economics

PoultryCast 0294, Meat Demand - Feed Supplies - Drought Potential - The New Normal?

Download mp3PoultryCast 0294 Show Notes:
  • If you're hoping for lower volatility soon, economist Dr. Steve Meyer says it won't be evident in 2012. Noting he could see corn prices at $4, and just as easily see it at $8, the tight supply concern will likely continue. The potential for drought in the midwest only heightens the risk of supply interruption as Dr. Meyer noted in this abbreviated presentation for producers.

Struggling Meat and Poultry Demand?

Jan 2012 Meyer Swine Economics

Dr. Steve Meyer, Paragon Economics, provided an update on the state of the meat and poultry markets. His main take away is that the demand continued to struggle late 2011.

The bad news is that these "annual" numbers for 2011 have been getting worse and worse as the year has progressed.

Steve reminds us that the indexes only describe how demand is changing, not why a change is occurring. He believes consumer incomes and spending was the major negative force in the domestic market in 2011.

Charts below from Paragon Economics, using USDA data.

Farm Bill Data Hackathon

hacking ag food data
Using software and people to highlight issues is not new. But using it in agriculture is picking up steam. Food+Tech Connect and Gojee brought together journalists, tech designers, food/ag policy experts, and data gurus to explore the 2012 US Farm Bill. The goal was to highlight issues and extract data to support conversations and debate.

PoultryCast 0287, Room At The Top - Farmland Going Higher?

Download mp3PoultryCast 0287 Show Notes:
  • A recent conversation with Terry Feldheim of the Farm Credit Service of America highlights the support underpinning land prices at these levels.

PoultryCast 0285, Feedgrains Outlook Sees Less Volatility And More Availability

Download mp3PoultryCast 0285 Show Notes:

Will Antibiotic-free Poultry Become The Norm?

Just after the 2011 Antibiotic Use In Food Animals conference held in Chicago, IL, the Chicago Public Schools began serving local chicken raised without antibiotics to students in 473 schools.
"As the third largest school district in the nation, Chicago has a big voice," said Laura Stanley, Learning Lab manager for School Food FOCUS. "It's in a position to catalyze change in the school food market nationwide."
The poultry will be raised by Miller Amish Country Poultry of Orland, Indiana, and delivery is being supported by Whole Foods Market.

What is a future America can hold?


What does the future of America hold? Some good perspective from a recent video series at the Wall Street Journal titled "America: A Portfolio of Ideas" featured several different perspectives and is highly recommended. To give you a feel for what it holds we share this brief audio featuring John Naisbitt (Megatrends) and Gloria Naisbitt on the influence of culture on our trading relationship with China.

Will the growers prevail in Pilgrim's Pride lawsuit?

growers vs Pilgrims Pride

Pilgrim's Pride has been ordered to pay $25.8 million to 90+ growers in Arkansas.
Mark Brodeur, the Plaintiffs' Lead Counsel, said: "It's a first in that I believe this is the largest verdict for a group of poultry growers against a poultry company."
The pay will to growers will range from $9,000 to approximately $900,000. In the mean time Pilgrim's Pride is considering an appeal.

How Will British Free Range Operators Fare?

free range chickens
A British Free Range Egg Producers Association (BFREPA) survey indicates that nearly 12% of the the UK's commercial free range flock could disappear if producers continue to lose money. Many operations are experiences increasing costs and reduced revenues.
Some producers say they have no option but to carry on in the hope the market improves because they are trapped by bank loans. "I invested in a new efficient multi-tier system just before the market crash. There is no choice but to continue at a loss as the bank are demanding repayments on the investment loan and we have to go down fighting if need be," said a producer.
Many BFREPA members say they will reduce numbers or end production completely unless the market conditions improve.

US and China Playing Chicken on Poultry Trade

via ft.com
US and Chinese trade agreements and their implementation are going to the World Trade Organization because the US believes China is unfairly using tactics to keep US poultry out of China.
“Let me be clear: the US does not arbitrarily seek disagreements with China,” said Ron Kirk, US trade representative, as he unveiled the grounds for the US action. “But we won’t negotiate indefinitely, because US farmers, ranchers, small business owners and workers can’t afford to wait when their exports are being blocked and American jobs are at stake.”
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