In The News This Month – July 2021




Summer is flying by, and retailers are beginning to be inundated with back-to-school shoppers. Parents Pinterest pages are filling up with packed lunch ideas, while some are dreading the task altogether. In the spirit of preparing packed meals for both a return to school and a return to the office, it was great to see headlines about eggs’ unique qualities benefitting consumers of all ages. After all, eggs are one of the most affordable sources of animal proteins, not to mention they make a quick and easy lunch. It makes sense then, that the global average annual consumption of eggs has risen to 180 eggs per person.

Companies continue to make the pledge to go 100% cage free in the coming years. The newest to make headlines is Krispy Kreme. The company recently stated they are on target to convert 100% of U.S. Branded Sweet Treat products to cage-free by the end of 2021 and globally by 2026. However, many are saying there is a lack of transparency amongst these companies on how they plan to reach this goal. It’s also been predicted that the cage-free conversion will slow down in 2021. Many still believe that because of the number of birds that need to be switched to cage-free, the costs associated, and the time frame, it is financially and logistically impossible.

Topping the headlines again this past month, we’re hearing more and more about technological advancements within the poultry industry. Cargill recently entered into an agreement to distribute a new broiler management technology that integrates data capture, data management, and artificial intelligence. Robbie Moody, poultry commercial director at Cargill, recently stated that “digital has become an essential part of the solutions we use to add value for our customers”. Cargill partnering with companies like Intelia means building an ecosystem of digital offerings that will provide valuable insights for the way we make future business decisions. I see similarities in what we do at Aeros today. We’ve partnered with many 3rd party software providers to build an innovative infrastructure for our customers.

In concluding this month’s editorial there was no way I could ignore an article featured in WattPoultry last month. I have tried to ignore the craze of TikTok as much as possible, but sadly I’ve been sucked in like the rest of us! Now, it sounds like Chicken brands should be paying attention to the social media platform. #Foodtock became hugely popular during the pandemic because everyone had time to watch videos and wanted a little inspiration when cooking at home. I hope to see more brands throughout the industry use this as a marketing platform. I’m no chef, but I have been inspired by some of these videos and the family has benefitted.


Monica Lizar

Account Manager

Aeros, a Cultura Company


Feed and Grains:

Drought worsens for the Northern Plains and Upper Midwest

USDA’s National Drought Monitor for the week ending July 27 showed ongoing deterioration in western and northern areas of the Corn Belt, with little change in the eastern Belt outside of some drought improvement in northern Wisconsin and central Michigan.

Today’s summary update says, “another round of blistering heat across the northern Plains further stressed rangeland, pastures, and a variety of summer crops. The central and southern Plains also experienced some hot weather, although agricultural impacts were tempered by mostly adequate soil moisture reserves.”

Read full article here


Will History Repeat Itself?

The first time corn saw a “7” in front of its price was due to the pseudo energy policy that created the ethanol industry (demand). High prices lasted two months.

The next $7 was caused by crop shortages (supply) in 2011 and 2012. Both corn and soybean prices exceeded those of 2008 — but only for three months. 

Much has changed since 2008 and 2011/12 (global competition, the end of open outcry, etc.). The market seems to have learned from history, and we might witness a repeat.  

Corn prices (old and new crop) topped May 7 this year. Old-crop corn prices spent four months above $7. Continuous corn prices posted a massive reversal on July 14, as September came on at a huge discount. 

Ethanol has been dealt blows via waivers, recent Supreme Court rulings and a negative political environment. 

Corn showed price potential in December 2020 when it broke out of a six-year depressed price base (over-supply). The question of whether China was for real was answered with relentless buying, even in anticipation of 4 million to 5 million more corn acres for the 2021/22 crop year. 

Read full article here


Analysts Say the Major Market Moving Factor Remains the Same into August

Commodity markets closed July with some price weakness, with both corn and soybeans trading down double digits for most of the day Friday. The muted market action came a day after positive prices were posted across the board. And as farmers enter a month where the markets could produce more volatility, the major market moving factor is the same. 

“Weather is the primary driver right now,” says Brian Grete, editor of Pro Farmer. “Anytime you’re into late July or early August, that’s the case. There are some other factors involved, and that’s demand or lack thereof, especially on corn.

“We’re looking at old crop ending or corn exports, not coming in where USDA anticipated they would, and I think that they’ll have to make a downward adjustment in August. Soybean exports, you know, may have to make an adjustment there as well. But we’ll see. The crop year probably isn’t finishing up as strong for exports as what USDA had previously anticipated.”

Read full article here



USDA Weekly Egg Price and Inventory Report, July 28th 2021.

Shell inventory was up by 2.5 percent, following a decline of 2.9 percent last week reflecting decreased demand relative to supply despite restoration of economic activity. Wholesale prices for generics increased over the last three weeks of June into the July 4th weekend but have stabilizing for the past two weeks. Midwest prices for generics are still below breakeven given the combined costs of nest-run, grading, packaging and delivery. Chains spread their purchases and preempted anticipated price rises before the Memorial Day Weekend and did so again before the Independence Day holiday. Industry observers and participants expect buyers to respond only to retail demand in relation to inventories in their DCs and stores. Since the beginning of 2021 generic eggs have been consistently priced at a high level by many chains to maximize margin but this strategy has depressed the volume of sales to the disadvantage of the industry. Market data suggests that chains have manipulated shelf prices for generic white eggs during the past four weeks in response to holiday demand and are not featuring generic Large and Extra large

Read full article here


100% cage-free eggs in US Krispy Kreme donuts by 2022

Krispy Kreme made its original announcement in 2016 to transition to 100% cage-free eggs company-wide. The company website recently stated that they are on pace to convert 75% of their global system and 100% of U.S. Branded Sweet Treat products to cage-free by the end of 2021 and use 100% cage-free eggs globally by 2026. The information can be referenced in the responsible sourcing commitment released on the company website. 

Krispy Kreme ranks in the top 50 largest quick service restaurant chains, with more than 1,400 stores in 25 countries. They are currently operating with cage-free eggs in Russia, the UK, South Africa, and Turkey

Read full article here


Eggs’ unique qualities benefit consumers of all ages

As one of the best quality and most affordable sources of animal proteins, eggs make a major contribution to feeding our growing world population from infancy through to retirement.

Since 2000, the global production of eggs has risen from 51.12 million metric tons (MT) to 83.48 million MT, an increase of 63.3%, far outpacing global population growth (+25.6%) over the period.  

Annual egg consumption at global level increased over 20 years by about 2.5 kg, or an additional 42 eggs per person, reaching the global average annual consumption of 180 eggs per person.  

 Growth has not been uniform across the globe, however. In Colombia, since 2000, egg production has increased by 123% while the country’s population grew by only by 29%, resulting in an additional 127 eggs per person per year. For the same 20-year-period, Ethiopia was able to provide just for one extra egg per person.

Read full article here 



Cargill, Intelia partner on broiler management technology

Cargill has entered into an agreement to distribute a new precision broiler management technology that integrates data capture, data management and artificial intelligence to help maximize bird health and well-being and enhance decision-making at the flock level.

“Digital has become an essential part of the solutions we use to add value for our customers. Automated data collection, data aggregation, and predictive analytics empower producers to know what decisions to make when to improve efficiency and profitability,” Robbie Moody, poultry commercial director at Cargill, said.

“With innovative partners like Intelia, Cargill is building an ecosystem of digital offerings that allow broiler producers to model complex scenarios to know what will happen in the future by adopting certain action plans today.

Read full article here 


Chicken brands should look to TikTok for inspiration

Consumers overwhelmingly looked to social media platforms like TikTok for menu inspirations during COVID-19 and this trend is expected to continue post-pandemic, providing an opportunity for chicken brands to reach new customers.

#FoodTok wasn’t developed during 2020. It actually started before the pandemic, but it became hugely popular during 2020 because we all had time to watch the videos,” Leah Beyer, senior advisor, digital communications, global corporate communications, Elanco Animal Health, said at the 2021 Chicken Marketing Summit.

The social platform features short, easy cooking recipes that helped make consumers feel comfortable trying a new recipe at home. For example, after one video featuring a feta cheese pasta went viral, sales of feta cheese skyrocketed, resulting in shortages throughout the world. 

“If your marketing departments aren’t paying attention to TikTok, it might be something you at least want them watching,” Beyer cautioned. “If they’re not on TikTok, an easy Google search will show you what’s popular on the social media platform.”

Read full article here 


Broiler Week

Weekly Broiler Production and Prices, July 30th 2021

Chick Placements.

The Broiler Hatchery Report released on July 28th 2021 confirmed that a total of 241.5 million eggs were set during the week ending July 24th 2021, up six percent from the corresponding week of the previous year and 1.7 percent (4.0 million eggs) more than the previous week in 2021.

A total of 177.3 million day-old chicks were placed among the 19 major broiler-producing states during the week ending July 24th 2021. Total chick placements for the U.S. amounted to 186.7 million, one percent less than the corresponding week in 2020 and 0.2 percent (0.3 million) more than the previous week. Claimed average hatchability was 80.1 percent for eggs set three weeks earlier, (80.1 percent for the previous week). Each 1.0 percent change in hatchability represents 2.4 million chicks placed per week with current settings.

Read full article here 



Turkey Week

Weekly Turkey Production and Prices July 30th 2021

Poult Production and Placement:

The July 14th 2021 edition of the USDA Turkey Hatchery Report, issued monthly, documented 26.0 million eggs in incubators on July 1st 2021 (26.0 million eggs on June 1st 2021) and down 6.2 percent (1.7 million eggs) from July 1st 2020.

A total of 21.8 million poults were hatched during June 2021 (20.9 million in May 2021), representing a decrease of 9.1 percent (2.2 million poults) from June 2020.

A total of 20.9 million poults were placed on farms in the U.S. in June 2021, (19.5 million in May 2021), and almost the same as in June 2020. This suggests disposal of 0.9 million poults during the month (1.2 million in May 2021). Assuming the proportion of placements corresponded to the respective numbers of toms and hens reared year to date (55:45) 3.7 percent of June-hatched tom poults (0.4 million) and 4.6 percent of hen poults (0.5 million) were not reared. This is an unsubstantiated estimate with a fluctuating demand for processed toms and hens in a post-COVID affected market.

Read full article here


High feed costs lead to lower turkey profitability

Higher feed costs are leading to lower turkey production and higher turkey prices.

In a WATT Poultry Chat interview, Dr. Thomas Elam, president of FarmEconLLC, reviewed crop condition in the U.S. and relevant market factors for the turkey industry.

Read full article here



NPPC, AFBF challenge of California’s Prop 12 fails

The United States Court of Appeals for the 9th Circuit ruled against the National Pork Producers Council and the American Farm Bureau Federation in their challenge to Proposition 12, a ballot initiative previously approved by Californian voters mandating space requirements for egg layers, veal and swine gestation crates.

Proposition 12 also bans the sale in California of eggs, pork and veal if they are the product of confinement standards that do not comply with California’s space requirements.

To help defend Proposition 12, the Humane Society of the United States, as well as Animal Equality, Animal Legal Defense Fund, Animal Outlook, Compassion in World Farming USA, Farm Sanctuary and the Humane League, intervened in the lawsuit on the side of the State of California.


Read full article here


African swine fever confirmed in Dominican Republic

Detection marks the first time ASF has been detected in the Western hemisphere in 40 years !

The U.S. Department of Agriculture (USDA) said on July 28 that it has confirmed African swine fever (ASF) in pigs in the Dominican Republic, marking the first time ASF has been detected in the Western hemisphere in 40 years.

USDA said its Foreign Animal Disease Diagnostic Laboratory made the confirmation in samples collected in pigs through an existing cooperative surveillance program.

Read full article here



Expanding cattle processing capacity may fall short

Both the U.S. Senate Judiciary Committee and U.S. House Agriculture Committee held hearings July 27 on the current state of the beef supply chain. Although the common talking points of the Big Four controlling 80 to 85% of the processing capacity continued to be shared, a call for a long-term strategy also resonated among Congressional members and those witnessing.

Rep. Dusty Johnson, R-S.D., started off the House Agriculture Subcommittee on Livestock hearing noting that cattle producers are trying to respond to market signals and always seeking, but never finding, equilibrium. Over the last nearly two years, the cattle industry has seen black swan events starting with the Holcomb, Kansas plant fire, COVID-induced shutdowns to the recent cyberattack on JBS.

Read full article here


Biden Expected to Sign Executive Order to Create More Competition in Meat Industry

An expected executive order by the Biden Administration this week could have a sweeping impact on agriculture, including creating a new rule aimed to increase competition in the meat industry and protect livestock producers.

While details of the executive order haven’t been released by the White House, Reuters reported Tuesday that President Joe Biden plans to direct USDA to increase competition in the meat industry by creating a new rule under the Packers and Stockyards Act. The order would reportedly protect livestock producers’ rights by clearing the way for new rules that would make it easier for farmers to sue companies they contract with over unfair, discriminatory or deceptive practices.

“It will help to reform the marketplace and balance the tremendous disparity in power between multinational meat packers and independent family-owned cattle farms and ranchers,” said Bill Bullard, CEO of R-CALF USA . 

Read full article here



Dairy Forum 2022 announced

The International Dairy Foods Association (IDFA) is pleased to announce that registration for Dairy Forum 2022 opens today.

Dairy Forum is back live and in person in 2022 in sunny Palm Desert, Calif. The event will challenge participants with the latest thinking on leadership, policy, technology, people and workforce, economics, and innovation. Dairy Forum is where industry leaders discover NEW ideas first and hear thought leaders share the latest thinking on innovative ways to view business in today’s dynamic marketplace. The event offers fresh perspective from C-suite leaders, thinkers, and influencers on issues that are important to the dairy industry NOW. Dairy Forum inspires industry leaders to focus on NEXT practices that deliver value and innovation in new ways.

Read full article here


International Dairy Foods Association calls on U.S., EU to resolve issue

The International Dairy Foods Association (IDFA) is calling on the U.S. government and European Commission (EC) to quickly resolve a regulatory dispute that threatens the export of dairy ingredients produced in the United States and used to make infant formulas and critical adult nutrition products in European Union member states and other nations. Unless the U.S. and EC resolve the issue in the coming weeks, the supply chain for global infant formulas will be thrown into chaos resulting in product shortages, job losses, and price increases.

Read full article here



Quit The Paper Chase, Go Digital

There is no time like the present to throw off the albatross of “we’ve always done it this way.” The COVID-19 pandemic’s lasting influence is seeing how business can be done a bit differently and definitely more remotely, but the pandemic also spotlighted obstacles and limitations in how ag retailers use data management systems. 

“We need to respect the history of how we’ve done business, but we should focus on what’s the best way—and the most efficient way—to deliver experiences to the grower and how do data and technology play into that. Ag retailers need to have a path in how that plays into your organization,” says Tom Ryan, vice president of business operations and retail alliances at WinField United. 

Ryan says it’s more about how a team uses its tools. He’s seen how the human element relies on technology for work, and through building out internal processes, teams have realized the full benefits on the backend—including freeing up people’s time to work on more valuable tasks than manual data entry and double entry of data. 

Read full article here



It’s time to celebrate a farmer’s best friend–those cattle-herding, chicken-guarding, vermin-controlling canine companions. Enter your dog America’s Best Farm Dog Contest, brought to you by New Holland.

Read full article here



The information in this newsletter is intended to update our readers of current events.  Any third-party publications are presented for informational purposes only and the views presented in such publications are those of the respective authors.  The views therein are not necessarily representative of Aeros or any other CULTURA company’s views on any particular topic.