Colorado Association of Meat Processors 
  Industry News Updates 
August 21, 2017
Market News

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 Equipment Classifieds from our Processors

Model 350012
500lb capacity

Westcliffe Meats, LLC
Hank Miller
1358 County Road 140
Westcliffe, CO 81252
Phone: 719-373-0196

Contact this processor for more information!
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The role of meat and poultry in the 'energy' market

Having the right amount of energy means that consumers can "live the life I want."

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Lawmakers, stakeholders talk food defense

by Erica Shaffer KANSAS CITY, Mo. - The Agricultural Business Council of Kansas City hosted a forum that included US Sens. Pat Roberts (R-Kan.) and Claire McCaskill (D-Mo.), who joined stakeholders in agriculture and homeland security to discuss...

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Cargill collaborates with China to reduce antibiotic use

by MEAT+POULTRY Staff CHUZHOU, China - Cargill is working alongside China's Ministry of Agriculture to reduce the use of antibiotics in the country's poultry and livestock industry. Cargill's Animal Protein business and the China Institute of...

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USDA announces ham purchases

The agency plans to distribute pit ham products as part of federal assistance programs.

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APHIS launches animal welfare compliance database

By  Chris Scott  on 8/21/2017 from

USDA said its Animal and Plant Health Inspection Service (APHIS) has launched a “refined public search tool” offering access to compliance records for the Animal Welfare Act.

In July 2016, APHIS formally initiated a comprehensive review and update of Animal Care’s website, publications and correspondence to eliminate out-of-date content and improve the information provided. The agency also hoped to balance its commitment to transparency with applicable laws, including rules protecting personal privacy, APHIS said on its website.  

The Animal Care Information System search tool was taken off-line for review on Feb. 3. During this review, APHIS reposted annual reports of animal research facilities as well as many inspection reports. The reports were posted on a rolling basis in February, March, April, and June 2017. 

A group of animal activists sued USDA and APHIS  earlier this year  over the removal of thousands of documents during the review period. APHIS is continuing to review animal inventories that accompany inspection reports for accuracy. For this reason, the newly posted inspection reports do not include animal inventories, but APHIS intends to make this information available in the future.
US to resume exporting pork to Argentina

by Joel Crews WASHINGTON - According to an Aug. 17 statement from the White House, President Donald Trump announced an agreement had been struck that will resume US pork exports to Argentina for the first time since 1992, when animal health...

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Breed matters

by Bernard Shire Berkwood Farms is an award-winning Midwest producer and processor of many cured and fresh pork products, including its outstanding bacon products. But two things set Berkwood Farms apart from other pork and bacon producers,...

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A banner year for beef: USDA

By  Lisa M. Keefe  on 8/21/2017 from

Although the pork markets have been commanding the lion’s share of the attention of late, due to substantial supply and anticipation of several large hog processing facilities to come online later this year and in 2018, cattle and beef markets also are having a banner year, according to USDA Economic Research Service’s Livestock, Dairy and Poultry Outlook report.

The National Agricultural Statistical Service’s cattle report for July 1 estimated that the U.S. cattle herd expanded by 4 percent from July 1, 2015, to 102.6 million head, the largest headcount since 2008. This year’s calf crop is estimated at 36.3 million head, which is 3.5 percent larger than in 2016 and 6.5 percent larger than in 2015. The U.S. cattle herd began the expansion phase of its production cycle during 2014. The herd on July 1 was 6.9 million head, or 7.2 percent larger than on July 1, 2014.

Subsequently, the estimate for commercial beef production in 2017 was revised higher at 26.7 billion pounds, mainly due to relatively large second-quarter cattle placements and the impact on fourth-quarter cattle slaughter.

Based on the relatively large number of cattle available outside feedlots, USDA expects a greater number of cattle will be placed on feed in the remainder of 2017 to bolster commercial beef production in 2018. The 2018 forecast is raised to 27.4 billion pounds.

More feeder cattle
Although growth in the cattle herd implies increased availability of heifers for feeding, there are signs that slower heifer retention for addition to the beef herd may affect supplies of cattle for feeding.

Heifers in feedlots with 1,000-head or greater capacity on July 1 were up 10.6 percent from 2016, and thus far this year heifer slaughter is up nearly 4.0 percent. Although to some extent this likely reflects the large supply of heifers due to herd expansion, the number of heifers on feed as a percent of total on-feed numbers increased from 33.7 percent in 2016 to 35.6 percent.

Replacement heifers represented 14.5 percent of the cow inventory, lower than 2014-2015 but above the percentages of 2007-2012, a period of relatively strong cow liquidation.

A lower percentage of beef replacement heifers would tend to indicate a leveling-off in the expansion of the herd in 2018. To the extent that heifer retention has slowed, it will further increase feeder cattle supplies for placement on feed.

Cattle prices to soften
Based on NASS Cattle on Feed data through June 2017, net placements in feedlots with 1,000-head or greater capacity during the second quarter reached 5.5 million head, a 10.5 percent increase since 2016 and the highest since 2003. Further, based on the NASS Cattle report, the estimated number of cattle on feed in all size feedlots on July 1, 2017, reached 12.8 million head, 5.8 percent higher than in 2015. This was the highest total number of cattle on feed reported for a month since 2006.

The larger-than-expected number of calves placed in feedlots increases the likelihood of greater steer and heifer marketings late in the third quarter and early in the fourth quarter, providing an abundance of fed cattle from which meatpackers can purchase supplies.

As a result, the third-quarter price for 5-Area Choice steers is forecast lower to $113.00 to $117.00 per cwt and to $110.00 to $116.00 per cwt in the fourth quarter. Similarly, with more cattle outside feedlots, and lower fed cattle prices expected to pressure cattle feeders’ returns, the average price for feeder steers weighing 750-800 pounds is forecast lower in the third and fourth quarters to $146.00 to $150.00 and $141.00 to $147.00 per cwt, respectively.

Beef trade
U.S. beef exports for 2017 are revised slightly lower, and 2018 is unchanged.
U.S. beef exports during the first half of 2017 increased by 15 percent from a year ago, to 1.3 billion pounds. Beef exports were higher year-over-year in each month during the first half of 2017: January (+21 percent), February (+19 percent), March (+25 percent), April (+15 percent), May (+3 percent), and June (+12 percent). Major export destinations during this period were Japan, South Korea, Mexico, Canada and Hong Kong, together accounting for about 83 percent of total exports. Exports to Japan were up 26 percent from the same period a year ago at 402 million pounds, which represented 30 percent of the total U.S. beef exports in the first half of 2017. Higher domestic production and lower prices likely enhanced the export competitiveness of U.S. beef during the period.

Export forecasts for the second half 2017 and the first quarter 2018 have been revised downward about 1 percent from the previous month due to prospects of increasing competition from other major beef exporters, and to the anticipated impact of the recently announced Japanese Safeguard designed to raise the tariff on U.S. beef imports from August 2017 through March 2018.

Beef exports in 2017 are forecast at 2.8 billion pounds, 9 percent higher than a year earlier. This is due to greater available U.S beef supplies and to anticipated increased shipments to export destinations outside of the top five major U.S. beef export destinations. For the first half of 2017, 41 million pounds more beef were shipped to destinations outside of the top five export destinations, an increase of 22 percent compared to the same period a year earlier.

Beef Imports Down in First Half 2017
First-half 2017 U.S beef imports declined 7 percent from year-earlier levels to 1.5 billion pounds. Notable declines during the first 6 months came from Australia (down 34 percent) and New Zealand (down 17 percent), likely due to tighter domestic supplies in Oceania. These declines were partially offset by increased imports from Brazil (+42 percent) and Mexico (+31 percent).

U.S. beef imports in third-quarter 2017 are expected to be 710 million pounds, 5.5 percent below a year ago. Fourth quarter imports are expected to be 610 million pounds almost 5 percent below a year earlier. Total 2017 beef imports are forecast at 2.8 billion pounds, a 6 percent decline from 2016. Greater domestic beef supplies and continued herd rebuilding in Oceania will likely limit incentives to import beef.

Meanwhile, larger second-half supplies of hog and pork are expected to clear the market at higher year-over-year prices. Third-quarter hog prices are expected to be $57 to $59 per cwt, almost 18 percent above the same period last year. Fourth-quarter hog prices are expected to be $44 to $46 per cwt, almost 22 percent higher than fourth-quarter 2016. Third- and fourth-quarter pork exports are forecast at rates almost 9 percent and more than 6 percent above year-earlier quarters, respectively.

The 2017 export forecast for broiler meat was lowered on recent data that showed lower export levels than expected; third- and fourth-quarter price forecasts were increased due to relatively strong trends. The forecast for 2017 turkey production was reduced due to poor returns and continued softness in demand. Whole hen turkey prices were reduced as prices remain below seasonal averages.

Overall, an increase in global demand and a decline in the U.S. dollar likely contributed to favorable conditions for exports. The value of the U.S. dollar has fallen 5.9 percent since December as measured by the Price-adjusted Broad Dollar Monthly Index reported by the U.S. Federal Reserve. With the exception of U.S. exports of beef and veal, the largest share of which went to Japan, Mexico accounted for the largest share of U.S. animal product exports.
Corbion develops new meat snacks mould inhibitor

The Verdad Opti Powder XM10 has been developed by Corbion to offer manufacturers an "effective, clean-label way" to inhibit mould in higher-moisture meat snacks. Corbion claims this is the meat industry's first clean-label antimicrobial and that...

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Lunch trends emphasize fresh foods

More than half of Americans (54 percent) say their typical weekday lunch is leftovers from home, but nearly as many (48 percent) say they enjoy a homemade sandwich with meat, according to Chicago-based Mintel International's Bacon and Lunch Meat...

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Post-processing Pasteurization: Pressing innovation

Meat and poultry processors are under the food safety microscope. With the U.S. Department of Human Services' Office of Disease Prevention and Health Promotion reporting foodborne illnesses sicken 48 million Americans each year, leading to...

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ProSticks: Skewering the meat snack category

The growth of the meat snack category has demonstrated that consumers are driven to meat in many hand-held forms. Expresco Foods, a Montreal, Quebec processor with a particular expertise in grilled meats, is banking that consumers will want to...

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Wholesale Price Chart

Wholesale Price UpdateThe leading source for wholesale beef pricesThe beef industry’s Wholesale Price Chart gives a top-line view of average reported wholesale prices on beef sub-primal cuts from the current and previous weeks, and is prepared...

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Four Steps for Food Safety

By Contributing Author: Janeal Yancey, Ph.D., University of Arkansas Everyone involved with food is responsible for its safety including the farmer/rancher, the processor, the grocery store or restaurant, and the consumer. In the US, we have the...

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AMSA Exclusive: Application of food-grade coatings to...

Dry cured hams are produced by rubbing a dry curing mix (salt, nitrite/nitrate) on the hind legs of a hog carcass, allowing the salt to penetrate the muscles under refrigerated temperature, and allowing them to hang in the aging house for...

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Retail landscape changing with more e-commerce food sales

by Jeff Gelski PITTSBURGH - Online sales are taking away from sales at retail outlets, which may complicate matters when it comes to analyzing how certain categories are faring. Retail outlet sales alone may not reflect accurately whether overall ...

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News briefs: WOTUS, poultry safety, SMA honors, Oprah, China

The Environmental Protection Agency and Army Corps of Engineers extended the public comment period for the proposed first step of the review of the definition of ‘’Waters of the U.S.’’ (WOTUS) to provide additional time for stakeholders to weigh in.

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