Weekly livestock news: December 20, 2021

Kentucky farm organizations raise funds, evaluate damage after tornadoes

Kentucky agencies are raising funds and evaluating agricultural recovery needs after the recent devastating tornadoes. “We’ve seen lives lost, grain bins leveled and poultry barns demolished,” said Kentucky Commissioner of Agriculture Ryan Quarles. The Department of Agriculture is partnering with the University of Kentucky to identify the needs for individual farming operations. The Department of Agriculture and the Kentucky Farm Bureau Federation have created the Kentucky Agriculture Relief Fund, a cash donation portal on GoFundMe. Donations will be used to support farmers and agribusinesses in affected areas, according to the announcement in Feedstuffs.

High consumer prices and big profits show outsize power of large meat processors, White House says

Recent financial statements from large U.S. meatpackers show these companies have used their market power to drive up meat prices and underpay farmers, the White House said in a new analysis. Meat prices are the biggest contributor to the rising cost of food consumed at home, in part due to the concentrated power of a few large corporations, analysts wrote, citing the November Consumer Price Index. Beef, pork and poultry price increases made up a quarter of the overall increase in “food-at-home” prices last month, Drovers reports. The White House analysis studied earnings statements from Tyson Foods, JBS SA, Marfrig Global Foods (owner of most of National Beef Packing Company), and Seaboard Corp RIC. Those statements showed a 120% collective jump in their gross profits since the pandemic started and a 500% increase in net income, according to the analysis. Meat industry groups disputed the White House analysis and pointed out gas and energy prices are also up in the past year, at a higher rate of inflation than food prices.

Antimicrobial sales for food-producing animals dropped 38% from 2015-2020, new FDA report shows

Domestic sales and distribution of medically important antimicrobial drugs approved for use in food-producing animals decreased 3% from 2019 to 2020, the FDA found in a new report. The agency’s 2020 “Summary Report on Antimicrobials Sold or Distributed for Use in Food-Producing Animals” shows a 38% decrease in sales of antimicrobials for food-producing animals since sales peaked in 2015. “This suggests that continued efforts to support the judicious use of antimicrobials in food-producing animals are having an impact,” the FDA said.

Fertilizer prices are rising, putting crop yields and consumer prices at risk

Fertilizer prices have more than doubled over the past year, forcing U.S. farmers to adjust spring planting plans and warn of potentially higher food prices, The Wall Street Journal reports. Prices have spiked due to a global shortage of the chemical ingredients used to make fertilizer that’s applied to soil to boost corn and wheat yields. Rising costs are leading some farmers to shift toward less fertilizer-intensive crops, like soybeans, while others said they plan to cut back on their overall fertilizer use, potentially reducing future harvests. That could lead to higher prices for farm commodities like corn, which in turn could lead to price increases for important consumer goods like meat.

France can still export pork to China during an African swine fever outbreak under new agreement

France signed an agreement with China, its main export customer, to ensure pork trade can continue if France has an outbreak of African swine fever. The new agreement could serve as a model for other European countries threatened by the disease, Reuters reports. Under the agreement, which takes effect immediately, China would allow pork exports from unaffected regions of France even if ASF occurred elsewhere in the country. This comes as China and other importing countries have imposed blanket bans on meat trade due to outbreaks of ASF and other diseases such as bird flu. “This agreement is the first of its kind to be signed by China in favor of a European Union country,” said French Agriculture Minister Julien Denormandie. Still, while France’s agreement was encouraging, Germany faces its own challenge reaching a similar agreement since ASF is already present in Germany, according to a spokesperson for the country’s agriculture ministry. The United States has a regionalization agreement covering bird flu as part of its phase one trade deal with China, according to Reuters.

Neogen to merge with 3M’s food safety business

3M Corp. has agreed to combine its food safety business with Neogen to create a combined company worth $9.3 billion including debt, The Wall Street Journal reports. Neogen has a market value of $4.3 billion, while 3M’s is about $100 billion. The deal is structured as a Reverse Morris Trust, a tax-efficient way for companies to sell off a division, with Neogen’s management team running the combined company. It values the 3M unit at $5.3 billion. Existing 3M shareholders will own 50.1% of the combined company, which will be led by Neogen CEO John Adent. The deal would make Neogen’s food safety segment about 70% of its total revenue, and the combined company would have projected sales of about $1 billion in the first full year post-closing, according to The Wall Street Journal.