Weekly livestock news: May 11, 2020

Attorneys general call for investigation into cattle price fixing

Eleven state attorneys general are calling on the Department of Justice to investigate alleged price fixing in the cattle industry. This comes as the price gap widens between live cattle and retail beef products, Newsweek reports. In a letter to U.S. Attorney General William Barr, officials from several Midwestern and Western states described concerns about a lack of market competition in the U.S. meat processing industry and possible antitrust practices at play. They requested that the DOJ investigate the nation’s top four meat processing companies—JBS, Tyson, Smithfield and Cargill—which they noted control about 80% of the U.S. beef industry. They believe price fixing could be the cause of rising retail costs and declining producer profits.

Tips for slowing livestock growth during processing plant closures

Meat processing plant closures have led to a backup for some farmers who are unable to bring their animals to market on time. Pork production has been hit especially hard: A late April report showed that nearly 40% of pork processing capability is offline in the United States on any given day. Several animal nutrition experts recently gave advice for producers to slow growth in their pigs as they try to hold their animals until they can be processed. Feed Strategy describes those options here. They include a low energy, high fiber diet, as well as a limit on feeding, among other things. Still, many strategies come with challenges.

Order keeping meat plants open is ‘risky,’ analysts say

President Donald Trump’s order for meat processing plants to remain open during the pandemic has gotten mixed reactions and raised questions about worker safety, Food Dive reports. The order uses the Defense Production Act to label meat processing as “critical infrastructure.” Officials said the order allows federal authority to rule out states’. But while the order could help keep plants open, “given increased exposure and safety concerns, the executive order itself cannot compel workers to show up to their jobs,” said Jacob Shapiro, founder and chief strategist of Perch Perspectives. One analyst said that keeping processing plants open is a “risky strategy,” since it takes authority away from meat companies to decide whether to close when workers become ill.

Justice Department proposes Dairy Farmers of America sell additional Dean assets

The U.S. Department of Justice has proposed that Dairy Farmers of America sell some fluid milk processing facilities in Illinois, Massachusetts and Wisconsin that it acquired following Dean Foods’ bankruptcy auction, Food Business News reports. The recommendation is part of an effort to settle a civil antitrust lawsuit brought by the DOJ and the attorneys general of Massachusetts and Wisconsin in opposition to the merger. Acceptance of the proposal would settle the lawsuit if the bankruptcy court approves, according to the Justice Department.

Farmer outlook drops due to COVID-19 disruptions

The Purdue University/CME Group Ag Economy Barometer reached a three-year low in April, as farmers dealt with the coronavirus and its widespread impacts, Feedstuffs reports. The reading of 96 was the first time the barometer has fallen below 100 since October 2016, and it’s 72 points below its record high in February. Producers’ expectations for the coming months also declined. “Over the past two months, producers have felt the first shock waves being created by the coronavirus,” said James Mintert, the barometer’s principal investigator. “Disruptions in the supply chain are causing many to look at ways they can mitigate risk in this uncertain environment, and sharp declines in commodity prices have added significant financial pressure on many U.S. farming operations.”

Farmers around the world innovate to get food to customers

Reuters shares how several farmers and farm groups are reaching customers during the pandemic. One Paris farmer took his vegetable business online. A Mexican supplier to U.S. berry company Driscoll’s has hired furloughed factory workers to pick produce. A farming cooperative in India is delivering fruit and vegetables to 3,000 urban consumers, who order online, after the country’s lockdown disrupted supply chains. “As we are eliminating middlemen in the distribution chain, both farmers and consumers are happy,” said the co-op’s chair.