In The News This Month – May 2023

 

Editorial

The summer season is finally upon us! Memorial Day weekend tends to mark the unofficial beginning of summer. We start to hear all about backyard renovations and the best BBQ recipes. Stores start to pay attention to changing consumer trends. So, what are some of the newest trends that companies should be paying attention to? Reading through this past month’s news, it seems consumers are more cost-conscious, while still being concerned with sustainability, traceability, and growing environmental issues.

If consumers are looking to stretch their dollars further in 2023, this could place chicken in a unique position. At this years Chicken Marketing Summit, events are concentrating on how to best place chicken as the protein for value-driven consumers. Aside from being value driven, consumers are also looking for convenience and ease. A recent article featured on Feedstuffs.com found that the future of grocery shopping is becoming more and more digital. Online sales nearly tripled in 2020 due to the pandemic but remained just as strong throughout 2021 and 2022. In fact, the article stated that 52% of consumers had used a grocery delivery option and 27% had utilized grocery pickup. I know in my family we have truly enjoyed the convenience of both delivery and pickup services offered by our local stores.

I recently came upon this quote by Barb Renner, vice chair and US consumer products leader at Deloitte, LLP and it really resonated with me on how we should view consumers: “The consumer today is more educated than they were even five years ago, but they’re going to be even more educated in the next five years.” The reason consumers are more educated than they were in the past is the vast amounts of information available today and the ease of accessing this information. We are inundated with buzzwords like environmentally friendly, sustainable products, carbon footprint, plant-based, and so many more. But does the average person dive deeper into truly understanding the meaning of these “buzzwords”? For example, the average consumer might think they are being environmentally friendly by choosing the lab-grown meat, but it might be worse than beef. An article from this past month featured a recent study from UC Davis that found lab-grown or “cultivated” meats are worse for the environment and more expensive than conventional beef production.

How is the industry reacting to some of these trends? In short, they’re not happy. In fact, retailers are being urged not to engage in conversations about adopting the Better Chicken Commitment, a leading set of standards for broiler welfare. We highlighted an article from WattPoultry that emphasized how it is actually driving up emissions and undermines other goals that companies are adopting.

We included a lot of stories this month regarding sustainability and environmental issues and how these consumer concerns will impact each industry. Articles like how Prop 12 will lead to an “active black market for pork” in California, and about the pressures the poultry industry faces to reduce its greenhouse gas emissions. As well as more positive stories about how data collection and utilization can lead to improved animal health and performance, while still being sustainable. With all these stories about consumer trends circling what should we really be paying attention to? Morgaine Gaye, a food futurologist, listed the trends she is most excited about in an article featured on WattPoultry. According to Gaye, kindness will be the new commodity, consumers are looking to reconnect, and the way they think about and buy food will be dramatically changing over the next 3 – 5 years. But as we settle into summer, maybe we should just focus on our BBQ recipes and be sure to pick up the new Beer Can Chicken Beer from Perdue Farms. It might just help you grill that perfect beer can chicken this year! 

 

Monica Lizar

Account Manager

Aeros, a Cultura Company

 

Feed and Grains:

 

Soybeans slashed on supply and demand concerns

Grain prices took a sharp turn lower to start the holiday-shortened week on Tuesday as traders turned their attention to ample overseas competition, historically large crops in Brazil and yield-friendly weather (for the most part) in the United States. Soybeans tumbled more than 3% lower, and some wheat contracts lost more than 4%. Corn losses were more moderate but still reached double digits by the close.

Most of the central U.S. will receive at least some measurable moisture between Wednesday and Saturday, aside from some parts of the eastern Corn Belt, per the latest 72-hour cumulative precipitation map from NOAA. Portions of the Southern Plains will see the most rainfall during this time. Further out, NOAA’s new 8-to-14-day outlook predicts some seasonally dry weather for the upper Midwest between June 6 and June 12, with cooler-than-normal conditions likely for most of the central U.S.

Read full article here

 

Corn Notches One-Month High

Pre-holiday position, debt ceiling optimism also lifts soy, wheat markets.

Weather forecasters are projecting a warm and dry next two weeks across the Corn Belt, which could potentially stress the crop. The resulting concerns sent corn futures $0.11-$0.19/bushel higher during today’s trading session.

The progressing debt ceiling negotiations on Capitol Hill lifted the soy complex today. Crush margins strengthened during today’s trading session, which is expected to keep crush paces running at a rapid clip. Basis weakened slightly at a Lafayette, Indiana processing facility, though cash bids from processors continue to trend $0.05-$0.70/bushel over nearby July 2023 futures.

Kansas City wheat futures only eked out a $0.02-$0.04/bushel gain during today’s trading session as more rain showers are forecasted for the Plains over the holiday weekend. But Chicago and Minneapolis futures took advantage of progress on debt ceiling talks, worries about slowing Ukrainian export paces, and pre-holiday short covering to earn a $0.10-$0.16/bushel gain.

Read full article here

 

IGC sees record total grains output in 2023-24

Total grains production is expected to reach an all-time high in the 2023-24 marketing year, according to the latest monthly forecast by the International Grains Council (IGC). 

In its May Grain Market Report, the IGC revised its total grains (wheat and coarse grains) outlook upward by 3 million tonnes to what would be a record 2.294 billion tonnes.

Despite the larger supply outlook, the IGC projects ending stocks to tighten to 580 million tonnes due to a comparatively sharper gain in consumption, which is forecast to reach 2.302 billion tonnes.

Global soybean output is forecast to rise by 9% in 2023-24 to 403 million tonnes, according to the IGC.

Read full article here

 

 

Eggs:

 

Plant-based and animal-free egg companies to partner up

Two plant-based companies, Alpha Foods and Plantega, recently announced partnerships with animal-free protein companies, The Every Company and Zero Egg, respectively, to use their egg protein products in upcoming plant-based products.

Alpha Foods will use The Every Company’s egg white protein product Every EggWhite as an ingredient in its plant-based products. Plantega will use Zero Egg’s protein products in its breakfast offerings.

The Every Company’s and Zero Egg’s egg white products are comparable in functionality, however, they are created differently. The Every Company uses precision fermentation, a process that genetically modifies yeast to produce the same protein found in eggs. Zero Egg uses a blend of plant-based proteins to create its egg white products.

Read full article here

 

Researchers examine safety of genetically edited allergen-free eggs

Researchers have developed a chicken egg that may be safe for people with egg white allergies. Chicken egg allergies are one of the most common allergies in children. Though most children outgrow this allergy by age 16, some will still have an egg allergy into adulthood. Egg white allergies can cause a variety of symptoms, including vomiting, stomach cramps, breathing problems, hives and swelling and some people with egg white allergies are unable to receive certain flu vaccines.

Using genome editing technology, researchers have produced an egg without the protein that causes egg white allergies. This protein, called ovomucoid, accounts for approximately 11% of all the protein in egg whites.

Read full article here

 

Egg Week

USDA Weekly Egg Price and Inventory Report, June 2nd 2023.

 

 

The Week in Review

Prices

According to the USDA Egg Market News Reports released on May 29^th the Midwest wholesale price (rounded to one cent) for Extra-large was up $0.23 per dozen from last week to $1.13 per dozen. Large size was up $0.23 per dozen to $1.11 per dozen. The price for Medium size was up $0.23 per dozen to $1.01 per dozen as delivered to DCs. Prices should be compared to the USDA benchmark average 6-Region blended nest-run cost of 90.3 cents per dozen as revised by the EIC for April 2023. This excludes provisions for packing, packaging materials and transport, amounting to 47 cents per dozen in mid-2022, according to the EIC but now probably closer to 52 cents per dozen. Accordingly producers of generic shell eggs are operating with negative margins. The progression of prices during 2023 to date is depicted in the USDA chart reflecting three years of data, updated weekly.

Read full article here

 

 

 

Poultry:

 

Chicken Marketing Summit focuses on the value of chicken

Rising food prices and inflationary concerns mean cost-conscious consumers are looking to stretch their dollars further in 2023. This places chicken in a unique position.

Learn how to best place chicken as the protein at the center of the place for value-driven consumers at the 2023 Chicken Marketing Summit, scheduled for July 31 – August 2 at the Hotel Effie Sandestin in Miramar Beach, Florida. The event will also provide chicken sales, marketing, supply chain and product development or culinary professionals with critical information on the current state of the plant-based protein industry and how to best communicate sustainability messaging to consumers.

Read full article here 

 

Market drivers for net zero

The poultry industry is ever-more subject to a variety of pressures to reduce its greenhouse gas emissions.

Multiple drivers underpin the global target to achieve net zero greenhouse gas (GHG) emissions by 2050. Many of these are regulatory, but more and more are organizations and individuals’ voluntary choices.

The global poultry sector is being reshaped by fast-evolving societal issues and changing consumption patterns. Both the shift away from antibiotic use in the U.S., for example, and the move to slower growing broilers in parts of Europe are a result of societal concerns related to antimicrobial resistance (AMR) and animal welfare.  

Read full article here 

 

Better Chicken Commitment or Worst Chicken Commitment?

Retailers and other people affiliated with all stages along the poultry supply chain were urged not to engage in conversations about adopting the Better Chicken Commitment, saying it is all part of a plan for animal rights activists to put an end to animal agriculture.

Jack Hubbard, partner and owner of public affairs firm Berman, spoke on the matter during his presentation, “Factory Fundraisers: How Animal Rights Groups Exploit Animals and Donors,” at the recently held Animal Agriculture Alliance Stakeholders Summit in Arlington Virginia.

The Better Chicken Commitment, “actually should be called the Worst Chicken Commitment because it drives up emissions and undermines every other ESG (environmental, social and governance) goal that all of these public companies are adopting,” said Hubbard, who prior to his time with Berman was the chief operating officer at American Humane.

Read full article here

 

Chicken continues to surge at grocery stores

With the beef supply tightening more dramatically over the past year or so, prices for beef cuts across the board are being forced higher. As a result, food shoppers are increasingly scrutinizing the meat department for alternative proteins that allow them to stretch their budget.

That has meant good news for chicken at the grocery store. In fact, last year, chicken had the strongest dollar per pound growth, according to the annual Power of Meat report, and performed second in sales to beef. Furthermore, according to the National Chicken Council’s report, Per Capita Consumption of Poultry and Livestock, in lbs., total chicken consumption is on track to outperform consumption in 2022 by 1.3 million lbs this year.

Read full article here

 

Turkey:

 

Hybrid Turkeys testing autonomous robots in turkey barns

With increasing economic pressure on turkey producers and a limited supply of experiences farm workers, it is important to explore the potential of innovative technologies. With its commitment to progres, Hybrid Turkeys has recently been testing the use of autonomous robots in their breeder barns. Finding and retaining farm workers is a challenge. Farm labor can involve physically demanding and sometimes menial tasks. To support a sustainable future, it is important to continue to test new solutions to resolve challenges. With automation and robotics, there is the potential to alleviate the strain on farm labor and enhance animal health. The robot cannot replace human labor, but instead, it can free up more time and resources for farm workers to focus on more complex tasks. To test this technology, the company has partnered with Poultry Patrol, a company that has developed a semi-autonomous, 4-wheeled ground robot that patrols a lay barn to encourage bird movement.

Read full article here

 

CT scanning could boost turkey breeder stock selection

Using imaging technology on potential breeder stock could improve turkey performance and genetics, making the entire industry more sustainable.

Computerized tomography (CT) scanning can measure the breast meat yield of live turkeys, as well as the size of the birds’ heart and lungs. The non-invasive technology was originally developed for medical purposes.

Knowing more about these factors without having to necropsy a turkey can help predict the breeder line growth rate and survival. It can also inform the selection of breeder stock.

Read full article here

 

Pork:

 

U.S. pork market insights for second half 2023

Hog producers are seeing red as consumer demand sputters. On top of this the industry is battling sky high corn and soybean meal prices, rising interest rates, labor shortages and disease challenges. What should the U.S. pork industry expect for the rest of 2023? Economists Steve Meyer and Joe Kerns, Partners for Production Agriculture, join us to offer their insight and outlook.

Watch video here

 

California to have ‘very active black market for pork’

At the beginning of July, all pork products sold in California must meet Prop 12 requirements, unless efforts to delay—which are already happening—are successful. If unsuccessful, Steve Meyer, lead economist at Partners for Production Agriculture, told Global Hog Industry Virtual Conference (GHIVC) attendees that two channels of pork into the state will likely emerge: one that is compliant, and one that is not.

“It all depends on how effective they are at enforcing the law,” he said. “There’s going to be a very active black market in California for pork. It’s got a big border, and you can probably get it into small retailers.”

While there are a still a lot of unknowns, Meyer said the citizens of California should pay more for pork. “They did this. We need to make sure they pay the price.”

Read full article here

 

Beef:

 

Beef Outlook: North American cattle prices diverge upward

Cattle prices in North America continue to skyrocket to record highs even though global beef supplies are expected to remain steady for the next year, according to Rabobank’s Global Beef Quarterly report for the second quarter of 2023.

“While global supplies remain balanced, cattle prices in the US and Canada push into new record territories,” said Angus Gidley-Baird, senior analyst of animal protein at Rabobank. “This is driven by declining production volumes and firm demand. It stands in contrast to other beef producing and exporting countries, which have declining or steady cattle prices. The spread between US cattle prices and those in other countries is the largest in the history of Rabobank’s index.”

 

Carbon footprint of lab-grown meat potentially worse than beef

Lab-grown meat, which is cultured from animal cells, is often thought to be more environmentally friendly than beef because it’s predicted to need less land, water and greenhouse gases than raising cattle. But in a preprint, not yet peer-reviewed, researchers at the University of California, Davis, have found that lab-grown or “cultivated” meat’s environmental impact is likely to be “orders of magnitude” higher than retail beef based on current and near-term production methods.

Researchers conducted a life-cycle assessment of the energy needed and greenhouse gases emitted in all stages of production and compared that with beef. One of the current challenges with lab-grown meat is the use of highly refined or purified growth media, the ingredients needed to help animal cells multiply. Currently, this method is similar to the biotechnology used to make pharmaceuticals. This, the research said, sets up a critical question for cultured meat production: Is it a pharmaceutical product or a food product?

Read full article here

 

 

Dairy:

 

U.S. dairy industry advances toward sustainability priorities

The FDA is calling on producers of plant-based beverages being sold as milk alternatives to add a voluntary nutrient statement spelling out how their products compare to traditional dairy milk. In a draft guidance titled “Labeling of Plant-based Milk Alternatives and Voluntary Nutrient Statements: Guidance for Industry,” the agency suggests products like soy milk or almond milk could include a label stating “contains lower amounts of Vitamin D and calcium than milk.”

The move comes in response to an FDA request for additional information on the labeling of plant-based milk alternatives. According to an agency release, more than 13,000 comments were submitted on the issue. The FDA ultimately concluded that most consumers understand plant-based milk alternatives do not contain milk. However, they may not understand how the nutritional composition these products vary and may not contain the same levels of key nutrients as milk.

Read full article here

 

USDA offers financial assistance to organic dairy farmers

The U.S. Department of Agriculture (USDA) is offering assistance for dairy producers with the new Organic Dairy Marketing Assistance Program (ODMAP). ODMAP is established to help mitigate market volatility, higher input and transportation costs, and unstable feed supply and prices that have created unique hardships in the organic dairy industry. Specifically, under the ODMAP, USDA’s Farm Service Agency (FSA) is making $104 million available to organic dairy operations to assist with projected marketing costs in 2023, calculated using their marketing costs in 2022.

“Organic dairy producers have faced significant and unique increases in their marketing costs, compounded by increases in feed and transportation costs and the limited availability of organic grain and forage commodities,” said FSA Administrator Zach Ducheneaux. “Without assistance, many organic dairies, particularly small organic dairies, will cease production, which not only impacts the domestic supply and consumption of organic milk but also the well-being of many rural communities across the country. This program will keep our small organic dairies in operation as they continue to weather a combination of challenges outside of their control.”

Read full article here

 

 

Miscellaneous:

 

Perdue’s Beer Can Chicken Beer kicks off grilling season

Perdue Farms released Beer Can Chicken Beer to help consumers grill that perfect beer can chicken just in time for Memorial Day, the unofficial start of summer.

The beer, created in partnership with Torch & Crown Brewing Company, is a honey double-citrus summer ale. The custom ale is brewed with rosemary, thyme, pink peppercorn and other classic grilled chicken seasonings, making it ideal for both sipping and for use in beer can chicken.

Online grocery market to continue double digit expansion

 

To build consumer trust, ‘push the farmer forward’

Food consumers tend to trust farmers to do the right thing, but they are often skeptical of agrifood companies, even if the two have common values. 

Danielle Cummings, senior intelligence analyst, Aimpoint Research, spoke about connecting with consumers during talk, “Connecting from the Farm Gate to the Dinner Plate: Understanding the NextGen Consumer,” held as part of the 2023 Animal Agriculture Alliance Stakeholders Summit on May 4 in Arlington, Virginia.

During Cummings’ presentation, one summit attendee pointed out that it is the food company that is forward facing or has an identity with the consumer. Cummings was asked if it would be a better use of promotional and educational efforts to build more trust between the consumer and the food company, or to use those resources to “bring the farmer forward.”

“The data is showing we need to push the farmer forward,” said Cummings.

Read full article here

 

How data contributes to sustainability, animal health

Feed optimization, sustainability and animal health were the focal points of the DSM World Nutrition Forum, held May 8-10 in Cancun, Mexico. And, experts said, collecting and utilizing data in the right ways will lead to desirable outcomes in those areas.

Industry experts explained that technologies that can gather information from animals and their environment can tell a complete story when used correctly.

“We can actually link all the data together and be able to give a complete, holistic overview of what is happening within the animal itself,” said Nicola Walker, global principal scientist at DSM-Firmenich. “This gives us an opportunity to gain new insights to mine the data for little gold nuggets, which will give us further insights on how we can further innovate to improve on animal health and performance while still being highly sustainable.”

Read full article here

 

4 consumer trend predictions from a food futurologist

Morgaine Gaye, a food futurologist whose clients include Mars, Unilever, Nestle, Amazon and more, evaluates how economics, geopolitics and even culture and traditions shape consumer behaviors and habits when it comes to food purchases.

Here are some of the consumer trends Gaye is most excited about:

1. How consumers think about food is dramatically changing
2. Innovations in artificial proteins
3. Consumers are looking to reconnect
4. Kindness will be the new commodity

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.