Weekly global protein digest: HPAI in Austria, US beef, pork exports dip this week

Market analyst Jim Wyckoff shares highlights from this week's activities in the global protein market.
calendar icon 10 December 2021
clock icon 7 minute read
Jim Wyckoff Commentary -  TheCropSite

ASF, FMD and HPAI in China

On December 1, China’s Ministry of Agriculture and Rural Affairs (MARA) notified the US Embassy in Beijing that on November 10, China detected African Swine Fever (ASF) in Hainan Province. China is continuing to monitor the situation. MARA also notified the US Embassy in Beijing that on October 31 that China detected foot-and-mouth disease in yak cattle in Qinghai Province. China is continuing to monitor the situation. China also detected HPAI (H5N1 subtype) in Hebei Province. China notified the World Organization for Animal Health of the occurrence on November 30.

US pork, beef export sales slide in latest reporting week

USDA Thursday reported US pork net sales of 19,800 MT for 2021 were down 52 percent from the previous week and 26 percent from the prior 4-week average. Increases primarily for Mexico (11,700 MT, including decreases of 600 MT), Japan (3,700 MT, including decreases of 400 MT), South Korea (1,400 MT, including decreases of 200 MT), the Dominican Republic (700 MT, including decreases of 400 MT), and Colombia (500 MT, including decreases of 100 MT), were offset by reductions for Australia (200 MT), China (100 MT), and Peru (100 MT). Net sales of 700 MT for 2022 primarily for Colombia (400 MT), Japan (300 MT), Australia (200 MT), and South Korea (100 MT), were offset by reductions for Canada (300 MT). Exports of 33,500 MT were down 8 percent from the previous week, but up 2 percent from the prior 4- week average.t The destinations were primarily to Mexico (17,000 MT), Japan (5,000 MT), China (3,600 MT), South Korea (2,900 MT), and Colombia (1,500 MT).

US beef net sales of 4,200 MT for 2021--a marketing-year low--were down 80 percent from the previous week and 81 percent from the prior 4-week average. Increases primarily for Canada (2,100 MT), China (2,000 MT, including decreases of 300 MT), Japan (1,800 MT, including decreases of 400 MT), Taiwan (700 MT, including decreases of 100 MT), and Mexico (700 MT, including decreases of 200 MT), were offset by reductions for South Korea (4,300 MT). Net sales of 10,400 MT for 2022 were primarily for South Korea (8,200 MT), Taiwan (500 MT), Mexico (400 MT), Japan (300 MT), and China (300 MT). Exports of 16,700 MT were up 1 percent from the previous week, but down 5 percent from the prior 4-week average. The destinations were primarily to South Korea (4,400 MT), Japan (4,000 MT), China (3,300 MT), Taiwan (1,600 MT), and Mexico (1,200 MT).

Highly Pathogenic Avian Influenza Detected in a Small Farm in Lower Austria

On November 25, the Austrian Agency for Health and Food Safety confirmed the first on-farm case of avian influenza this fall. The highly pathogenic H5N1 type was found on a small chicken farm in the province Lower Austria. The chickens from the affected flock either died or were culled under official supervision and the farm has been closed. As a result of this outbreak, the Ministry of Health, in agreement with the Ministry of Agriculture and the federal states, issued an ordinance with the requirement to keep poultry inside within the defined risk areas.

China’s meat imports down

China brought in 677,000 metric tons (MT) of meat last month, up 2% from October but down 12.6% from last year. Cheaper domestic pork prices amid a surge in production cut demand for overseas supplies. Through the first 11 months of this year, China imported 8.7 million MT of meat, down 2.5% from the same period last year.

Cargill Canadian beef plant workers accept contract offer

Workers at Cargill's beef-processing plant in High River, Alberta, last week voted in favor of the company's latest contract offer on Saturday, averting a strike. The deal includes new procedures to ensure worker health and safety, new benefits, new rights for sick employees and “more money,” the United Food and Commercial Workers Union said. The plant processes up to 4,500 head of cattle per day or 35% of Canada's beef-processing capacity.

USDA’s latest weekly milk report

CHEESE HIGHLIGHTS: Some cheese market contacts relay that the Omicron variant has not yet deterred restaurant sales. Food service demand remains firm in the Northeast. Cheesemakers are working through still-available holiday milk surpluses, although staffing shortages remain at the forefront of plant management concerns. Western contacts say food service and retail demand are very healthy ahead of the end-of-year holiday season. They also say, though, that port congestion has worsened in recent weeks. The same year's end holiday demand is keeping cheese inventories in check. Cheese market tones are slowly improving, as the price gap between blocks and barrels slowly ebbs.

BUTTER HIGHLIGHTS: Cream is available in the Central and West regions; some contacts in the West report sending cream to other regions to support local production demand. In the East, strong demand for cream from Class II manufacturers is limiting availability for butter makers. Labor shortages in the Central and West regions are causing some butter makers to run below capacity. Butter inventories have declined in the East, in recent weeks, due to strong retail demand and limited production. Some purchasers in the region are hoping that lighter sales following the Thanksgiving holiday will cause prices to soften. In the West, stakeholders say that international demand is strong and that spot butter inventories are tight. Bulk butter inventories are tight in the Central region. Bulk butter overages range from 5 to 15 cents above market.

FLUID MILK: Farm level milk production is generally steady to increasing. Bottling sales are stable to higher, but end-of-year holiday breaks for educational institutions are expected to slow Class I demand soon. Some Southeastern handlers are bringing additional milk in from other regions to help meet manufacturing needs. Class II demand is softening in California, as some processors reportedly prepare for lighter year-end production schedules. Class III orders are strong from Midwestern cheesemakers, but milk spot loads remain available at a discount. Condensed skim markets have a stable undertone. Cream demand is steady to seasonally stronger. Availability is mixed. Creambased manufacturers, along with other dairy industry operations, continue to face challenges with staffing shortages, supply chain delays, and logistics issues. F.O.B. cream multiples for all classes are 1.35–1.48 in the East, 1.21-1.44 in the Midwest, and 1.15-1.38 in the West.

DRY PRODUCTS: Low/medium heat nonfat dry milk (NDM) prices are steady to higher. Production is stable despite operating challenges including labor shortages and transportation limitations. Demand is steady to lower. The Central and Eastern high heat NDM price range is unchanged, but prices in the West increased. High heat demand is quietly steady, and availability and production are limited. Dry buttermilk prices moved higher in all regions. Domestic and export demand are steady to higher and inventories are tight. The dry whole milk price range is holding firm. Inventories are snug as production is limited. Dry whey prices are up in all regions. Domestic and export interests are steady to stronger. Production is mixed. Inventories are tight. Whey protein concentrate (WPC) 34% prices are higher. Production is stable. End user demands are steady. The lactose price range is unchanged, but the top of the mostly range dropped. Production is active and inventories are heavy, although much of the supply is committed. Prices are steady to higher for acid casein and rennet casein.

Weekly US dairy retail report from USDA

Total conventional US dairy ads increased 11 percent from last week, and organic dairy ads are up 47percent. The most advertised dairy item this week is conventional ice cream in 48-64 ounce containers. Conventional Greek yogurt in 4 to 6-ounce containers, the most advertised conventional yogurt item, has a weighted average advertised price of $1.04, up two cents from last week. The weighted average advertised price for conventional 8-ounce shred cheese, the most advertised cheese item, is $2.28, one cent higher than last week. Conventional half gallon milk ad numbers surged 256 percent from last week. The national weighted average advertised price for conventional milk half gallons is $1.78, compared to $4.24 for organic milk half gallons, providing an organic price premium of $2.46.

Michigan firm recalls over 230,000 pounds of pork

Alexander & Hornung, a St. Clare Shores, Michigan company that is a unit of Perdue Premium Meat Company, is recalling approximately 234,391 pounds of fully cooked ham and pepperoni products that may be contaminated with Listeria monocytogenes, according to USDA’s Food Safety and Inspection Service (FSIS). The products were produced on various dates and bear establishment number “EST. M10125” inside the USDA mark of inspection. These items were shipped to retail locations nationwide. The company notified FSIS that product sampling reported positive Listeria monocytogenes results, FSIS said, but there have been no confirmed reports of adverse reactions due to consumption of these products. 

TheCattleSite News Desk

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