5 August 2022

4 minute read

By: Jim Wyckoff

Chicken sandwich becomes profitable meal for big chain restaurants

Panera Bread, Popeyes Louisiana Kitchen and other chains have added new chicken sandwiches to their menus in recent months to attract consumers. Meanwhile, KFC, Wendy’s and Burger King have each spent tens of millions of dollars advertising their chicken sandwiches on national television this year. Restaurant owners say they can often make more profit per order on white meat than beef. It’s 678 million chicken-sandwich servings fast-food chains dished up in the June quarter, up 3% from the previous three months, according to research.

USDA says salmonella to be declared adulterant in certain chicken products

USDA’s Food Safety and Inspection Service (FSIS) Monday (Aug. 1) said it is declaring salmonella an adulterant in breaded and stuffed raw chicken products, a move aimed at making sure that contaminated products are not sold to consumers. FSIS said it will set the limit at one colony forming unit of salmonella per gram for these products. They will also issue a notice seeking comment on whether a different standard for adulteration would be more appropriate such as zero tolerance or one based on specific serotypes. The proposal is expected to come this fall.

European Union: High Quality Beef Quota Year 2021-2022 Ends Positively for US Beef Exports

USDA reports US beef exports into the EU’s High Quality Beef (HQB) quota seem to finally have emerged from the impact of COVID-19 restrictions in the last quarter of the 2021/2022 quota year. In the quota year 2022-2023, U.S. beef exporters can at last start benefitting from the 2019 agreement with the EU about reserving a U.S. specific part of the HQB quota, which was negotiated between the United States and the European Union in 2009. However, with 12,923 MT used out of 24,200 MT available in 2021/2022, U.S. beef exporters must build from a low export basis.

US Democrats urge update on alleged market manipulation by big packers

Six US House of Representatives Democrats sent a letter to the DOJ calling on the agency to update Congress on “allegations of market manipulation” by the Big Four packers: Tyson, JBS, Cargill, and National Beef. These four control more than 80% of the market for processed beef.

US beef exports slide but pork up

USDA’s weekly export sales report showed US beef Net sales of 12,000 MT for 2022 were down 52 percent from the previous week and 30 percent from the prior 4-week average. Increases were primarily for South Korea (2,900 MT, including decreases of 600 MT), Japan (2,400 MT, including decreases of 1,000 MT), Canada (1,800 MT, including decreases of 100 MT), Taiwan (1,100 MT, including decreases of 100 MT), and the Philippines (900 MT). Total net sales of 200 MT for 2023 were for Japan. Exports of 18,500 MT were down 9 percent from the previous week and 5 percent from the prior 4-week average. The destinations were primarily to Japan (5,600 MT), South Korea (4,900 MT), China (2,600 MT), Mexico (1,200 MT), and Taiwan (1,100 MT).

US pork net sales of 31,000 MT for 2022 were up 43 percent from the previous week and 35 percent from the prior 4-week average. Increases were primarily for China (16,800 MT, including decreases of 300 MT), Mexico (8,600 MT, including decreases of 200 MT), Japan (1,800 MT, including decreases of 100 MT), South Korea (1,700 MT, including decreases of 400 MT), and Canada (600 MT, including decreases of 400 MT). Exports of 26,000 MT were down 4 percent from the previous week and 5 percent from the prior 4-week average. The destinations were primarily to Mexico (12,600 MT), China (4,200 MT), Japan (3,300 MT), Colombia (1,600 MT), and South Korea (1,400 MT).

USDA US dairy retail report

Total conventional dairy ads jumped 163 percent this week, and organic dairy ads are up 84 percent. The most advertised dairy item is conventional butter in a one-pound package. Conventional yogurt ad numbers increased 173 percent. Conventional yogurt in 4 to 6-ounce containers is the most advertised conventional yogurt item. Conventional cheese advertisements are up 88 percent. This week’s most advertised cheese item is conventional 8- ounce shred cheese. Total conventional milk ads surged 607 percent. Milk in gallon containers is the most advertised conventional milk item this week, with 657 percent more ads than last week. The national weighted average advertised price for conventional milk half gallons is $2.66, compared to $5.38 for organic milk half gallons, providing an organic price premium of $2.72. Organic half gallon milk is the most advertised organic item.