Global food prices fall in December but in 2021 prices are highest in a decade
Even as prices in all categories except dairy, tracked by the United Nations Food and Agriculture Organization (FAO), declined in December, the food price index for all of 2021 rose to 125.7, up from 28.1 in 2020. % was up and was the highest since. At 131.9 in 2011. And their hopes of 2022 being a better year are not encouraging. FAO Senior said, “While higher prices are generally expected to increase production, higher input costs, the ongoing global pandemic and ever more uncertain climate conditions are about to return even more stable market conditions in 2022.” Leaves little room for optimism.” Economist Abdulreza Abbasian. Within the FPI for 2021 compared to 2020, grain prices were up 27.2%, vegans were up 65.8% at record highs, sugar prices up 29.8%, meat prices up 12.7% and dairy up 16.9% Hui.
US dairy prices are rising
A Bloomberg article (link) notes that US dairy prices are rising because of rising costs of feeding cows and omicron infections at processing plants. There’s also a longer-term trend at work: Milk production in the US is falling. With rising grain prices it is becoming too expensive to feed the cows, so farmers are miniaturizing their herds and sending the animals for slaughter. The cows that are left are being fed less, which means they will produce less milk. (BTW, today is National Milk Day.)
USDA Secretary Discusses Meat Industry
USDA Secretary Tom Vilsack told the American Farm Bureau Federation (AFBF) annual convention in Atlanta that the U.S. meat and poultry market has been a major focus for the administration recently, and Vilsack went through a list of actions being taken by the USDA. ran away from He highlighted steps to help small and medium-sized processors expand operations and make the upgrades needed to sell their products across state lines, as well as mid-supply chains such as cold storage and mobile slaughter units. To help meet needs. Over the next 60 to 90 days, Vilsack said the USDA wants to announce the availability of $150 million to help with new processing facilities and expansion of existing ones. “We expect to be able to provide additional grant money and additional loan amounts over the summer for those projects,” he said. Vilsack will travel to Colorado on Friday for an event highlighting the USDA’s efforts to expand meat processing capacity.
Labor is another significant challenge facing the processing sector, and Vilsack said the USDA has “a resource that can partner with community colleges, unions and other organizations” to help train new workers.
In the meantime, livestock market reform is another major focus for the USDA, and Vilsack has sought to enforce regulations under the Packers and Stockyards Act (P&SA) and clarify “when and under what circumstances there are violations.” Purposefully deferred rules. Legislatively, he promised to work with a bipartisan group of lawmakers on new bills to boost price discovery in animal markets so that producers can believe they are getting a fair price.
Lawmaker provides beef labeling law
The Biden administration is eyeing a rewrite of the “Products of the USA” label, with Sen. Roger Marshall (R-Kan.) introducing the Bona Fide Beef Branding Act 2022 (S3439), which would direct the USDA to eliminate the current . Product of USA Meat Label. Instead, the new bill will create three new voluntary labels to help clear consumer confusion in the market and help beef producers. Marshall’s bill would allow a label to be applied to meat saying “processed in the United States” that would undergo substantial changes in a US facility.
The law would also create a label that said, “Raised and processed in the United States,” covering a live animal in the U.S. for at least 100 days before being processed in a U.S. facility.
The third label, “born, raised and processed in the United States” means that the live animal was born and raised and processed in the US. Critics of the “Products of the USA” label point out that a meat product that comes from other countries may qualify for the label if processed in the country.
background. The USDA announced in July that it was conducting a “top-to-bottom review” of the label and what it means for consumers, and President Joe Biden last week asked the White House to come up with a new product from the USA labeling effort. reiterated support.
Bottom Line: The key to any amendment to the USA label Voluntary Product will be what kind of restrictions are put in place because it could affect the importation of cattle from Canada and/or hogs, many of which are introduced into the US at an early age. Is imported and fed in US feedlots and processed in US meat facilities.
Thailand found ASF in slaughterhouse
Thai officials say African swine fever (ASF) was detected in samples collected at a slaughterhouse in Nakhon Pathom province, the first official confirmation of the disease in the country. As we reported in “Evening Report” on Monday, Thai authorities began collecting blood samples from slaughterhouses amid growing speculation that an ASF outbreak was being hidden and destroying Thai hog herds.
Agricultural values of China: -4.2% with pigs, +8.8% without them
How is agricultural price inflation affecting China? The Dimms blog calculated changes in prices of key commodities over the past two years from the National Bureau of Statistics raw material price reports and collected from the Ministry of Agriculture, to assess the overall picture, which it says is “quite cloudy”. Many agricultural commodities in China registered double-digit price increases in 2021. However, an average of 42% in hog prices replaced everything else. The strongest increase was in cotton prices, up 38% from 2020. Prices of eggs, corn, soymeal, soybeans and raw milk rose by 13% to 30%. The prices of wheat, mutton and beef registered a single digit increase. With rice prices falling due to weak downstream demand, many provinces have introduced minimum price purchases to reduce prices after the 2021 harvest. Chicken and groundnut prices were down 2% and 5% respectively. A composite index (weighted by the value of production of these goods) comes in at an average of -4.2% price change in 2021. The hog had a major influence on the index due to the enormous value of its production. Recalculating the index excluding hog prices yields an 8.8% weighted average price increase, Dimsum calculates.
Tyson executives are “working aggressively” to bridge the supply-demand gap
Tyson is raising wages and investing $450 million in automation. The company is also building “nine chicken plants, two case ready beef and pork plants, and a new bacon plant.”