Packer

Pork Profit Tracker: Farrow-to-Finish Margins Remained Steady Averaging $50.88

Wed, 14 May 2025 15:29:20 GMT

Farrow-to-finish margins last week remained steady with the prior week with the estimated margin averaging $50.88/head compared to $39.85/head a year ago as lean carcass values moved higher with the W. Corn Belt price averaging $93.43/cwt.

Total feed costs for those market hogs averaged $79 compared to $ 86 a year ago. Hogs placed on the finishing floor last week will have an average feed cost of $75.

Pork packers, having a higher hog cost, continue to face negative margins.

View the full Sterling Pork Profit Tracker for the week ending May 10.

The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

(Note: The Sterling Beef Profit Tracker calculates an average beef cutout value for the week in its estimates for feedyard and packer margins. Other prices in the weekly Profit Tracker also are calculated weekly averages. Feedyard margins are calculated on a cash basis only with no adjustment for risk management practices. The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs. Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

USDA Seeks to Limit Use of ‘Product of USA’ Label By Packers

Fri, 27 Sep 2024 01:26:36 GMT

The Agriculture Department on Monday issued a proposed new regulation restricting “Product of the USA” labels on meat, poultry and eggs to animals born and raised in the U.S. The proposal would effectively close a labeling loophole that allows products to use such a label for beef and pork that is simply repackaged in the U.S.

President Joe Biden called for a reassessment of the labeling regulations as part of a 2021 executive order on Promoting Competition in the American Economy, and a commitment made in the Administration’s Action Plan for a Fairer, More Competitive, and More Resilient Meat and Poultry Supply Chain.

The White House says the increased clarity and transparency provided by this proposed change will prevent consumer confusion and help ensure that consumers understand where their food comes from.

“American consumers expect that when they buy a meat product at the grocery store, the claims they see on the label mean what they say,” said Agriculture Secretary Tom Vilsack. “These proposed changes are intended to provide consumers with accurate information to make informed purchasing decisions. Our action today affirms USDA’s commitment to ensuring accurate and truthful product labeling.”

The present labeling standard has been in effect since congress voted in December 2015 to repeal mandatory country-of-origin labeling laws for beef and pork. That action was forced by Canada and Mexico when the two countries challenged the COOL laws as a trade restriction before the World Trade Organization.

As part of its review, USDA commissioned a nationwide consumer survey . The survey revealed that the current “Product of USA” labeling claim is misleading to a majority of consumers surveyed, with a significant portion believing the claim means that the product was made from animals born, raised, slaughtered and processed in the United States.

Regarding the new proposal, Vilsack does not think it would run afoul of trade rules because the labels are voluntary, nor will it impose undue burdens on meatpackers.

“They don’t have to put the label on there,” Vilsack told Bloomberg. “But if they choose to put it on there, then they better be able establish that the animals were born, raised, slaughtered, processed in the US.”

About 12% of all meat, poultry and egg products sold in the US currently claim US origin on their labels, the agriculture department estimates.

U.S. Cattlemen’s Association president Justin Tupper said in a statement his group is “thrilled that the proposed rule finally closes this loophole by accurately defining what these voluntary origin claims mean. If it says, ‘Made in the USA,’ then it should be from cattle that have only known USA soil.”

However, the North American Meat Institute said the new regulations for meat products are again likely to result in trade retaliation from Canada and Mexico costing American consumers and businesses billions of dollars.

National Cattlemen’s Beef Association NCBA Executive Director of Government Affairs Kent Bacus released the following statement:

“There is no question that the current “Product of USA” label for beef is flawed, and it undercuts the ability of U.S. cattle producers to differentiate U.S. beef in the marketplace. For the past few years, NCBA’s grassroots-driven efforts have focused on addressing problems with the existing label, and we will continue working to find a voluntary, trade-compliant solution that promotes product differentiation and delivers profitable solutions and for U.S. cattle producers. Simply adding born, raised, and harvested requirements to an already broken label will fail to deliver additional value to cattle producers and it will undercut true voluntary, market-driven labels that benefit cattle producers. We cannot afford to replace one flawed government label with another flawed government label.”

A statement from R-CALF USA said the organization supports the proposed reforms to the “Product of USA” label, but “it stands firm that only Congress can create labeling reforms that will restore the entire truth to beef consumers and create the market reforms deserved for domestic cattle producers.”

Meat Institute Says Harris Proposal on Price Gouging ‘Misses the Mark’

Thu, 15 Aug 2024 17:14:46 GMT

The Meat Institute issued the following statement from Meat Institute President and CEO, Julie Anna Potts, in response to news reporting of a Harris Campaign proposal to place a federal ban on price gouging:

“Consumers have been impacted by high prices due to inflation on everything from services to rent to automobiles, not just at the grocery store. A federal ban on price gouging does not address the real causes of inflation.

“The Harris campaign rhetoric unfairly targets the meat and poultry industry and does not match the facts. Food prices continue to come dow n from the highs of the pandemic. Prices for meat are based on supply and demand. Avian Influenza, a shortage of beef cattle and high input prices like energy and labor are all factors that determine prices at the meat case.

“Prices that livestock producers receive for their animals are also heavily influenced by supply and demand. Prices for cattle producers especially are at record highs, surpassing the 2014-2015 previous record highs. Today, well into 2024, cattle prices remain at record levels because the US has the lowest cattle inventory since Harry Truman was President.

“Major meat companies have reported losses during the Biden-Harris Administration, with some closing facilities and laying off workers.”

Background:

On industry profit margins:
According to a New York University Study : net profit margins for food processors are a modest 6 percent, for food wholesalers, 1.1 percent and for grocers, 1.8 percent. Farming and agriculture margins are at 7.12 percent. Contrast those low margins with the net profit margins of other industries like entertainment software, 20 percent, rail transportation, 23 percent and computers, 17.47 percent, just to name a few.

For the state of the beef packer:
According to the Sterling Beef Profit Tracker , packer margins are red for ’23 and ’24 AND projected to remain negative into ’25.

For the state of the pork packer:
According to the Sterling Pork Profit Tracker , pork packers were in the red in 2022, 2023.

Share of the Consumer Dollar:
In the beef market, the share of the consumer dollar is steady with the meat packer and processor receiving the smallest share.

Share of retail dollar

(USDA ARS)

About the Meat Institute
The Meat Institute represents the full community of people and companies who make the majority of meat American families rely on every day. The Meat Institute’s hands-on regulatory and technical expertise, proactive advocacy, unique convening power, collaboration within and beyond animal agriculture, and sector-leading continuous improvement initiatives drive relationships and resources that ensure meat continues to be a vital, trusted pillar of healthy diets and thriving communities for generations to come. To learn more, visit: MeatInstitute.org .

Profit Tracker: Feedlot Margins Rebound, Pork Margins Steady

Wed, 31 Jul 2024 02:20:49 GMT

Negotiated cash cattle traded an average of $1.45 per cwt. higher the fourth week in July and profit margins improved by $24 per head to an industry average of $350 per head, according to the Sterling Beef Profit Tracker. Meanwhile, beef packers saw losses increase $6 per head to a loss of $107 per head. That puts the packer/feeder margin spread at $457 per head in favor of the feeder.

Cash cattle averaged $197.03 per cwt. the week ending July 27, while composite wholesale beef prices posted a $1.93 per cwt. loss to close at $315.37 per cwt. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle marketed last week carried a total feed cost of $335.65 per head, down $8.28 per head from the previous week, and about $243 less than feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $171.99 per cwt., while cattle placed on feed last week have a breakeven of $182.99 per cwt., which is about $0.18 per cwt. lower than the previous week and $2.68 per cwt. lower than the same week a year ago. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $260 per cwt., or $5.54 per cwt. less than a month ago. The feeder steer price is 4% higher than last year.

The estimated total cost for finishing a steer last week was $2,408 per head, up 10% from last year’s estimate of $2,157 per head.

Fed cattle slaughter totaled an estimated 487,800, up 3,763 head from the same week last year. Packing plant capacity utilization was estimated at 83.3% compared to 82.7% last year.

View the full Sterling Beef Profit Tracker for the week ending July 27.

Farrow-to-finish hog producers found positive margins of $37 per head last week, down $1 from the previous week. Lean carcass prices averaged $86.99 per cwt., down $0.18 per cwt. from the previous week.

Pork packers saw average profits of $26 per head, up $10 from the previous week. Last year pork packer margins were $5. Hog slaughter was estimated at 2.436 million head, up 64,000 head from the same week last year.

Pork packer capacity utilization was estimated at 90.2% compared to 88.8% last year.

View the full Sterling Pork Profit Tracker for the week ending July 27.

(Note: The Sterling Beef Profit Tracker calculates an average beef cutout value for the week in its estimates for feedyard and packer margins. Other prices in the weekly Profit Tracker also are calculated weekly averages. Feedyard margins are calculated on a cash basis only with no adjustment for risk management practices. The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs. Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

Profit Tracker: Feedlot Margins 35% Lower Than One Month Ago

Tue, 23 Jul 2024 18:30:02 GMT

Negotiated cash cattle retreated an average of $0.79 per cwt. the third week in July and profit margins were reduced by $41 per head. Still, those margins averaged $327 profit per head, according to the Sterling Beef Profit Tracker. Meanwhile, beef packers saw losses increase $7 per head to a loss of $101 per head. That puts the packer/feeder margin spread at $428 per head in favor of the feeder.

Cash cattle averaged $195.58 per cwt. the week ending July 20, while composite wholesale beef prices posted a $3.49 per cwt. loss to close at $317.30 per cwt. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle marketed last week carried a total feed cost of $343.93 per head, down $9.12 per head from the previous week, and about $236 less than feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $172.23 per cwt., while cattle placed on feed last week have a breakeven of $183.17 per cwt., which is about $0.16 per cwt. higher than the previous week and $1.35 per cwt. higher than the same week a year ago. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $260 per cwt., or $1.56 per cwt. less than a month ago. The feeder steer price is 7% higher than last year.

The estimated total cost for finishing a steer last week was $2,411 per head, up 10% from last year’s estimate of $2,180 per head.

Fed cattle slaughter totaled an estimated 482,384, down 4,889 head from the same week last year. Packing plant capacity utilization was estimated at 82.4% compared to 83.2% last year.

Farrow-to-finish hog producers found positive margins of $38 per head last week, down $7 from the previous week. Lean carcass prices averaged $87.17 per cwt., down $2.40 per cwt. from the previous week.

Pork packers saw average profits of $16 per head, up $14 from the previous week. Last year pork packer margins were $6. Hog slaughter was estimated at 2.371 million head, up 43,000 head from the same week last year.

Pork packer capacity utilization was estimated at 88.4% compared to 85.9% last year.

(Note: The Sterling Beef Profit Tracker calculates an average beef cutout value for the week in its estimates for feedyard and packer margins. Other prices in the weekly Profit Tracker also are calculated weekly averages. Feedyard margins are calculated on a cash basis only with no adjustment for risk management practices. The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs. Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

Profit Tracker: Cattle Margins Closing on $400; Pork Margins Solid

Tue, 21 May 2024 21:40:05 GMT

Cattle feeding margins grew significantly last week as the cash market saw an average $3 rally. Beef and pork packers both saw their margins improve with higher cutout values, but beef packer losses remain near $100 per head.

Negotiated cash cattle sold at $189.43 per cwt. the week ending May 18, boosting feedyard margins gained $83 per head for an industry average profit of $375. Meanwhile, beef packers found a $40 per head improvement that left their average losses at $98 per head, according to the Sterling Beef Profit Tracker . That puts the margin spread at $473 per head in favor of the feeder, an increase of $34.

Composite wholesale beef prices posted $4.70 per cwt. gains to close at $302.13 per cwt. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $378.08 per head, down $6.13 per head from the previous week, and about $188 less than feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $162.68 per cwt., while cattle placed on feed last week have a breakeven of $184.61 per cwt., which is about $5 per cwt. higher than the previous week. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $258.62 per cwt., or $9.62 per cwt. higher than a month ago. The feeder steer price is 21% higher than last year.

The estimated total cost for finishing a steer last week was $2,277 per head, down $41 per head from the previous week and up 7% from last year’s estimate of $2,123 per head.

Fed cattle slaughter totaled an estimated 487,370, down 19,560 head from the same week last year. Packing plant capacity utilization was estimated at 83.2% compared to 86.5% last year.

Farrow-to-finish hog producers found positive margins at $46 per head last week, down $3 from the previous week. Lean carcass prices averaged $91.48 per cwt., down $2.28 per cwt. from the previous week and $2.80 per cwt. higher than last year.

Pork packers saw average profits of $9 per head, or $10 per head better than the previous week. Last year pork packer margins were $19 in the red. Hog slaughter was estimated at 2.404 million head, up 25,000 head from the previous week and down 3,000 head from last year.

Pork packer capacity utilization was estimated at 89.2% compared to 89.2% last year.

(Note: The Sterling Beef Profit Tracker calculates an average beef cutout value for the week in its estimates for feedyard and packer margins. Other prices in the weekly Profit Tracker also are calculated weekly averages. Feedyard margins are calculated on a cash basis only with no adjustment for risk management practices. The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs. Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

Brazil's JBS Shares Soar Following Strong Quarterly Results

Wed, 15 May 2024 18:28:25 GMT

Shares of Brazil’s JBS SA rose 7% in early morning trading on Wednesday after the world’s largest meatpacker reported strong first-quarter results in spite of headwinds faced by its large U.S. beef business.

JBS executives said they continue to see reduced cattle availability in the United States and demand constrained by higher beef prices in its biggest market. At the same time, JBS is positive on the outlook for its chicken export business as demand is heating up globally and grain prices have subsided.

The company’s U.S. pork division is, however, benefiting from a shift in consumer demand for pork in place of beef, the company said. In Brazil, a combination of leaner manufacturing processes and lower feed prices bolstered the company’s Seara processed foods division, it added.

“JBS’ diversification is now playing its role,” said BTG analysts in a note to clients, referring to the fact the firm owns plants in multiple countries and sells different types of protein.

BTG said it believes JBS’ Pilgrim’s Pride, its U.S. pork business and Australian operations “should all be direct beneficiaries of the downturn in the U.S. cattle cycle”, adding that Brazilian operations are also benefiting from stronger cyclical fundamentals.

BTG said JBS offers the “best risk-reward in the sector” and has a “buy” recommendation on the stock.

Addressing analysts, JBS CFO Guilherme Cavalcanti said the company is de-leveraging faster than it had anticipated. He said that if the company reports margins of 7.5% for 2024, it is possible for its net-debt-to-EBITDA ratio to fall to 2.5x from a current 3.7x by year-end.

Reducing leverage at the current pace allows JBS to consider paying dividends and evaluate acquisition opportunities, Cavalcanti said in answer to a question about options for capital allocation.

The priority, however, is retaining JBS’ investment grade status, Cavalcanti noted. (Reporting by Ana Mano, Editing by Louise Heavens, Kirsten Donovan)

Meat Institute Creates Industry Guidance to Fight Child Labor & Identity Fraud

Thu, 02 May 2024 19:10:12 GMT

The Meat Institute has created a best practices document to help the meat and poultry industry prevent child labor and identity fraud. The document, the “Meat and Poultry Industry Best Practices: Workforce Age Verification” can be found here.

“The members of the Meat Institute are universally aligned that meat and poultry production facilities are no place for children,” said Julie Anna Potts, President and CEO of the Meat Institute. “These best practices were developed to help prevent child labor given the record influx of undocumented minors occurring in tandem with the increasing prevalence and sophistication of identity theft and fraud.”

“We have shared these best practices with both the Department of Labor and the Department of Agriculture,” said Potts. “We know existing government programs are not enough to solve this problem, and we stand ready to work with the federal government to develop effective programs, and, where appropriate, penalties, to make sure underage workers are not a part of our workforce.”

With hundreds of thousands of migrants entering the country illegally each month, including more unaccompanied minors than ever before, nearly 400,000 since 2021 , many industries have unknowingly hired minors exploited by human traffickers using various methods of identity fraud.

The Meat Institute has worked to educate member companies to improve age and identity verification. Programming has included outside experts and counsel to educate member companies on false identification, on trafficking, on lessons learned from companies charged with violating child labor laws, on new programs and technology to detect identity fraud and more.

As a result of this programming and in consultation with member companies, the Meat Institute gathered field tested best practices and provided the industry with an effective framework for members to further develop their own programs.

The best practices document reviews legal authorities, includes suggestions for corporate codes of conduct, expectations for third-party contractors, instructions for immediate on the ground responses to suspicions of child labor, enhanced training, audits and technological solutions.

Batista Brothers are Back on the JBS Board

Tue, 30 Apr 2024 00:50:57 GMT

At the annual shareholders’ meeting of JBS SA on April 24, brothers Wesley Batista and Joesley Batista were voted back onto the board of directors of the largest meat processing enterprise in the world.

JBS released a statement that the brothers, along with nine other board members would be serving a two-year term. In addition, the Batistas were elected to the Pilgrim’s Pride Board in February.

The appointments come amid continued controversary as JBS SA and the Batistas have been involved with numerous legal cases resulting in fines and jail time.

In a letter dated Jan. 11, a bipartisan group of senators expressed concerns to the Securities and Exchange Commission (SEC) Chair Gary Gensler in regards to the company’s continued pursuit of an initial public offering on the New York Stock Exchange, which has been over a decades long endeavor.

Profit Tracker: Packer/Feeder Margin Spread Exceeds $400

Wed, 10 Apr 2024 19:52:32 GMT

Negotiated cash cattle sold $3 lower last week but lower costs helped boost feedyard margins $30 per head for an industry average profit of $202. Meanwhile, beef packers saw their margins erode another $50 per head to average losses of $224 per head, according to the Sterling Beef Profit Tracker . That puts the margin spread at $426 per head in favor of the feeder.

Cash cattle averaged $186.50 per cwt. the week ending Apr. 6, while composite wholesale beef prices posted $7.21 per cwt. losses to close at $291.35 per cwt. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $378 per head, down about $10 per head from the previous week, and about $219 less than feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $172.07 per cwt., while cattle placed on feed last week have a breakeven of $172.04 per cwt., which is down about $8 per cwt. from the previous week. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $2339.97 per cwt., or $10 per cwt. less than a month ago. The feeder steer price is 20% higher than last year.

The estimated total cost for finishing a steer last week was $2,409 per head, down $69 per head from the previous week and up 11% from last year’s estimate of $2,138 per head.

Fed cattle slaughter totaled an estimated 484,764, up 10,796 head from the same week last year. Packing plant capacity utilization was estimated at 82.8% compared to 80.9% last year.

Farrow-to-finish hog producers found positive margins at $31 per head last week, up $14 from the previous week. Lean carcass prices averaged $86.85 per cwt., up $4.62 per cwt. from the previous week and $13.04 per cwt. higher than last year.

Pork packers saw profits of about $10 per head, or $5 per head less than the previous week. Last year pork packer margins were near breakeven. Hog slaughter was estimated at 2.421 million head, up 17,000 head from the previous week and up 52,000 head from last year.

Pork packer capacity utilization was estimated at 89.8% compared to 88.2% last year.

(Note: The Sterling Beef Profit Tracker calculates an average beef cutout value for the week in its estimates for feedyard and packer margins. Other prices in the weekly Profit Tracker also are calculated weekly averages. Feedyard margins are calculated on a cash basis only with no adjustment for risk management practices. The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs. Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

Profit Tracker: Packer/Feeder Margin Spread Grows

Tue, 26 Mar 2024 20:21:32 GMT

Negotiated cash cattle prices gained more than $2 per cwt. last week posting new record highs and adding $24 profit to an industry average $124 per head. Meanwhile, beef packers saw their margins erode another $12 per head to average losses of $123 per head, according to the Sterling Beef Profit Tracker.

Cash cattle averaged $190.20 per cwt. the week ending Mar. 23, while composite wholesale beef prices posted $2.71 per cwt. gains to close at $300.20 per cwt. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $386 per head, up about $2 per head from the previous week, and about $216 less than feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $181.33 per cwt., while cattle placed on feed last week have a breakeven of $181.28 per cwt., which is up nearly $2 per cwt. from the previous week. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $255.46 per cwt., or $11 per cwt. more than a month ago. The feeder steer price is 27% higher than last year.

The estimated total cost for finishing a steer last week was $2,538 per head, up 17% from last year’s estimate of $2,111 per head.

Fed cattle slaughter totaled an estimated 473.018, down 13,561 head from the same week last year. Packing plant capacity utilization was estimated at 80.0% compared to 83.1% last year.

Farrow-to-finish hog producers found positive margins at $18 per head last week, up $5 from the previous week. Lean carcass prices averaged $82.28 per cwt., $1.87 per cwt. higher than the previous week and $2.84 per cwt. higher than last year.

Pork packers saw profits of about $11 per head, or $3 per head less than the previous week. Last year pork packers saw losses of $5. Hog slaughter was estimated at 2.532 million head, up 66,000 head from the previous week and up 60,000 head from last year.

Pork packer capacity utilization was estimated at 93.9% compared to 91.8% last year.

(Note: The Sterling Beef Profit Tracker calculates an average beef cutout value for the week in its estimates for feedyard and packer margins. Other prices in the weekly Profit Tracker also are calculated weekly averages. Feedyard margins are calculated on a cash basis only with no adjustment for risk management practices. The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs. Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

Nalivka: Other Important Factors at Play in Cattle, Hog Markets

Fri, 15 Mar 2024 17:13:14 GMT

As cattle numbers continue to fall in the wake of the 2021-2022 drought and significant herd liquidation followed by sharply higher grain prices, factors that may not have seemed nearly as important become critical and impact both the market and market participants. Those impacts will reach across the supply chain.

Corporate announcements of changes (reductions) in plant operations are one impact. Tyson’s announcement this week to close their pork plant in Perry, IA at the end of June is perhaps the first of similar announcements by other firms as the year progresses. While it concerns the pork industry, I believe this announcement is a sign of “more to come” across the red meat supply chain.

The economic environment of both the beef and pork industries has changed. It is having an impact and will continue to impact on the beef and pork industries, including livestock numbers, utilization of capacity across the industry (beef and pork), labor, water and other environmental factors, and consumer demand.

I recently told a client that while forage availability and prices drive the cattle cycle, other factors will increasingly play a greater role. Further, in analyzing red meat and poultry markets, total meat supplies and competition at the meat case has always been a key part of the discussion. While it is certainly still part of the discussion, the role of total meat supply in price analysis may have changed as consumer preferences change for reasons we have not traditionally considered. I continue to emphasize the importance of demand as a key factor as the year progresses.

Capacity is a critical issue for the red meat and poultry industries and utilization of that capacity has a significant impact on margins. I can only emphasize that point. This is true regardless of the industry and/or the industry sector whether it be as in the case of the beef industry - packers, feedlots, and yes, even cow-calf producers. Replace feedlots with a finishing operation for the pork industry and the list is just as inclusive.

Market impact goes beyond the supply and demand. There are other consumer-driven factors that are becoming increasingly important - an increased government role in the market with increased regulations, changes in global trade and global trade policy decisions, and even the politics of an election year that could impact both the supply and consumer buying over the remainder of 2024 and beyond. The end result is not necessarily negative, but the likelihood of increased volatility is a reality which in turn supports the need for increased awareness and to actively manage risk.

Profit Tracker: Feeding Margins Improve, Packers in Black

Mon, 29 Jan 2024 19:26:18 GMT

Cash cattle prices saw an average $1.30 per cwt. gain last week which improved closeouts by $50 per head, leaving per head losses at $84. Beef packers saw their margins improve $39 per head, erasing $11 per head loss and adding a $28 per head profit, according to the Sterling Beef Profit Tracker .

Cash cattle averaged $175.65 per cwt. last week while wholesale beef prices improved $6 per cwt. to $297.25 per cwt. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $426 per head, down about $3 per head from the previous week, and about $146 less than feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $181.68 per cwt., while cattle placed on feed last week have a breakeven of $166.02 per cwt., which is about equal to a month ago. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $227.77 per cwt., or $2 per cwt. more than a month ago. The feeder steer price is 22% higher than last year.

The estimated total cost for finishing a steer last week was $2,543 per head, up 15% from last year’s estimate of $2,152 per head.

Fed cattle slaughter totaled an estimated 485,748, down 18,000 head from the same week last year. Packing plant capacity utilization was estimated at 82.9% compared to 86.0% last year.

Farrow-to-finish hog producers saw losses of $38 per head last week, about $12 less than losses the previous week. Pork producer margins have now been negative every week for the past year. Lean carcass prices averaged $53.89 per cwt., $4.93 per cwt. higher than the previous week and down $19.64 from last year (-27%).

Pork packers saw profits of about $65 per head, or $9 per head less than the previous week, still the second best profit week since January 2022. Last year pork packers saw profits of $6 per head. Hog slaughter was estimated at 2.719 million head, up 89,000 head from the previous week and up 173,000 head from last year.

Pork packer capacity utilization was estimated at 100.5% compared to 92.0% last year.

(Note: The Sterling Beef Profit Tracker calculates an average beef cutout value for the week in its estimates for feedyard and packer margins. Other prices in the weekly Profit Tracker also are calculated weekly averages. Feedyard margins are calculated on a cash basis only with no adjustment for risk management practices. The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs. Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

Profit Tracker: Cattle Losses Reach Triple Digits

Tue, 12 Dec 2023 16:13:45 GMT

Cattle feeding losses increased nearly five-fold last week with a $5 per cwt. decline in cash prices. Lower cattle costs, however, did not aid beef packers as per head losses more than doubled from the prior week.

Cattle feeding losses fell to $100.52 per head the week ending Dec. 9, $77 per head more than the previous week, according to the Sterling Beef Profit Tracker. Beef packers saw their losses increase $13 per head to total $23. A month ago cattle feeders saw average profits of $94 per head.

For the week ending Dec. 8, cash cattle prices averaged $169.47 per cwt., which is roughly $5 lower than the previous week. Wholesale beef prices posted an average of $287.03 per cwt., roughly $6 per cwt. lower than the previous week. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $443 per head, down about $62 per head from the previous week, and about $83 less than feed costs for cattle sold the same week a month ago. Feed costs are 20% lower than a year ago.

Cattle marketed last week had a breakeven of $176.65 per cwt., while cattle placed on feed last week have a breakeven of $163.16 per cwt., which is about $3 per cwt. lower than a month ago. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $219.16 per cwt., or $13 per cwt. less than a month ago. The feeder steer price is 19% higher than last year.

The estimated total cost for finishing a steer last week was $2,473 per head, up 19% from last year’s estimate of $2,008 per head.

Fed cattle slaughter totaled an estimated 494,030, down 2,000 head from the same week last year. Packing plant capacity utilization was estimated at 84.4% compared to 86.8% last year.

Farrow-to-finish hog producers saw losses of $51 per head last week, about $9 more than losses the previous week. Pork producer margins have now been negative every week for the past year. Lean carcass prices averaged $59.15 per cwt., $2.29 per cwt. lower than the previous week and down $26.98 from last year (-31%).

Pork packers saw profits of about $54 per head, or $7 per head more than the previous week, and their best profit margins since January 2022. Last year pork packers saw losses of $5 per head. Hog slaughter was estimated at 2.687 million head, down 8,000 head from the previous week and up 108,000 head from last year.

Pork packer capacity utilization was estimated at 99.6% compared to 93.4% last year.

(Note: The Sterling Beef Profit Tracker calculates an average beef cutout value for the week in its estimates for feedyard and packer margins. Other prices in the weekly Profit Tracker also are calculated weekly averages. Feedyard margins are calculated on a cash basis only with no adjustment for risk management practices. The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs. Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

Profit Tracker: Cattle Margins Fall Underwater

Tue, 21 Nov 2023 15:18:21 GMT

Cattle feeders have seen profit margins tumble more than $300 per head over the past month as cash prices eroded an average of nearly $9 per cwt. Last week found margins decline about $97 per head to an average loss of $2.67 per head, according to the Sterling Beef Profit Tracker . That marked the first average negative margin since Oct. of last year. Beef packers found improving margins, yet remain $69 per head underwater. The packer-feeder margin spread narrowed to $66, advantage cattle feeders.

For the week ending Nov. 18, cash cattle prices averaged $177.77 per cwt., which is roughly $2 lower than the previous week. Wholesale beef prices posted an average of $291.54 per cwt., a $3.62 per cwt. decline from the previous week. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $516 per head, down about $10 per head from the previous week, and about $5 more than feed costs for cattle sold the same week a month ago. Feed costs are 17% lower than a year ago.

Cattle marketed last week had a breakeven of $177.96 per cwt., while cattle placed on feed last week have a breakeven of $165.71 per cwt., which is about $11 per cwt. lower than a month ago. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $225.09 per cwt., or $17 per cwt. less than a month ago. The feeder steer price is 22% higher than last year.

The estimated total cost for finishing a steer last week was $2,491 per head, up 19% from last year’s estimate of $2,026 per head.

Fed cattle slaughter totaled an estimated 490,356, up 13,878 head from the previous week and 27,579 fewer than the same week last year. Packing plant capacity utilization was estimated at 83.7% compared to 90.6% last year.

Farrow-to-finish hog producers saw losses of $28 per head last week, about $9 more than losses the previous week. Pork producers saw breakeven margins the same week a year ago. Lean carcass prices averaged $64.70 per cwt., down $3.96 per cwt. from the previous week and down $23.03 from last year (-26%).

Pork packers saw profits of about $39 per head, or $5 per head more than the previous week, and their best profit margins since January 2022. Last year pork packers saw profits of $7 per head. Hog slaughter was estimated at 2.649 million head, up 72,000 head from the previous week and up 52,000 head from last year.

Pork packer capacity utilization was estimated at 97.8% compared to 94.2% last year.

(Note: The Sterling Beef Profit Tracker calculates an average beef cutout value for the week in its estimates for feedyard and packer margins. Other prices in the weekly Profit Tracker also are calculated weekly averages. Feedyard margins are calculated on a cash basis only with no adjustment for risk management practices. The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs. Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

New Meat Sector Data on Continuous Improvement, Sustainability

Thu, 05 Oct 2023 18:16:49 GMT

More than half of all establishments operated by North American Meat Institute members – including 93% of member companies with more than 2000 employees – submitted data for the meat sector’s second annual sustainability report , released Thursday.

The Meat Institute reports the number of companies submitting data for this year’s report grew by nearly 60%, reflecting commitments and actions covering an estimated 90% of meat sold in the United States. The metrics and goals of the project align closely with on-farm efforts in beef, pork, poultry and feed to drive supply chain-wide sustainability, the organization says.

“Ninety-eight percent of American households purchase meat, putting our sector undoubtedly at the center of sustaining healthy diets, healthy communities, and a healthy planet for generations to come,” said the Meat Institute’s president and CEO Julie Anna Potts. “The Meat Institute has a clear vision for 2030 and has established measurable targets to verify progress along the way, including through this game-changing data collection and reporting which will incentivize sector-wide implementation of best practices and allow us to identify gaps where further resources are needed to achieve ambitious goals.”

The Meat Institute’s ambitious goals include that by 2030 100% of members will have set a science-based emissions reduction target by 2030. To date, 14 Meat Institute general members representing the majority of meat sold in the United States, plus 10 supplier/allied members, have set or publicly committed to set targets verified by the Science-Based Targets Initiative.

Of establishments reporting data, 66% are covered by a company commitment to set scope 1 and 2 emissions reduction goals; 62% are covered by a company commitment to set scope 3 emissions reduction goals. In September, the Meat Institute and the UN Global Compact Network USA jointly released a practical tool to help meat companies conduct emissions surveys, the first critical step in the path to setting science-based targets.

To verify progress toward its goals for 2030, the Meat Institute’s Protein PACT aims that by 2025 100% of members who handle animals will pass third-party animal transport and handling audits and all members will require all suppliers to implement employee training and follow species-specific standards for animal care.

By 2030, the Meat Institute aims that 100% of its members will be reporting on all metrics for its sustainability objectives.

Aiding another key target to help families facing hunger access enough high-quality protein, Meat Institute members donate tens of millions of dollars and meals to food banks and charities across the country every year. The majority of companies reporting data contributed to food banks and charities in 2022.

Examples of food security actions in this reporting period include:

Bob Evans Farms announced a four-year partnership with Mid-Ohio Food Bank to donate more than $1 million in cash and food contributions.
Hormel Foods and Tyson Foods partnered to support communities affected by the Maui wildfires, with Hormel donating more than 264,000 cans of SPAM and Tyson donating more than 100,000 lbs of protein.
Smithfield Foods donated 28,000 lbs of protein to Florida communities devastated by Hurricane Idalia.
Swaggertys has donated nearly 35,000 lbs of frozen sausage to local food banks and charity organizations so far in 2023.

The Meat Institute’s full 2023 continuous improvement report is available here .

Profit Tracker: Packer Margins Continue Eroding

Wed, 27 Sep 2023 19:37:08 GMT

Beef packers recorded losses of $66 per head for the week ending Sept. 23, slipping further into the red after losses of $10 per head the previous week. Cattle feeding margins retreated $40 per head to average profits of $304 per head, according to the Sterling Beef Profit Tracker . The packer-feeder margin spread widened to $370 per head in favor of cattle feeders.

For the week ending September 23, cash cattle prices averaged $185.25 per cwt., up about $0.84 from the previous week. That price is 22% higher than last year’s $145.45 per cwt. cash price.

Wholesale beef prices posted an average of $299.31 per cwt., a $4.73 per cwt. decline from the previous week and a $10.51 decline over two weeks. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $564 per head, up about $15 per head from the previous week, and about $38 less than feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $163.52 per cwt., while cattle placed on feed last week have a breakeven of $183.54 per cwt. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $255.35 per cwt., and feed costs of $375.92 per head. The feeder steer price is 31% higher than last year.

The estimated total cost for finishing a steer last week was $2,289 per head, up 14% from last year’s estimate of $1,971 per head.

Fed cattle slaughter totaled an estimated 491,250 down 5,502 head from the previous week and 31,633 fewer than the same week last year. Packing plant capacity utilization was estimated at 83.9% compared to 91.4% last year.

Farrow-to-finish hog producers found a profit of about $1 per head last week, about $4 per head better than the $3 loss the previous week. Pork producers saw profits of $26 per head the same week a year ago. Lean carcass prices averaged $80.47 per cwt., down $0.66 per cwt. from the previous week.

Pork packers closed the week with $29 per head profits, up $2 per head from the previous week. Last year pork packer margins were negative $3 per head. Hog slaughter was estimated at 2.537 million head, up 6,000 head from the week before and down 18,000 head from last year.

Pork packer capacity utilization was estimated at 93.7% compared to 92.6% last year.

(Note: The Sterling Beef Profit Tracker calculates an average beef cutout value for the week in its estimates for feedyard and packer margins. Other prices in the weekly Profit Tracker also are calculated weekly averages. Feedyard margins are calculated on a cash basis only with no adjustment for risk management practices. The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs. Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

Tyson Foods to Deploy Driverless Trucks in Arkansas

Thu, 07 Sep 2023 13:26:47 GMT

Tyson Foods, Inc., is teaming up with Gatik AI, Inc., in a multi-year collaboration to deploy autonomous, “self-driving” refrigerated box trucks to bolster Tyson routes in Northwest Arkansas. Operating 18 hours a day, trucks will deliver Tyson, Jimmy Dean and BallPark products, among others, to the company’s distribution and storage facilities in the Rogers and Springdale, Ark., areas.

“The deployment will introduce Gatik trucks equipped with commercial-grade autonomous technology to the Tyson supply chain, operating on predetermined short-haul, repeated routes to support fast and efficient product flow from plant to storage facilities,” Tyson said in a release . “In a nationwide truck driver shortage, these autonomous trucks are an innovative and safe way to add resources that will allow the company to elevate drivers to other transportation positions in the Tyson business, while ensuring continuous supply chain reliability.”

Beginning this week, the collaboration includes multiple trucks with the potential for expansion at other Tyson locations in the future. A safety driver will initially be present in the cab to monitor the autonomous system and take command of operating the truck if required.

“The trucks are equipped with a 26-foot, temperature-controlled box purpose-built to transport refrigerated and frozen goods quickly and safely and multiple sensor modalities that are custom-designed for fail-safe short-haul B2B operations,” Tyson said.

The partnership is expected to provide the company with increased asset utilization within its short-haul logistics network, assist with inventory objectives, all while supporting a transition to a more responsive, high-frequency approach to goods movement. Additionally, autonomous trucks operate with increased efficiency and sustainability, leading to reduced emissions and enhanced fuel economy.

“At Tyson Foods, we are innovating and using automation throughout our business, including in transportation,” said Patrick Simmons, vice president of transportation for Tyson Foods. “This partnership allows us to strategically place our drivers where they are needed most while still reliably and safely transporting protein from the plant to distribution centers.”

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5 Things I Learned About Hog Farming from Aerial Surveillance

Environmental Activists Pressure U.S. Regulators to Halt JBS Listing

Fri, 25 Aug 2023 18:40:31 GMT

By Ana Mano and Tom Polansek

A coalition of environmental groups is pushing U.S. securities regulators to thwart JBS SA’s (JBSS3.SA) New York share listing over concerns about the world’s largest meatpacker’s impact on deforestation, climate change and other issues.

The Brazilian company hopes a U.S. listing will attract a broader investor base to give it more access to cheaper capital.

However, groups including Rainforest Action Network, Mighty Earth and World Animal Protection this month sent letters to the Securities and Exchange Commission urging it to oppose the U.S. initial public offering or investigate claims in JBS’s prospectus.

“This is probably the single most important IPO for the climate in history,” said Glenn Hurowitz, chief executive of Mighty Earth.

The destruction of rainforests, which serve as carbon sinks, imperils global climate targets.

JBS said its listing proposal will “enhance corporate governance and transparency through adherence to SEC standards.” It also said it looks forward to engaging with non-governmental organizations.

Activists have long accused JBS of exploiting the environment and workers. Cattle ranching, along with clearing land to sell timber or grow crops, is driving deforestation in the Amazon rainforest. The beef industry says most deforestation is done by criminals.

World Animal Protection told the SEC that JBS, which buys grain for livestock feed, did not adequately identify crop farming as a material risk factor for deforestation in its prospectus.

In a response, the SEC said World Animal Protection’s concerns “will be given careful consideration in view of the Commission’s overall enforcement responsibilities under the U.S. federal securities laws,” according to the group.

The SEC declined to comment to Reuters.

Last year, an audit by Brazilian prosecutors found nearly 17% of the cattle bought by JBS in Para state in the Amazon rainforest from July 2019 to June 2020 allegedly came from ranches with “irregularities” like illegal deforestation. JBS said at the time that issues that led to the purchases had been fixed.

“In the prospectus there is no clear road map to really make sure JBS is not involved in deforestation,” said Merel van der Mark, a Rainforest Action Network coordinator.

JBS said it is using blockchain technology to monitor suppliers’ suppliers. As of January 2026, only producers registered in its blockchain tool will be able to continue doing business with JBS, it said.

The company expects to conclude its U.S. listing by the end of the year.

Once the SEC confirms the planned offering complies with U.S. securities regulations and has no additional comments, the company can submit the deal for shareholders’ approval.

The U.S. listing has been in the works for nearly a decade, but was postponed in part due to a 2017 corporate corruption scandal in Brazil and then again amid the COVID-19 pandemic.

_{Reporting by Tom Polansek in Chicago and Ana Mano in Sao Paulo. Editing by Nick Zieminski.}

Profit Tracker: Beef & Pork Producer Margins Gaining

Tue, 25 Jul 2023 21:19:27 GMT

Cattle slaughter continues in decline and packers are scrambling to find enough market-ready cattle to keep the chains moving. Feedyards have countered with higher asking prices. USDA’s most recent grading data and the national Choice plus Prime grading percentage reached a new low for 2023, equaling the 5-year average.

For the week ending July 22, cattle feeders found average profits near $441 per head, about steady with profits the previous week. The week’s 5-area direct price was $187.26 per cwt. an increase of $2.90 per cwt., which is $44 per cwt. higher (+24%) than the same week a year ago, according to the Sterling Beef Profit Tracker .

Beef packer margins slipped further into the red with average losses of about $81 per head, or losses of $71 per head more than the previous week. Wholesale beef prices posted an average of $300 per cwt., down about $5 from the previous week. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $580 per head, up about $2 per head from the previous week, but 12% higher than the $510 feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $155.76 per cwt., while cattle placed on feed last week have a breakeven of $181.82 per cwt. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $242.69 per cwt., and feed costs of $454 per head. The feeder steer price is 31% higher than last year.

The estimated total cost for finishing a steer last week was $2,180 per head, up 18% from last year’s estimate of $1,917 per head.

Fed cattle slaughter totaled an estimated 498,632 head, down about 4,000 head from the previous week and 14,000 fewer than the same week last year. Packing plant capacity utilization was estimated at 87.2% compared to 89.4% last year.

Farrow-to-finish hog producers saw profits of about $45 per head last week, about $9 per head more than the previous week. Pork producers saw profits of $89 per head the same week a year ago. Lean carcass prices averaged $106.13 per cwt., up $3.51 per cwt. from the previous week.

Pork packers closed the week with $6 per head profits, down $3 per head from the previous week. Last year pork packers were losing about $16 per head. Hog slaughter was estimated at 2.316 million head, down 12,000 head from the week before and up 22,000 head from last year.

Pork packer capacity utilization was estimated at 85.2% compared to 83.0% last year.

(Note: The Sterling Beef Profit Tracker calculates an average beef cutout value for the week in its estimates for feedyard and packer margins. Other prices in the weekly Profit Tracker also are calculated weekly averages. Feedyard margins are calculated on a cash basis only with no adjustment for risk management practices. The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs. Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

Profit Tracker: Flip The Script

Wed, 19 Jul 2023 18:53:17 GMT

Cattle feeders found average profits near $435 per head the week ending July 15, about steady with profits the previous week. The week’s 5-area direct price was $184.36 per cwt. an increase of $1.29 per cwt., which is $38 per cwt. higher (+21%) than the same week a year ago, according to the Sterling Beef Profit Tracker .

Beef packer margins slipped into the red last week with average losses of about $10 per head, or $114 less than the previous week. Wholesale beef prices posted an average of $305 per cwt., down about $12 from the previous week. The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.

Cattle sold last week carried a total feed cost of $578 per head, down about $3 per head from the previous week, but 15% higher than the $491 feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $153.35 per cwt., while cattle placed on feed last week have a breakeven of $178.27 per cwt. Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $238.46 per cwt., and feed costs of $439 per head. The feeder steer price is 28% higher than last year.

The estimated total cost for finishing a steer last week was $2,147 per head, up 14% from last year’s estimate of $1,841 per head.

Fed cattle slaughter totaled an estimated 493,740 head, up about 73,000 head from the previous week and 30,000 fewer than the same week last year. Packing plant capacity utilization was estimated at 86.3% compared to 91.6% last year.

Farrow-to-finish hog producers saw profits of about $36 per head last week, about $5 per head more than the previous week. Pork producers saw profits of $82 per head the same week a year ago. Lean carcass prices averaged $102.62 per cwt., up $2.29 per cwt. from the previous week.

Pork packers closed the week with $9 per head profits, up $4 per head from the previous week. Last year pork packers were losing about $24 per head. Hog slaughter was estimated at 2.340 million head, up 386,000 from the week before and up 18,000 head from last year.

Pork packer capacity utilization was estimated at 85.9% compared to 81.3% last year.

(Note: The Sterling Beef Profit Tracker calculates an average beef cutout value for the week in its estimates for feedyard and packer margins. Other prices in the weekly Profit Tracker also are calculated weekly averages. Feedyard margins are calculated on a cash basis only with no adjustment for risk management practices. The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs. Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

Profit Tracker: Feedyard Margins Rapidly Declining

Fri, 07 Jul 2023 19:17:07 GMT

Cattle feeding margins shed another $26 per head last week as cash prices declined $3 per cwt. Industry average profit margins on cattle sold last week were $91 per head, which is 50% lower than two weeks ago, according to the Sterling Beef Profit Tracker .

For the week ending May 10, cash cattle sold for an average of $120.24 per cwt., while the beef cutout closed the week at $221.13 down $6.88 from May 3. Packers saw profits of $149.56 per head last week, $19 lower than the previous week. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.

A year ago cattle feeders were earning an average of $20 per head. Feeder cattle represent 72% of the cost of finishing a steer compared with 72% a year ago.

Farrow-to-finish pork producers saw their margins decline $2 per head with profits of $47. Lean carcass prices traded at $82.73 per cwt., $0.26 per cwt. lower than the previous week, and $4.86 higher than a month ago. A year ago pork producer margins were positive $9 per head. Pork packer margins averaged a loss of $3 per head last week.

Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2019 will average $144 per cow. That would be modestly lower compared to the $161 estimated average profit for 2018. Estimated average cow-calf margins were $164 in 2017, $176 in 2016, and $438 per cow in 2015.

For feedyards, Nalivka projects an average profit of $77 per head in 2019, which would be $53 better than the average of $24 per head in 2018. Nalivka expects packer margins to average about $156 per head in 2019, about $14 less than in 2018.

For farrow-to-finish pork producers, Nalivka projects an average loss of $14.60 per head in 2019, as compared with an average profit of $1.35 per head in 2018. Pork packers are projected to earn $21 per head in 2019, about $3 less than the $20 per head profits of 2018.

Related stories:

Feedyard Margins Decline 35%

Profit Tracker: Feedyard Margins Trend Higher

Fri, 07 Jul 2023 19:17:07 GMT

Cattle feeding margins improved $57 per head last week, due primarily to lower prices paid for incoming feeder cattle against last week’s marketings. Industry average profit margins on cattle sold last week were $184 per head, according to the Sterling Beef Profit Tracker.

For the week ending April 26, cash cattle sold for an average of $126.24 per cwt., while the beef cutout closed the week at $231.52 up $0.72 from April 19. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.

A year ago cattle feeders were earning an average of $74 per head. Feeder cattle represent 73% of the cost of finishing a steer compared with 72% a year ago.

Farrow-to-finish pork producers saw their margins improve $5 per head with profits of $48 per head. Lean carcass prices traded at $83.49 per cwt., $2.50 per cwt. higher than the previous week, and $6.89 higher than a month ago. A year ago pork producer margins were positive $7 per head.

Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2019 will average $153 per cow. That would be modestly lower compared to the $162 estimated average profit for 2018. Estimated average cow-calf margins were $164 in 2017, $176 in 2016, and $438 per cow in 2015.

For feedyards, Nalivka projects an average profit of $74 per head in 2019, which would be $50 better than the average of $24 per head in 2018.

For farrow-to-finish pork producers, Nalivka projects average profits of $26 per head in 2019, as compared with an average profit of $1.35 per head in 2018.

Profit Tracker: Feedyard Margins Improve $43

Fri, 07 Jul 2023 19:17:07 GMT

Cattle feeding margins improved $43 per head last week as cash prices gained nearly $2 per cwt. Industry average profit margins on cattle sold last week were $127 per head, according to the Sterling Beef Profit Tracker.

For the week ending April 19, cash cattle sold for an average of $126.78 per cwt., while the beef cutout closed the week at $230.80 up $3.24 from April 12. Packers saw profits of $194 per head last week, $14 higher than the previous week. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.

A year ago cattle feeders were losing an average of $44 per head . Feeder cattle represent 73% of the cost of finishing a steer compared with 72% a year ago.

Farrow-to-finish pork producers saw their margins improve $5 per head with profits of $43 per head. Lean carcass prices traded at $80.99 per cwt., $3.12 per cwt. higher than the previous week, and $16.68 higher than a month ago. A year ago pork producer margins were negative $2 per head. Pork packer margins averaged a profit of $4 per head last week.

Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2019 will average $144 per cow. That would be modestly lower compared to the $161 estimated average profit for 2018. Estimated average cow-calf margins were $164 in 2017, $176 in 2016, and $438 per cow in 2015.

For feedyards, Nalivka projects an average profit of $77 per head in 2019, which would be $53 better than the average of $24 per head in 2018. Nalivka expects packer margins to average about $156 per head in 2019, about $14 less than in 2018.

For farrow-to-finish pork producers, Nalivka projects an average loss of $14.60 per head in 2019, as compared with an average profit of $1.35 per head in 2018. Pork packers are projected to earn $21 per head in 2019, about $3 less than the $20 per head profits of 2018.

Related stories:

Profit Tracker: Feedyard Margins Improve $16

Profit Tracker: Feedyard Margins Top $200 Per Head

Fri, 07 Jul 2023 19:17:04 GMT

Cattle feeding margins jumped nearly $20 per head higher last week to average $216. The increase in profitability was due to an average $0.42 per cwt. increase in cash cattle prices and a decline in total feed costs for the calculated feeding period, according to the Sterling Beef Profit Tracker .

Profit margins for pork producers rose $4.97 per head last week to $80.60 per head. The increase was tied to a $0.35 per cwt. improvement in negotiated cash prices. Both beef and pork margins are calculated by John Nalivka, president, Sterling Marketing, Vale, Ore.

Cattle feeders’ profits last week were $319 per head more than at the same time last year when $103 per head losses were recorded. Beef cutout values declined nearly $6 per cwt. last week, and packer margins declined $64 per head, leaving packers with per head losses of $47. A month ago packers recorded losses of $63 on every animal processed, while profits totaled $15 per head at the same time last year.

Farrow-to-finish hog margins posted the first gain in several weeks, and are now about $20 per head less than last month. Pork packers saw their margins decline slightly last week, with the average at $3..44 in the loss column for every animal processed.

The spike in both cattle feeding and farrow-to-finish profits this spring is due to significantly higher cash prices and lower overall feed prices. Cash prices for fed cattle are more than $22 per cwt. higher than last year, and negotiated hog prices are more than $22 per cwt. higher than last year.

Profit Tracker: Packer Margins Top $200

Fri, 07 Jul 2023 19:17:04 GMT

Both cattle feeding and packer margins improved last week, even as cash fed cattle prices dipped another $1 per cwt. Feedyard margins gained $11 per head for an average profit of $69, while packer margins improved $40 per head to $204, according to the Sterling Profit Tracker.

For the week ending May 24, cash cattle sold for an average of $115.30 per cwt., while the beef cutout closed the week at $218.31, up $0.31 from May 17. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.

A year ago cattle feeders were losing an average of $80 per head. Feeder cattle represent 71% of the cost of finishing a steer compared with 70% a year ago.

Farrow-to-finish pork producers saw their margins decline $1 per head with profits of $49. Lean carcass prices traded at $83.02 per cwt., $1.62 per cwt. higher than the previous week, and $0.47 lower than a month ago. A year ago pork producer margins were positive $17 per head. Pork packer margins averaged a loss of $5 per head last week.

Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2019 will average $153 per cow. That would be modestly lower compared to the $161 estimated average profit for 2018. Estimated average cow-calf margins were $164 in 2017, $176 in 2016, and $438 per cow in 2015.

For feedyards, Nalivka projects an average profit of $72 per head in 2019, which would be $48 better than the average of $24 per head in 2018. Nalivka expects packer margins to average about $167 per head in 2019, about $2 less than in 2018.

For farrow-to-finish pork producers, Nalivka projects an average profit of $17.50 per head in 2019, as compared with an average profit of $1.35 per head in 2018. Pork packers are projected to earn $15 per head in 2019, about $5 less than the $20 per head profits of 2018.

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Profit Tracker: Spring Erosion Continues

Profit Tracker: Significant Rise

Fri, 07 Jul 2023 19:17:02 GMT

Profit margins for cattle feeders rose significantly in the past week, while pork producers saw a slight decrease from their still profitable farrow to finish operations.

Cattle feeders recorded average profits of $357.58 per head last week, more than $77 per head higher than the previous week, according to the Sterling Beef Profit Tracker . The margins represent a $506 per head improvement over the average losses of $148.49 recorded last year at this time, according to estimates developed by John Nalivka, president of Sterling Marketing, Vale, Ore.

Beef cutout values were up $4.12 per cwt. last week, and beef packer margins increased $3.40 per head to end the week with proits of $71.50 per head. A month ago packers saw profits of $80.89 on every animal processed, and gains totaled just $17.69 per head at the same time last year.

Farrow-to-finish hog margins declined $9.09 per head but profits remain more than $102 per head. That is nearly an $85 difference from last year when pork producers saw only a $17.59 profit. Negotiated cash hog prices declined $4.13 per cwt. to $128.01 per cwt. Pork packers were estimated to make $5.26 for every animal processed.

The spike in both cattle feeding and farrow-to-finish profits this summer is due to significantly higher cash prices and lower overall feed prices. Cash prices for fed cattle are more than $44 per cwt. higher than last year, and negotiated hog prices are nearly $27 per cwt. higher than last year.