7 June 2025

12 minute read

By: Jim Wyckoff

South America

North America

Asia

Weekly USDA US beef, pork export sales

Beef: Net sales of 9,000 MT for 2025 were down 39 percent from the previous week and 27 percent from the prior 4-week average. Increases primarily for South Korea (4,500 MT, including decreases of 400 MT), Japan (2,800 MT, including decreases of 200 MT), Canada (1,000 MT, including decreases of 100 MT), Taiwan (600 MT, including decreases of 100 MT), and Mexico (400 MT, including decreases of 100 MT), were offset by reductions for China (1,200 MT) and the United Kingdom (100 MT). Exports of 10,900 MT were down 14 percent from the previous week and 22 percent from the prior 4-week average. The destinations were primarily to Japan (3,300 MT), South Korea (2,900 MT), Mexico (1,200 MT), Taiwan (1,100 MT), and Canada (800 MT).

Pork: Net sales of 36,400 MT for 2025 were up 19 percent from the previous week and 25 percent from the prior 4-week average. Increases primarily for China (12,700 MT, including decreases of 200 MT), Mexico (12,000 MT, including decreases of 300 MT), Japan (3,000 MT, including decreases of 100 MT), South Korea (1,800 MT, including decreases of 100 MT), and Canada (1,600 MT, including decreases of 300 MT), were offset by reductions for Nicaragua (200 MT). Exports of 24,100 MT were down 17 percent from the previous week and 12 percent from the prior 4-week average. The destinations were primarily to Mexico (10,500 MT), Japan (3,400 MT), South Korea (2,800 MT), China (1,800 MT), and Colombia (1,300 MT).

Brazil says HPAI under control

Brazil’s Agriculture Minister Carlos Favaro said on Wednesday there were strong indications the world’s biggest chicken exporter had efficiently contained a highly pathogenic avian influenza (HPAI) outbreak. Since the outbreak on a commercial farm in Rio Grande do Sul in mid-May, chicken prices in Brazil have fallen around 7%, Favaro said, as dozens of trading partners enacted various bans on Brazilian poultry exports. Countries including China, South Korea and the European Union were in talks with Brazil to ease their bans, Favaro said, adding that some partners were expected to relax restrictions before the 28-day observation period is up later this month – provided no other commercial-farm outbreaks occur.

US Senate Ag Committee advances whole milk bill

Legislation expands school lunch options, bringing whole milk back to cafeterias

The Senate Ag panel in Tuesday approved its version of the Whole Milk for Healthy Kids Act (S 222), marking a major step toward restoring whole milk as a reimbursable option in federally funded school meal programs.

The bipartisan bill mirrors the House-passed HR 649, which aims to reverse Obama-era regulations that removed whole milk from cafeterias in favor of lower-fat options. Dairy industry groups have long argued that the current rules limit choice and reduce milk consumption among children. “This legislation is about giving schools and families more flexibility and supporting the health of our children with nutrient-rich options,” said Sen. Roger Marshall (R-Kan.), a lead sponsor of the bill.

Health and Human Services Secretary Robert F. Kennedy Jr. has previously criticized the existing rules as “antiquated,” aligning with industry claims that newer nutrition science supports the benefits of whole milk in moderation.

The National Milk Producers Federation welcomed the vote, calling it a “science-backed decision that prioritizes kids’ health and the role of dairy in balanced diets.”

The bill now heads to the full Senate for consideration.

Texas Bill Could Force Warning Labels on Doritos, M&Ms and More

Kennedy-backed food additive crackdown faces industry backlash as Abbott weighs final decision

A sweeping Texas bill, Senate Bill 25, would require new warning labels starting in 2027 on popular foods like Skittles, Mountain Dew, Froot Loops and Doritos — flagging ingredients banned or discouraged by other countries as “not recommended for human consumption.”

Backed by HHS Secretary Robert F. Kennedy Jr., the measure is awaiting Governor Greg Abbott’s signature and would impact over 40 ingredients, including synthetic dyes, titanium dioxide, bleached flour, and preservatives like BHT and BHA. Food brands and retailers including PepsiCo, Mondelez, Coca-Cola, Walmart, and the Texas Retailers Association have pushed back, warning it will cause widespread confusion and higher costs.

Quote of note: “He will go down as a historical figure as the man who broke the food industry’s back on these chemicals,” said activist Vani Hari, a leading backer of the bill.

While the bill includes a federal carve-out — allowing FDA or USDA rulings to override state labels — Kennedy’s agencies have yet to officially designate the flagged ingredients as safe. Warning labels would appear in bold text on packaging sold in Texas unless federal action supersedes.

Industry critics argue the bill ignores U.S. science-based standards. “The ingredients used in the U.S. food supply are safe,” said John Hewitt of the Consumer Brands Association. “SB 25 mandates inaccurate warning language… and drives consumer confusion and higher costs.”

Governor Abbott has 20 days from the end of session to sign or veto the bill.

India’s edible oils imports surge in May, led by palm oil

India’s palm oil imports in May surged 87% from April to a six-month high of 600,000 MT, as lower inventories and a price discount to rival soyoil and sunflower oil prompted refiners to increase purchases. Soyoil imports rose 10% to 398,000 MT and sunflower oil imports increased 2% to 184,000 MT.

Thai poultry sector eyes growth amid Brazil bird flu disruptions

Avian flu outbreak, lower feed costs open export window for world’s No. 3 chicken meat shipper

Thailand’s poultry industry is positioned for growth in 2025 as an avian flu outbreak in Brazil — currently the world’s largest poultry exporter — creates new trade opportunities, according to Reuters. With global feed costs falling and key importers suspending Brazilian shipments, Thai producers like Charoen Pokphand Foods (CPF), GFPT, and Betagro are expected to benefit from improved margins and expanding market access. “Prices are reasonably good, costs are low,” said Prasit Boondoungprasert, CEO of CPF, the nation’s top agribusiness firm.

However, industry leaders caution that the gains will depend on how long Brazil’s bird flu-related export bans last. “If it’s shorter than three to six months, the impact will be minimal,” Veera Titayangkaruvong, investor relations manager at GFPT told Reuters. Brazil began a 28-day bird flu observation period last week.

Feed costs down, output poised to rise. Key feed ingredients like corn and soy meal have declined around 30% in recent years. Thai firms are well positioned to capitalize, thanks to fully integrated operations—from feed mills to farms and processing facilities.

Thailand gains market share from Brazil. Major importers including China, Japan, and the EU have paused Brazilian imports, opening the door for Thailand to expand its global footprint. "Customers are increasingly thinking about risk management," Prasit said. "If they rely too much on Brazil ... they have to diversify."

With U.S. poultry prices up 3% in May and idle Thai farms coming back online, producers are scaling up. Somchit Farm in Nakhon Pathom and others report rising interest in reviving shuttered operations.

Thai export windfall could hit $1.7 billion. Brazil’s export drop could impact up to 1.5 million metric tons, with Thailand potentially replacing 300,000–400,000 tons, generating as much as $1.7 billion, according to Pimnara Hirankasi of Krungsri Research. Thailand’s edge lies in processed exports, which make up over 50% of shipments, compared to Brazil’s 2.5%.

China to resume some Japanese seafood imports after Fukushima dispute

New trade agreement follows talks on easing tensions over treated wastewater release.

China has agreed to resume imports of Japanese seafood products nearly two years after banning them over safety concerns tied to the 2023 release of treated wastewater from Japan’s Fukushima Daiichi nuclear power plant, according to Japan’s government. Officials from Japan’s Ministry of Agriculture, Forestry and Fisheries and China’s General Administration of Customs reached the agreement during talks in Beijing this week. Under the deal, Japanese exporters will register fishery processing facilities with Chinese authorities and provide certificates confirming the absence of radioactive substances in all shipments.

Japan’s Chief Cabinet Secretary Yoshimasa Hayashi called the agreement “one important milestone” but said Tokyo will continue pushing for the full removal of Chinese restrictions, including those still in place on exports from Fukushima and nine other prefectures.

China has yet to formally announce the timeline for lifting the broader seafood ban, but the Nikkei reports that imports from areas outside Fukushima are expected to resume soon.

JBS unveils $135 million sausage plant in Perry, Iowa

Facility to create over 700 jobs, revitalize community after Tyson closure

JBS USA announced plans to construct a $135 million sausage production facility in Perry, Iowa, aiming to create over 700 jobs and revitalize the local economy following the closure of a Tyson Foods pork plant in 2024, according to the Iowa Capital Dispatch.

Details of the project:

• Investment and capacity: The facility will process approximately 500,000 sows annually, producing around 130 million pounds of sausage.
• Job creation: The project is expected to generate over 700 jobs, including 500 direct positions and approximately 250 construction jobs during the building phase.
• Timeline: Construction is slated to begin in the fall of 2025, with operations commencing in late 2026.
• Community impact: The initiative is seen as a significant boost for Perry, a town of about 8,000 residents, especially after the loss of nearly 1,300 jobs due to the Tyson plant closure.
• Strategic shift: JBS move reflects a strategic pivot towards the domestic market in response to challenges in pork exports, particularly due to retaliatory tariffs from countries like China.

Perry Mayor Dirk Cavanaugh described the project as a "potential game-changer" for the community, highlighting the anticipated long-term benefits for local schools, infrastructure and businesses.

Cameron Bruett, JBS head of corporate affairs, emphasized the facility’s state-of-the-art design, noting it would be the first of its kind built in the US in the last 40 years. He also mentioned that starting wages are expected to be comparable to other JBS facilities in Iowa, around $22 per hour.

The Iowa Pork Producers Association welcomed the development, citing the enhanced opportunities for local pork producers and the strengthening of Iowa’s leadership in pork production.

Additionally, JBS plans to invest in community programs such as "Hometown Strong" and "Better Futures," which focus on local development projects and educational support for employees and their families.

The facility’s proposed location on the southeast side of Perry requires a zoning change from agricultural to heavy industrial, pending approval by the city council.

WOAH declares Brazil free of FMD

Brazil has been recognized by the World Organization for Animal Health (WOAH) as a country free of foot-and-mouth disease without vaccination. Meatpacking association Abrafrigo called it a “historic moment” for Brazil’s beef industry after decades of actively promoting vaccination and health controls in livestock. The new health certification positions the country “at a new level in international trade” and could help open up “highly demanding” markets, such as Japan, to Brazilian beef, said the Brazilian Association of Meat Exporters (Abiec). With the new status, the Brazilian government will need to renegotiate several international health certificates.

Weekly USDA dairy report

CME GROUP CASH MARKETS (5/30) BUTTER: Grade AA closed at $2.4750. The weekly average for Grade AA is $2.4938 (+0.1318). CHEESE: Barrels closed at $1.8700 and 40# blocks at $1.9475. The weekly average for barrels is $1.8675 (+0.0125) and blocks $1.9413 (+0.0313). NONFAT DRY MILK: Grade A closed at $1.2875. The weekly average for Grade A is $1.2819 (+0.0494). DRY WHEY: Extra grade dry whey closed at $0.5725. The weekly average for dry whey is $0.5681 (+0.0311).

BUTTER HIGHLIGHTS: Domestic butter demand varies from steady to stronger. Stakeholders noted upticks in demand from contractual purchasers this week. Demand from international buyers is strong. Cream volumes are more than ample for butter manufacturers. Production schedules vary from steady to strong. The latest NASS Cold Storage report shows butter inventories at the end of April were down year over year. Bulk butter overages range from 3 cents below to 7 cents above market across all regions.

CHEESE HIGHLIGHTS: Cheese production remained steady to stronger nationwide. Cheesemakers are running busy production schedules. Spot loads of milk are available in most areas and meeting the needs of cheesemakers. Producers are purchasing spot loads for as low as $7 under Class. On the CME, cheese prices have continued to rise this week. Prices for barrel and 40-pound blocks are higher than last week's average. Domestic demand is steady to stronger with retail and commercial products seeing an increase. International demand remains strong. Cheese inventories rose this month but are lower than this time last year. Cheese inventories are healthy and meeting demand.

FLUID MILK HIGHLIGHTS: Nationally, milk production is meeting manufacturing demands. Some regions note a decrease in raw milk production but not enough to affect manufacturing. Milk component levels are relatively steady week to week. Spot milk availability varies by region, with no indication that supplies are insufficient for demand. Class III spot milk price ranges from $7 under to $1 over this week. This is a slightly wider range than Class III prices in Week 22 last year. Class I production dropped this week as the spring semester ends. Class II demand increased, specifically for ice cream and frozen dairy mixes. Class III production is growing. Spot loads were selling near the bottom of the range due to the holiday. Demand for Class III picked up after the holiday. Cream volumes are available with a noted increase in spot sales. Butter churns remain active while other commodities are pulling from available cream supplies. Cream multiple ranges were generally tighter this week; the top end of the range dropped slightly in the Central and East while remaining the same in the West. Condensed skim inventories tightened up this week. Inventories remain steady and product is moving well. Cream multiples for all Classes range 1.10-1.25 in the East, 1.02-1.27 in the Central, and 1.04-1.20 in the West.

DRY PRODUCTS HIGHLIGHTS: Prices for low/medium heat nonfat dry milk (NDM) increased across both the range and mostly price series in all regions this week. Contacts report strong demand for low/ medium heat NDM from purchasers in Mexico. High heat NDM prices also pushed higher. In every region the top of the dry buttermilk price range moved upwards, and both ends of the West region’s mostly price series increased. Dry buttermilk prices moved higher across the range. Dry whey prices increased in every region. Contacts in the Central and West regions say spot inventories are tightening. The bottom of the whey protein concentrate 34% (WPC 34%) price range and the top of the mostly price series increased as inventories remain tight, and production is limited. Lactose prices were steady this week, though the top of the mostly price series increased. Acid and rennet casein prices increased across both ranges.

ORGANIC DAIRY MARKET NEWS: On May 29th the USDA announced payments would begin for the Emergency Livestock Relief Program (ELRP) to producers who were impacted by drought and wildfires in 2023 and 2024. The Northeast Dairy Business Innovation Center, one of four regional USDA DBI Initiatives, recently announced applications for the Organic Dairy Product Promotion Grant program are open June 10 - July 31. Federal Milk Market Order 1, in New England, reports utilization of types of organic milk by pool plants. During April 2025, organic whole milk utilization totaled 20.26 million pounds, up from 19.53 million pounds in April the previous year. The March 2025 European organic milk average pay price increased in Austria, Germany, and Bavaria compared to February but decreased in France.

US NATIONAL RETAIL REPORT: Total conventional dairy ads decreased 24 percent in the Week 22 retail ad survey. Cheese is the most advertised conventional dairy commodity, despite a 41 percent decrease in ads from last week. Total ads for most conventional dairy commodities declined from the prior survey. Ice cream ads increased 2 percent this week, remaining the second most advertised conventional dairy product.