Retail Beef

The Shrinking Slice: Farmers Receive Less Than 6 Cents of Every Food Dollar

Tue, 31 Mar 2026 20:30:41 GMT

For the past two years, USDA has estimated farmers and ranchers received less than 6 cents of every food dollar. In 2023, that was 5.9 cents, and using the latest data from 2024, it’s 5.8 cents.

“Our oldest data point right now is 2007 [USDA updated the data series] and that’s 14.7 cents per dollar, and now we’re down all the way to 11.8 cents per dollar,” says Faith Parum, economist with the American Farm Bureau Federation. “So we’ve really seen that decline year after year. It reflects how much of the value of things in the grocery store or when you go out to eat is going to other parts of the supply chain and not necessarily to farmers and ranchers.”

Livestock vs. Crops: A Widening Gap

The aggregate decline masks a widening gap between sectors. While the overall farmer share is down, livestock and crop producers are seeing divergent trends:

Crop Farmers: Share dropped from 2.9 cents to 2.5 cents (a 2.5% year-over-year decrease).
Livestock Producers: Share increased from 3 cents to 3.3 cents.

“Overall, the farmer share is down. But we have those two markets really at odds,” Parum says. “We’ve seen that tale of two farm economies where our livestock producers maybe have seen a little bit of better days than they had had in the past, while our row crop farmers and our specialty crop farmers are really facing strong headwinds in the market.”

Effect at the Farm Gate

As highlighted by USDA, farm finances are quickly strained when farmers/ranchers are capturing a small percentage of the food dollar and even modest swings in commodity prices and/or input prices take place.

Parum adds, “when we talk about the health of our farms and the health of future generations on the farm, and being economically viable and sustainable and being able to keep their operations open, the trends we’re seeing right now are really hard for those farmers. Our ranchers are seeing a little bit of better days right now with high beef prices, but that’s not going to last forever, and with production expenses continuing to increase, we’re really going to see that that question come up of, what is sustainable if, if these dollars we’re spending in the grocery store aren’t making it back to our farmers.”

Where Does the Money Get Distributed?

The key takeaway: farmers produce the raw commodities that make food production, however, the price is clearly more determined by what happens after the products first leave the farm.

The USDA Food Dollar Series tracks how each dollar is spent by consumers and then divides it across the industries contributing to the value in the supply chain, such as farming, food processing, transportation, packaging, wholesaling, retail and food service. As noted by the USDA, with each step in the process, the additional services, labor, transportation and infrastructure add value and increase costs to the final food product.

USDA’s Economic Research Service Food Dollar Series shows in 2024, farmers received 11.8 cents of every dollar spent on domestically produced food, the remaining 88.2 cents of the food dollar went toward the ‘marketing bill’, which includes costs associated with food processing, transportation, packaging, wholesaling, retailing and food service. Over time, this shift illustrates how an increasing share of food spending is driven by services and supply chain activities rather than farm production itself.

Groceries Leave the Most on The Table For Farmers

Farmers’ share of consumer food spending varies widely depending on the type of food purchased. For example, the farm share of the food-at-home dollar was 18.5 cents in 2024, up slightly from 18.4 cents in 2023. But even in this category it means only than one-fifth of what consumers spend on groceries goes back to farmers.

As you may expect, products with minimal processing, require less of the value to be retained in that part of the food system, and therefore return a larger share of the food dollar to producers.

“The highest commodity that gets the most of that food dollar is fresh eggs,” Parum notes. “That’s just because there’s limited labor to process that food.”

Examples include:

Fresh Eggs: 69.1 cents (+6% from 2023)
Beef: 52.2 cents (+4.8%)
Fresh Milk: 50.8 cents (+5.6%)
Pork: 23.7 cents (+7.2%)
Poultry (+3.1%)
Fish (+2.8%)
Tree nuts and peanuts (-1.7%)
Fresh fruits and vegetables (unchanged)
Bakery Products: 4.8 cents (-9.4%)
Soft Drinks/Bottled Water: 1.3 cents (-7.1%)

98% of U.S. Households Are Buying Meat: New Report Shows Record Sales

Mon, 02 Mar 2026 18:02:02 GMT

Meat sales hit a record high of $112 billion in 2025, with a pound increase of 2%. Millennials and Gen Z were a driving force behind the growth, according to the 21st annual Power of Meat report released today at the Annual Meat Conference by the Meat Institute and FMI — The Food Industry Association .

According to Circana, more than 98% of American households purchase meat, and 45% of shoppers are actively trying to prepare more meals containing meat or poultry. According to 210 Analytics, of the five dinners shoppers prepare at home per week on average, 90% already contain a portion of meat or poultry.

“The meat department is outperforming because it delivers what shoppers want right now: protein, flexibility, value and taste,” says Rick Stein, FMI vice president of fresh foods. “Retailers that balance convenient ground options with premium, indulgent cuts will be best positioned to capture both budget-conscious and experience-driven shoppers.”

Which Generations Are Driving Meat Sales Growth?

Millennials and Gen Z shoppers accounted for 67% of unit growth. They are more likely than other shoppers to be actively trying to prepare more meals containing meat or poultry — Gen Z 50% and Millennials 57%. In 81% of households with children, kids have some level of influence on meat and poultry purchase decisions. Seventy-two percent of shoppers with teens at home say their teens request meat and poultry, far ahead of requests for protein bars, shakes and powders.

How is AI Changing How Consumers Buy Meat?

Younger generations also lead the way in using social media and artificial intelligence (AI) platforms for meal inspiration. Twenty-four percent of Gen Z and Millennial shoppers use AI tools, compared to 10% of Gen X and 4% of Boomers. Overall, 15% of shoppers use AI tools, a 650% increase compared to just two years ago.

Is Meat Still Considered Part of a Healthy Diet?

Meat and poultry continue to feature positively in shoppers’ health and nutrition perceptions, with 77% of shoppers agreeing that meat and poultry are part of a healthy diet, up more than 20% since 2020. GLP-1 users over-index versus non-users for eating somewhat or a lot more meat than last year (161) and for frequently including meat and poultry in snacking occasions (171).

“Americans are more focused on making smart food choices than ever before, and this latest Power of Meat report reinforces meat’s clear and irreplaceable role at the center of healthy, convenient, affordable meals today and for generations to come,” summarizes Julie Anna Potts, Meat Institute president.

Read more about how the food pyramid puts protein back on top:

New Dietary Guidelines Move Food Pyramid Closer to the Farm

The New Food Pyramid Flips the Script

The Power of Meat study was conducted by 210 Analytics on behalf of FMI and the Meat Foundation and sponsored by Cryovac Brand Food Packaging. Sales and purchase dynamics data are provided by Circana for the 52 weeks ending Dec. 28, 2025.

Your Next Read:
Consumer Craze for Protein Drives Beef Demand
Why Aren’t High Beef Prices Causing Sticker Shock With Consumers?
What Do Consumers Buy in the Meat Aisle When Money is Tight?
Global Protein Demand Surges 2% Annually as Producers Navigate Volatile Markets

Hot Dog! Smithfield Goes All-In to Acquire Nathan’s Famous Brand

Wed, 21 Jan 2026 16:42:06 GMT

Fast Facts: The Financials
Purchase Price: $102 per share in cash.
Enterprise Value: Approximately $450 million.
Valuation Multiple: 12.4x LTM adjusted EBITDA (10.0x post-synergies).
Synergies: $9 million in projected annual cost savings by the second anniversary of closing.
Expected Closing: First half of 2026.
Board Support: Directors representing ~29.9% of shares have agreed to vote in favor.

Smithfield Foods has entered into an agreement to acquire all of Nathan’s Famous’ issued and outstanding shares for $102 per share in cash, an enterprise value of approximately $450 million. Smithfield Foods has held an exclusive license since March 2014 from Nathan’s Famous within the U.S., Canada and Sam’s Clubs in Mexico to manufacture, distribute, market and sell “Nathan’s Famous” branded hot dogs, sausages, corned beef and certain other ancillary products through the retail channel, and to manufacture and distribute “Nathan’s Famous” branded hot dog and sausage products for the foodservice channel.

Nathan’s Famous started as a hot dog stand on Coney Island in 1916 by immigrant Nathan Handwerker with $300 loan from two friends and his wife’s secret spice recipe, according to the Nathan’s Famous website. Originally selling the hot dogs for 5 cents, the iconic food became famous nationwide under the leadership of Handwerker’s son, Murray.

How Will This Impact Pork and Beef Producers?

Successfully closing this acquisition secures Smithfield’s rights to this brand and maximizes the Nathan’s Famous brand growth across the retail and foodservice channels, the company says.

“Given the synergies that a major pork producer/packer/processor brings, adding this to the big Smithfield portfolio of brands, and combined with its marketing muscle, should be long-term positive for demand,” says Altin Kalo, lead economist at Steiner Consulting. “But in the near term, I don’t see how this has a significant impact on the pricing landscape. My understanding is that the mechanics of procurement/production will not change in the near term.”

Glynn Tonsor, professor in the Department of Agricultural Economics at Kansas State University, agrees and says, “It is not immediately clear this will have a large impact on markets nor livestock producers.”

But from a long-term perspective, Kalo says there is a continuation of the vertical integration that has been taking place in the industry over the decades.

“It tends to be far more pervasive in chicken but pork is not far behind, and more beef packers are adding value-added capabilities,” Kalo says. “In my view, such acquisitions allow major companies, like Smithfield, to buffer the margin pressures they may experience in certain segments of the business given they have multiple profit centers along the supply chain. This should make them more competitive relative to smaller producers/processors that have more exposure to the cyclical nature of their business.”

Smithfield President and CEO Shane Smith says the Nathan’s Famous acquisition is a “meaningful step in the progression of Smithfield Foods allowing us to own all of the top brands in our Packaged Meats portfolio and unlock new growth opportunities for our largest segment.”

Since entering into their licensing agreement with Nathan’s Famous in 2014, Smithfield has made significant investments to build and grow the Nathan’s Famous brand.

“With our manufacturing scale, marketing strength, product innovation capabilities, and retail and foodservice channel expertise, acquiring Nathan’s Famous will allow us to take the brand to new heights,” Smith says.

Driving Growth

The acquisition of Nathan’s Famous is expected to drive “growth of the high margin Packaged Meats segment by harnessing the powerful Nathan’s Famous brand and fueling it with an expanded portfolio of innovative products that build customer awareness across Smithfield’s well-established retail and foodservice sales channels.” Among other things, the company also anticipates increased foodservice sales volume by placing this channel under the direct management of Smithfield’s expert team and leveraging Smithfield’s established, scaled infrastructure.

(Smithfield Foods)

“This combination is a natural fit and provides a compelling valuation for Nathan’s Famous stockholders,” says Eric Gatoff, CEO of Nathan’s Famous. “As a long-time partner, Smithfield has demonstrated an outstanding commitment to investing in and growing our brand while maintaining the utmost quality and customer service standards.”

According to Smithfield, the transaction is not subject to a financing contingency and will be funded by cash on hand. The transaction closing is expected to occur in the first half of 2026. Members of the Nathan’s Famous Board of Directors who in the aggregate own or control approximately 29.9% of the outstanding shares of Nathan’s Famous common stock have entered into a voting agreement pursuant to which they have agreed to vote their shares of common stock of Nathan’s Famous in favor of the transaction.

Total Meat Supplies End Year on High Note

Wed, 31 Dec 2025 14:05:30 GMT

Total meat production surged in December, with production of all major meat species higher than the year before. It was a sharp contrast to the rest of the year, in which less beef and pork were produced than in 2024, reports David Anderson, Texas A&M Extension economist in a recent Southern Ag Today e-newsletter .

Red meat production, led by beef and pork, normally increases seasonally, from summer to fall.

(USDA-AMS & USDA-NASS, Livestock Marketing Information Center )

This year was no exception as both increased seasonally over that period. Beef and pork production in December were 0.5% and 3.9% larger than in December 2024, respectively. Larger December beef production may surprise some, given the talk all year of tighter beef supplies, but steer dressed weights surged to new record highs, over 980 lb. per head, leading to larger beef production. Heavier barrow and gilt dressed weights than a year ago helped boost pork production, as well.

For the year, red meat production was 1.9% less, about 1 billion lb., than in 2024. Beef production was down about 3.3%, and pork production was almost 0.5% smaller. About 1% more lamb was produced in 2025.

For the third consecutive year, more pork than beef was produced.

Poultry Production

(USDA-AMS & USDA-NASS, Livestock Marketing Information Center )

While red meat production declined, young chickens (broilers) expanded its share of total meat production. Broiler and turkey production increased 4.0% and 8.4%, respectively, in December compared to last December. Less expensive feed and higher wholesale broiler meat prices earlier in the year contributed profits to fuel increased production.

The late increase in turkey production might be considered “too little, too late” for the whole bird market since it was after Thanksgiving, and it followed on the heels of increasing production in the second half of the year.

For the year, 3.5% (1.9 billion lb.) more broiler meat was produced than in 2024. Turkey production was down about 122 million lb. On balance, increasing poultry production offset declining red meat production, leading to an increase in total meat production of about 800 million lb.

(USDA-AMS & USDA-NASS, Livestock Marketing Information Center )

The new year should bring more poultry production from both broilers and turkeys. Beef production will continue to decline, and pork may see a little increase in production.

I was asked recently if we are “running out of meat” during a discussion of declining beef production and high prices. The quick and correct answer is “no!” But, production market shares are changing.

A note on data: this article uses weekly meat and poultry production. In much of our agricultural data, weeks don’t equal months. The first day of a month may fall mid-week and end mid-week so that data for a week’s production will include some in one month and some in another. But, the monthly data released by USDA won’t dramatically affect the discussion above.

MAHA Strategy Elevates Role of Meat in Science-Based Nutrition

Tue, 09 Sep 2025 20:53:22 GMT

The Department of Health and Human Services released its strategy to address children’s health from its Make America Healthy Again (MAHA) Commission on Tuesday.

This is the second installment of the MAHA report – a highly anticipated follow-up to the report released by the Commission in May. Many farm organizations had said the original document was filled with “fear-based rather than science-based information.”

The latest report offers more than 120 initiatives that will serve as a road map to help address and resolve what Health Secretary Robert F. Kennedy Jr. described as “America’s escalating health crisis, with a focus on childhood chronic diseases.”

Meat is Essential
Meat Institute president and CEO Julie Anna Potts says it’s a good first step toward recognizing the nutritional value of meat and poultry after years of misguided policies attacking meat consumption.

“Science proves what American parents have known all along — nutrient-dense meat and poultry products are essential to a balanced diet,” Potts says. “For years, previous administrations have tried to discourage consumption of meat, primarily for reasons unrelated to nutrition, and as a result our most vulnerable populations – children, adolescent girls, nursing mothers and seniors – no longer consume enough protein and critical nutrients like iron and zinc.”

Chaired by Kennedy Jr., the Commission is tasked with investigating and addressing the root causes of America’s escalating health crisis, with a focus on childhood chronic diseases. The strategy targets actions to advance gold-standard science, realign incentives, increase public awareness, and strengthen private-sector collaboration.

“The bold leadership of Secretary Kennedy and Secretary Rollins will finally give Americans not only permission, but the encouragement to eat meat because it is a good, accessible source of nutrition for their families,” Potts says.

Animal Protein Industry Responds
The Meat Institute, which includes meat packer and processor members of all sizes, large and small, were especially pleased to see the strategy seeks to support adoption of Hazard Analysis and Critical Control Points (HACCP) food safety protocols.

“It is great to see the coordination between Health and Human Services and the USDA on food safety,” Potts says. “The support for HACCP in the strategy is in addition to the significant food safety investment made by USDA Secretary Brooke Rollins in July. We are so glad the Trump Administration continues to encourage greater adoption of this successful science-based program to enable the industry to better protect consumers.”

National Cattlemen’s Beef Association (NCBA) president and cattle producer Buck Wehrbein says American beef is the perfect fit for the MAHA Commission’s goals.

“Our farmers and ranchers raise the best beef in the world, providing a healthy, fresh protein option to millions of families every day,” Wehrbein says. “We responsibly steward millions of acres of land, water and wildlife habitat, including some of America’s most cherished landscapes and species. We pump lifeblood into the local economies of tens of thousands of communities across the rural American heartland.”

NCBA adds that years of peer-reviewed research, including clinical trials, have proven that beef plays a key role in a healthy, balanced diet for Americans of all ages. A single 3-ounce serving of lean beef provides half of Americans’ daily protein needs with 10 essential nutrients, in fewer than 170 calories.

“To receive the same amount of protein from most plant sources, you would have to eat at least twice as many calories,” NCBA explains. “The nutrients in beef, including protein, iron, zinc, and B vitamins, are critical for strengthening muscle, fueling a healthy metabolism, supporting cognitive development, and ensuring healthy living.”

While a balanced diet is essential, numerous studies have shown the quality of protein from animal-based sources far exceeds that found in plant-based foods, Ashley Johnson, National Pork Producers Council (NPPC) director of food policy, explained in July . Lean pork is a heart-healthy protein choice that is versatile, flavorful, affordable, and is protein-packed with essential nutrients.

“Science demonstrates that animal protein provides a complete amino acid profile, including readily absorbable forms of iron and B12, key nutrients that plant-based alternatives lack,” Johnson wrote. “Removing animal proteins from our diet would result in a nutritional gap that plant-based foods cannot fill.”

More Work to Do
NPPC president Duane Stateler, a pork producer from McComb, Ohio, agrees this report shows signs of progress from the initial “Make America Healthy Again” report released in May.

“While agriculture’s voice was widely unheard in the initial MAHA report, we thank the administration for listening to our concerns before releasing the ‘Make Our Children Healthy Again’ strategy. We all want to help our children be healthy, yet there is still more work and understanding for this goal to best be accomplished,” Stateler says.

The strategy incorporates a range of initiatives that risk stigmatizing modern farming while deviating from President Trump’s directives related to food security, safety and affordability, NPPC explains in a release. The regulatory expansion outlined in the report could lead to increased litigation against American businesses, including food and agriculture.

“America’s pork producers need the administration’s continued partnership and receptiveness to agriculture and food industry education,” Stateler says.

NPPC’s recommendations to the MAHA Commission leading up to the strategy’s release included:

A fair and workable definition for “ultra-processed food”
Protection of the use of food additives that enhance food safety, shelf life, and nutritional availability
Exclusion of animal feed from reforms to the “generally recognized as safe” standard, to protect animal health
Adoption of a risk-based approach – versus hazard-based – for determining the safety of technologies used in food production

When the initial MAHA Commission report was released in May, NPPC warned against the dangerous language used to describe the work of farmers feeding our nation, and NPPC has offered to partner in transparent, risk-based research to further public health.

Consumers Confirm Protein is In: Meat Continues to Have Its Moment on the Plate

Tue, 12 Aug 2025 19:21:04 GMT

Key findings from the July Meat Demand Monitor report show an increase in consumers’ willingness to pay for meat compared to June. Both retail and food service demand demonstrated strength, with food service experiencing a particularly notable improvement.

Glynn Tonsor, Kansas State University professor of agricultural economics, describes this as “meat having a moment,” highlighting the continued popularity of protein consumption.

Tonsor shared results of the July report providing insights into the current state of meat demand across beef, pork and chicken on a recent AgriTalk with Chip Flory.

Taste Trumps Other Considerations

The conversation focused on the dynamics of meat purchasing. Tonsor says that taste and freshness are the primary drivers of consumer choices, outranking price as the most important factors. While environmental concerns, origin traceability and animal welfare claims matter to a niche market (10-20% of consumers), the majority of Americans prioritize eating experience over other considerations.

“For the typical American … taste and freshness carry the day, and importantly, those factors are more important than price,” he says. “So, price matters. No economist can tell your price doesn’t matter, but it’s actually outranked by taste and freshness.”

Taste and freshness regularly are identified in the Meat Demand Monitor as the most common factors on deciding whether or not to buy a meat protein item.

Glynn Tonsor

Price Sensitivity Varies

“We have not found new consumer resistance to price,” Tonsor says.

He emphasizes that ground beef price trends are more critical to monitor as an economic indicator compared to premium steak prices. High-end cuts like ribeye steaks are less affected by price fluctuations, primarily purchased by higher-income consumers who are less concerned about incremental price increases. In contrast, ground beef remains more sensitive to pricing, which is a key concern for many consumers and producers.

“The folks buying a ribeye steak... are much more likely to be higher income and a little bit less sensitive,” he explains.

Economic Uncertainty Hasn’t Dampened Protein Consumption

The current economic landscape presents both opportunities and challenges. Despite macroeconomic challenges like inflation and limited consumer financial improvement meat demand has held up well. Consumers are still prioritizing protein purchases, particularly in retail channels.

Tonsor says only 19% of consumers reported improved financial conditions in July, with 81% indicating stable or worsening financial situations. According to Tonsor this metric is crucial because consumers who feel financially secure are more likely to purchase multiple meat protein meals and spend more on food service.

He highlights several macro-economic concerns or challenges that loom on the horizon:

Ongoing tariff uncertainties
Recent upticks in inflation
Growing unemployment concerns, particularly among younger workers

Trends in Pork

Tonsor portrays pork as a competitive protein with potential for growth, actively working to improve its market position through marketing efforts and maintaining strong consumer appeal.

“The pork industry is trying to keep up with the beef demand story that we’ve had for a few years,” Tonsor says.

The pork industry recently launched a new marketing campaign: “Taste What Pork Can Do.” He points out pork owns the breakfast market with bacon and sausage.

Protein Purchasing Outlets

Tonsor explains consumption varies by meal type. Consumers continue to rely primarily on traditional grocery stores for at-home protein purchases, with different protein types dominating various meal occasions.

For more details on channel specific consumption data, maps and state summaries, check out the Meat Demand Monitor.

Ongoing Market Monitoring is Crucial

The Meat Demand Monitor serves as a critical tool for understanding consumer behavior, providing insights for producers, retailers, and industry stakeholders. By tracking willingness to pay across different market segments, it offers a comprehensive view of protein consumption trends.

Tonsor’s analysis suggests that while caution is warranted, the meat industry continues to demonstrate robust consumer interest and potential for growth.

Meat demand shows resilience despite economic uncertainties. Tonsor notes that while he has maintained a pessimistic outlook throughout the year, the market has consistently performed well.

“It’s very clear beef demand has been good, and it’s mixed or good for the other proteins,” Tonsor summarizes. “But it’s not clear to me that there’s a challenge in any of them.”

Is Food Inflation Heating Up July 4th Grills?

Wed, 25 Jun 2025 17:44:51 GMT

Two industry reports are shining a light on the cost of a July 4^th barbecue.

The economists at Wells Fargo calculate an at-home holiday party for 10 will cost $130. The menu includes chicken breasts, beef sliders, hot dogs, fresh fruit, a vegetable platter, potato salad, corn bread, cake, apple pie, ice cream, beer, wine and soda.

Dr. Michael Swanson, chief agricultural economist within Wells Fargo’s Agri-Food Institute, says year-over-year food inflation is 2.2%.

For notable food prices from the July 4^th report, he cites the following:

Ground beef: Up 7.4%
Boneless chicken breasts: Up 1%
Watermelon and strawberries: Down 0.6%
Potatoes: Up 1%
Egg prices: Up 40%
Ice cream (1.5 quart): Up less than 1%

Swanson says beef prices year over year have been running 6% to 8% higher.

“When you talk to somebody who’s a processor or a packer, there’s not a part of the cow that moves independent from the other parts of the cow so it’s all right in that category 6% to 8% on a year over year basis the last couple of months based on CPI,” he says.

He says for cost-savings, chicken offers the greatest opportunities in the protein category.

“When you look at the composite pricing from USDA, it’s right around $2.42 to $2.45 a pound — including everything from wings and breasts,” he says.

As for hot dogs, Swanson says the blend inside the casing will drive the price.

“If you go with the all-beef frankfurters, yes, they’re up substantially. If you look for a sausage or bratwurst that has a blend of pork and beef in it, you’re probably finding a much better bargain. Pork has been pretty flat year over year,” he says.

Swanson says the effects of highly pathogenic avian influenza are still being reflected in higher egg prices for menu items such as deviled eggs and salads.

As for ice cream, Swanson says the increase in cost is being attributed to additional labor expense in production.

“We’re seeing a little bit of inflation in that category, but just very modest. We have a good supply of cream and milk in the country right now. The dairymen are doing wel. So, what that reflects is kind of that cost of transformation,” he says.

Wells Fargo uses NeilsenIQ data for its analysis.

American Farm Bureau Market Basket Survey
Using its annual survey, The American Farm Bureau Federation says this year’s food prices are resulting in the second-highest cost for an at-home July 4^th barbecue since 2013 when the survey began.

“High prices don’t mean more money for farmers, however. Farmers are price takers, not price makers. Their share of the food retail dollar is just 15%. The cost of running their farm is up — from labor and transportation to taxes,” says AFBF associate economist Samantha Ayoub.

Per AFBF, this year’s cost for an Independence Day cookout will cost $70.92 for 10 people. Included in the calculations are cheeseburgers, chicken breasts, pork chops, potato salad, strawberries and ice cream.

Last year was the highest cost found by the survey at $7.39 per person.

Year-over-year retail price increases in 2025 include:

2 lb. of ground beef: Up 4.4% to $13.33
Pork and beans: Up 20¢ to $2.69
Potato salad: Up 6.6% to $3.54

Notable reductions, compared to 2024, in food prices per the survey were:

3 lb. package of pork chops: Down 8.8% to $14.13
Chips: Down 10¢ to $4.80 a bag
Hamburger buns: Down 2.6% to $2.35

Meat and Poultry Special Investigator Act Introduced to Promote Fair Play

Thu, 10 Apr 2025 20:07:06 GMT

With the goal of strengthening the enforcement of the Stockyards and Packers Act, Sen. Chuck Grassley, R-Iowa, chairman of the senate judiciary committee and a member of the senate agriculture committee, joined Senators Ron Wyden, D-Ore.; Mike Rounds, R-S.D.; and Peter Welch, D-Vt., to introduce the Meat and Poultry Special Investigator Act .

The act would create and empower a team of investigators at USDA to prevent anticompetitive practices in the meat and poultry industry by enforcing existing antitrust laws, in coordination with the Department of Justice and the Federal Trade Commission.

In a press release, the senators said the legislation will allow more opportunities for ranchers and drive down meat prices for shoppers.

“For decades, America’s big four meatpackers’ anticompetitive practices have made it harder for Iowa cattle producers to receive a fair price,” Grassley said. “Our bill empowers USDA, in coordination with the Justice Department and Federal Trade Commission, to crack down on bad actors, ensuring a fair and functional marketplace that supports everyone who produces and enjoys quality American meat.”

Wyden, Welch, Rounds and Grassley’s bipartisan legislation would specifically strengthen the enforcement of existing price-fixing laws to ensure the big four meatpackers comply.

“For too long, Oregon ranchers and consumers have been greedily exploited by the big four meatpackers that sneak their way around regulations,” Wyden said. “While local ranchers work tirelessly day and night to support their small business and feed families across the country, these big companies keep raking in bigger bills at the expense of local communities in red and blue states alike. It’s way past time to level the playing field for local ranchers and bring grocery prices down for consumers at the meat counter by better enforcing laws that are already on the books.”

Rounds added, “Anticompetitive practices in the meatpacking industry hurt producers and consumers alike. Currently, four large companies, two of which are foreign-owned, control over 80% of the meat processing market. Our legislation would establish an office within the USDA to investigate violations of the Packers and Stockyards Act of 1921, which will support competition in meat and poultry markets.”

Reducing meat and dairy prices at the grocery store is a goal of the legislation.

“Vermonters rely on fresh foods from local farmers and ranchers to feed their families,” Welch said. “But with meat and dairy prices at the grocery store soaring sky high, small producers across the country are struggling to make ends meet and support their businesses. The rapid consolidation of the meatpacking industry further cripples fair competition. Our bipartisan bill will bring down costs for consumers and create opportunities for producers in red and blue states alike.”

The Meat and Poultry Special Investigator Act is endorsed by the National Farmers Union and the U.S. Cattlemen’s Association.

Your Next Read: New Food Security and Farm Protection Act Protects Farmers and Consumers From Government Overreach

More Meat, Less Money: What Does This Mean for Future Demand?

Tue, 01 Apr 2025 19:34:38 GMT

The March Meat Demand Monitor shows there’s a slow upward tick in people who are self-declaring that they regularly consume animal products, Glynn Tonsor told AgriTalk host Chip Flory.

The Meat Demand Monitor is an ongoing survey of over 3,000 U.S. residents every month since February 2020.

“We ask folks every month, are you a flexitarian, a vegan, a vegetarian? Do you regularly consume meat?” says Tonsor, professor in the Department of Ag Economics at Kansas State University. “That’s real important because it’s consistent across different reports (like the Power of Meat study ) that the public wants meat. They’re declaring they’re a meat consumer, and that’s great for all species.”

Specific to the March report, Tonsor says the gray cloud on the macroeconomic front is weighing heavy on consumers.

There’s no question the U.S. public in general likes meat, he says. That’s critical to purchasing decisions. But the reality is that consumers must have the financial ability to pay for it.

“Simply having the ability isn’t sufficient,” Tonsor adds. “You’ve got to have the financial sentiment, or the comfort, to let that dollar go. So being employed and having good jobs that keep up with the cost of living is a necessary part of this, but it’s not sufficient on its own. You’ve also got to have the comfort to let those dollars go.”

With more and more discussion centering on tariffs and inflation rising back up in the economy, he points out that the willingness to let that dollar go might turn into an inability to actually do it.

Consumer Finances Are Getting Worse
Although he’s not seeing any pullback in demand, yet, Tonsor says he has concerns about what’s ahead.

“We are seeing self-reported financial sentiment. I ask folks every month, are your finances better? The same or worse than last year? In March, I actually see more people telling me their finances have deteriorated than I did just in February,” Tonsor says.

He notes the big differences between this group and those who say demand is getting better because of what they spend on food, both at home and away from home.

“To be clear here, we don’t see that demand pull back yet, but we do see the canary in the coal mine barking that it might be coming,” Tonsor says.

To keep attracting the younger consumers, he recommends the pork and beef industry stay focused on taste.

“Working backwards from the consumer, there’s this clear signal that taste and freshness are paramount,” Tonsor says. “I would argue that all three major protein species have made headways, and I suspect we’ll continue to do so in helping the U.S. public have access to those tasty, fresh, convenient products.”

Editor’s Note: The Meat Demand Monitor is supported by the Beef and Pork Checkoff.

Your Next Read: Millennials and Protein Craze Boost Meat Sales to Record High

Millennials and Protein Craze Boost Meat Sales to Record High

Wed, 26 Mar 2025 14:41:04 GMT

Despite the extreme inflationary pressure on income now, consumers continue to lean into their love for meat in 2024.

“2024 was the strongest year on record for meat, with growth for beef and chicken, pork, lamb had a really good year, bison, veal, you name it,” says Anne-Marie Roerink, owner of 210 Analytics, who conducted the 2024 Power of Meat study . “It was just an all-around fantastic year, and it really underscored that despite consumers having that pressure on income and being in the non-stop balancing act on what to spend their money on, meat won one big.”

How Did Meat Win?
When times are tough, people start to cook at home more often, Roerink says. A part of the dollar that came out of food service restaurants went into the retail grocery store space. She says part of the dollar might end up back at restaurants. But, that’s not a bad thing for the meat industry. The balance between retail and restaurants tends to be a good thing.

“For years, we worried about whether millennials were going to be meat and poultry consumers like the generations before them. The answer is a resounding yes,” Roerink says.

Millennials, especially the older half of this age group, are starting to come into their income potential.

“Many millennials now have children,” she adds. “And those children are starting to be the age where you think you go to the grocery store for the entire week, and about two days later, your pantry, fridge and freezer are empty.”

The retail meat industry sold 500 million more packages in 2024 than they did in 2023. Roerink says 62% of that 500 million-package growth was driven by millennials.

“That’s been a key finding for all of us,” she says. “Millennials do approach meat and poultry a little bit differently, so that’s going to mean more change in years to come.”

Another reason why the meat industry is doing so well is Americans’ massive focus on protein.

“If you walk around the store, from your mac and cheese to your Skippy peanut butter, protein call-outs are everywhere,” Roerink explains. “But at the same time, this is going hand in hand with some people saying, ‘I want fewer ingredients in the things that I buy. I want a more natural form of food.’ That combined focus on protein with more wholesome foods has really put meat and poultry back into driver’s seats as well.”

What Do Millennials Really Want?
Roerink says millennials are focused on convenience more than ever. This is largely attributed to their life stage – running around and balancing time between family and work like generations before them.

“They have more focus on sustainability and animal welfare,” she adds. “With their approach and values relative to meat and poultry, I think we’re going to see some different needs in terms of transparency. They truly do want to hear from the producers. They want to understand what kind of life the animal had, how you approach water management and everything else.”

She says it may sound crazy, but consumers do want to know how their food is produced. And if they don’t hear it from the producer, they may dream up their own descriptions, she points out.

“Often times when we think about our meat category, we use industry terms. We approach it from a scientific angle,” Roerink says. “This means nothing to consumers. They want to know more, but we need to speak in a language that makes sense to those consumers.”

Your Next Read: Consumer Meat Sales Are Higher Than Ever

Consumer Meat Sales Are Higher Than Ever

Mon, 24 Mar 2025 20:51:39 GMT

Consumers are buying more meat than ever. In 2024, meat sales hit a record high of $104.6 billion and pounds sold increased 2.3%, according to the 20th annual Power of Meat report released on March 24 at the Annual Meat Conference by the Meat Institute and FMI—The Food Industry Association.

“With most Americans (74%) so confident in meat as a nutrient powerhouse that is top of mind for protein needs, it’s no surprise people are buying more meat than ever,” says Meat Institute President and CEO Julie Anna Potts. “Meat Institute members are committed to making the nutrient-dense meat Americans need and keeping America’s farm economy thriving, today and for generations to come.”

Sales and purchase dynamics data provided by Circana for the 52 weeks ending Dec. 29, 2024, show that consumers, on average, purchase meat more than once per week. This keeps meat as the largest fresh department in grocery, according to the report.

Nearly all of American households purchase meat (98%). Meanwhile, 73% of Americans view meat as an overall healthy choice, Circana data shows.

In addition, the report shows that getting enough protein is very/somewhat important to 90% of Americans, and animal proteins, including eggs (83%), chicken (82%) and beef (76%), top the list of foods that most consumers view as protein-rich foods.

The average American shops for meat 54 times per year and spends $16.12 on meat per trip, Circana data highlights. The top three purchases for refrigerated meat include beef, chicken and pork and the top three purchases for prepared meat include lunchmeat, bacon and sausage.

Priorities among meat shoppers include preparing comfort meals, having quick prep options, and getting creative with ingredients. Americans prepare 4.8 dinners per week at home and 90% include meat, the report says.

“As shoppers’ definition of value has expanded to include price, quality, relevance, convenience and experience, they are including meat in 90% of home-cooked dinners and looking for various options to suit their schedules, tastes and interests,” says Rick Stein, vice president of fresh foods for FMI. “Whether shoppers are looking for the convenience of new ground meats or incorporating semi-prepared options in their meal prep, the meat department delivers.”

Editor’s Note: The Power of Meat study was conducted by 210 Analytics on behalf of FMI—The Food Industry Association and the Meat Foundation and sponsored by CRYOVAC Brand Food Packaging.

Meat Institute Tells HHS Dietary Guidelines Should Include Meat as Part of Healthy American Diet

Thu, 13 Feb 2025 00:52:03 GMT

The Meat Institute urges the US Departments of Health and Human Services (HHS) and Agriculture (USDA) to include meat and poultry as part of a healthy American diet citing flaws and contradictions in the 2025 Dietary Guidelines Advisory Committee’s Scientific Report (Report), according to a release .

“The Committee’s Scientific Report contains contradictory and confusing findings,” said Meat Institute President Vice President of Regulatory and Scientific Affairs, Susan Backus. “Meat and poultry products are nutrient dense foods that help Americans meet their essential amino acid and nutrient requirements and yet the Report recommends a reduction in red and processed meats. When 95 percent of Americans eat meat, it is important to provide clear dietary guidance to consumers on how they can include the meat products they love in their diets and also produce a positive, measurable health impact.”

The Meat Institute submitted its analysis of the Report’s findings during the comment period. The departments will use the 2025 Report as a key resource when developing the Dietary Guidelines for Americans to provide meaningful dietary advice for the American population.

The Meat Institute made the following arguments in the comments:

• Meat and Poultry, Which Includes Red and Processed Meats, Are Part of Healthy Dietary Patterns.

• Protein Foods Are Consumed Within Recommended Ranges

• The Proposed Dietary Pattern Omits Key Nutrient Dense Foods: Meat and Poultry

• Reducing Animal-Based Protein Foods Will Result in Significant Nutrient Impacts

• Dietary Recommendations Based on Level of Processing is Not Appropriate and May Result in Unintended Consequences

• Context and Clarity around Dietary Patterns is Critical

• Dietary Guidance Should Be Practical, Affordable, and Achievable

• HHS and USDA Must Develop Final Policy with the Expertise of Food Scientists and Consumer Behaviorists

• Updates to the Existing Guidelines Must Be Clear and Consistent

• Additional Scientific Disciplines, Including Food Scientists, Should be on the 2030 Advisory Committee

“For guidance to be adopted, information must be communicated so it is understandable and easily translatable,” said Backus. “Guidance should focus on improving dietary habits within the foods Americans already consume; not the idealistic recommendations that will likely never be implemented because they may not be achievable or may be too confusing or expensive.”

The release also pointed out how meat and poultry products provide a balanced source of all essential amino acids and more protein than other food sources. Protein is critical for developing, maintaining, and repairing strong muscles; is vital for growth and brain development in children; and is essential to prevent muscle loss during aging.

The Meat Institute is extremely concerned that consumers will inaccurately perceive meat and poultry products as poor dietary choices, which may lead to a variety of unintended consequences, including nutritional deficiencies in certain sub-populations, said Backus.

The Report found iron deficiency is a public health concern for adolescent females, women ages 20-49 years; and individuals who are pregnant. The Committee also found that many individuals over the age of one year consume below the nutrient intake requirements for dietary protein, dietary fiber, calcium, potassium, magnesium, iron, zinc and more.

A recommendation to reduce, limit or avoid nutrient dense products like meat and poultry will have significant unintended nutritional consequences across all life stages, especially in those subpopulations of concern.

“A modified Healthy U.S.-Style Dietary Pattern risks the potential for unintended consequences for nutrient and energy intakes. Americans need to improve their eating patterns to promote health,” said Backus. “Considering dietary choices based on taste and cultural preferences, health and economic status, and food availability will be key to improving the dietary habits of Americans. A recommendation to reduce, limit or avoid nutrient dense products like meat and poultry will have significant unintended nutritional consequences across all life stages.”

Other industry groups also weighed in on the Report.

Consumer Demand for Meat Still Strong Despite Political Turmoil in South Korea

Tue, 04 Feb 2025 11:21:00 GMT

Political unrest in South Korean doesn’t seem to phase consumers who continue to purchase U.S. red meat.

The South Korean President Yoon Suk Yeol was arrested and indicted after briefly imposing martial law in December. Yoon also faces an impeachment trial that will determine if he is formally removed from office.

U.S. Meat Export Federation (USMEF) Vice President of Asia Pacific Jihae Yang, a lifelong resident of Seoul, explains that while the political turmoil has further weakened Korea’s currency, consumers are largely unfazed by the situation, and it has not impacted demand for U.S. red meat.

“Ordinary people’s daily life are not affected at the moment, and the people are living their own life,” Yang says. “The political issues has been there for many, many years.”

South Korea is the leading value market for U.S. beef exports, with shipments through November of last year totaling just over $2 billion, up 5% from the previous year. U.S. pork exports to Korea climbed 21% over the same period to $669 million, although exports slowed to some degree in the fourth quarter of the year.

While the weakened won is pinching the profit margin of importers, consumers do not show signs of backing off from U.S. red meat purchases.

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Food Inflation, Threatened Tariffs: What Is The Effect On Super Bowl Snack Tables?

Mon, 03 Feb 2025 22:17:17 GMT

Whether it’s chicken wings (up 7%) or vegetables for the snack tray (broccoli is down 7%), Wells Fargo Agri-Food Institute Economist Dr. Michael Swanson says consumers shouldn’t expect every snack food category to increase their budget for a traditional Super Bowl party. And he doesn’t think President Trump’s latest trade talks with Mexico, Canada and China will have a direct, immediate effect at the grocery store by Sunday’s big game.

“It’s unlikely that changes in tariffs will impact prices headed into the Super Bowl, however, we’ll see how it plays out in the coming weeks. This is certainly the year for consumers to stay food fluent,” Swanson says.

For the past four years, he’s led the team at Wells Fargo to look at popular categories for game day watch parties and analyze the pricing trends. His research aims to help consumers stay “food fluent” to find alternatives, substitutions and bargains when they can.

“We started in 2021 when we saw the first spike in food inflation. And the past three years, everything has been up—it was a question of how much a category was up that year,” Swanson says. “But for 2025, some categories are up, and some are not. Some are way up; and some are way down.”

Swanson says it’s demand keeping prices elevated—not supply.

“Take chicken wings. Did the avian influenza knock out the chicken wings? The answer is, no, it didn’t–it was mainly the egg laying flocks. We have almost more chicken wings than we did last year, but prices are up 7%. Why? It’s consumer demand,” he says.

For dairy products, the Super Bowl is one of the top three demand events.

“Between the nachos, pizzas and sundry cheese-based snacks, the industry knows that and prepares well in advance making sure all the fans have what they need,” he says. “Dairy as a category was up 1.3% from a year ago, but it has been a relatively flat pricing environment for the last 18 months. Consumers and producers have found a good balance overall.

Specific to ongoing trade developments and tariffs discussions, Swanson says the dairy industry is staying keenly aware.

“Exports are a key element for balancing U.S. dairy production and demand. The industry is preparing to see what happens with key markets like Mexico and Canada in the near term,” he says.

He says the same could play out for avocados, which is notable given the tariff discussions on Mexico—our No. 1 source country for avocados.

“The question is, is the supply substitutable. With avocados, we’re seeing a push to grow more in Ecuador, Peru, and Colombia,” he says.

While longer-term supplies may be diversified, it takes years for trees to bear fruit. And for now, per the Wells Fargo Super Bowl Report, avocado prices are up over 11%.
Two other vegetables up year-over-year are red bell peppers (up 7.4%) and prepared carrots (up 3.4%)

So what categories went down in year-to-year pricing?

Notably, some vegetables are down including celery (down 8.4), broccoli (down 7.2%) and cauliflower (down 3.8%).

A more robust supply of potatoes has yielded a decline in potato chips prices, which are 5.1% lower. Also when it comes to overall pre-packaged foods, the container prices have come down, so increases in transport costs aren’t being passed along to the consumer as they have been in the past.

If you’re looking for a “bargain” Swanson points to store brand frozen pizzas.

“Some of those carbohydrate-based components are down through competition. Something like frozen pizzas, for example are down from a year ago. And especially you look at those store Brand pizzas are way down. They’re down about 8% versus just 2% for the national brand. So if you really want to save money, competition is your friend.”
As for protein, the biggest price decline has been in shrimp with a 4% lower price this year than last.

Retail beef prices remain elevated.

“It’s not that we have poor supply of beef. We’re doing some interesting dynamics right now, exporting a little bit less, importing, a little bit more, putting more pounds on those cows,” Swanson says. “We have a decent supply of beef, but the price is still up 3.5% to 4% as a category from a year ago. The consumers love it, and they’re going to pay for it.”

His advice overall in this food economic environment is to stay a smart shopper.

“We’re entering a competitive situation right now–we’re seeing things go up and things go down. If a product matters to you, get out the on the web, shop a couple of stores, because one of the things we do find is promotions are back in the game.”

Meat Institute Provides President Trump with Strategies to Reduce Costly Regulations and Address Meat Prices

Wed, 29 Jan 2025 11:24:00 GMT

“The U.S. meat and poultry industry is the economic engine powering the agriculture sector,” says Meat Institute President and CEO Julie Anna Potts, in a letter addressed to President Trump .

According to the U.S. Census Bureau, meat and poultry processing is a $227.9 billion industry. Meat and poultry packers and processors employ more than 532,000 workers, with beef packers paying average hourly wages of $22. In 2024, the meat and poultry industry produced 26.99 billion pounds of beef, 27.79 billion pounds of pork, 40.2 million pounds of veal, 133.6 million pounds of lamb and mutton, and 52.8 billion pounds of poultry.

The Meat Institute requested implementation of two Executive Orders (EO), Regulatory Freeze Pending Review and Delivering Emergency Price Relief to American Families and Defeating the Cost-of-Living Crisis. Several regulatory actions taken by the previous administration are (or will be, if finalized) so costly and burdensome, they will drive up the cost of meat and poultry products for consumers.

In the letter, the Meat Institute also requested the Trump administration take the following actions:

Direct the Secretary of Agriculture to rescind the final rule, Inclusive Competition and Market Integrity Under the Packers and Stockyards Act; 89 Fed. Reg. 16092 (March 6, 2024). Despite a lack of legal authority and the presence of court precedent to the contrary, the rule attempts to enshrine diversity, equity, and inclusion concepts into a regulation of the Packers and Stockyards Act.
Direct the Secretary of Agriculture to rescind the final rule, Poultry Grower Payment Systems and Capital Improvement Systems; 90 Fed. Reg. 5146 (January 16, 2025).
Direct the Secretary of Agriculture to withdraw the Proposed Rule and Proposed Determination; Salmonella Framework for Raw Poultry Products; 89 Fed. Reg. 64678 (Aug. 7, 2024). The proposal should be withdrawn and reproposed as a performance standard with the input of stakeholders.
Direct the Administrator of the Environmental Protection Agency (EPA) to withdraw the Proposed Rule and Notice of Public Hearing; Clean Water Act Effluent Limitations Guidelines and Standards for the Meat and Poultry Products Point Source Category; 89 Fed. Reg. 4474 (Jan. 23, 2024). EPA’s economic analysis of the proposal grossly underestimates the cost of compliance. Indeed, even using EPA’s flawed accounting, 16 meat and poultry facilities would be forced to close as a direct result of the cost of compliance.

Paired with the removal of these costly regulatory impediments, the Meat Institute supports the U.S. Department of Agriculture’s (USDA) inspection modernization for pork and poultry processing. Pork modernization, the New Swine Inspection System (NSIS), was finalized by USDA during your first term, but the provision authorizing facilities to operate above outdated traditional inspection rates (frequently referred to as “line speeds”) was subsequently stopped by a court. NSIS’s poultry predecessor, the New Poultry Inspection System, was finalized under the Obama Administration without an inspection rate provision.

The Meat Institute encourages USDA to expeditiously issue Interim Final Rules to allow all interested and compliant modernized pork and poultry facilities to operate above traditional line speed restrictions.

Chef Trainings in Honduras Focus on U.S. Beef and Pork

Tue, 14 Jan 2025 16:27:09 GMT

With Honduras becoming an important tourist destination, the U.S. Meat Export Federation (USMEF) recently hosted training seminars for chefs of resorts and hotels. USMEF Mexico Corporate Chef German Navarrete helped chefs to develop new feature items for their menus.

“We carried out a series of seminars for hotels and restaurants in the region, so they know how to use and how to create some new proposals using U.S. beef and U.S. pork,” Navarrete says.

During the seminars, chefs had a variety of ingredients to choose from where they could come up with dishes according to the taste of their customers and the tourists that visit the region.

“This is really like a paradise, so people are going there to have a good time, to eat well, so having these wonderful creations that they came up with will be a very good way of keeping them coming back and giving them a wonderful experience that only U.S. beef and U.S. pork can provide,” Navarette says.

People really want good U.S. product, but also they want a local taste.

“It was fascinating to see what they came up with using plantains, mangos and coconut, which applied to all these wonderful U.S. beef and pork products,” Navarette says. “The outcome was absolutely outstanding. I took some very good ideas for myself and for other regions around the world.”

The seminars were funded through support from Wisconsin Beef Council and USDA.

USMEF reports strong demand from the restaurant and hospitality sectors, which helped drive U.S. red meat exports to Central America in 2024. Data through November showed pork exports to the region reached an annual record of $450 million. Beef exports to Central America were also very strong, with value increasing 9% year-over-year to $147 million.

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Profit Tracker: Beef and Pork Margins Widen for Producers, Decrease for Packers

Thu, 21 Nov 2024 16:23:36 GMT

Margins widened this week this week for pork and beef producers while packer margins remain in the red for beef at -$34.67 and decreased for pork to $8.65.

Negotiated cash cattle dropped $1.66 per cwt. the week ending Nov. 16 while feedlot margins dropped $27 per head to an industry average of $133.50 per head, according to the Sterling Beef Profit Tracker. Meanwhile, beef packers saw profits increase $22 per head to a loss of $34.67 per head. That puts the packer/feeder margin spread at $168 per head in favor of the feeder.

Cash cattle averaged $184.69 per cwt. the week ending Nov. 16, while Comprehensive Beef Cutout prices posted a $3.49 per cwt. loss to close at $307.96 per cwt.

Cattle marketed last week carried a total feed cost of $439.05 per head, about $13 more than feed costs for cattle sold the same week a year ago.

Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $252.31 per cwt., or $1 less per cwt. than a month ago.

The estimated total cost for finishing a steer last week was $2,657 per head, up from last year’s estimate of $2,402 per head.

Fed cattle slaughter totaled an estimated 487,860 down 2,562 head from the same week last year. Packing plant capacity utilization was estimated at 83.7.0%, the same as last year.

View the full Sterling Beef Profit Tracker for the week ending Nov. 16.

Farrow-to-finish hog producers found positive margins of $37.35 per head last week, up $6.07 from the previous week, according to the Sterling Pork Profit Tracker. A year ago, those margins were at -$27.86. Lean carcass prices averaged $88.01 per cwt., up $2.18 from the previous week.

Hogs placed for finishing last week had a breakeven at $68.08 per head.

Pork packers saw average profits of $9 per head, down $13 from the previous week. Last year pork packer margins were $38.89. Hog slaughter was estimated at 2.565 million head, down 11,383 head from the same week last year.

Pork packer capacity utilization was estimated at 97.8% compared to 98.3% last year.

View the full Sterling Pork Profit Tracker for the week ending Nov. 16.

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.)

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Profit Tracker: Pork and Beef Margins Remain Steady

Wed, 30 Oct 2024 23:07:18 GMT

Negotiated cash cattle increased $2.48 per cwt. the week ending Oct. 25 while feedlot margins dropped $32 per head to an industry average of $190.18 per head, according to the Sterling Beef Profit Tracker. Meanwhile, beef packers saw profits increase $37 per head to a gain of $15.54 per head. That puts the packer/feeder margin spread at $175 per head in favor of the feeder.

Cash cattle averaged $190.04 per cwt. the week ending Oct. 25, while Comprehensive Beef Cutout prices posted a $4.43 per cwt. gain to close at $315.41 per cwt.

Cattle marketed last week carried a total feed cost of $466.90 per head, about $14 more than feed costs for cattle sold the same week a year ago.

Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $254.17 per cwt., or $5 more per cwt. less than a month ago.

The estimated total cost for finishing a steer last week was $2,702 per head, up from last year’s estimate of $2,514 per head.

Fed cattle slaughter totaled an estimated 500,269 up 10,280 head from the same week last year. Packing plant capacity utilization was estimated at 85.8% compared to 83.7% last year.

View the full Sterling Beef Profit Tracker for the week ending Oct. 25.

Farrow-to-finish hog producers found positive margins of $9.37 per head last week, up $5.12 from the previous week, according to the Sterling Pork Profit Tracker. A year ago, those margins were at -$25.44. Lean carcass prices averaged $78.68 per cwt., up $2 from the previous week.

Hogs placed for finishing last week had a breakeven at $69.49 per head.

Pork packers saw average profits of $29 per head, up $1.65 from the previous week. Last year pork packer margins were $19.66. Hog slaughter was estimated at 2.531 million head, down 18,132 head from the same week last year.

Pork packer capacity utilization was estimated at 96.6% compared to 97.0% last year.

View the full Sterling Pork Profit Tracker for the week ending Oct. 25.

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.)

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USDA Awards $140 Million to Support American Farms and Businesses

Wed, 30 Oct 2024 22:05:55 GMT

During a visit to Dramm Corp. on Oct. 30, USDA Deputy Secretary Xochitl Torres Small announced that the Biden-Harris Administration is making investments that will strengthen American farms and businesses. Torres Small says the funding will expand innovative domestic fertilizer production and increase independent meat and poultry processing capacity, which will in turn increase competition and lower fertilizer costs for farmers and food costs for consumers.

USDA announced $20.2 million in awards to 26 projects through the Local Meat Capacity (Local MCap) grant program to expand processing capacity within the meat and poultry industry. This will add new jobs to their local communities and provides producers more options to ensure their products get to market, USDA noted.

USDA is also awarding $120 million to fund six fertilizer production projects in Arkansas, California, Illinois, South Dakota, Washington and Wisconsin through the Fertilizer Production Expansion Program (FPEP), which is funded by the Commodity Credit Corporation and provides funding to independent business owners to help them modernize equipment, adopt new technologies, build production plants and more, the release said.

“When we invest in domestic supply chains, we drive down input costs and increase options for farmers,” Torres Small said in a release. “Through today’s investments to make more fertilizer and process meat locally, the Biden-Harris Administration is bringing jobs back to the United States, lowering costs for families, and supporting farmer income.”

Local Meat Capacity Grants
This final set of awards through Local MCap is for both Simplified Equipment Only and Processing Expansion project types. Two additional projects (totaling $7.8 million), which have been selected to move forward, are in final review with USDA, the release said.

This final set of awards for simplified equipment and processing expansion covers projects in 21 states for processing equipment such as meat grinders, stuffers and smokers. Processing Expansion projects increase processing or rendering capacity through activities including facility upgrades, equipment purchases and training.

Here are some examples of funded projects:

Haen Meats in northeastern Wisconsin, will use funding to purchase new equipment, including stuffers, hanging lines, three truck smokehouses, automatic grinders, and energy-saving cooling mixers. These upgrades will boost their processing capacity, engage an additional 121 local producers, and create 12 new jobs, further supporting the local community.
Granite State Packing, Inc., located in the Connecticut River Valley, N.H., is receiving a Local MCap grant to purchase new slaughter, cutting, and packaging equipment. This will increase the business’ pork slaughter and processing capacity, benefitting 100 local producers and increase the availability of local pork products. Additionally, 15 new jobs will be created.
Montana Premium Processing Cooperative in Hill County, Mont., provides critical tribal slaughter support and regional employment opportunities. Using Local MCap funding, the cooperative will boost production capacity by 225% and invest in new equipment including hoists, vacuum sealers, a bandsaw, and steel containers which will enhance both production efficiency and quality control.

The first round of funding was announced in March 2024, and a second round of funding was announced in July 2024. With today’s announcement, USDA has funded a total of 97 projects for $55.8 million through Local MCap. The program is administered by the Agricultural Marketing Service (AMS) and is authorized by the American Rescue Plan.

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Profit Tracker: Pork Margins Drop As Beef Margins Improve

Thu, 24 Oct 2024 19:44:31 GMT

Negotiated cash cattle were nearly unchanged gaining $0.27 per cwt. the week ending Oct. 19, leaving feedlot margins down $15 per head to an industry average of $188.18 per head, according to the Sterling Beef Profit Tracker. Meanwhile, beef packers saw profits increase $62 per head to a total loss of $22 per head. That puts the packer/feeder margin spread at $210 per head in favor of the feeder.

Cash cattle averaged $187.56 per cwt. the week ending Oct. 19, while Comprehensive Beef Cutout prices posted a $6.87 per cwt. gain to close at $310.98 per cwt.

Cattle marketed last week carried a total feed cost of $445.49 per head, about $19 less than feed costs for cattle sold the same week a year ago.

Cattle placed last week are calculated to have a purchase price for 750-800 lb. feeder steers at $253.55 per cwt., or $7 more per cwt. less than a month ago.

The estimated total cost for finishing a steer last week was $2,666 per head, up from last year’s estimate of $2,585 per head.

Fed cattle slaughter totaled an estimated 492,480 down 4,468 head from the same week last year. Packing plant capacity utilization was estimated at 84.5% compared to 84.9% last year.

View the full Sterling Beef Profit Tracker for the week ending Oct.19.

Farrow-to-finish hog producers found positive margins of $4.25 per head last week, down $5.44 from the previous week, according to the Sterling Pork Profit Tracker. A year ago, those margins were at -$17.70. Lean carcass prices averaged $76.74 per cwt., down $1 from the previous week.

Hogs placed for finishing last week had a breakeven at $69 per head.

Pork packers saw average profits of $27 per head, up $2.54 from the previous week. Last year pork packer margins were $20.84. Hog slaughter was estimated at 2.548 million head, down 2,827 head from the same week last year.

Pork packer capacity utilization was estimated at 97.2% compared to 97.3% last year.

View the full Sterling Pork Profit Tracker for the week ending Oct. 19.

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.)

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August Pork Exports Above Year-Ago; Beef Exports Trend Lower

Wed, 09 Oct 2024 22:48:15 GMT

Fueled by another outstanding performance from Mexico, August exports of U.S. pork increased year-over-year, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). U.S. beef exports were below year-ago levels in August.

August demand for U.S. pork robust in Western Hemisphere, ASEAN region

August pork exports totaled 238,989 metric tons (mt), up 6% from a year ago but the second lowest of 2024. Export value increased 8% to $702.9 million. In addition to the strong results in Mexico, exports trended higher to Central and South America, the Caribbean and the ASEAN region. August shipments to Malaysia were record-large, while exports to Colombia achieved a value record.

For January through August, pork exports were just under 2 million mt, up 4% from a year ago, while valued climbed 7% to $5.68 billion. Pork export value was on a record pace through August, and USMEF projects both export volume and value will reach record highs in 2024.

“Mexico was once again the pacesetter for U.S. pork, but demand throughout the Western Hemisphere was outstanding in August,” says USMEF President and CEO Dan Halstrom. “Shipments to South America posted the highest value on record, while exports to Central America and the Caribbean also achieved strong growth. These markets are increasingly competitive, so it is essential that the U.S. industry defends its market share while also developing marketing efforts that help expand overall consumption.”

Beef exports trend higher to Mexico, Taiwan, Middle East, but lower overall

Beef exports totaled 102,682 mt in August, down 6% from a year ago and the lowest since January. Export value fell 4% to $845.9 million. Mexico’s demand for U.S. beef remained robust in August, while exports also trended higher to Taiwan, the Middle East and the ASEAN region. But these results were offset by lower shipments to Japan, South Korea and China/Hong Kong.

Through the first eight months of the year, beef exports were 3% below last year at 856,834 mt, but were 4% higher in value at just under $7 billion.

“Beef demand in our major Asian markets seemed to lose a bit of momentum in August, but exports held up well to Mexico, Taiwan and the Middle East,” Halstrom says. “The headwinds in Asia remain formidable, but we are encouraged by the region’s ongoing tourism rebound. The late-September removal of Colombia’s restrictions on U.S. beef is also a positive development. While this came too late to impact the August results, it will help bolster fourth-quarter demand in Latin America.”

Final Grants Through the Meat and Poultry Processing Expansion Program Announced

Tue, 24 Sep 2024 00:09:55 GMT

Increasing processing capacity and spurring competition to expand market opportunities for U.S. farmers and create jobs in rural areas are the goals of the Meat and Poultry Processing Expansion Program (MPPEP), which was launched in 2022.

The final grant awards were announced on Sept. 19 by U.S. Department of Agriculture (USDA) Secretary Tom Vilsack, announced in an agency release more than $35 million were awarded to 15 independent meat processors in 12 states. This marks the final investment funded by President Biden’s American Rescue Plan.

The investments also advance the President’s Investing in America agenda and support the Administration’s Action Plan for a Fairer, More Competitive, and More Resilient Meat and Poultry Supply Chain, which dedicates resources to expand independent processing capacity.

“For the past four years, the Biden-Harris Administration has advanced a sustainable vision of agriculture that prioritizes the needs of the hardworking producers and small business owners who keep rural communities strong,” Secretary Vilsack says. “Through investments like these, USDA is working to give farmers and ranchers a fair chance to compete in the marketplace, which will increase local food options and lower grocery costs for American families.”

Since the beginning of the program, USDA has provided 74 awards totaling more than $325 million through MPPEP to expand processing capacity and strengthen the food supply chain.

Many projects are still in development and have already increased the processing capacity at these facilities by more than 800,000 cattle, 14,000 hogs, 23 million chickens and 5 million turkeys annually. Additionally, these projects are serving almost 900 additional meat and poultry producers and have created more than 1,200 new jobs.

Part of these final grants include funding to help build new processing plants, create hundreds of jobs, give local producers and entrepreneurs better business opportunities, and give consumers more options at the grocery store. For example:

America’s Heartland Packing is receiving a $10 million grant to build a large beef processing plant outside of St. Louis, Missouri. The plant will be LEED certified and will supply beef to domestic and international wholesalers, retailers, pet food companies and food manufacturers.

Mark’s Custom Meats in Pennsylvania is receiving a $750,000 grant to double the size of their current meat processing facility, serving an additional 15 producers and creating four new full-time jobs.

Damian’s Craft Meats is a Latinx-owned processor and is using a $4 million grant to build a new facility in southeastern Michigan to serve local cattle, hog, goat, and lamb producers. Damian’s will offer fee-for-service processing and will also purchase animals from local producers through competitive and transparent pricing.

The awards will benefit people living in Arkansas, Colorado, Hawaii, Idaho, Indiana, Michigan, Minnesota, Missouri, Montana, Nebraska, New York and Pennsylvania.

Details on all of the awards announced is available online.

Ag Industry Leaders Explore Consumer Demand for U.S. Red Meat Quality in Japan

Wed, 18 Sep 2024 23:25:39 GMT

A team of 21 farmers and farm group representatives traveled to Japan as the Heartland Team to see firsthand the promotion of U.S. beef and pork in the region by the U.S. Meat Export Federation. The team received market briefings from U.S. Embassy and USMEF staff, spoke with students at a culinary school, viewed U.S. product displays in retail outlets, visited a beef tongue processing facility, a wagyu farm and witnessed a beef carcass auction at the Tokyo Meat Market.

The utilization of beef tongue in Japan made an impression on the group, says Nebraska cattleman Mark Goes.

“Tongue product is everywhere, right down to tongue flavored pretzels,” he explains. “Japan imports a tremendous amount of tongue from the United States, and they have learned to utilize it to where it’s favored over ribeye steak for them.”

Surprisingly, the tongue is a standard and a staple for them there the group learned during their visit.

“I knew of that issue before, but to see it firsthand and the magnitude with which it’s ingrained into the society, it’s just incredible,” Goes adds.

Quality matters more than price in the Japanese market, which is a characteristic that sets the standard for U.S. pork production, according to Missouri pork producer Jesse Heimer.

“Relative to quality, Japan actually sets the standard in the United States,” Heimer says. “The quality standard at every plant is based on the color expectation that the Japanese customer wants. And believe it or not, our highest quality pork loins, much of our highest quality pork, ends up in this market here in Japan.

Heimer says that expectation for quality is the standard in the U.S. for export. He appreciated the opportunity to be face-to-face, and hand-to-hand, with customers in Japan.

“The Japanese consumer really appreciates our product, appreciates American pork,” he adds. “It was a great opportunity to see that relationship firsthand and understand that probably wouldn’t be possible without our partnership with USMEF.”

USMEF President and CEO Dan Halstrom says that’s why it’s important to bring producers to markets like Japan to share how U.S. product is raised.

“We have to continue to tell that story about quality and how we’re different, and I think having producers here in the marketplace, seeing the importance of that—that’s worth the value of the trip itself,” Halstrom explains.

Japan is the leading export market for U.S. beef by volume, totaling 149,051 metric tons through July of this year at a value of $1.2 billion. It is the number three market for U.S. pork exports at 208,121 metric tons with a value of $846 million through July.

Profit Tracker: Hogs See Lowest Breakeven Since 2020 While Beef Breakeven Prices Jump Higher

Thu, 29 Aug 2024 20:43:36 GMT

Last week’s substantial drop in the breakeven feeding cost for feeder cattle placed on feed last week is significant to the market outlook, says John Nalivka, president of Sterling Marketing Inc.

“High breakeven prices together with record beef prices pose a potential problem for the market. If consumers bulk, and so far they have not to any large extent, this will pressure prices down the supply chain and lead to severe losses in the feedlot in the face of high breakeven prices, i.e. November 2015,” Nalivka says. “At the same time, I would expect stronger pork prices with stronger demand as consumers increase pork purchases.”

Although the beef market has come under pressure this week, Nalivka says it is important to remember that it is the week before the Labor Day weekend and this is not out of the ordinary.

“It may not be an indication of weakening beef demand,” he says. “We need to get into October to know more about demand.”

Negotiated cash cattle retreated an average of $3.58 per cwt. the week ending Aug. 24 and profit margins dropped by $72 per head to an industry average of $95 per head, according to the Sterling Beef Profit Tracker. Meanwhile, beef packers saw losses improve $54 per head to a loss of $5 per head. That puts the packer/feeder margin spread at $100 per head in favor of the feeder.

Cash cattle averaged $186.17 per cwt. the week ending Aug. 24, while composite wholesale beef prices posted a $2.29 per cwt. gain to close at $317.63 per cwt.

Cattle marketed last week carried a total feed cost of $342.44 per head, up $5.63 per head from the previous week, and about $200 less than feed costs for cattle sold the same week a year ago.

Cattle marketed last week had a breakeven of $179.38 per cwt., while cattle placed on feed last week have a breakeven of $177.80 per cwt., which is about $1.58 per cwt. higher than the previous week and $5.70 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 $240 per cwt., or $19.20 per cwt. less than a month ago.

The estimated total cost for finishing a steer last week was $2,511 per head, up 13% from last year’s estimate of $2,180 per head.

Fed cattle slaughter totaled an estimated 495,520 up 13,233 head from the same week last year. Packing plant capacity utilization was estimated at 84.6% compared to 82.4% last year.

View the full Sterling Beef Profit Tracker for the week ending Aug. 24.

Farrow-to-finish hog producers found positive margins of $31 per head last week, down $2.56 from the previous week, according to the Sterling Pork Profit Tracker Lean carcass prices averaged $84.71 per cwt., down $1.21 per cwt. from the previous week.

Hogs placed for finishing last week had the lowest breakeven since December 2020 at $65.73 per head.

Pork packers saw average profits of $14 per head, down $3.37 from the previous week. Last year pork packer margins were $12.67. Hog slaughter was estimated at 2.435 million head, up 77,794 head from the same week last year.

Pork packer capacity utilization was estimated at 93% compared to 90% last year.

View the full Sterling Pork Profit Tracker for the week ending Aug. 24.

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.)

Your Next Read: Nalivka: Inflation and a Repeat of History

How Do Consumers Feel About Sustainability?

Thu, 29 Aug 2024 14:32:35 GMT

Where are the strongest opportunities to influence meat purchasing habits? During the 2024 Animal Health Summit hosted by the KC Animal Health Corridor, Danette Amstein, principal at Midan Marketing, presented an analysis of how consumers’ attitudes toward sustainability affect their meat purchasing decisions.

Amstein emphasized the importance of understanding these shifts to meet consumer demands and maintain industry growth. She outlined five consumer segments identified by her group’s research:

• Connected Trendsetters (14%) are open to trying new products and are heavily influenced by trends.
• Claim Seekers (24%) actively look for production and sustainability claims when making meat purchases.
• Convenience Cravers (17%) seek easy solutions in their shopping experience.
• Committed Carnivores (23%) are primarily concerned about the taste of their meat.
• Classic Palates (22%) prefer traditional meat products and are less likely to change their purchasing habits.

The strongest opportunities to influence purchasing habits with a sustainability message lie with Connected Trendsetters and Claim Seekers, both of whom index higher for millennials and Gen Z, she explained.

However, these groups define “sustainability” differently.

“Connected Trendsetters equate sustainability with quality,” Amstein explained.

Meanwhile, Claim Seekers focus more on production practices and animal welfare. She stressed the need for the industry to tailor its messaging to resonate with both of these consumer segments.

Trust in livestock producers is strong, she pointed out, and efforts in transparent and authentic communication will continue to make an impact.

Quotable moments from the Animal Health Summit:

“Artificial intelligence (AI) will change our industry. It will enhance the decision-making ability of veterinarians and producers—but it will not replace them.”
— Steve Boren, vice president for livestock and equine with Boehringer Ingelheim

“The intersection of technology and biopharma innovation is driving us toward a more personalized approach to medicine.”
—Scott Bormann, senior vice president for Merck Animal Health

Editor’s Note: Companies with a business location in the KC Animal Health Corridor account for more than half of the sales generated by the global animal health industry. The Corridor, anchored by Manhattan, Kan., and Columbia, Mo., is home to more than 300 animal health companies, representing the largest concentration in the world. For more information, visit www.kcanimalhealth.com .

Your Next Read: What Kind of Meat-Eater Are You?

USDA Updates Guideline for Animal-Raising and Environmental Claims on Meat Labels

Wed, 28 Aug 2024 18:56:02 GMT

USDA announced on Aug. 28 the availability of an updated guideline that makes recommendations to strengthen the documentation that supports animal-raising or environment-related claims on meat or poultry product labeling. This action builds on the work USDA has already undertaken to protect consumers from false and misleading labels and to implement President Biden’s Executive Order on Promoting Competition in the American economy, USDA said in a release.

“USDA continues to deliver on its commitment to fairness and choice for both farmers and consumers, and that means supporting transparency and high-quality standards,” Agriculture Secretary Tom Vilsack said in a release. “These updates will help to level the playing field for businesses who are truthfully using these claims and ensure people can trust the labels when they purchase meat and poultry products.”

USDA explains that animal-raising claims, such as “Raised Without Antibiotics,” “Grass-Fed” and “Free-Range,” and environment-related claims, such as “Raised using Regenerative Agriculture Practices” and “Climate-Friendly,” are voluntary marketing claims that highlight certain aspects of how the source animals for meat and poultry products are raised or how the producer maintains or improves the land or otherwise implements environmentally sustainable practices.

Documentation submitted by companies to support these claims is reviewed by USDA’s Food Safety and Inspection Service (FSIS) and the claims can only be included on the labels of meat and poultry products sold to consumers after they are approved by the agency. FSIS previously updated its guideline on these claims in 2019.

In the updated guideline, FSIS strongly encourages the use of third-party certification to substantiate animal-raising or environment-related claims.

“Third-party certification of animal-raising or environment-related claims helps ensure that such claims are truthful and not misleading by having an independent organization verify that their standards are being met on the farm for the raising of animals and for environmental stewardship. The revised guideline also emphasizes more robust documentation for environment-related and animal-raising claims,” USDA wrote.

As well, the guideline recommends establishments using “negative” antibiotic claims (e.g., “Raised Without Antibiotics” or “No Antibiotics Ever”) implement routine sampling and testing programs to detect antibiotic use in animals prior to slaughter or obtain third-party certification that includes testing. The revisions were informed by sampling data, petitions, public comments to those petitions and feedback received from a wide range of stakeholders, the release said.

In light of concerns about negative antibiotic claims, FSIS announced last year that it would conduct a study in partnership with USDA’s Agricultural Research Service (ARS) to assess the veracity of these claims.

FSIS collected liver and kidney samples from 196 eligible cattle at 84 slaughter establishments in 34 states.
ARS analyzed the samples using a method that targeted more than 180 veterinary drugs including various major classes of antibiotics.
The study found antibiotic residues in approximately 20% of samples tested from the “Raised Without Antibiotics” market.

“The action FSIS is taking through the publishing of this guidance addresses these concerning findings and makes clear that FSIS will take enforcement action against any establishments found to be making false or misleading negative antibiotic claims,” USDA wrote.

FSIS has also informed the establishments with positive results from the ARS-FSIS study and advised them to conduct a root cause analysis and implement corrective actions. FSIS advised them to determine how antibiotics were introduced into the animal and to take appropriate measures to ensure that future products are not misbranded.

FSIS and ARS will be publishing a peer-reviewed paper with complete results from the study in the near future. USDA said the study findings underscore the need for more rigorous substantiation of such claims and sampling results may lead to additional testing by the agency.

FSIS noted that it has the authority to collect samples any time it believes a product is mislabeled with any claim covered by the guidance. Also, FSIS may consider future additional actions, including random sampling and rulemaking, to further strengthen the substantiation of animal-raising and environment-related claims.

Your Next Read: Pork and Beef Industries Advocate for Clear Labels for ‘Fake Meat’

Nalivka: Inflation and a Repeat of History

Thu, 22 Aug 2024 19:07:49 GMT

Inflation is a much cussed and discussed topic today – cussed by the American people and discussed by the politicians. The cost of living is an everyday experience. While I do not need the government to tell me how the cost of living has increased, the most recent data for July is now available. To be honest, I question whether the officially reported inflation figures align with what we are experiencing. But beyond that, the cures to inflation presented by Washington, D.C. are of greater concern.

On July 5, 1971, I was with a group of high school students present in the White House to witness President Richard Nixon signing the 26th Amendment to the U.S. Constitution which lowered the voting age to 18 years old from 21 years old. One month later, August 15 and 53 years ago, President Nixon announced he was “ordering a freeze on all prices and wages throughout the United States.”

For those of us who lived during the high inflation period of the 1980s, we should be asking if the government intends to repeat that disastrous economic period of U.S. history. The result of Nixon’s announcement to employ a freeze price regulated by a Pay Board and Price Commission 53 years ago was soaring inflation. Core inflation, which excludes food and energy, averaged 12% in 1980, 10% in 1981, and 7% in 1982.

For July 2024, core inflation was pegged at a year-over-year gain of 3.2%. At the same time, the CPI for food prices was reported to be up 1% from a year earlier. It does not sound that bad until we look at the rest of the story. The July 2023 CPI for food prices was up 4% from the prior year which was compared to the July 2022 which posted a 13% increase to the prior year.

Yes, it is no secret that food prices are sharply higher and politically, a price freeze might be a popular idea in an election year. The reality is that it would be as disastrous as during the second half of the 1970s and the 1980s. What would seem to be a quick fix is simply adding fuel to the fire.

Beef demand is currently strong, a noteworthy goal that the industry has worked hard toward achieving since 2015. The pork industry has experienced a similar increase in demand, though perhaps not quite as strong as beef demand currently. Notable in the pork industry has been the demand for bacon. How many hamburgers are purchased in fast food restaurants that do not have bacon? Not many.

Consumers want to purchase quality, safe, beef and pork products and those beef purchases are at record prices. Imposing government mandates on supermarket pricing would be negative and is highly likely to take us back to the late 1970s and 1980s. Consumers can make the purchasing decision. They don’t need the government’s help!

John Nalivka is president of Sterling Marketing, Inc., Vale, Oregon.