MARKET NEWS HIGHLIGHTS
November 18, 2020
formerly know as Beef Products, Inc., broke ground on a new beef
processing facility in Garden City, Kansas. The company is
investing $250 million in the facility, and plans to have the plant
operational by 2023. It will employ 250 workers, and will increase
Empirical's current ground beef processing capacity by 50%.
Sullivan, President and CEO of Smithfield Foods, will retire from
the company in early 2021. He has held both posts for the last 5
years. Dennis Organ, COO of US operations, will succeed Sullivan as
both President and CEO. Organ joined Smithfield in 2010 and assumed
his current position in 2019.
Marfrig and ADM announced a joint venture called PlantPlus Foods, the latest business to enter the plant-based food market. Marfrig is expected to be responsible for finished product production and distribution, which ADM will supply its technical expertise in application development in an array of plant-based ingredients, flavors, and systems. Marfrig is the owner of National Beef.
average retail choice beef price for October was reported at 635.4
cents per pound, versus 637.1 cents in September and 589.2 cents in
October 2019. The all-fresh beef price was pegged at 624.3 cents
per pound, down over 3 cents from September. The average retail
pork price for October was 408.4 cents per pound, 3 cents higher
than the previous month and 17 cents higher than the previous year.
announced the sign-up periods for the Conservation Reserve Program
and the CRP Grasslands in 2021. Sign-up for general CRP will be
open from January 4th
to February 12th,
2021. Sign-up for CRP Grasslands runs from March 15th
to April 23rd,
2021. Both programs are competitive and provide annual rental
payments for land devoted to conservation purposes.
NCBA Cattle Industry Convention and Trade Show has been postponed to
2021. The event will still be held in Nashville, Tennessee.
Barry Flinchbaugh passed away on November 2nd
at the age of 78. Barry earned his bachelor's and master's degrees
from Penn State University and his doctoral degree from Purdue. He
joined the faculty at K-State in 1971, and was professor emeritus in
the Department of Agricultural Economics, teaching a 400 level
course in ag policy each fall. Barry was involved to some degree in
every US Farm Bill since 1968, and was widely recognized as the
author of "freedom to farm". RIP-Barry.
heiress Margarita Louis-Dreyfuss agreed to sell a major stake in
Louis Dreyfuss Company B.V. to ADQ, a state-owned holding company in
the United Arab Emirates. As part of the deal, Louis Dreyfuss
signed a long-term agreement to supply agricultural commodities to
the U.A.E. The two companies didn't disclose the financial terms of
the agreement, but did say ADQ would receive a 45% indirect stake in
Louis Dreyfuss. ADQ has investments in more than 90 countries, and
the parallel supply agreement should bolster U.A.E.'s food security.
countries signed the Regional Comprehensive Economic Partnership
(RCEP) on November 15th,
creating a regional bloc that covers about a third of global
economic output and extends China's influence. Apart from China, it
includes Japan, South Korea, Australia, New Zealand, and 10
Southeastern Asia nations. The agreement concluded eight years of
negotiation. The RCEP will eliminate tariffs on 92% of goods
On the November Crop Report, USDA estimated the Kansas corn crop of 759.0 million bushels, down over 41 million bushels from last year. The average yield was pegged at 132 bushels per acre, down 5 bushels from the previous month and down 1 bushel from last year. The Kansas soybean crop was reported at 199.5 million bushels vs. 186.3 million bushels in 2019. The average soybean yield was 42 bushels per acre, down 2 bushels from a month ago. The total corn crop in Nebraska was estimated at 1.819 billion bushels (1.785 last year) on an average yield of 185 (182 last year). The total soybean crop in Nebraska was pegged at 298.7 million bushels (up 15.56 million) with an average yield of 58 (58.5 last year).