TheMeatSite Newsletter - 25 January 2012

Welcome to this week's newsletter

Editorial: Signs of Improvement for US Poultry Industry

The US poultry industry has been experiencing its worst year for more than a quarter of a century, but according to the market analyst Mike Donohue it can expect improving fortunes over the next 12 months.

Mr Donohue, Vice President at Agri Stats, was speaking on the current state of the poultry meat industry in the US at the International Poultry Expo in Atlanta, US this week.

Senior Editor, Jackie Linden reporting from the IPE said that Mr Donohue showed how many broiler and turkey companies have struggled over last year to stay in business.

He said that with the business situation so volatile, it is impossible to predict the profitability of the industry, even over the next six to eight months.

The US industry has experienced the longest period of losses for many years, said Mr Donohue, but things are showing signs of getting better.

He said there is a more stable and diversified export market for leg quarters after a period of wide fluctuations in volumes sent to Russia. Wing prices are holding up and prices of boneless breast meat were higher in December than for many years.

Because the industry has cut back volumes, Mr Donohue expects prices to be maintained during 2012 and indeed, for the next three to four years.

Volatility in feed costs is likely to be ongoing, he said.

He forecast 2012 and the first half of 2013 as offering good prospects for the poultry meat industry following a very challenging 2011 but he added the warning that the industry is vulnerable to further increases in costs, particularly of feed.

In Mexico, an investigation into breeches of antidumping regulations relating imports of chicken leg quarters from the US, has revealed the rules have been broken, but the Mexican authorities have said they are holding back on any action as the parties involved have indicated they want to rectify the situation.

In the EU, the Common Agricultural Policy celebrates its 50th annivesary this year. During its live the number of farmers and the amount of land dedicated to farming nahs virtually doubles, agricultural imports and exports have soared and agricultural trade has risen fromn €10 billion to €170 billion. However, the amount households are spending on food as a percentage of their income has halved.

Chris Harris

This Week's Feature Articles

We have 5 new features this week:

GLOBAL POULTRY TRENDS - Slow Growth Forecast for Turkey Meat
Since 2000, there have been years when global turkey production has expanded and others in which it has contracted, hence over the period to the estimates for 2012, the industry has recorded only slow growth averaging well below one per cent per year, according to industry watcher, Terry Evans, in his latest update on the prospects for the global turkey industry.

Film Coatings Made from Whey
Convenience foods are growing in popularity, and the food they contain is usually protected by films based on petrochemicals.

Kazakhstan’s Poultry Sector Expanding
Kazakhstan’s poultry sector is steadily expanding, although production is still only half of the level before the breakup of the Soviet Union, according to the USDA Foreign Agricultural Service.

Convenience Continues to be a Focal Point
Zurich-style veal fricassee in cream sauce in five minutes, fresh fruit salad without time-consuming cutting and slicing, crispy rolls for warming in the oven - fast preparation and ease of use offer so many tempting advantages that more and more people are buying convenience products.

Reducing Boar Taint through Breeding: Pork Quality
The EU group, Sustainable Animal Breeding (SABRE) report subtitled 'Cutting Edge Genomics for Sustainable Animal Breeding', explains how the latest genomics tools are being used to reduce the problem of boar taint by breeding.

Company News

Pfizer Helps End Meat Residue Violation Worries
US - Pork producers now have a worry-free solution to help them continue their track record of producing safe, wholesome pork. The Pfizer Pork Residue Free Guarantee is an innovative solution that ensures pork will not have violative meat residues.

Global Meat Industry News