MARKET NEWS HIGHLIGHTS
March 20, 2018
Fresh Meats is collaborating with IdentiGEN to use DNA technology to
trace beef back to the individual animal of origin. IdentiGEN's
signature DNA TraceBack® system will be a key tool to trade the
cattle raised for Tyson's Open Prairie® Natural Angus Beef. A DNA
sample from cattle entering the Open Prairie program will be used to
trace the origin of individual cuts of beef as they move through the
supply chain. Specifications for the brand (which are third-party
verified) include no antibiotics or added hormones, no artificial
ingredients, 100% vegetarian diet, traceability to the birth ranch,
Angus beef, USDA Prime or Choice, and rigorous animal welfare
standards. IdentiGEN's North American headquarters are in Lawrence,
USDA and FDA have formalized their regulatory framework on
cell-cultured meats. The FDA will oversee cell collection, cell
banks and cell growth and differentiation. Oversight will
transition to the USDA's Food Safety and Inspection Service (FSIS)
during cell harvest. FSIS will oversee production and labeling of
human food products derived from these cells of livestock and
Meat just introduced a 1 pound package that looks a lot like a pound
of ground beef. It is labeled "Beyond Beef" and features
a cow/plant icon on the packaging. Beyond Beef is a blend of pea,
mung bean, and rice proteins. It uses beets to create a red color,
and coconut oil and potato starch to add the right "mouth
feel". The company said the product will hit retail shelves in
average retail choice beef price in February was reported at 590.00
cents per pound, up 4 cents from January and up 7 cents from the
previous year. The average all-fresh beef price was quoted at 573.7
cents per pound, up 1.4 cents from the previous month. The average
retail pork price in February was pegged at 373.1 cents per pound,
an increase of 1.7 cents from January.
National Beef Packing announced it was acquiring Iowa Premium Beef in Tama, Iowa, for $150 million. IPB's plant has a daily slaughter capacity of 1,100 head, and had sales in 2018 of about $650 million. IPB operates only with Black Angus cattle and specializes in USDA Choice and Prime grade meats. When the plant reopened in 2014, Iowa Premium Beef attracted the interest of foodservice giant Sysco Corporation, which invested $36.2 million. As part of the acquisition, National Beef has signed a long-term supply agrement with Sysco.
EPA on March 12th
released a rule to allow year-round E-15 sales and to reform the
biofuels credits market, with plans to finalize the rule by the
start of the summer driving season on June 1st.
Once the proposal is published in the Federal Register, it will
launch a 30-day public comment peroid that ends on April 29th.
The rule also includes proposed reforms to the market for Renewable
Identification Numbers, or RINs. EPA proposed reforms that include
prohibiting certain parties from being able to purchase separated
RINs, requiring public disclosure when RIN holdings exceed specified
thresholds, limiting the length of time a non-obligated party can
hold RINs, and increasing the compliance frequency of the program
from annually to quarterly.
EPA granted five additional 2017 small-refinery exemptions to the
RFS on March 14th.
The 2017 waiver requests were made during former Administrator
Scott Pruitt's tenure. Pruitt's EPA granted 53 waivers in 2016 and
2017, totaling an estimated 2.25 billion gallons of biofuel not
blended, which is the equivalent of 929 million bushels of corn.
the Brazilian equivalent of the USDA, estimated their soybean crop
at 113.4 million metric tons, down 2 million tons from their
previous report. USDA estimated the Brazilian soybean crop at 116.5
million metric tons in the March report.
the March Supply/Demand report, USDA projected ending stocks of corn
at 1.835 billion bushels, which was 100 million bushels higher than
a month ago. USDA reduced ethanol usage by 25 million bushels and
corn exports by 75 million bushels. Soybean ending stocks were
revised down 10 million bushels from the previous month to 900
million bushels. USDA estimated total wheat ending stocks at 1.055
billion bushels, which was revised upward by 45 million bushels,
mainly due to a cut in exports.
AGCO Corp. entered into a commercial and technological partnership with Solinftec, a developer and distributor of digital agriculture solutions. The companies will launch the new solutions in Brazil this year, and will launch in the US for the 2020 crop cycle for corn and soybean growers.