November 1, 2019
POULTRY November
NEWS letter
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IN POULTRY NEWS
McDonald's to Test Plant-based Patties in Canada
Sept 20, 2019

"McDonald’s will be conducting a 12-week test of a new plant-based burger called the P.L.T., (an acronym for Plant, Lettuce and Tomato) in 28 restaurants in Southwestern Ontario, starting September 30th. The P.L.T. is made with a Beyond Meat plant-based patty formulated for McDonald’s.

Ann Wahlgren, VP of Global Menu Strategy stated "McDonald’s has a proud legacy of fun, delicious and craveable food—and now, we’re extending that to a test of a juicy, plant-based burger," She added "We’ve been working on our recipe and now we’re ready to hear feedback from our customers." She concluded "this test allows us to learn more about real-world implications of serving the P.L.T., including customer demand and impact"

Beyond Meat (BYND) advanced 12 percent to $150.15 by noon on Thursday 26th following the pre-trading release of the McDonald’s announcement."


Source: Chick News
ASF in China Affecting World Meat Prices
Sept 27, 2019

"According to a September 24th review in The Wall Street Journal, correspondents Lucy Craymer and Jacob Bunge noted the effect of increased imports of pork, beef and chicken by China on World prices for meat. Imports by China are necessary to compensate for losses attributed to African swine fever since between 35 and 55 percent of the national herd may have been lost. The most populous nation in the world now consumes 120 pounds of pork per capita and losses have created a demand for imported animal protein. China will produce 89 billion pounds of pork in 2019 compared to 120 billion pounds in 2017 before the advent of ASF. An independent prediction for 2020 is even more precarious and availability may dip to 75 billion pounds.

Between May and July imports of pork, chicken, beef and mutton soared 70 percent to a value of $5 billion. The United Nations Food and Agriculture Organization recorded a 10 percent rise in the global meat price index year to date. Brazil appears to be the beneficiary of demand from China with shipments of poultry increasing by one-third during the first half of 2019 compared to the corresponding period in 2018. Craymer and Bunge note that consumers in the EU are paying at least 5 percent more for pork based on imbalance between available supply and demand.

Depending on the outcome of negotiations with China it is possible that U.S. producers of both pork and poultry may benefit. Recently China reduced the punitive duty on imported pork although state owned import companies are usually exempt from tariffs. Notwithstanding imports and release of frozen inventory, the price of pork in China has increased by approximately 40 percent year to date with substitution of chicken."

Source: Chick News
Surge in Stock Prices of U.S. Chicken Companies as China Considering Imports

"The possibility of China resuming imports of U.S. chicken, blocked since 2015 based on a spurious justification of avian influenza, sent chicken company stocks sharply higher on Monday 28th October. Sanderson Farms (SAFM) advanced 13.1 percent from Friday October 25th close to the Tuesday close attaining $152.19. Pilgrim’s Pride Corp. (PPC) was up 6.0 percent to $29.35 over the period. Tyson Foods (TSN) with a broader portfolio including pork and a presence in China was up 5.4 percent to $82.72.

The apparent intent of China to import chicken as reported by Reuters, is motivated by a protein shortage due to African swine fever. No orders have been placed and the issue is bundled into the long awaited resolution of the "Trade Deal".

China in a predictable move will demand concessions for their willingness to import chicken from the U.S. despite the obvious domestic shortage of protein. Catfish and cooked chicken have been suggested as reciprocal products.
 
Unless chicken exports commence in the near future and a trade deal is concluded share prices that have risen on speculation will drift lower, consistent with earnings and markets."

Source: Chick News
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