1 November 2024

19 minute read

By: Jim Wyckoff

South America

North America

Weekly USDA US beef, pork export sales

Beef: Net sales of 13,900 MT for 2024 were down 17 percent from the previous week and from the prior 4-week average. Increases were primarily for South Korea (4,900 MT, including decreases of 300 MT), China (3,200 MT, including decreases of 200 MT), Japan (2,500 MT, including decreases of 200 MT), Taiwan (1,000 MT, including decreases of 200 MT), and Mexico (700 MT, including decreases of 100 MT). Net sales of 5,700 MT for 2025 were primarily for Japan (3,700 MT) and South Korea (1,800 MT). Exports of 15,700 MT were down 2 percent from the previous week and 3 percent from the prior 4-week average. The destinations were primarily to South Korea (4,800 MT), Japan (2,900 MT), China (2,400 MT), Mexico (1,600 MT), and Taiwan (1,200 MT).

Pork: Net sales of 44,800 MT for 2024 were up noticeably from the previous week and up 16 percent from the prior 4-week average. Increases were primarily for Mexico (17,700 MT, including decreases of 200 MT), China (10,400 MT), Japan (4,800 MT, including decreases of 200 MT), South Korea (3,800 MT, including decreases of 500 MT), and Canada (2,900 MT, including decreases of 700 MT). Net sales of 200 MT for 2025 were primarily for New Zealand. Exports of 32,300 MT were up 1 percent from the previous week and 13 percent from the prior 4-week average. The destinations were primarily to Mexico (11,400 MT), Japan (4,100 MT), China (3,600 MT), South Korea (2,900 MT), and Colombia (2,700 MT).

1st case of H5N1 (avian influenza) case in Oregon in swine 

The first case of H5N1 bird flu in swine has been confirmed in an Oregon backyard farm. USDA's APHIS and Oregon state officials are investigating a backyard farm where H5N1 avian influenza was detected in poultry and, for the first time, in one of five pigs. Despite no signs of illness, the swine tested positive, and all were euthanized. Shared resources may have facilitated cross-species transmission. The farm has been quarantined, but USDA reassures there is no risk to the U.S. pork supply, and genomic sequencing shows no increased human transmissibility. The National Pork Producers Council emphasized that there are no safety concerns about U.S. pork supply, noting the pork industry has worked with USDA’s APHIS since 2009 to monitor for swine flu. “The entire pork industry remains committed to safeguarding food safety and human and animal health,” NPPC CEO Bryan Humphreys said in a statement. The pigs on the Oregon farm were not intended for the commercial food supply, USDA said.

Of note: Pigs represent a particular concern for the spread of bird flu because they can become co-infected with bird and human viruses, which could swap genes to form a new, more dangerous virus that can more easily infect humans.

The case was one factor that drove the USDA to broaden its bird flu surveillance to include nationwide bulk milk testing, which the agency announced on Wednesday, USDA Secretary Tom Vilsack told Reuters in an interview. 

"While it’s a different variation of the virus and it is tied to wild birds, it is a factor to make sure that we understand and appreciate exactly where the virus is in dairy" and in cattle, he said.

The detection is a warning for pig farmers to be on the lookout for further infections, said Marie Culhane, a professor of veterinary population medicine at the University of Minnesota who has researched flu viruses in swine. 

"People need to start increasing their plans to deal with it if it should happen in another herd and another herd," Culhane said. "Pigs are just really good at picking up influenza viruses."

USDA expands HPAI testing in dairy to enhance biosecurity

USDA’s APHIS is rolling out a tiered strategy to collect milk samples for detecting H5N1 avian influenza. The plan aims to strengthen biosecurity, guide containment efforts, and protect farm workers exposed to infected animals. Bulk milk will initially be tested regionally, with further farm-level sampling as necessary. USDA will collaborate with state and private veterinarians, maintaining testing requirements for cattle before interstate movement to curb virus spread. Two vaccine candidates for dairy cows are also in field trials.

GOP lawmakers demand answers from USDA on Pure Prairie Poultry bankruptcy

Republican lawmakers have called on USDA to provide explanations regarding the oversight of Pure Prairie Poultry, Inc., which filed for bankruptcy shortly after receiving substantial USDA funding. The situation has raised concerns about the department's management of grants and loans, as well as its impact on farmers and the poultry industry.

Background. Pure Prairie Poultry, a Minnesota-based chicken company, received $45.6 million in USDA funding in 2022 to expand its processing plant in Charles City, Iowa. This funding included a $7 million grant from the Meat and Poultry Processing Expansion Program and a $38.7 million loan from the Food Supply Chain Guaranteed Loan Program. Less than two years after receiving the funding, Pure Prairie Poultry filed for bankruptcy and closed its Charles City processing plant on Oct. 2, 2024. This closure had severe consequences:

• Over a million birds had to be culled in Iowa due to the company's inability to care for them.
• Contracted farmers in Wisconsin and Minnesota were also affected.
• According to the lawmakers' letter, approximately 2 million chickens were "left without feed or any processing option.”

Republican lawmakers from Iowa, Minnesota, Wisconsin, and other states have expressed their concerns in a letter (link) to Secretary of Agriculture Tom Vilsack. U.S. Rep. Randy Feenstra (R-Iowa) one of the signatories, stated: "Our letter to USDA will help us get answers for our growers and address the federal government's carelessness with taxpayer dollars.”

The letter requests explanations on several key points:

•  The oversight process for loan and grant guarantees
•  USDA's awareness of Pure Prairie Poultry's financial situation
•  Steps taken to assist affected growers and state agriculture departments
•  Efforts to salvage the Charles City plant

Sen. Chuck Grassley (R-Iowa), another signatory, emphasized the need for accountability: "USDA must explain to Congress and the public what went wrong to help prevent a repeat scenario.”

A USDA spokesperson defended the department's programs, stating that they have worked to "rebuild and create new markets for U.S. farmers" after challenges posed by trade wars and the Covid-19 pandemic. The spokesperson also urged lawmakers to focus on passing the overdue farm bill: "Rather than trying to score political points, those members of Congress should work with USDA to reopen the facility and pass a new Farm Bill, which is now two years late.”

The lawmakers have requested USDA respond to their questions by Nov. 8.

USDA confirms new avian influenza cases in poultry and cattle

USDA’s Animal and Plant Health Inspection Service (APHIS) confirmed highly pathogenic avian influenza (HPAI) in a commercial egg-laying flock of 146,000 birds in Clackamas County, Washington. Over the past 30 days, four commercial and five backyard flocks have been affected, totaling 3.63 million birds. Additionally, HPAI was reported in 134 dairy cattle herds in California and three herds in Idaho. Since the outbreak began, there have been 380 confirmed infections across 14 states.

Iowa destroys 1.3 million chickens following Pure Prairie Poultry bankruptcy

The Iowa Department of Agriculture has euthanized approximately 1.3 million chickens that it had taken custody of following the bankruptcy of Pure Prairie Poultry. This drastic action came after the state failed to find buyers for the birds, largely due to creditors' claims on the broilers. The situation unfolded when Pure Prairie Poultry, an Iowa-based poultry processor, filed for Chapter 11 bankruptcy in late September 2024. The company's financial collapse left 1.3 million broiler chickens across 14 Iowa farms without proper care, as Pure Prairie could no longer afford to buy feed for the birds. In response, the Iowa Department of Agriculture sought and obtained an emergency court order to take control of the chickens.

Initially, state officials attempted to find alternative solutions for the birds. However, their efforts to locate buyers were unsuccessful, complicated by existing creditors' claims on the chickens. Faced with no viable alternatives, the state requested and received permission from a district court judge to euthanize the birds.

The culling process was recently completed, affecting thirteen farmers, primarily located in northwest Iowa's Sioux County, who had been contracted to raise the chickens for Pure Prairie Poultry.

USDA warns of illegally imported meat in multi-state health alert

USDA's Food Safety and Inspection Service (FSIS) issued a health alert concerning meat and poultry products illegally imported and sold in several U.S. states without official inspection marks. The affected products, found in Arizona, California, Iowa, Kansas, Maryland, Minnesota, Nebraska, Oklahoma, and Texas, include items such as "BEST Beef Curry" and "Eain Chak Coconut Soup Paste." While no illnesses have been reported, consumers are urged to discard or return the products. The investigation is ongoing as FSIS emphasizes the public risk posed by uninspected imports.

Of note: FSIS does not refer to the products as coming from Burma. However, they do note that you can view the labels in Burmese.

Egg prices continue to show volatility

Eggs prices in the US in 2024 are projected to rise 8.8%, driven by the ongoing impact of highly pathogenic avian influenza (HPAI). The 2025 egg price increase was revised even higher to 10.5%, a sharp jump from the 4.7% forecast in September. USDA noted that HPAI outbreaks have significantly reduced the U.S. egg-layer flock, contributing to the price surge.

While food inflation has eased since the 2022 spike, consumers are unlikely to see much relief in 2025. Despite falling energy costs and stable agricultural input prices, the USDA warns that macroeconomic policies and inflationary pressures on services may continue to affect food prices. However, with time left in the 2025 forecast cycle, future adjustments are possible.

CDC rules out human-to-human bird flu transmission, easing pandemic fears

The CDC has ruled out human-to-human transmission of the bird flu after a Missouri patient contracted the virus without known animal contact. Blood tests from five healthcare workers exposed to the patient returned negative, alleviating concerns about a potential pandemic, according to Dr. Demetre Daskalakis, director of the CDC’s National Center for Immunization and Respiratory Diseases. The CDC has confirmed 31 human cases of the current bird flu strain, with most linked to exposure to infected cattle or poultry. California, Colorado, and Washington are among the affected states, with California experiencing rapid spread across 137 dairy herds. However, the two poultry workers in Washington contracted a different flu strain, possibly linked to migrating birds. In response, USDA announced two field trials for vaccines aimed at protecting cows from the virus, though the companies behind the trials were not disclosed.

USDA releases report on US feedlot practices, highlights health and antibiotic use.

USDA’s Animal and Plant Health Inspection Service (APHIS) has published the first findings from the 2021 study of U.S. feedlots, conducted by the National Animal Health Monitoring System (NAHMS). The report, based on data from 22 states, provides insights into cattle management practices, antibiotic use, and veterinary services across the feedlot industry.

Highlights from the report include:

•  Cattle origins: 54.7% of cattle placed in feedlots came directly from known operations, such as cow-calf or stocker facilities, while 38.2% were purchased from sale barns with unknown health histories.
  
• Identification practices: 85.4% of feedlots used ear tags for individual cattle identification, with 65.5% of cattle identified either before or upon arrival at the feedlot.
• Antibiotic and hormone claims: Most cattle (85.1%) were placed without meeting specific antibiotic or hormone-free marketing claims. Only 8.4% of cattle met limited or no-antibiotic claims, and 10.2% met no-hormone claims.
• Antibiotic use by feedlot size: Smaller feedlots (65.4%) were less likely to use antibiotics in feed compared to medium, large, and very large operations, which reported usage rates around 35-37%.
• Veterinary services: In 2020, 85.1% of feedlots used veterinarians. Larger operations were more likely to seek veterinary care, with 99.2% of very large feedlots using a veterinarian, compared to 81.2% of small feedlots.
  

The study also found that 64.2% of feedlots felt adequately prepared to manage the 2017 Veterinary Feed Directive (VFD) rule changes, citing access to resources and veterinary expertise. This report offers an important glimpse into the evolving practices of the US feedlot industry.

FDA approves continued use of animal feed ingredients after MOU with AAFCO expires

FDA issued final guidance allowing the continued use of animal feed ingredients that were previously approved under a now-defunct Memorandum of Understanding (MOU) with the Association of American Feed Control Officials (AAFCO). This MOU, in place since 2007, facilitated the collaboration between the FDA and AAFCO in reviewing and defining animal feed ingredients. However, the MOU expired on Oct. 1 and will not be renewed.

Key points of the new guidance

• Continuation of ingredient use: The FDA has stated that it does not plan to initiate enforcement actions against the use of ingredients that were defined and listed in the 2024 AAFCO Official Publication (OP), even if they are not approved as food additives or generally recognized as safe (GRAS). This means that manufacturers can continue using these ingredients as long as they adhere to the intended use, specifications, and limitations outlined in the AAFCO OP.
• New consultation process: With the expiration of the MOU, the FDA has introduced a new Animal Food Ingredient Consultation (AFIC) process. This interim process allows firms to engage with the FDA regarding new ingredient reviews that would have previously gone through AAFCO. The AFIC aims to provide a pathway for firms to consult with the FDA about new ingredients and involves public input on safety concerns.
• Public and industry input: The FDA is actively seeking comments from industry stakeholders on its pre-market animal food review processes, including the Food Additive Petition (FAP) and GRAS programs. These comments will help determine if changes are needed to improve these pathways.
  
  Of note: Despite the end of the MOU, the FDA plans to continue working with AAFCO and state regulators to ensure animal food safety. The agency will still participate in AAFCO committees and meetings.

Highly pathogenic avian flu re-emerges in British Columbia poultry flocks

After an eight-month period without any new cases, highly pathogenic avian influenza (HPAI) has re-emerged in Canadian commercial poultry flocks. The virus was confirmed on Oct. 21 at three farms located in British Columbia's Fraser Valley, specifically in the Abbotsford and Chilliwack areas.

The Canadian Food Inspection Agency (CFIA) has not disclosed the specific types of poultry affected or the number of birds involved in these outbreaks. However, reports indicate that the affected farms include turkey, broiler, and egg operations.

This resurgence marks the first instance of HPAI in British Columbia's poultry sector for 2024, with the last case in the province recorded on Dec. 25, 2023. Prior to these recent detections, Canada had lifted all HPAI-related primary control zones and movement restrictions earlier this month after meeting specific conditions on previously infected premises.

The CFIA continues to emphasize the importance of maintaining strict biosecurity measures, especially as the fall migration of wild birds is ongoing, which could contribute to the spread of the virus.

Brazil to fight deforestation with new cattle-tracking system

Brazil is pressing ahead with plans to track its cattle herds as the world’s largest beef producer contends with international pressure to prevent deforestation caused by commodity production. The Brazilian government is working with the private sector to launch a data platform that will allow meat packers to fully trace their supplies starting in 2027, Agriculture Minister Carlos Fávaro said in an interview at the Bloomberg B20 event in Sao Paulo. That will allow Brazilian beef to be completely traceable by 2032, he said. While companies including JBS SA, Marfrig SA and Minerva SA say they have advanced in monitoring direct suppliers, a government-backed program would allow a more robust tracing of indirect suppliers as well.

Investigation reportedly uncovers animal cruelty at PQA Plus-certified farms

A recent investigation by Mercy For Animals has revealed instances of animal cruelty at farms certified under the Pork Quality Assurance Plus (PQA Plus) program. The investigation documented severe mistreatment of pigs, including animals suffering from prolapses being kicked, piglets castrated without pain relief, and sows confined in gestation crates. These practices starkly contradict the humane standards that the PQA Plus program is supposed to uphold.

Mercy For Animals released a white paper (link) detailing additional alleged violations, raising concerns about the effectiveness of the PQA Plus certification in ensuring humane treatment of pigs. Paula Tejeda-Moncrief, director of investigations for Mercy For Animals in the U.S., criticized the program, stating that marketing labels often fail to reflect the reality of animal treatment on farms.

In response to the allegations, Jason Menke, a spokesperson for the National Pork Board, stated that they are reviewing the white paper. He emphasized that about 85% of U.S. pigs are raised on PQA Plus site-assessed farms and reassured consumers about the welfare standards in place. Menke also mentioned that the PQA Plus program is continuously updated, with a new version set to be released next year.

The PQA Plus program was established to improve food safety and animal welfare in pork production. It involves training and certification for farmers and on-farm assessments conducted by certified advisors.

Weekly USDA dairy report

CME GROUP CASH MARKETS (10/25) BUTTER: Grade AA closed at $2.6950. The weekly average for Grade AA is $2.6815 (+.0405). CHEESE: Barrels closed at $1.8700 and 40# blocks at $1.9000. The weekly average for barrels is $1.9085 (-$.0285) and blocks $1.9100 (-$.0120). NONFAT DRY MILK: Grade A closed at $1.3750. The weekly average for Grade A is $1.3685 (+$.0095). DRY WHEY: Extra grade dry whey closed at $.6050. The weekly average for dry whey is $.6035 (+$.0065).

BUTTER HIGHLIGHTS: In the East region, retail butter demand is steady to weaker as a large portion of retail orders have been fulfilled. In the Central region, demand is steady to increasing. Butter inventories are sufficient to meet seasonal needs. Domestic and export demand is steady in the West. Cream volumes are widely available across the country. Plenty of cream is moving throughout the regions with some processors preferring to sell the excess cream, if possible. Scheduled maintenance and unexpected plant downtime are being seen in plant operations in all regions. Despite interruptions, butter churning paces are noted as strong across the nation and busier than is normal for this time of year. Bulk butter overages range from 1 to 8 cents above market, across all regions.

CHEESE HIGHLIGHTS: Cheese production is mixed throughout the U.S. In the East, cheesemakers note steady production schedules. Regional milk availability is not adequate to meet local processing needs, and some contacts shared they are bringing in loads of milk from milk handlers in the West. Cheesemakers in the Central region note milk availability is steady. Spot milk volumes were reported at $1.50 below Class III to $2.50 above Class III. That said, plant managers continue to relay some downtime for maintenance, and cheese production schedules are mixed. Retail demand is strong, and while customer inquiries are growing, there is minimal spot cheese availability. In the West, cheese production ranges from steady to stronger. Class III milk availability is adequate to meet regional processing needs. Contacts note domestic cheese demand is steady.

FLUID MILK HIGHLIGHTS: Milk production trends vary throughout the country. Farm level milk production in the East is seasonally steady. Milk volumes, in the Central region, are slowly rising as the cooler temperatures bring more comfortable conditions for cows. Fluid output in the West is mixed. California is seeing a decrease in overall numbers while the remaining states in the West report steady to rebounding fluid milk numbers. Demand for milk from Class I is strong in the East and steady in the Central and West regions. The demand for milk from the remaining Classes is steady. Cheesemakers reported spot milk prices from $1.50-under to $2.50-over Class III. East plant managers report transportation obstacles continue to hinder processing. Plant maintenance has slowed processing for all Classes in the East and Central regions, some scheduled and some not scheduled. Spot loads of condensed skim are readily available. Cream is heavily available across the country. Some butter plants have reported downtime this week, and cream cheese processing continues to be slow to pick up. Cream multiples for all Classes range 1.17-1.30 in the East, 1.10-1.30 in the Midwest, and 1.08-1.27 in the West.

DRY PRODUCTS HIGHLIGHTS: Low/medium heat nonfat dry milk (NDM) prices were steady to slightly higher. Contacts say condensed skim milk is available for production in most of the country but supplies of recently produced volumes range from balanced to tight. Dry buttermilk prices held steady in the Central region, while shifting slightly higher in the West. Near-term dry buttermilk demand is expected to pick up as the baking season shifts gears. Dry whole milk prices were steady while spot milk availability has begun to grow somewhat. Dry whey prices were mixed, despite firm market tones in most areas of the country. California’s recent milk output declines have given some contacts in the West concern regarding potentially lighter Class III production schedules. Whey protein concentrate 34% prices continued their bullish run this week. Spot market availability is noted as very tight, as demand continues to grow. Lactose prices were steady as inventories vary from plant to plant. Acid and rennet casein prices were static this week, as volumes are noted as available.

INTERNATIONAL DAIRY MARKET NEWS

EUROPE: WEST EUROPE: Milk production is variable throughout West Europe. Milk deliveries in Germany remain lower than last year's levels by 2.1 percent. Milk deliveries in September in the Netherlands were 2.6 percent lower than September 2023, but declines in milk deliveries have eased somewhat from the year over year decline of 3.9 percent seen in August.

EAST EUROPE: Farm level milk production remains variable across East Europe. In September, Polish milk deliveries were 2.6 percent above September 2023 levels. Year to date average daily milk production is 2.9 percent higher than the same period in 2023. Eastern Europe is experiencing critical drought conditions. Feed crops are affected by persistent drought conditions. Drought conditions are being alleviated in some pockets of East Europe as precipitation increases seasonally.

OCEANIA: AUSTRALIA: A group representing dairy farmers in Victoria has stated farmers impacted by drought need improved milk prices to deal with added costs. Prices for feed are high in drought affected regions in Australia due to reduced harvest yields this year. A spokesperson for the group noted farmgate pricing has increased in the past due to drought and stated a higher farmgate milk price would be in the interest of processors, as higher input costs have can contribute to more farmers exiting the dairy industry.

NEW ZEALAND: Milk production data from New Zealand for September 2024 was recently released. This data showed total September 2024 production was up 4.1 percent on a tonnage basis compared to a year earlier. During September 2024, the total kg of milk solids increased by 5.2 percent from the previous year. From the start of the production season in June 2024 through September 2024 milk production on a tonnage basis is up by 5.6 percent compared to the same time period a year ago, while milk solid production is up 6.5 percent from last year. Export data for September 2024 was recently released for New Zealand. This data showed a 15 percent increase in value for milk powder, butter, and cheese exported in September 2024 compared to September 2023.

SOUTH AMERICA OVERVIEW: Argentinian and Uruguayan contacts continue to say milk is below year-over-year levels in those countries. Depending on the area, decreases are noted from five to 10 percent lower when compared to this time in 2023. Brazilian milk output, which was growing somewhat heartily during the spring flush of 2023, is also not on track with last year's numbers. Weather is a catalyst in the milk output declines. Brazilian farmers are not only contending with very dry fields; smoke from ongoing wildfires continue to be reported in the largest country in the region.

US NATIONAL RETAIL REPORT: Total conventional dairy advertisements increased by 11 percent while total organic dairy ads decreased by 26 percent. Conventional ice cream in 48-64-ounce containers was the most advertised dairy product, with a weighted average advertised price of $4.05, up from $3.29 the week before. Conventional butter in one-pound packages had a weighted average advertised price of $4.07, down from $4.35 the week prior.