluru; Editing by Sahal Muhammed)

Tyson Foods Heir Avoids Jail, Pleads Guilty to Drunk Driving

Tue, 22 Oct 2024 13:27:40 GMT

John R. Tyson, Tyson Foods Inc.'s heir, pled guilty to drunken driving and other charges after his arrest in June, agreeing to pay a fine, but avoiding additional jail time, Bloomberg reports.

Tyson, the 34-year-old great-grandson of the company’s founder, was sentenced to pay $960 in fines and fees, along with 32 hours of public service, the article said. According to prosecutors in Fayetteville, Ark., his sentence of 90 days in jail was suspended as part of a plea deal.

After the incident in June, Tyson was suspended as chief financial officer. He was permanently removed from his role two months later, the article said.

This was his second arrest related to public intoxication. In November 2022 , he was found intoxicated and asleep in someone else’s home.

Curt Calaway was chosen to replace Tyson as CFO on Aug. 29. The company said in a release that Tyson is still with the company, but is on “health-related leave.” Calaway has been with the company since 2006. He reports directly to Donnie King, President and Chief Executive Officer of Tyson Foods.

Your Next Read: Tyson Foods’ CFO Found Intoxicated And Asleep In Random Home

New Suspect in $100K Chicken Heist May Be Linked to $400K Meat Theft

Thu, 17 Oct 2024 13:58:26 GMT

A second suspect has been arrested in connection with the theft of a tractor-trailer containing approximately $100,000 worth of poultry products. Police say he’s also a suspect in a separate $400,000 meat theft.

Jorge Lyen Blanco-Diaz, a 38-year-old man from Hialeah, Fla., was arrested Monday on charges including grand theft of cargo, grand theft of a vehicle and unlawful use of a communications device, records show, NBC Miami reports.

A second man, 49-year-old Raul Bello, was arrested earlier in October on the same charges in connection with the chicken theft that occurred on Sept. 15 when a tractor-trailer was stolen near the driver’s home in Miami.

The truck driver said he’d been alerted by his sister that the truck, worth $60,000, and trailer, worth $80,000, were gone. In addition, $100,000 worth of assorted frozen poultry was inside the trailer, too.

Cameras caught the tractor-trailer heading twice being followed by a white Nissan NV200 van, the report said. Police tracked down the van and began surveillance. They discovered Bello driving the van, the article said.

Cell phone information showed Bello in the area of the tractor-trailer theft. The information also showed he had communicated with a number associated with a co-defendant in the tractor trailer theft, NBC Miami reports.

Co-defendant Blanco-Diaz was already on house arrest with a GPS ankle monitor related to two other cases. Ankle monitor data showed Blanco-Diaz was at the theft location the date of the crime before and during the time the truck and trailer were stolen.

Blanco-Diaz, identified as being part of a major theft organization and suspect in another cargo theft case from September 2023 involving a truck and semi-trailer loaded with assorted meat products worth around $400,000, was taken into custody.

Bello, who is on probation until November 2030 in a case involving burglary, assault and possession of illegal weapons, was taken into custody when he drove the Nissan van to the Florida Department of Corrections Probation and Parole Services Office, NBC Miami reports.

Both men were booked into jail. Attorney information wasn’t available.

Your Next Read: We Need to Foster Alignment Within All Segments of the U.S. Pork Industry

Hemp Seed Livestock Meal Receives Green Lights On Way to Federal Approval

Fri, 27 Sep 2024 18:07:07 GMT

After years of work and regulatory paperwork, the The Hemp Feed Coalition announces Hemp Seed Meal for laying hens has been recommended by FDA-Center for Veterinary Medicine and voted by AAFCO into their Ingredient Definition Committee for the final step in the approval pathway.

The definition allows hemp seed meal up to 20% into feed mixes for laying hens. This marks the first hemp feed ingredient to get federal recommendation and uptake by AAFCO.

Wendy Mosher, CEO at New West Genetics and vice president of Hemp Feed Coalition, says this is something that has been in the works for at least four years.

“There’s a lengthy process for any new crop to get ingredient approval, but it’s worth it, you can’t have commodity crop without a feed opportunity for that crop,” Mosher says. “Federal approval gives us a leg up into adoption and scale.”

Mosher says before deregulation in 2014, hemp acres were zero, then by 2020, climbed to a peak of around 400,000 acres. Today, total U.S. hemp acres are reported around 55,000.

“I think this is a positive thing—it shows with the right incentives crops can be expanded rapidly, and that those participants with long term vision are still here, and are building the markets in a sustainable fashion. Hemp is a great opportunity for the crop rotation as well as soil health” Mosher says. “Hempseed meal as a feed ingredient contributes to the risk mitigation of planting the crop—it’s another place for the crop to go.”

As a feed ingredient, the coalition cites hemp grain providing essential vitamins, minerals, healthy oils, and a complete protein profile. For egg production, this can lead to a value-added product with higher omega 3 content. It has been verified that any potential cannabinoid contaminants do not transfer into the egg product.

With the regulatory obstacles starting to be removed, Mosher is optimistic about the educational opportunities for the market to increase in size.

“Hemp can serve the same basic protein and oil markets that currently use soybeans or canola,” she says. “Feed manufacturers are seeing success, including Wenger Feeds in Pennsylvania who make hemp feed for Kreider Farms’ eggs. In the next year we hope to get some additional adoption by some larger players.”

Mosher highlights her company, New West Genetics, has been developing improved hemp varieties to double grain yield.

“We’ve got momentum in hemp as we are providing high yielding and adapted genetics for hemp production in the U.S., and the industry is also near the finish line on this feed approval,” she says. “It’s a moment we’ve been waiting on for 10 years. In the not so distant future, we hope to see hemp on the million acre scale.”

Why You Need to Pay Attention Now to EPA’s Proposed Rodenticide Mitigation Measures

Fri, 27 Sep 2024 01:18:52 GMT

Out of sight, out of mind. That theory works for a while until it doesn’t, especially when it comes to rodent control.

“Rodenticide use is like using insecticides. If you don’t see any cockroaches, you don’t worry about them. But once you see one, you throw the bomb at it,” says Larry Delozier, director of national poultry account sales for QC Supply.

Similarly, once you see a mouse or rat, it’s likely you have a big problem on your hands , explains Steve Von Haden, Midwest business manager for Motomco.

“Always assume you have rodents, and you should be putting bait out,” Von Haden says. “All agricultural buildings or structures will have rodents of some type. You just don’t want it to get to such high peaks it causes structural damage, diseases and contamination of food sources .”

Pending regulation could mean agriculture loses critically important tools to protect food security. EPA is proposing significant changes to rodenticides that would result in the canceling of products and uses, add more requirements to the labels, and reclassify some products to restricted use pesticides .

“Regardless of whether you are a livestock producer or citrus grower or manager of a golf course, this will have an impact on your ability to effectively manage a destructive farm pest,” says John Walt Boatright, director of government affairs at American Farm Bureau Federation (AFBF). “It’s one more challenge in a regulatory environment where challenges continue to grow for the American producer.”

What is EPA Proposing?

On Nov. 29, 2022, the EPA released for public comment new proposed mitigation measures for 11 rodenticides, which if implemented, will have a major impact on all currently available rodenticide products, the Agricultural Retailers Association (ARA) said on its website . The agency’s proposals are the most significant changes to rodenticides in 15 years that will result in the canceling of products and uses, add more requirements to the labels, and reclassify some products to restricted use pesticides, ARA noted.

EPA’s recommended changes are included in four Proposed Interim Decision documents (PIDs) that cover: 1) the seven anticoagulant rodenticides; 2) bromethalin and cholecalciferol; 3) strychnine; and 4) zinc phosphide.

“EPA’s proposal is quite wide-ranging, and it is going to impact any user of rodenticides and how rodenticides are applied,” Boatright explains. “The challenge is many of EPA’s proposed mitigation measures introduce additional challenges for on-farm application. I don’t know that they will have the intended effect that EPA thinks they’ll have.”

Boatright says this should be very concerning for everyone in the agricultural supply chain who apply rodenticides. Michael Formica, chief legal strategist for the National Pork Producers Council (NPPC), says it will also have a negative impact in urban areas where rodent infestation is a major problem.

“This is an example of one area where rural communities can build positive engagement and cooperate with urban communities. As much as rats and rodents are pests on the farm, they are even more so in an urban area,” Formica says. “In the back alleys in DC, you see rats that look like cats racing from one building to another, running around at night. People don’t want to live with them.”

And they shouldn’t have to, Delozier says. Rodent control companies have made effective, safe bait under EPA’s existing stringent restrictions. EPA’s proposed measures will add great cost and will likely be prohibitive for many.

What Does This Mean for Farmers?

If this proposal is enacted, rodenticide users will see many new restrictions.

“The average livestock farmer wouldn’t be able to use them, you would have to go through certification and training in your state,” Formica explains. “If you’ve got a row crop or grain operation, a lot of folks have that certification because they spray pesticides. But most livestock farmers don’t have all those different certifications.”

Certifications would be required annually, which takes a lot of time, paperwork and training.

“If you don’t have that certification, you would need to hire exterminators to come out. That’s expensive and creates its own biosecurity problem because you’re having people come out not just to apply the rat poison, but also pick up the dead rats,” Formica says.

Pick up dead rats? Yes, that’s part of the new measures, too.

“The proposal talks about mandatory carcass searches in the field. That seems to be quite a challenge to expect a farmer or a farm worker to stop what they’re doing and search for rodent carcasses in potentially hundreds or thousands of acres,” Boatright says.

Once the rodent carcasses are found, farmers would be required to not just log them, but also pick them up and dispose of them.

Another limitation of these measures includes the requirement of single-use base stations, which would create a lot of garbage, Formica adds. The bait stations being used today are refillable.

What Will Happen if Rodent Bait Goes Off the Shelves?

“The more regulation you put on farmers, the more resistance you will have and that’s not conducive to the economic engine that is farming and food in the U.S.,” says Mike Slegl, vice president of product sales for QC Supply.

Farmers aren’t misusing product with the intent of controlling other things, Slegl adds. Some believe EPA is rushing to do this because of pressure from environmentalists for Endangered Species Act concerns.

“There is a potential major negative impact of an additional EPA regulation on the true sustainability of livestock production and the livelihood of farms,” Slegl says. “If it’s one more forced hand that overnight becomes more expensive to something they’re already doing, there’s going to be major resistance and people will push towards non-compliance.”

Delozier fears EPA’s rodenticide mitigation measures will ultimately increase the cost of goods to the consumer.

“Whenever we add requirements, there is always a cost that goes into the food system and will eventually cost the consumer more, too,” Delozier says. “Farmers are already using rodenticides that have to be EPA-approved.”

Darrin Karcher, a poultry specialist and associate professor at Purdue University, says it could be a double-edged sword.

“With the larger integrated companies, if they have to pay someone else to do it, they will pay someone because it has to be taken care of. Where it may catch are those individuals doing it themselves who may not have financial depths to pursue having other people take care of application,” Karcher says. “The question becomes, can they find a way to do that?”

An Increased Biosecurity Risk

And what if they can’t? Rodents present a major biosecurity risk for farms. With devastating diseases like Highly Pathogenic Avian Influenza (HPAI) in the poultry industry and the threat of deadly foreign animal diseases like African swine fever (ASF) in the pork industry, leaders fear how this could impact the health of the nation’s livestock herds.

“The restricted-use pesticide designation concerns me,” says Matthew Galloway, Midwest sales manager for ag rodenticides with Liphatech Inc. “For the broiler and breeder side of the poultry industry, there are hundreds of thousands of barns all over the U.S. One contract grower often has four or five barns and there may be several thousand barns within each company. If farmers don’t get their license, they will have to hire an outside applicator. Then you run into the risk of biosecurity breaches. We can’t have applicators running through multiple farms over a week’s time, otherwise we’ll really see a massive problem.”

It’s also a major problem if rodents get out of control because farms can’t afford the added cost.

“You can put all the filters you want on the ventilation systems in your barns and be as biosecure of a facility as possible, but if rats can get in and out, they will find a way. They aren’t showering,” Formica says.

What Can You Do?

Every 15 years, pesticides are reviewed by EPA. This rodenticide review is part of a pilot project for EPA as they’re implementing their Endangered Species Act work plan. These mitigation measures seek to achieve compliance with their statutory directives at EPA, following recent court cases directing EPA.

“We will see this approach in reviewing other pesticides as well. Folks need to be prepared to provide input,” he says.

This is a proposed interim decision, Boatright explains. EPA will take comments through Feb. 13 and review them. They will then promulgate a final rule at some point in the future.

“Make your voice heard,” Liphatech’s Galloway says. “We’ve got to do everything we can. Submit comments to EPA.”

Both NPPC and AFBF are gathering feedback and information from its members and will be submitting comments to EPA by the Feb. 13 deadline.

“Weigh in and let elected officials know you value these products. The best thing you can do is call your member of Congress. We’re just coming out of three years of COVID, and there are tremendous human health issues of taking rodenticides off the market,” NPPC’s Formica says.

Read more about the rodent problem.

Cargill Internal Memo Describes Structural Overhaul to Streamline Company

Fri, 09 Aug 2024 13:03:30 GMT

Global trading house Cargill will undergo structural changes after missing internal earnings goals, with plans to streamline operations into three units instead of five, according to an internal company document seen by Reuters and two company sources.

Agricultural merchants like privately held Cargill are facing challenges as prices of the commodity crops they trade approach four-year lows and crop processing margins have fallen.

“Our recent performance and the market trends unfolding in front of us have proven a clear and pressing case for change,” the memo sent to staff by Cargill CEO Brian Sikes on Wednesday read.

Beginning Sept. 1, Cargill will transform from five enterprises into three: Food, Ag & Trading and a Specialised Portfolio, the memo said.

A Cargill spokesperson said in a statement to Reuters the company has laid out a clear plan to evolve and strengthen its portfolio. The spokesperson gave no specifics.

Cargill’s competitors Archer-Daniels-Midland and Bunge Global recently missed Wall Street estimates for second-quarter earnings. Cargill does not publicly release quarterly earnings statements.

The memo said less than a third of Cargill’s businesses met their earnings goal in fiscal year 2024.

“We will reduce our costs and optimize our capital investments,” the memo said, promising to “streamline and simplify the organization.”

Jon Nash, currently head of Cargill’s protein and salt enterprise, will lead the new Food enterprise while Roger Watchorn, who is leading the agricultural supply chain, will become the head of Ag & Trading, the document showed.

David Webster will head the new Specialized Portfolio.

The new Food enterprise will combine Food & Bio and Protein & Salt teams, while Cargill Risk Management and Metals will be moving into the new Ag & Trading enterprise.

“At our core, we will always been a food and ag company. As such, these two enterprises are highly interconnected and will be supported by an independent operating system that builds our deep expertise, connections across the supply chain, and unique position at the heart of the global food system,” the memo read.

Specialised Portfolio will largely focus on Animal Nutrition & Health.

The U.S.-headquartered trading house has recently seen movement of senior executives.

Paul Ruston, Cargill’s metals trading lead, will leave the firm at the end of August and another Cargill veteran, Ross Hamou-Jennings, will retire at the end of this year as Asia-Pacific chair and enterprise leader for financial services and metals (FSM).

Julian Chase will also retire by late December from his role as head of Cargill’s Business Operations and Supply Chain, according to the memo.

(Reporting by Amy Lv and Naveen Thukral; Editing by Caroline Stauffer and David Gregorio)

Tyson Foods Tops Quarterly Estimates as Demand Rebounds, Costs Begin to Fall

Mon, 05 Aug 2024 13:45:52 GMT

Tyson Foods surpassed Wall Street expectations for third-quarter revenue and profit on Monday, indicating that demand was rebounding for its meat products, while lower grain prices reduced costs for animal feed.

After sales declined in 2023, Tyson Foods is now starting to see some of its customers return to stores to purchase its products as higher costs of dining out push people to cook more meals at home.

The U.S. meat packer’s net sales rose 1.6% to $13.35 billion in the quarter, compared with analysts’ estimates of $13.24 billion. It continues to expect full-year revenue to be flat compared to fiscal 2023.

The company’s beef segment - its largest - saw volumes up 4.4%, building on the last quarter’s growth of 2.8% that was driven by higher average carcass weights. Prices in the segment also rose to 1.4% as it continued to grapple with limited cattle supply.

Still, sales in Tyson’s chicken segment - which struggled with an excess of supply during 2023 - were down 3.2% in the quarter, while prices also dropped 3.7%.

Previously, Tyson said it had lowered production to align its supplies with consumer demand.

Similarly, while its pork segment reported a 10.4% rise in quarterly sales, its volumes increased only by 1.2% that were sequentially lower than 2.9% seen in the second quarter, when the company saw more hog supplies.

Meanwhile, Tyson Foods has also undertaken a vigorous cost-control plan under which it has sold off a poultry facility, shuttered six U.S. chicken plants, said it would close a pork plant and had cut jobs to grow profit margins.

Lower grain prices and raw material expenses have helped Tyson Foods post adjusted earnings of 87 cents per share, topping estimates of 65 cents.

(Reporting by Granth Vanaik in Bengaluru and Tom Polansek in Chicago; Editing by Maju Samuel)
Tyson Foods tops quarterly estimates as demand rebounds, costs begin to fall

Poultry Line Speed Lawsuit Dismissed Against USDA

Fri, 27 Sep 2024 16:13:50 GMT

A U.S. District Court judge for the Northern District of California, San Francisco Division, dismissed a lawsuit filed four years ago against the USDA regarding its decision to increase line speeds at poultry plants.

Originally filed on Feb. 25, 2020, the complaint by the Humane Society of the United States, Animal Outlook, Mercy for Animals, Government Accountability Project and Marin Humane alleged USDA implemented line speed changes without providing time for legal notice and time for public comment.

The USDA’s Food Safety and Inspection Service (FSIS) introduced a waiver system in 2018 to permit poultry processors participating in the New Poultry Inspection System (NPIS) to operate line speeds exceeding 175 birds per minute.

USDA argued the plaintiffs lacked standing as the 2018 decision was not reflective of the agency’s final action. The 2018 waivers were terminated and modified waivers were allowed under new criteria in 2022.

The court dismissed the complaint with leave to amend. The plaintiffs must file any amended complaint within 21 days. If the plaintiffs do not amend the complaint, the court will enter judgment in favor of the defendants.

More Help Available for Meat and Poultry Processors

Thu, 24 Aug 2023 21:26:43 GMT

USDA is making more funding available for meat and poultry processors to expand operations, transform the food supply chain and create new and better markets for producers, announced USDA Rural Development Acting Under Secretary Roger Glendenning on Aug. 24.

This funding advances President Biden’s commitment to grow the economy from the bottom up and middle out by creating good-paying jobs and opportunities in every community, USDA said in a release .

“The Biden-Harris Administration and USDA are committed to transforming our food system to one that creates new markets for our small and mid-sized farming and ranching operations while protecting opportunity in our rural communities for generations to come,” Glendenning said in a release. “The funding we’re making available today to meat and poultry processors will not only give producers more options, but also create good paying jobs and build greater resilience in our overall food system.”

USDA will partner with the New Hampshire Community Loan Fund to make $123 million in grants available through the Meat and Poultry Processing Expansion Program. The Meat and Poultry Processing Expansion Program provides grants to help eligible independent processors to expand their capacity. USDA Rural Development designed the program to encourage competition and sustainable growth in the U.S. meat processing sector and to help improve supply chain resiliency.

The program is part of a series of actions the Biden-Harris Administration has taken to promote a “fairer, more competitive and more resilient meat and poultry supply chain,” USDA said in a release.

The grants will help independent businesses build and modernize processing facilities and equipment, adopt new technologies and train workers, among other activities. Eligible projects may receive grants from $250,000 up to $10 million. Successful applicants must be able to cover 70% of their total project cost.

Applications must be submitted through Grants.gov by 11:59 p.m. ET on Nov. 22. Learn more about details on eligibility and requirements.

Tyson Will Close Four Chicken Plants Next Year

Mon, 07 Aug 2023 21:34:43 GMT

Tyson Foods missed Wall Street expectations for third-quarter revenue and profit on Monday, hurt by falling chicken and pork prices as well as slowing demand for its beef products.

Shares closed down about 4% Monday after earlier falling nearly 10% as the company said it is evaluating all operations and closing four more U.S. chicken plants in the latest bid to reduce costs.

“We are looking at everything in terms of how it works across the board,” CEO Donnie King told analysts on a call.

Meat companies that reaped big profits as prices soared during the COVID-19 pandemic are now adjusting to lower prices and reduced demand for some products. Pilgrim’s Pride (PPC.O), one of the world’s largest chicken producers, also saw sales decline from last year in the latest quarter.

Tyson has already cut corporate jobs and shuttered other chicken plants this year as it grapples with declining profits and reduced demand from consumers squeezed by inflation and higher interest rates.

“It was another challenging quarter for Tyson, as the macro backdrop remains unfavorable for commodity protein processors,” said Arun Sundaram, analyst for CFRA Research.

Tyson expects the four chicken plants to stop operating in its first two quarters of fiscal 2024, with charges of $300 million to $400 million.

Last year, the company wrongly predicted demand for chicken would be strong at supermarkets in November and December, King has said. In January, Tyson replaced the president of its poultry business.

“If you look at the chicken business today versus where we were just a quarter ago, there are more tailwinds than headwinds in the chicken business in the near to long term,” King said Monday.

Cell-Cultured Chicken Gains Final USDA Approval

Thu, 22 Jun 2023 17:06:00 GMT

USDA’s Food Safety and Inspection Service has given final approval to three California-based cultivated meat companies. USDA announced Wednesday it issued grants of inspection to Upside Foods, Good Meat and Good Meat’s manufacturing partner, Joinn Biologics. The companies may begin producing and selling lab-grown chicken.

Earlier this month USDA approved Good Meat’s and Upside Foods’ labels to include the term “cell-cultivated chicken” for packaging. Last fall the Food and Drug Administration declared a meat product developed by Upside to be safe for human consumption, paving the way for products derived from real animal cells, but that don’t require an animal to be slaughtered, to be sold in grocery stores and restaurants.

An FSIS spokesperson told Alt-Meat, a Meatingplace publication, “FSIS thoroughly reviews every application for a grant of inspection. Applications are approved following a rigorous process, which includes assessing a firm’s food safety system. After an establishment receives a grant of inspection, FSIS conducts inspection activities at the facility at least once per shift to verify the production of safe and properly labeled product.”

Upside plans for its products to be first available at a restaurant: Bar Crenn in San Francisco. Good Meat will also debut in restaurants, with acclaimed chef José Andrés ready to serve it at one of his dining rooms in Washington, D.C., according to the Washington Post.

While the products may appear on restaurant menus, it may be years before these companies are ready to supply products to regional grocery store chains that can compete on price with traditional animal agriculture products.

Egg Prices See Largest Monthly Drop in 72 Years, But Still Aren't Back to Normal

Tue, 13 Jun 2023 20:20:35 GMT

Egg prices have sent shoppers on a rollercoaster this year. May’s CPI shows inflation slowed, but food prices, housing prices and the cost of used vehicles are all attributing to current inflation.

The most sizable drop came with egg prices. The CPI shows egg prices now average $2.66 per dozen, which represents the following changes:

13.8% lower month-over-month
That represents the largest monthly decline since January 1951
Year-over-year, prices are only down 0.4%

Before shoppers get too excited, some historical perspective shows egg prices are still higher than average. A decade ago, egg prices were $1.91 per dozen. Even in 2020, egg prices were lower, averaging $1.51, which is more than $1 lower than what grocery shoppers are paying today.

While the sudden decline may seem like shoppers are getting a bargain, it’s similar to what drivers experience with gas prices. When prices for a gallon of gas go from $2 to $4, then come back down but only to $3, it feels like prices are much cheaper, when in reality, prices are still higher than they were before the rapid spike.

Why Did Egg Prices Spike Higher Earlier This Year?

According to economists, the rapid rise in egg prices was a function of supply and demand . In January, avian influenza caused U.S. egg producers to lose more than 50 million birds, many of those being commercial laying flocks. Couple that with high holiday demand for things like baking, and the two factors clashed to create higher prices at the store.

“We’ve had a significant reduction in supply from depopulation this spring and again in the fall and winter,” Lusk told AgWeb in January. “Couple that with inelastic demand for eggs, and you get the price spikes we’re seeing.”

Expensive Eggs Ate Into Bacon Demand

The CPI shows the price of bacon and related products fell 9.8% year-over-year. It’s also a 1.4% decline in a month. Prices may be on the decline, but one livestock economist thinks it’s possible the high egg prices also caused shoppers to buy less bacon.

During World Pork Expo last week, Steve Meyer of Partners for Production Agriculture, explained why he has a bleak outlook for the pork producers’ profits this year . One reason is demand. Meyer also explained it’s not just due to the 35% spike in input costs compared to 2019, but also lower hog prices.

Part of the problem is a decline in domestic demand, which is driven by wholesale demand, among four other factors. One of those four is the price of complementary goods, like eggs. As the rapid run-up in egg prices caused some shoppers to scale back on buying as many eggs for breakfast, that decision also hurt bacon demand and prices, as well.

The Real Winner of the 2023 Egg War

Higher egg prices did bode well for backyard flocks. More Americans decided to try their own hand at raising a backyard flock, and as a result, chicken suppliers like Tractor Supply cashed in.

According to Forbes, Tractor Supply , which is America’s largest seller of live poultry, could top the all-time record set in 2020. During the pandemic, more people had time at home, and Tractor Supply reportedly sold 11 million birds. This year, Tractor Supply’s foot traffic jumped 60%.

Tractor Supply also acquired Orscheln Farm and Home this year. The announcement came last fall, but the transition took place this year, adding more than 80 stores under the Tractor Supply brand. Last year, Tractor Supply’s CEO said the acquisition means Tractor Supply would now have more than 2,100 stores and 50,000 employees. The company also projected an excess of $14 billion in annual revenue.

If You ‘Doctor’ Livestock, a New Rule Will Determine How or If You Can Buy Antibiotics

Fri, 09 Jun 2023 20:24:27 GMT

A move by the U.S. Food and Drug Administration (FDA) will soon change the status of “medically important” antimicrobial drugs currently available over-the-counter (OTC) to prescription (Rx) use only.

The FDA guidance for industry #263 goes into effect on June 12, 2023.

If you have a valid veterinary-client-patient relationship (VCPR), you will be able to get a prescription from your veterinarian to purchase antimicrobials from them or a distributor and use them, according to the FDA. Antibiotics are one category of antimicrobials.

If you don’t have a relationship with a licensed veterinarian, you won’t be able to purchase such products, many of which have long been available over-the-counter at your local co-op and farm supply store.

What Animals, Which Products?

The guidance applies to all food animals, including cattle, hogs, ruminants (goats/sheep) and poultry. In addition, it also applies to animals not intended for food, such as horses, pet rabbits and backyard chickens.

Products affected by the guidance include injectables such as penicillin, sulfa-based drugs, boluses, intramammary mastitis tubes and some topical products. Common brand names for some of the products include LA-200, Bio-Mycin and Terramycin, among others.

All such products will be available for your use on the farm through purchase from your veterinarian or with a veterinary prescription.

Why The Guidance Is Going Into Effect

Veterinarians are working to get the word out to farmers now to help them prepare and make a smooth transition next summer, says Sandra Stuttgen, a veterinarian and associate professor at the University of Wisconsin Division of Extension.

She says FDA’s ultimate goal is to keep antimicrobials effective for both human and animal health -- termed the One Health Initiative by the World Health Organization -- and prevent resistant bacteria from making such products ineffective.

According to the Centers for Disease Control and Prevention (CDC), in the United States alone, at least 2 million people become infected annually with bacteria that are resistant to antibiotics. At least 23,000 people die each year as a result of these infections. The non-therapeutic use of antimicrobial drugs in animals that enter the food supply contributes to this problem, the CDC says.

The FDA supports judicious use of medically important antimicrobials in all settings. “Labeling changes as a result of GFI #263 are one example of how we can assist farmers and ranchers to strengthen their stewardship efforts when using these drugs,” FDA notes. (Learn more here: GFI #263: Frequently Asked Questions for Farmers and ... - FDA )

Some products will remain available for purchase over-the-counter, according to University of Nebraska’s Becky Funk, DVM, and Jesse Fulton.

They say some antiparasiticides, injectable and oral nutritional supplements, oral pro/prebiotics and topical non-antibiotic treatments will not be affected and will remain available through OTC marketing channels just as before.

Next Steps To Take

If you have an existing relationship with a veterinarian, you’re unlikely to notice much of an impact on your livestock management practices.

If you don’t have a veterinarian start talking with local practitioners and establish a relationship with one now, Stuttgen encourages.

“The veterinarian gets to know you and your (animals), and you can sit down with them to write standard operating procedures and routine drug orders so you can have an inventory on your farm,” she says. “So when Sunday afternoon happens and the (animal) gets sick, you don’t have to call the vet to come out, because you already have the relationship in place.”

Tyson Foods to Eliminate 10% of Corporate Jobs, 15% of Senior Leaders

Thu, 27 Apr 2023 16:15:47 GMT

Tyson Foods Inc will eliminate about 10% of corporate jobs and 15% of senior leadership roles, Chief Executive Donnie King told employees on Wednesday.

The layoffs are the latest cost-cutting move for the biggest U.S. meat company by sales as it grapples with declining profit and struggles to improve results in its iconic chicken business.

Discussions with most affected employees are slated to take place this week, King said in a memo to employees seen by Reuters. Shares closed 1.1% lower at $60.35 on Wednesday.

“We will drive efficiency by focusing on fewer initiatives with greater intensity and removing duplication of work,” King said.

Tyson had about 6,000 U.S. employees working in corporate offices as of Oct. 1 and 118,000 workers at non-corporate sites such as meat plants and warehouses, according to regulatory filings.

The eliminated roles in senior leadership are mostly vice presidents and senior vice presidents, a company spokesperson said.

Some corporate employees already quit after Tyson said in October it was relocating all corporate jobs to its headquarters in Springdale, Arkansas. The 10% reduction in corporate roles is not due to employees leaving the company rather than relocating to Arkansas, a spokesperson said.

A recent overhaul in Tyson’s executive leadership left some investors and analysts nervous.

The company fired Chris Langholz as president of its international business in August. In September, Tyson said Noelle O’Mara, who led its prepared foods division, had left the company. John R. Tyson, great-grandson of the company’s founder, took over as finance chief.

“The frequent changes in the leadership team over the past few years suggest that there are inefficiencies within the corporate offices,” said Arun Sundaram, senior equity analyst at CFRA Research.

In January, Tyson replaced the president of its poultry business after the company wrongly predicted demand for chicken.

The company has struggled for years to improve results in its chicken business and said in March it will close two U.S. processing plants with almost 1,700 employees.

Meatpackers generally increased pay for plant workers during the pandemic. Now they face declining operating margins and must increasingly compete to buy livestock to run plants at full slaughtering capacity, analysts said.

“Margins fall apart like this and it’s like, we’re really bleeding now,” said Bob Brown, an independent livestock market expert.

Tyson’s adjusted earnings of 85 cents per share in the quarter ended Dec. 31 were down 70% from a year earlier. The company is set to report its next quarterly results on May 8.

(Reporting by Tom Polansek in Chicago Editing by Matthew Lewis)

USDA Awards $2.29 Million in Farm Bill Funding to Protect Animal Health

Fri, 21 Apr 2023 20:46:16 GMT

USDA Animal and Plant Health Inspection Service (APHIS) is awarding $2.29 million through the National Animal Health Laboratory Network (NAHLN) Farm Bill program to advance APHIS’ animal health preparedness. The 2018 Farm Bill provided funding for this program as part of an overall strategy to prevent animal pests and diseases from entering the United States and reduce the spread and impact of potential disease incursions.

“NAHLN funding is vital to safeguarding the nation’s food supply against threats posed by animal diseases, especially ones of foreign origin. Pork producers are focused on the 2023 Farm Bill and urge continued funding for the critically important ‘three-legged stool’ of animal health, including NAHLN, the NAVVCB (‘vaccine bank’) and NADPRP. Continued funding for NAHLN is necessary to enhance animal health diagnostic testing for both endemic and high-consequence pathogens in the nation’s livestock and poultry. These laboratories are the first line of defense for detecting animal diseases and pathogens,” the National Pork Producers Council told Farm Journal’s PORK.

NAHLN, a network of federal, state and university-associated veterinary diagnostic laboratories that provide ongoing disease surveillance, responds quickly to disease events; communicates diagnostic outcomes to decision makers; and has the capability and capacity to meet diagnostic needs during animal disease outbreaks. Since it started, NAHLN has grown from 12 AAVLD laboratories to 60 AAVLD laboratories throughout the U.S. capable of testing large numbers of samples for specific disease agents.

“These Farm Bill funding awards will strengthen our ability to carry out our strategies for animal health emergency preparedness and better safeguard our agricultural industry,” Jenny Lester Moffitt, Under Secretary for USDA’s Marketing and Regulatory Programs, said in a release. “The more prepared we are to protect our agricultural commodities, the safer the food supply is for Americans and the rest of the world.”

NAHLN funding supports critically important projects focused on increasing capacity for disease testing through stockpiling efforts, enhancing data management through IT standardization, and increasing high-throughput testing with the addition of diagnostic testing instruments and technical expertise in laboratories, USDA notes.

“Should foreign animal disease strike, these laboratories are the first line of defense in swiftly diagnosing and detecting the extent of the outbreak to limit the impact on producers,” USDA says in the release.

More from Farm Journal’s PORK:

From ASF to COVID: How NAHLN Protects Animal Agriculture

Tyson Foods Plant Closure Raises Antitrust Concerns Among U.S. Farmers and Experts

Fri, 24 Mar 2023 15:10:08 GMT

Tyson Foods Inc gave its chicken suppliers two months’ notice of its plan to shut a Virginia processing plant in May, raising concerns among farmers and legal experts about the company’s compliance with antitrust regulations requiring it to give 90 days’ notice before ending a contract.

The planned closure of the plant has left dozens of Virginia chicken growers scrambling to find new buyers in a region with few other options. It could also expose Tyson to fines under the century-old Packers and Stockyards Act (PSA), the U.S. antitrust law requiring the minimum advance warning, according to Peter Carstensen, a professor of law emeritus at the University of Wisconsin-Madison Law School who previously served in the antitrust division at the U.S. Department of Justice.

Tyson told Reuters the company is not canceling any farmers’ contracts and instead has committed to paying the growers for the full-term of their remaining contracts, keeping in compliance with federal regulations.

Antitrust issues, particularly in meatpacking, have been a priority for the U.S. Department of Agriculture (USDA) under President Joe Biden, who in 2021 directed federal agencies to tackle consolidation. Four companies, including Tyson, control 55% to 85% of the beef, pork, and chicken markets.

Tyson alerted Virginia farmers by phone on March 13 and later by mail that it will shut its Glen Allen plant on May 12, according to three poultry farmers who supply the plant. The company said there are 55 farmers with 73 contracts who supply the plant with chickens raised for meat.

Tyson owns chickens it slaughters and pays the farmers to raise them. The company hatches baby birds and trucks them to farmers. The farmers then raise the birds for about six weeks, until they reach the size to be slaughtered and are trucked to the processing plant.

Tyson spokesperson Alicia Buffer confirmed farmers received notice last week of the May 12 closing, and said Tyson intends to stop supplying them with chicks after March 28.

She said that instead of canceling their contracts, Tyson is offering farmers a voluntary buyout package, or the option to retain them and be paid through their duration.

The three farmers interviewed by Reuters have between three and 10 years left on their contracts.

Farmers told Reuters they felt pressure to accept the buyout option because they were not sure how the contract could remain in force after the plant is shut and the chicks stop coming.

Roger Reynolds, a farmer in Crewe, Virginia, said retaining his July 2012 contract with Tyson is not a viable option, in part because it would prevent him from selling to another poultry company if one entered the region.

Another farmer with a contract to supply the plant, who asked not to be named, said they may eventually have to sell their third-generation farm as the buyout offer would not cover long-term expenses like property taxes.

Carstensen, of the University of Wisconsin-Madison Law School, said it was unclear if Tyson’s approach would absolve it of its requirement to provide farmers 90 days’ notice before ending a purchase contract, because closing the plant means it won’t be processing chickens there anymore.

PSA violations can carry a $29,270 fine, according to the USDA website, and Carstensen said fines could apply for each contract.

The USDA, which enforces the PSA, told Reuters it is “closely monitoring” Tyson’s planned plant closure.

‘WE’RE DONE’

Under normal circumstances, Tyson supplies farmers with chicks, while farmers assume the costs of land and chicken houses.

Documents reviewed by Reuters show the company’s proposed buyout package offers payment to farmers based on their average payment per flock in 2022.

They also show that farmers opting to retain existing contracts instead of accepting the buyout would have to meet Tyson’s contractual requirements for their facilities even after the company stops providing chicks.

Tyson said those growers would have to perform “routine and preventive maintenance” to meet contract requirements and called the options generous.

Farmers must choose between the options by the end of March, according to the document.

On Monday, about 20 Tyson farmers and local government officials gathered in a fire station in Burkeville, Virginia, and raised concerns about Tyson’s short timeline for closure of the plant, attendees said.

Taylor Lee, a farmer in DeWitt, Virginia, who attended the meeting, said he built two new chicken houses in 2017 and raised about 400,000 birds annually for Tyson, and is unclear what will happen to his investment.

“When we’re done growing chickens (for Tyson), we’re done, unless somebody else steps in,” Lee said.

The nearest chicken plants to Glen Allen are 100 to 150 miles away, outside the ideal radius of 60 miles, said Hobey Bauhan, Virginia Poultry Federation president. Longer distances hike transportation costs and health risks to chickens.

(Reporting by Leah Douglas in Washington and Tom Polansek in Chicago; editing by Richard Valdmanis and Nick Zieminski)