Egg Industry News


Egg Monthly

06/12/2019

Review of May 2019 Production Costs and Statistics.

May 2019 USDA Ex-Farm Benchmark Price Down 41.8 Percent from April 2019 to 23.1 cents per dozen Consistent with Seasonal Purchase Trends and Oversupply.

  • May 2019 USDA Average Nest-run Production Cost 0.2 Percent Higher than April 2019 at 59.57 cents per dozen.

  • May 2019 USDA Benchmark Nest-run Loss Increased from April 2019 to 36.5 cents per dozen.

  • May National Flock ( over 30,000 hens/farm) Down 0.4 million or 0.2 percent to 324.7 million.

 

INTRODUCTION.

Summary tables for the latest USDA May 2019 prices and flock statistics made available by the EIC on June 12th 2019 are arranged, summarized, tabulated and reviewed in comparison with values from the previous May 12th 2019 posting reflecting April 2019 cost and production data.

COSTS & REVENUE

 

Note:

From January 2019 onwards EIC has used USDA-AMS data for regional corn, soybean and standard feed prices. The basis for corn will be cash payment except for California (10-day delivery) and Louisiana and Oregon (30-day delivery). For soybean meal a similar approach is applied with 20-days for Minnesota. It is noted that January 2019 prices are not directly comparable with December 2018. Month-to-month comparisons in 2019 will be valid.


 


Walmart Initiates Direct to Refrigerator Home Delivery

06/12/2019

Following successful trials, Walmart In-Home has commenced in Kansas City, MO., Pittsburg, PA. and Vero Beach, FL.  Selected Walmart delivery personnel wearing body cameras will activate smartlocks to remotely gain entrance to homes and will place perishables in a refrigerator and other items in a designated storage area.  According to Bart Stein the service was tested in New Jersey for six months with acceptance by customers.

 

The In-Home service is additional to on-line ordering with store pickup or direct delivery by Door Dash and Instacart that deliver to verandas and doorsteps.

 

As noted on CNBC Walmart has been proactive in developing and testing service initiatives confirming a commitment to technology and customer satisfaction.


 

AEB Presence at the IFT Meeting

06/12/2019

The American Egg Board was represented at the Institute of Food Technologists (IFT) Annual Meeting and Food Expo in New Orleans during the first week of June.  Real egg dishes were displayed to 15,000 food industry professionals attending the program.  The AIB focus in 2019 was on egg ingredients and their contribution to consumer acceptability of snacks.

 

During the program the AEB hosted a Natural and Organic breakfast event which demonstrated innovative products both at the invitation-only event and on the AEB booth.

 


 

AEB Presentation to Japanese Delegation

06/12/2019

A group of 18 food professionals representing companies in Japan were hosted at the AEB booth during the 2019 IFT Annual meeting and Food Expo in New Orleans.  The event provided an opportunity to promote U.S. egg products and inclusion in snacks.  In 2018, Japan imported 10,357 metric tons of egg products valued at 43 million.  Exports to Japan exceed Canada, the second largest importer by a factor of two.


 

House Appropriations Committee Approves FY 2020 USDA and FDA Funding

06/12/2019

Approval by the House Appropriations Committee of the FY 2020 Agriculture, Rural Development, Food and Drug Administration appropriations will be sent to the House floor for a vote during late June.  Within the approvals are $255 million for Agricultural Trade Promotion and Facilitation as authorized in the 2018 Farm Bill.  The Market Access Program and Foreign Market Development Program will receive $200 million and $35 million respectively during FY 2020.


 

Dr. George A. Bray Presented 2019 W.O. Atwater Lecture

06/12/2019

The Agriculture Research Service announced that Dr. George A. Bray was the 2019 W.O. Atwater Memorial speaker.  His presentation was made on June 9th at the annual meeting of the American Society for Nutrition.  Dr. Bray is a Visiting Scientist at the Children’s Hospital of Oakland Research Institute and is a Boyd Professor Emeritus at Pennington Biomedical Research Center at Louisiana State University.  He is also a Professor Emeritus at the LSU Medical Center, the School of Veterinary Medicine and the College of Agriculture. 

 

Dr. Bray is a pioneer in the field of obesity research. His recommendations based on extensive research have been adopted by administrators responsible for public health policy.  One of his accomplishments was leadership in studies to reduce hypertension through diet.  The DASH diet high in fruit, vegetables and low-fat dairy products reduced the blood pressure of individuals participating in a study over an eight-week period.  Dr. Bray is an exponent of life style modification including dieting, moderate exercise and weight loss to delay onset of Type-2 diabetes.

 

The W. O. Atwater Lecture was established in 1968 to honor the memory of Wilbur Olin Atwater, by recognizing scientists who have made unique contributions to improving the diet and nutrition of people worldwide.


 

Fund Managers Concerned over Plastic Waste

06/12/2019

Fund Managers have begun to question the use and disposal of plastic in companies in which they invest.  BMO Global is actively reviewing disposal of plastic waste with 27 companies with specific emphasis on recycling and elimination of single-use packaging.

 

It must be remembered that fund managers played an important role in initiating awareness over welfare and sustainability among restaurants and the food-service industry resulting in  direct implications for producers.

 

Alice Evans, co-head of the responsible investment team at BMO stated, “Plastic waste is a business risk that companies know they will have to address rapidly.  We want to see commitments were they don’t exist already but implementation is key.”

 

Schroeder’s with over $500 million under management has addressed questionnaires to 100 companies requesting information on food and beverage packaging waste disposal and recycling.  Seema Suchak a sustainable investment analysis at Schroeder’s quote in the Financial Times noted, “There was a real dearth of information on the variety of plastics used, the volume of plastics in packaging and the extent of recycled materials.”  She added “This make comparisons between companies the same sector problematic.”

 

The need to reduce the use of plastic and to introduce recycling was intensified by the 2018 decision by China to cease importing plastic waste.

 

The Ellen MacArthur Foundation in conjunction with the United Nations Environment Program has established an initiative to reduce plastic waste by 2025.  Sixteen governments, twenty-six financial institutions and 150 companies producing or using plastic packaging have signed on to the program to eliminate plastic and recycle or safely reuse material that cannot eliminated from the commercial chain.  Six investment companies have collectively committed $270 million to reduce plastic waste.


 

Egg Week

06/12/2019

USDA Weekly Egg Price and Inventory Report, June 13th 2019.

  • Hen Numbers in Production Down 0.1 million to 329.5 million.
  • Decrease in Shell Inventory of 7.9 Percent following a 1.4 Percent Increase for the Previous Week.
  • USDA Midwest Benchmark Generic Prices for Extra Large up on Average 16 Percent but Mediums Unchanged Compared to the Past Week.
  • Price of Breaking Stock and Checks Up 12 Percent and 28 Percent Respectively. Both Categories Substantially Below Cost of Production

OVERVIEW

Prices

According to the USDA Egg Market News Reports posted on June 10 th the Midwest wholesale prices for Extra Large, and Large were higher by 15.8 and 17.2 percent respectively. Mediums were unchanged compared to the past week but all sizes continued below production cost. The progression of prices during 2019 is depicted in the USDA chart reflecting three years of data, updated weekly.

The June 10th USDA Egg Market News Report (Vol. 66: No. 23) documented a USDA Combined Region value rounded to the nearest cent, of $0.46 per dozen delivered to warehouses for the week ending June 3 rd and reflects the sharply lower early summer prices during that week despite lower stock levels for two out of three consecutive weeks. This average price lags current Midwest weekly values by one week. The USDA Combined range for Large in the Midwest was $0.41 per dozen, below the cost of production. At the high end of the range, price in the Northeast Region attained $0.49 per dozen. The USDA Combined Price last week was $0.89 per dozen below the three-year average and $0.37 per dozen below the corresponding week in 2018.

Flock Size

The number of producing hens this week was down 0.1 million to 329.5 million. The hen population is more than adequate to meet seasonal consumer and industrial demand in early summer but any number above 330 million in production over the short term portends lower prices and increased inventory unless matched by proportional demand. The total U.S. egg-flock comprised 337.6 million hens including 2nd Cycle birds and those in molt on all farms. The high number of 8.1 million hens is the difference between hens in production and total hens representing 2.4 percent of the national flock unchanged from last week. This suggests molting flocks are soon to come back into production with implications for price given current supply, stock level and seasonally moderate to depressed demand.


 


USDA-WASDE FORECAST #589 June 11th 2019

06/11/2019

OVERVIEW

The June 11th 2019 USDA WASDE projections for the 2019 corn and soybean harvests are based on historical yield and harvest data. The corn acreage to be harvested was determined from planting completed and stated intentions at 82.4 million acres (81.8 million in 2018) and down 3.5 percent from the May WASDE. In 2019 soybeans will be harvested from 87.8 million acres (88.3 million acres in 2018). There was apparently no material change due to recent Midwest flooding or the forecast for wet conditions from snowmelt delaying planting.

The USDA projected corn yield to attain 166.0 bushels per acre, (178.9 bushels in 2018) and down 5.7 percent from the May WASDE. Soybean yield was projected at 49.5 bushels per acre (52.1 bushels in 2018). These values presume suitable planting and growing conditions, time of sowing and standard rates of germination.

The May USDA projection of ending stock for corn was reduced by 32.6 percent from the May WASDE to 1,675 million bushels. Ending stock for soybeans will be 8.5 percent higher at 970 million bushels. Ending stocks for both corn and soybeans have influenced recent CME price quotations. It is emphasized that projections are based on the presumption of at least a partial settlement of the trade dispute with China followed by restoration of exports to that Nation, a prospect that appears in question given lower demand from China and the latest round of tariffs imposed by both nations.


 


Status of 2019 Corn and Soybean Crops

06/10/2019

The USDA Crop Progress Report released June 10th documented progress in the rate of planting both corn and soybeans after a slow start. This will impact yields. High topsoil moisture levels are evident in comparison with the corresponding week in 2018 CHICK-NEWS and EGG-NEWS will report on the progress of the two major crops as monitored by the USDA through the end of harvest in October.

WEEK ENDING

Crop

June 2nd.

June 9th

5-Year Average

Corn Planted %

Corn emerged %

67

46

83

62

99

93

       

Soybeans Planted %

Soybeans emerged %

39

19

60

34

88

73

       

 

 

Crop Condition

V. Poor

Poor

Fair

Good

Excellent

Corn 2019

Corn 2018

2

1

7

3

32

19

52

59

7

18

Soybeans 2019

Soybeans 2017

       

 

 

 

 

Parameter

V. Short

Short

Adequate

Surplus

Topsoil moisture: Past Week

1

8

66

25

Past Year

9

23

60

8

Subsoil moisture: Past Week

1

7

66

26

Past Year

9

22

63

6

 


 

WEEKLY COMMODITY REPORT; PRICES RECEDE ON INCREASED PLANTING AMID YIELD CONCERNS

06/10/2019

The following quotations for July and September 2019, as indicated were posted by the CME at close of trading on Monday June 10th compared with values for Thursday June 6th in parentheses. The commodities market recorded a decline in the futures prices of corn, soybeans and soybean meal over the past two weeks. The mid-May run-up in prices was due to slow progress in planting, the possibility of reduced acreage and the prospect of diminished yields.

The absence of any definitive news regarding finalization of the trade dispute with China and previous conflicting statements by White House spokespersons over the months since the dispute began is disconcerting to the commodities market and has contributed to fluctuation in prices.

COMMODITY

 

Corn (cents per bushel)

July 416 (421)

Sept. 424 (430)

Soybeans (cents per bushel)

July 860 (868)

Sept. 873 (882)

Soybean meal ($ per ton)

July 314 (316)

Sept. 317 (319)

Changes in the price of corn, soybeans and soybean meal this past week were:-

COMMODITY CHANGE FROM PAST WEEK  
Corn: July quotation down 5 cents per Bu (+1.1 percent)
Soybeans: July quotation down 8 cents per Bu (+0.9 percent)
Soybean Meal: July quotation down $2 per ton. (+0.6 percent)

 

 

  • For each 10 cent per bushel change in corn:-

 

 

The cost of egg production would change by 0.45 cent per dozen

The cost of broiler production would change by 0.25 cent per pound live weight

  • For each $10 per ton change in the price of soybean meal:-

The cost of egg production would change by 0.40 cent per dozen

The cost of broiler production would change by 0.25 cent per pound live weight

 

COMMENTS

Subscribers are directed to the USDA Crop Progress Report posted in this edition for the rate of planting, crop emergence and condition.

Negotiations with China are apparently at a standstill following shuttles between Beijing and Washington in late April. Some concessions were promised by China on reducing coercive trade practices and clarifying dispute resolution although U.S. negotiators claim that China attempted to backtrack on structural issues. From an agricultural perspective the question of delays by China in approving new GM cultivars has yet to be settled. No date has been set for a summit to sign a trade deal which is as elusive as ever. Prices will be influenced by the trend in stock levels, area actually planted in 2019 and early crop progress in the face of flooding.

According to the May 10th 2018 WASDE Report #588, 85.4 million acres of corn will be harvested in 2019 to produce 15.0 Billion bushels. The soybean crop is projected to attain 4.2 Billion bushels from 87.8 million acres harvested. The levels of production for the two commodities are based on current planting, projections of yield and acreage. The WASDE to be published in mid-June will confirm the acreage actually sown to corn and soybeans respectively.

See the WASDE posting summarizing the May 9th USDA-WASDE Report #588 under the STATISTICS tab documenting price projections and quantities of commodities to be produced, used and exported from the 2019 harvest.

Unless shipments of corn and soybeans to China resume in volume, now a distant hope, the financial future for row-crop farmers appears bleak despite the release of two tranches in 2018 amounting to $8 billion as "short-term" compensation for producers of commodities. A further allocation of $14.5 billion to producers under the Market Facilitation Program was announced on May 23rd for the 2019 crop.


 

E.U. Flock Statistics

06/07/2019

According to data collated by Professor Dr. Hans-Wilhelm Windhorst, in the August 27th 2017 Report of the Committee for the Common Organization of Agricultural Markets, the 28 nations of the E.U. collectively held 384 million hens in 2016. The top-ten nations represented 86.1 percent of the total with 330.7 million.

Housing systems included enriched cages (55.6 percent); barns (25.7 percent) and free-range and organic (18.7 percent). Hen numbers increased by 6.1 percent between 2012 when conventional cages were phased out, to 384 million in 2016. In the year following the banning of cages, hen numbers decreased by 3.6 percent. Many producing nations delayed conversion despite a 10-year lead time in anticipation of an extension which was not forthcoming. Between 2015 and 2016, hen numbers stabilized with moderate growth in flock sizes. The leading egg producing nations in 2016 posted the following hen populations:-

 

 

  • Germany 52.6 million
  • France 48.6 million
  • Spain 43.6 million
  • Poland 43.5 million
  • United Kingdom 42.2 million

Lithuania had the highest proportion of flocks in enriched cages (96 percent). The United Kingdom housed 53 percent of the national flock under free-range management. Austria held 66 percent of hens in barns.

Egg production in the E.U. increased from 7.05 million tons (331.2 million cases) in 2012 to 7.48 million tons (351.6 million cases) in 2016. During this year there was a 5 percent differential between production and consumption requiring trade among nations in the E.U. and exports beyond the E.U. to achieve balance.


 

Egg Production in India

06/07/2019

According to a recent article by Professor Dr. Hans-Wilhelm Windhorst of the University of Vechta in Germany, India ranked third among the World’s egg producers in 2016. According to FAO data, the combined flock of India amounted to 404.6 million hens producing 4,561,000 metric tons (214.3 million cases) of eggs. Given a total population of 1.35 billion and production of 78.8 billion eggs, average consumption is 58.5 eggs per capita. This is a misleading figure given that a high percentage of the population are strict vegetarians and do not consume eggs. Much of the rural population is neither accessible nor qualified to purchase commercially-produced eggs based on location or poverty and rely on back-yard and village eggs which are not included in state or central statistics. Actual urban egg consumption is probably in excess of 120 per capita constraining the potential for a large increase in national consumption over the short term.

Egg production is highly concentrated in ten states with a combined population of 780.4  million representing 57.6 percent of the population of India. These states produce 67.4 billion eggs or 85.7 percent of national production. The three leading states, Tamil Nadu, Andhra Pradesh and Telangana collectively represent 50 percent of national production.

Egg production is predominantly carried out by independent owners of farms holding 25,000 to 100,000 hens. They are contracted to packers usually financed by feed mills. The top ten companies that are vertically integrated represented five percent of the laying hens in 2018 with flock holdings ranging from 1 million to 5.8 million birds.

Despite increases in per capita consumption, production exceeds demand especially during hot summer conditions and periods of fasting. In 2016, 16,434 tons (752 million cases) of shell eggs and 10,000 tons of dry product were exported.

Oversupply may be accentuated in coming years as a joint venture between the state of Gujarat and Suzuki Motor Company has been announced adding 10 million hens to the total.

It would appear unrealistic to regard India as a potential market for either eggs or egg products given that the nation is a net exporter. Accordingly, expenditure by the U.S. on technical programs to promote domestic egg consumption may reduce total exports from India but will have little or no beneficial effect on producers in the U.S.


 

Dr. Denise Heard to Direct USPOULTRY Research

06/07/2019

Effective October 1st, Dr. Denise Heard will succeed Dr. John Glisson as Director of Research. She will administer the USPOULTRY Foundation comprehensive research program and the Board Research Initiative program. Since inception, more than $32 million has been reinvested in research benefiting 50 universities and federal and state institutions.

Previously, Dr. Heard was the Senior Coordinator of the USDA National Poultry Improvement Plan. She received  BS, DVM and MAM degrees from the University of Georgia and earned a Certificate in Public Leadership from Washington University.

John Starkey, president of USPOULTRY paid tribute to the outstanding service provided to the Association and Foundation by Dr. John Glisson over an eight-year period.

In commenting on her appointment Dr. Heard noted “The research programs operated by USPOULTRY and the Foundation are an important component for innovation in the U.S. poultry industry. I am very pleased to have had the opportunity to be involved in the future achievements of these research programs and particularly appreciate their strong foundation and legacy”.


 

Alltech Donates Extruder to Illinois Feed Technology Center

06/07/2019

The University of Illinois Feed Technology Center to be dedicated in August 2020 is the recipient of an extruder donated by Alltech Inc.

Dr. Mark Lyons, president and CEO of Alltech stated “The world of abundance depends on inspiring researchers to apply their innovative spirit to the agricultural industry”. He added “We consider it a privilege to support the University of Illinois in its continuous advancement of animal nutrition”.

Dr. Rodney Johnson, head of the Department of Animal Sciences at the University of Illinois stated “The ability to prepare extruded diets in the new Feed Technology Center will significantly expand our capabilities, especially as it relates to companion animal nutrition. The generous gift from Alltech will allow us to manufacture unique pet foods as we search for ways to improve the health and wellbeing of animals”.


 

U.S. Poised to Negotiate with Britain in the Event of a Hard Brexit “No Deal”

06/07/2019

As hard-line Brexit members of the ruling Conservative party gain ascendency over moderates, the U.S. has seized an opportunity to establish a bilateral trade deal with Britain. In the event of a negotiated separation, the U.K. would be constrained from entering into an agreement with the U.S. A hard exit would allow the U.S. and the U.K. to establish a trading relationship to include agriculture and healthcare.

In an interview with the British Broadcasting Corporation, U.S. Ambassador to Britain, Woody Johnson stated “In a trade deal, all things will be on the table”. There is considerable opposition to a broad trade agreement with the U.S. that would in many instances conflict with U.S. standards including chlorine immersion of chicken. Raising the topic of health care in relation to the revered U.K. National Health Service during the recent Presidential visit certainly aroused opposition to an extensive and comprehensive trade deal.


 

Eggs In Schools Tradeshow Toolkit Now Available

06/07/2019

The AEB Eggs In Schools Tradeshow Toolkit presented as a webinar for state directors is now available as a recording. The easy-to-use toolkit contains everything state directors need to plan for their local school nutrition events. To obtain a copy access www.aeb.org


 

Export of Shell Eggs and Products January-April 2019.

06/07/2019

USDA-FAS data collated by USAPEEC, reflecting export volume and values for shell eggs and egg products are shown in the table below comparing the first four months of 2019 with the corresponding period in 2018:-

PRODUCT

Jan.-April 2018

Jan.-April 2019

Difference

Shell Eggs

     

Volume (m. dozen)

35.6

38.7

+3.1 (+8.7%)

Value ($ million)

48.0

34.1

-13.9 (-28.9%)

Unit Value ($/dozen)

1.34

0.88

-0.46 (-34.3%)

Egg Products

 

 

 

Volume (metric tons)

12,151

9,599

-2,552 (-21.0%)

Value ($ million)

44.6

29.9

-14.7 (-33.0%)

Unit Value ($/metric ton)

3,670

3.114

-556 (-15.1%)

U.S. SHELL EGG AND EGG PRODUCT EXPORTS DURING

JANUARY-APRIL 2019 COMPARED WITH 2018

Source USDA-FAS/USAPEEC

SHELL EGGS

Shell egg exports from the U.S. during the first four months of 2019 increased by 8.7 percent in volume but declined 28.9 percent in total value compared to Jan.-April 2018. Unit value was lower by 34.3 percent or 46 cents per dozen for the four-month comparison between 2018 and 2019. The top two importing nations represented 77.5 percent of volume and 72.1 percent of total value.

Canada was the leading importer during Jan.-April 2019 with 18.9 million dozen representing 39.4 percent of volume and 33.7 percent of total value at $11.5 million with a unit value of $0.72 per dozen. Shell eggs shipped to Canada represent the difference between domestic demand and production, limited by their national controlled marketing system

Hong Kong was the 2nd ranked importer of shell eggs in Jan.-April 2019, with 14.2 million dozen representing 36.7 percent of volume and 38.4 percent of the total value of U.S. shipments of shell eggs with an average unit value of $0.92 cents per dozen.

Mexico was a distant third in rank during Jan.-April 2019 with 7.8 percent of volume and 7.3 percent of total value, with a unit value of $0.83 per dozen.

The Caribbean Region represented 6.7 percent of export volume for the first four months of 2019. This region was down 23.5 percent in volume and 56.6 percent in total value compared with 2018. The unit value of shell eggs exports to the Caribbean averaged $1.38 per dozen for Jan.-April 2019 ($1.93 over entire 2018) which appears inordinately high compared with the average export realization, warranting validation of USDA data or an investigation of the price discrepancy.

The Middle East Region imported 1.8 million dozen during the first four months of 2019 valued at $1.7 million with a unit price of $0.94 per dozen. Volume and value were respectively lower by 37.9 percent and 37.0 percent compared with the corresponding period in 2018. Israel emerged as an importer at the end of 2018 attributed to depletion of domestic flocks due to SE.

EGG PRODUCTS

The total volume of exported egg products during Jan.-April 2019 decreased by 21.0 percent and total value was lower by 33.0 percent compared to the same period in 2018. Unit value decreased by 15.1 percent to $3,114 per ton from $3,670 obtained during Jan.-April 2018. This decline reflected the relationship between World supply and demand.

During Jan.-April 2019, 1st-ranked Japan represented 25.8 percent of the total U.S. export volume with 2,474 m. tons, a decrease of 42.1 percent compared with the first four months of 2018.

Mexico was the second ranked importer during Jan.-April 2019 receiving 2,158 metric tons comprising 22.5 percent of volume and 17.4 percent of value exported with a unit price of $2,410 per metric ton

Canada was displaced to the 3rd rank among importers purchasing 1,897 m. tons representing 19.8 percent of volume and 13.0 percent of value ($3.9 million) exported with a unit price of $2,056 per m. ton. During the four-month period in 2019 Canada increased volume by 24.7 percent and value by 18.2 percent compared to the corresponding period in 2018.

During the first four months of 2019, 4th-ranked E.U-28 imported 332 m. tons of egg products, representing 3.4 percent of volume and 8.6 percent of value shipped during Jan.-April 2019

COMMENTS

Successful conclusion of NAFTA negotiations led to the trilateral USMCA, announced on September 30th 2018 will be ratified by the legislatures of all three signatories. Exports of shell eggs and egg products to our neighbors were valued at $74.7 million for 2017 and $89.7 million for 2018 and $23.1 million over the first four months of 2019.

Prospects for long-term exports of shell eggs will be limited by the willingness of importers to accept the World Organization for Animal Health (OIE) principle of regionalization in the event of exotic Newcastle disease or isolation of H5 or H7 avian influenza, irrespective of pathogenicity. Most importing nations, with the noted exception of China, are now applying regionalization and permitting imports on a county or state-exclusion basis following H5 or H7 AI infection.

The fourteen-month ongoing series of incident cases of END in approximately 450 backyard flocks, predominantly fighting cocks. Extension of the infection to four commercial farms in Southern California should not impact exports since importers are complying with the OIE principle of regionalization.

Generally pasteurized egg products should not be subject to any embargo imposed following reports of AI or Newcastle disease.


 

USDA Weekly Egg Price and Inventory Report, June 5th 2019.

06/06/2019
  • Hen Numbers in Production Almost Unchanged at 329.6 million .
  • Increase in Shell Inventory of 1.4 Percent following a 5.3 Percent Decline for the Previous Week.
  • USDA Midwest Benchmark Generic Prices for Extra Large, Large and Medium Unchanged Compared to the Past Week.
  • Price of Breaking Stock and Checks Unchanged. Both Categories Substantially Below Cost of Production

OVERVIEW

Prices

According to the USDA Egg Market News Reports posted on June 3 rd the Midwest wholesale prices for Extra Large, Large and Medium sizes were unchanged compared to the past week, continuing below production cost. The progression of prices during 2019 is depicted in the USDA chart reflecting three years of data, updated weekly.

The June 3rd USDA Egg Market News Report (Vol. 66: No. 22) documented a USDA Combined Region value rounded to the nearest cent, of $0.46 per dozen delivered to warehouses for the week ending May 27 th and reflects the sharply lower early summer prices during that week despite a lower stock level for three consecutive weeks. This average price lags current Midwest weekly values by one week. The USDA Combined range for Large in the Midwest was $0.41 per dozen, below the cost of production. At the high end of the range, price in the Northeast Region attained $0.49 per dozen. The USDA Combined Price last week was $0.89 per dozen below the three-year average and $0.37 per dozen below the corresponding week in 2018.


 


National Restaurant Association Performance Index Falls in April

06/06/2019

The National Restaurant Association attributes a broad-based softening in both the Current Situation and Expectations indexes for a 1.6 percent fall in the Restaurant Performance Index for April.

 

The Current Situation Index measuring same store sales, traffic, labor and capital expenditure fell by 0.1 percent in April.  The Expectations Index reflecting the 6-month outlook was down 1.5 percent for the past month.


 

Delaware Poultry Waste Recycling Facility Approved

06/06/2019

The Sussex County Board of Adjustment has approved the erection of a plant by Clean Bay Renewables to be located near Georgetown, DE.  The facility will encompass 490,000 square feet and will receive chicken litter to be converted to renewable energy.  The project will cost $60 million and will recycle 90,000 tons of chicken litter annually.  Projected output should attain 5 megawatts per day to be fed into the Delaware Electric Cooperative grid to supply sufficient power for the equivalent of 3,500 homes. Between 20 and 80 tons of phosphorus fertilizer will be produced as a byproduct each working day.

 

The capital cost of the proposed facility given the data released would be $12,000 per Kw corresponding to the U.S. Department of energy value of $13,500 per Kw. In contrast coal units would cost $3,500 per Kw and natural gas $7,000 per Kw.


 

WOTUS Rule Invalidated

06/06/2019

The U.S. Court for the Southern District of Texas invalidated the EPA Waters of the U.S. (WOTUS) Rule on May 28th. This ruling follows several successful injunctions delaying implementation.

At issue was the fact that the EPA and the Army Corps of Engineers issued the Rule without a complete opportunity to comment on aspects of the Rule that would have extended the jurisdiction of both Agencies.

The U.S. Poultry and Egg Association was a plaintiff along with 17 other production and business associations representing Texas, Louisiana and Mississippi and the Nation.

Paul Bredwell, Vice President of Environmental Programs at USPOULTRY stated “While we are pleased with the decision the Court made in agreeing that the 2015 Rule was unlawful, we look forward with continuing to working with the EPA in developing an appropriate means of determining the scope of the proposed WOTUS”.


 

Ohio State University Poultry Medicine Workshop

06/06/2019

Ohio State University College of Veterinary Medicine in cooperation with the Animal Disease Diagnostic Laboratory in Reynoldsburg, OH will present a one-day Advanced Poultry Medicine Workshop on June 20th at the ADDL.

Topics will include necropsy procedure, sample collection and related diagnostic procedures. For further information, access www.go.osu.edu/poultry-vets.


 

Delaware Poultry Waste Reycling Facility Approved

06/06/2019

The Sussex County Board of Adjustment has approved the erection of a plant by Clean Bay Renewables to be located near Georgetown, DE.  The facility will encompass 490,000 square feet and will receive chicken litter to be converted to renewable energy.  The project will cost $60 million and will recycle 90,000 tons of chicken litter annually.  Projected output should attain 5 megawatts per day to be fed into the Delaware Electric Cooperative grid to supply sufficient power for the equivalent of 3,500 homes. Between 20 and 80 tons of phosphorus fertilizer will be produced as a byproduct each working day.

 

The capital cost of the proposed facility given the data released would be $12,000 per Kw corresponding to the U.S. Department of energy value of $13,500 per Kw. In contrast coal units would cost $3,500 per Kw and natural gas $7,000 per Kw.


 

Campbell Soup Company Reports Improved Results for Q3

06/06/2019

In a press release dated June 5th Campbell Soup Company (CPB) announced results for the 3rd Quarter of Fiscal 2019 ending April 28th.

The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as $ x 1,000 except EPS)

3rd Quarter Ending

April 28th 2019

April 29th 2018

Difference (%)

Sales:

$2,178,000

$1,878,000

+16.0

Gross profit:

$723,000

$615,000

+17.6

Operating income:

$266,000

$158,000

+68.3

Pre-tax Income

Net Income

$175,000

$84,000

$116,000

$(393,000)

+50.9

+121.4

Diluted earnings per share:

$0.28

$(1.31)

+121.4

Gross Margin (%)

33.2

32.7

+1.5

Operating Margin (%)

12.2

8.4

+45.2

Profit Margin (%)

3.8

(20.9)

+118.2

Long-term Debt:

$7,507,000

$8,080,000

-7.1

12 Months Trailing:

     

Return on Assets (%)

6.6

   

Return on Equity (%)

9.1

   

Operating Margin (%)

14.8

   

Profit Margin (%)

3.1

   

Total Assets

$13,768,000

$14,566,000

-5.5

Market Capitalization

$12,920,000

   

Q3 FY 2019 earnings were adversely impacted by a $47 million charge for discontinued operations. The value for Q3 FY 2018 was $466 million.

52-Week Range in Share Price: $32.03 to $43.98

Market Close: Tuesday June 4th pre-release $38.18.

Market close: Thursday June 5th post-release $41.92

Forward P/E 17.0 Beta 0.7

In commenting on results, Mark Clouse, president and CEO stated, "Our results this quarter were ahead of our expectations, making it the third consecutive quarter that we met or exceeded our outlook. I am also pleased to see profitability trends are improving, driven by sequential gross margin improvement.

He added "In the quarter, we continued to drive sales growth in Global Biscuits and Snacks, fueled by our U.S. Snacks portfolio. The business continues its growth trends on Pepperidge Farm, coupled with improvements in the Snyder's-Lance portfolio. In the Meals and Beverages segment, although there is more to do, we are making steady improvements on gross margin and profit and this business is showing signs of stabilization."

On April 12th 2019, the company announced that it had entered into an agreement to sell its Bolthouse Farms business. As a result of this, and along with the recently completed divestitures of the U.S. refrigerated soup and Garden Fresh Gourmet businesses in the third quarter of fiscal 2019, Campbell Fresh is now reported as discontinued operations.

The offer by Mondelez to purchase the Arnott's biscuit brand has been withdrawn. The asking price of $3 billion was considered excessive by Mondelez owner of the Oreos® and Chips Ahoy® brands. Campbell's is "evaluating multiple options with strategic and financial buyers" for the Arnott's business according to Mark Clouse. Sale of the business is required to draw down debt incurred in the purchase of Snyder's-Lance.


 

UEP Briefing Meetings

06/06/2019

The schedule for the Summer 2019 briefing meetings for the industry presented by the UEP is provided for the benefit of subscribers. Information on current and future challenges is beneficial to an understanding of the dynamics of the U.S. industry and critical to independent company decisions on a broad range of issues impacting production, regulatory compliance and operations.

 

 

 


 

Weekly Commodity Report.

06/06/2019

Prices Retreat on Improved Planting Data but Concerns Over Yields and Ingredient Costs Prevail.

The following quotations for July and September 2019, as indicated below were posted by the CME at 15H00 June 6th together with values for Tuesday June 4th in parentheses. Over the past week the commodities market recorded a moderate decrease in the futures prices of corn, soybeans and soybean meal. The run up in mid-May was due to slow progress in planting, reduced acreage and the prospect of diminished yields.

The absence of any definitive news regarding finalization of the trade dispute with China and previous conflicting statements by White House spokespersons over the months since the dispute began is disconcerting to the commodities market and

Has contributed to fluctuation in prices.

COMMODITY

 

Corn (cents per bushel)

July 421 (425)

Sept. 430 (434)

Soybeans (cents per bushel)

July 868 (880)

Sept. 882 (880)

Soybean meal ($ per ton)

July 316 (320)

Sept. 319 (322)

Changes in the price of corn, soybeans and soybean meal this past week were:-

COMMODITY CHANGE OVER 3 DAYS

Corn: July quotation down 4 cents per Bu           (-0.9 percent)

Soybeans: July quotation down 12 cents per Bu (-1.4 percent)

Soybean Meal: July quotation down $4 per ton.   (-1.3 percent)

  • For each 10 cent per bushel change in corn:-

The cost of egg production would change by 0.45 cent per dozen

The cost of broiler production would change by 0.25 cent per pound live weight

  • For each $10 per ton change in the price of soybean meal:-

The cost of egg production would change by 0.40 cent per dozen

The cost of broiler production would change by 0.25 cent per pound live weight

This week egg producers will benefit by a reduction of 1.1 cent per dozen in feed cost based on futures prices prevailing during the third week of May.

COMMENTS

Please review the Crop Progress Report in this edition documenting the rate of planting and emergence of corn and soybeans compared to the five-year average.

Negotiations with China are apparently at a standstill following shuttles between Beijing and Washington in Late April. Some concessions were promised by China to reducing coercive trade practices and clarify dispute resolution as amplified by President Xi addressing participants in a Belt and Road Conference in early May. From an agricultural perspective the question of delays by China in approving new GM cultivars has yet to be settled. No date has been set for a summit to sign a trade deal that is as elusive. Prices will be influenced by the trend in stock levels, area actually planted in 2019 and early crop progress in the face of flooding.

According to the May 10th 2018 WASDE Report #588, 85.4 million acres of corn will be harvested in 2019 to produce 15.0 Billion bushels. The soybean crop is projected to attain 4.2 Billion bushels from 87.8 million acres harvested. The levels of production for the two commodities are based on current planting, projections of yield and acreage. The WASDE to be published in June will confirm the acreage actually sown to corn and soybeans respectively.

See the WASDE posting summarizing the May 9th USDA-WASDE Report #588 under the STATISTICS tab documenting price projections and quantities of commodities to be produced, used and exported from the 2019 harvest.

Unless shipments of soybeans to China resume in volume, now a distant hope, the financial future for row-crop farmers appears bleak despite the release of two tranches in 2018 amounting to $8 billion as "short-term" compensation for producers of commodities. A further allocation of $14.5 billion to producers under the Market Facilitation Program was announced on May 23rd for the 2019 crop.


 

USDA-ARS Scientist Honored for Swine Influenza Studies

06/06/2019

Dr. Amy Vincent a scientist affiliated to the Agricultural Research Service National Animal Diseases Center in Ames, IA. is a co-recipient of the Arthur S. Flemming Award for outstanding scientific achievement in the field of animal health.  Dr. Vincent received the award at a ceremony on the campus of George Washington University.

 

The award recognizes contributions by Dr. Vincent to the genetic evolution of swine influenza type A viruses and interaction with the host immune system.  She has also established a global nomenclature system that will facilitate selection of vaccines to be used. She has also investigated possible mixing of genetic material from influenza viruses affecting different host species.  It is noted that swine have receptors for both avian and mammalian influenza A viruses and can play a role in the emergence of recombinant serotypes.

 

In 2008 Dr. Vincent assisted in establishing a national influenza surveillance system incorporating data from APHIS and CDC. The database was used in 2019 following emergence of H1N1 influenza, responsible for extensive losses in the U.S. pork industry.


 

AEB to Continue Circulating Nielsen Data

06/06/2019

The AEB monthly Egg Trends Report will continue to post Nielsen egg category data purchased by the Board.  The data set is posted on the last Friday of every month in the AEB Egg Trends as a service to egg producers and the allied industry.


 

AEB Egg Nutrition Center Participated in Spring Symposium for Dieticians

06/06/2019

The Spring Symposium provided an opportunity for the Egg Nutrition Center, funded by the American Egg Board, to publicize research and guidelines relating to eggs.  Data was provided on the following topics:-

 

 

 

 

  • Pregnancy, infant nutrition and weaning featuring Diana K. Rice, RD
     
  • A new Egg Cookbook featuring egg dishes was available at the Egg Nutrition Center booth featuring Dana Angelo, RD

 
 
During the event, the Egg Nutrition Center hosted an Egg Enthusiasts dinner featuring Roger Deffner of the National Foods Corp as the featured speaker.


 

National Egg Month Breakfast Series

06/06/2019

Hickman Family Farms of Arizona conducted a series of National Egg Month Teacher Appreciation Breakfasts during the last week of May.  The project publicized eggs to 190 teachers, administrators and school superintendents.  The program featured an omelet bar, yogurt parfaits and a beverage station.


 

USDA Updates Nutrition.gov Website

06/06/2019

USDA has revised the www.nutrition.gov website.  For 15 years, the site has provided factual and science-based postings on food safety, nutritional value of foods, healthy eating and physical activity.

 

The new website features enhanced functionality, ease of browsing and access to content.


 

NAMI Requesting a Postponement of California Proposition #12 Requirements

06/06/2019

In contrast to the egg industry in California and producers supplying the State the meat industry represented by the North American Meat Institute (NAMI) is requesting delays in implementing provisions as determined by voters who approved California Proposition #12 in November 2018.  In their comment, Mark Dopp, Senior Vice-president of Regulatory and Scientific Affairs and the General Counsel of the trade association stated, “NAMI wishes to repeat its request that CDFA postpone implementing Proposition #12 for at least two years or longer, as necessary, to ensure conversion and a common understanding among the Agency, the industry and consumers about the laws, economic impact in the alleged rationales underlying Proposition #12.”

 

The people have spoken.  It is now up to the producers of pork and veal to conform to the housing requirements to adapt to the law.  Veal crates and tethered sows are unacceptable and should be replaced by alternative systems as installed by producers in many states in compliance with customer specifications.

 

 

Providing one or other intensive animal sector a variance on the basis of “a less efficient supply chain” is unacceptable given the considerable investment by egg producers to convert from conventional cages and colony modules to barn and aviary systems.


 

Cracker Barrel Reports on Q3 of 2019

06/05/2019

In a press release dated June 4th Cracker Barrel Old Country Store (CBRL) announced results for the 3rd Quarter of Fiscal 2019 ending May 3rd.

The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as $ x 1,000 except EPS)

3rd Quarter Ending

May 3rd 2019

April 27th 2018

Difference (%)

Sales:

$739,603

$721,413

+2.5

Gross profit:

$522,530

$503,694

+3.7

Operating income:

$102,210

$98,718

+3.5

Pre-tax Income

Net Income

$60,975

$50,414

$59,715

$48,747

+2.1

+3.4

Diluted earnings per share:

$2.09

$2.03

+3.0

Gross Margin (%)

71.5

69.8

+2.4

Operating Margin (%)

13.8

13.7

+0.7

Profit Margin (%)

6.8

6.8

-

Long-term Debt and obligations:

$532,814

$528,389

+0.8

12 Months Trailing:

     

Return on Assets (%)

11.3

   

Return on Equity (%)

34.1

   

Operating Margin (%)

9.3

   

Profit Margin (%)

7.1

   

Total Assets

$1,595,070

$1,568,331

+1.7

Market Capitalization

$4,000,000

   

In Q3 2019 restaurant revenue represented 82.5 percent of sales.

52-Week Range in Share Price: $ 141.63 to $ 185.00

Market Close June 5th $166.42

Forward P/E 17.3 Beta 0.7

Comparative same store sales growth for Q3 2019 versus Q3 2018 was +1.3 percent with traffic down 1.8 percent offset by a positive 3.1 percent increase in transactions. Weather impacted same store sales by 0.3 percent.

Commenting on third quarter results CEO and president Sandra B. Cochran stated, "I am pleased that we again delivered comparable store restaurant growth and outperformed the casual dining industry" She added "I am encouraged by our performance in particular with the early results of our new Signature Fried Chicken initiative"
 

Forward guidance for Q3 included revenue of $3.05 billion; an EPS range of $8.95 to $9.10; $150 million capital expenditure and 8 new stores.


 

USDA DATA ON CAGE-FREE PRODUCTION

06/05/2019

Based on the importance of expanding cage-free production, the USDA-AMS issues a monthly report on volumes and prices for the information of Industry stakeholders. There is some doubt as to the accuracy of the individual monthly flock numbers especially with reports that show a significant increase in the cage-free flock for a specific month. It is questioned is whether it would not be more desirable to post accurate quarterly data in place of unconvincing sequential monthly figures.

EGG-NEWS summarizes and comments on data and trends in the monthly USDA Cage-Free Report, supplementing the information posted weekly in the EGG-NEWS Egg Weekly Price and Inventory Report.

The USDA Cage Free Report for the month of May 2019 released on June 3 rd 2019 documented a 0.6 percent increase of 0.1 million in flock size for hens hens producing under the Certified Organic seal. The National cage-free flock increased by 0.2 million or 0.4 percent as compared to the value for April. The respective numbers of hens in organic and cage-free flocks should reflect the realities of supply and demand in the market over successive quarters. Average flock production was retained from April at 75.5 percent for both categories of non-caged hens (accepting USDA data).

Flock size 2019 (million hens)

June

2019

May

2019

April

2019

March

2019

Sept. 2018 through Feb. 2019

August

2018

Certified Organic

 

15.8

15.7

15.0

15.7

15.7

Cage-free hens

 

50.9

50.7

46.9

41.5

39.1

Total non-caged

 

66.7

66.4

61.9

57.2

54.7

Average weekly production cases, May 2019

Certified Organic

231,630 (230,279 April.)

Cage-free

747,196 (743,849 March)

Total non-caged

978,826 (974,128 March)

Average Wholesale Contract Price Cage-Free Brown

$1.56/doz. Unchanged since Nov. '18

Range unchanged at:

$1.15 to $2.10/doz.

FOB Negotiated price, grade quality nest- run, loose

Value of $0.31/doz. Unrealistic.

To be re-stated in July report

Average Advertised National Retail Price C-F, L, Brown

$2.49/doz. (was $2.68 April 2019)

USDA 6-Region

High: SE

$2.63/doz. $2.50 (NW.)

 

Low: SW

$2.45/doz. $2.40 (SC.)

Kindly refer to weekly USDA wholesale and retail prices posted in the EGG-NEWS Egg Price and Inventory Report E-mailed each Friday. The previous Monthly Cage-Free Report is available under the STATISTICS Tab.


 

Canada Repeals Import Taxes on Agricultural Products

06/04/2019

Canada has rescinded the 10 percent retaliatory tariff on agricultural products imposed in July 2018 in response to U.S. tariffs on steel and aluminum.

The two nations issued a joint statement confirming that if retaliatory measures are adopted by either of the parties, these should apply only in the affected sector.

This provision will probably be moot given the high probability of Canada, Mexico and the U.S. legislatures ratifying the USMCA.


 

Threatened Tariffs on Mexico Will Imperil USMCA and Exports

06/04/2019

An announcement that the Administration will impose a five percent tariff on all imports from Mexico commencing June 10th sent shockwaves through all segments of the U.S. economy. The action was taken in terms of the Initial Emergency Economic Powers Act. If imposed, the tariff would be increased progressively to a level of 25 percent on October 1st.

Announced in a Twitter communication on May 30th, the tariff is intended to force Mexico to curb illegal migration of refugees from Central America to the U.S. Previously the President threatened to close the southern border if Mexico is not more aggressive in curbing migration.

Obviously, the unilateral action by the Administration will imperil the USMCA, yet to be ratified by all three legislatures of the signatories.

Mexico is the third largest trading partner of the U.S. receiving $350 billion in goods annually.

Implications of even a five percent tariff are immense since the supply chains for the U.S. automotive and other industries are intertwined. Inevitably the Government of Mexico will react by imposing punitive tariffs on U.S. exports and it is expected that the agricultural sector, and specifically poultry, will be affected.

There is question as to whether the action by the Administration is legal and the decision to impose tariffs as leverage on our southern neighbor will be contested in the courts.


 

EPA to Allow Year-Round E-15

06/04/2019

After due consideration of submissions, the EPA has decided to allow the year-round inclusion of up to 15 percent ethanol in gasoline.

Although beneficial to corn farmers and ethanol refiners, the proposal was opposed by the environmental lobby and by fuel refiners.

It is anticipated that the energy industry will initiate legal action to overturn the EPA decision based on the fact that opponents to E-15 maintain that the EPA has exceeded its authority.

The Clean Air Act allows challenges within 60 days of an EPA decision.

 

Extending E-15 by an additional four months to the entire year is expected to increase ethanol consumption by two percent. This is relatively inconsequential given the disparity between production capacity and demand.

The impact on the poultry industry should be minimal despite justified objections raised by poultry industry associations. The recent spike in the price of corn as a result of late planting and projected lower yields has had far greater impact than the EPA decision.


 

Costco and Dollar Stores Post Quarterly Increases in Sales

06/04/2019

Costco considered a retail bellwether, announced that same store sales increased by 5.6 percent for the first quarter ending May 12th. Sales excluded fuel. Concurrently, E-commerce sales increased by 20 percent. During the quarter, Costco established a strategic partnership with Instacart to offer same-day grocery delivery to compete with Amazon and Walmart.

Sales increased at both Dollar General and Dollar Tree in contrast to traditional mall-based retailers such as Gap that posted a four percent decline for the quarter ended May 4th with individual brand sales declining by ten percent for Gap, three percent for the Banana Republic and one percent for Old Navy.

Spokespersons for the retail sector cite as reasons for falling sales as lower tax refunds to consumers, inclement weather and the reluctance to spend as factors depressing traditional retail. Most companies have expressed concern over inevitable rises in price as tariffs are passed on to customers.


 

Economic Parameters Favorable for First Quarter of 2019

06/04/2019

The Department of Commerce announced that GDP growth during the first quarter of 2019 attained 3.1 percent compared to the last quarter of 2018 which posted a 2.2 percent increase.

The Personal-Consumption Expenditures Price Index rose 1.35 percent during the first quarter compared to the corresponding period in 2018. This was close to a projected 1.4. percent gain. The BCE price index excluding food and energy was revised downward to 1.62 percent. Obviously inflation at this time is low and below the two-percent target adopted by the Federal Reserve.

Acceptable growth figures for the first quarter are inconsistent with concern over trade conflicts reflected in a six-week decline in stock market averages and lower profits posted by companies. The effects of the 2017 tax concessions are no longer apparent with a 1.7 percent decline in company profit in the fourth quarter of 2018 compared to the previous quarter.

Investment in fixed assets and also software, R&D and equipment rose during the first quarter at an annualized 2.3 percent rate, lower than a 2.7 percent estimate.

Businesses will be faced with uncertainty through the remainder of 2019. The economic outlook is clouded by trade wars, a global downturn, possible disruptions in North American supply chains and reduced consumer spending as tariffs are passed on at the retail level.


 

Senators Concerned Over Compensation for Foreign-Owned Agribusiness Enterprises

06/04/2019

Senator Debbie Stabenow (D-MI) Ranking Member of the U.S. Senate Committee on Agriculture, Nutrition and Forestry is leading eight Senatorial colleagues in opposing compensatory payment to agricultural enterprises under foreign ownership. These would include subsidiaries of  JBS SA of Brazil in the U.S. and Smithfield Foods, owned by the WH Group of China.


 

Status of Corn and Soybean Crops

06/04/2019

The USDA Crop Progress Report released on June 3rd documented the status of the 2019 corn and soybean harvests. It is evident that flooding, possibly attributable to an ongoing El Nino event has delayed planting in many states. The USDA documents progress in 18 states collectively responsible for 92 percent of the 2018 harvest.

EGG-NEWS and CHICK-NEWS will report on the progress of the two crops and will post weekly updates through the end of the harvest. The most recent data suggests acceleration in the rate of planting although the effect of the delay will become evident in succeeding weeks.

                                      Week Ending

Crop Parameter

5/26  7/2

5-Year Average

Corn Planted %

58      67

96

Corn Emerged %

32      46

84

     

Soybeans Planted %

29      39

79

Soybeans Emerged %

11      19

56


 

Disposal of Plastic Waste by “Dumping” More Difficult

06/04/2019

Environmental Leader reported that Malaysia would return 450 metric tons of plastic and non-recyclable waste to countries of origin including the U.S., the UK, Australia, Japan, the Netherlands and Singapore following a policy decision to refuse consignments of plastic waste for disposal, Malaysia has reacted  to internal opposition by returning waste through over ten concerted campaigns.  Malaysia received an upsurge in plastic waste following the decision earlier in 2019 by China to embargo imports.

 

Malaysia developed numerous unlicensed and unregulated waste disposal facilities many of which engaged in indiscriminate dumping or burning.

 

In a statement, Yeo Bee Yin, Minister of Energy, Science, Technology, Environment And Climate Change for the Government of Malaysia urged industrialized nations to “review their management of plastic waste and stop shipping garbage to developing countries.”


 

OVO-Vision Develops Integrated Traceback Documentation

06/02/2019

OVO-Vision of Holland has developed a comprehensive document system that incorporates traceability.  The system extends through the entire supply chain from farm through packing plant to further processing.

 

The integrated document system obviates the need to assemble and correlate different data inputs especially with off-line processing operation involving numerous supply farms.

 

The OVO-vision systems will generate traceability data relating to farm of origin, packing parameters including date, assay results, storage and delivery.  For further information contact info@ovo-vision.com

 


 

2019 Hatchery Breeder Clinic

06/02/2019

The 2019 Hatchery-Breeder Clinic organized by USPOULTRY will take place July 9-10 at the Sheraton Grand National Downtown Hotel.

 

Topics will include biosecurity, egg management, suppression of Salmonella, optimizing fertility and related hatchery topics.


 

Innovative Approach to Packaging Waste

05/31/2019

Kroger and Walgreens have established trial programs with Loop Inc. in New York, New Jersey, Pennsylvania, Maryland and Washington DC. According to a review in CNN Business participants initially sign up for the pilot program to purchase goods in reusable containers. After use containers are placed in tubs and are collected, cleaned, refilled and shipped back to the consumers. Participants can also collect their products and drop off empty packages at participating retailers. This would be an ideal approach to reusing clean polystyrene and PET egg-packs.

 

Lauren Brindley, Group Vice-president of Beauty and Personal Care for Walgreens stated, “Innovative collaborations with partners like Loop are critical to solving the complex issue of reducing single-use plastics.”  She added, “Our customers look to us to innovate so that together we can reduce waste and increase re-use.

 

The Loop service was introduced at the World Economic Forum in Dallas during January and is also operating in Paris.


 

Boehringer Ingelheim and Harbin Veterinary Research Institute Establish Strategic Partnership

05/31/2019

The Harbin Veterinary Research Institute that functions as a state agency has jointly unveiled an industry-academia research exchange platform with Boehringer Ingelheim of Germany. Programs will include research, training and promoting the sustainable development of the animal health industry in China.

The Harbin Veterinary Research Institute is a prestigious laboratory, but it is expected that Boehringer will be revealing and disclosing considerable proprietary technology to the benefit of their Chinese counterparts. In return Boehringer-Ingelheim will have access to strains of pathogens  endemic in China that can serve as vaccine candidates developed and tested with less stringent oversight than in the EU and the U.S.


 

SpartanNash Reports Q1 Results

05/30/2019

In a May 21st release, SpartanNash (SPTN) released results for the first quarter of fiscal 2019 ending April 20th.  For the period, the company earned $7.5 million on sales of $2.54 billion generating an EPS of .21 cents per share.  Corresponding figures for the first quarter of fiscal 2018 were sales of $2.39 billion, net earnings of $12.4 million and EPS of .34 cents.

 

According to the release, David Staples, president and CEO noted dissatisfaction with bottom-line results.  Lower earnings were attributed to increase cost through the supply chain, decrease margins and a significant loss in military distribution.

 

SpartanNash has traded at a 52-week range of $12.27 to $26.99 but opened on May 30th at $12.56 close to the low end. The Company has a 12-month trailing operating margin of 1.4 percent and a profit margin of 0.4 percent. SPTN caries debt of $698 million with a market capitalization of $453 million.


 

Jamie’s Italian Restaurants in UK file for Bankruptcy

05/30/2019

The Jamie’s Italian chain launched in the U.K. 2008 by celebrity chef Jamie Oliver has filed for bankruptcy protection placing 1,300 jobs in jeopardy.

 

Oliver commented, “I’m devastated that our much-loved UK restaurants have gone into administration (U.S. Chapter 11 bankruptcy protection).”  He added, “I’m deeply saddened by this outcome and would like to thank all the people who put their hearts and soul into this business over the years.”

 

Jamie Oliver is a prominent voice in promoting welfare and has achieved fame through his Naked Chef cookbooks and television programs.  He has four million followers on social media attesting to his influence.

 

In an interview on BBC a business commentator noted that the casual dining space is highly competitive in the UK and the prices at Jamie’s restaurants were high as result of his policy relating to acquiring poultry and meat with what might be regarded as unreasonable welfare requirements.


 

FSNS Appointment

05/30/2019

Food Safety Net Services have announced that Cole Tautges has been appointed at Vice President of Chemistry Operations.  John Bellinger, CEO of the company stated, “We look forward to having Cole develop the FSNS chemistry business in to the best in North America”. 

 

Prior to joining FSNS he oversaw various methodologies including chemistry and nutrient assays for a major contract analytical laboratory.  He has experience in establishing reference standards for critical reagents and in validation certification procedures.

 

Food Safety Net Services is a national network of ISO 17025 testing laboratories providing 24/7 service to in addition to PAACO, SQF and GFSI auditing and certification.

 


 

Shigellosis Attributed to Oysters from Mexico

05/30/2019

In a May 21st release the FDA has advised consumers not to eat raw oysters harvested from Estero el Cardon in Baja California Sur in Mexico.  The affected product was distributed in California, Nevada, New York and Arizona through wholesale distributors selling to restaurants.

 

On May 7th the Shellfish Sanitation Program of Mexico voluntarily closed the oyster beds of Estero el Cardon and halted harvesting as a result of illnesses in the U.S. and presumably in Mexico.  Due to short shelf-life of raw oysters, the action by authorities should have ended the outbreak of Shigella flexneri.  The outbreak in the U.S. was limited to five patients with the last illness on April 17th.

 

This case emphasizes the ability of state health laboratories and the FDA through databases to identify multistate outbreaks involving only a few patients.  Laboratories assays including whole genome sequencing can match isolates from patients with product harvested from affected sources or areas.


 

HPAI Reported in Queretaro State

05/30/2019

The Animal Health and Food Safety Agency of Mexico (SENASICA) has reported an outbreak of H7N3 in a small commercial laying flock in Queretaro. Four other cases in adjoining states were reported in backyard flocks.

Avian influenza may be regarded as regionally endemic in Mexico with clinical outbreaks  suppressed by vaccination.


 

USAPEEC Presents Egg Products Workshop in Hong Kong

05/30/2019

A workshop sponsored by the American Egg Board was arranged by the Hong Kong office of USAPEEC. Prominent chefs from major Hong Kong hotels and restaurants attended. The workshop was conducted by Chef Adrian Duraffourd, a prominent French pastry chef. U.S. liquid and dried egg products were used in recipes demonstrated to attendees.


 

Bayer Profoundly Impacted by Glyphosate Litigation

05/30/2019

Following the third adverse verdict in civil trials alleging that glyphosate, the active ingredient of Roundup® is responsible for non-Hodgkin lymphoma, Bayer is experiencing shareholder disaffection. Since the purchase of Monsanto by Bayer, market capitalization has declined by 40 percent to $60 billion, less than the $63 billion expended to purchase Monsanto.

Based on scientific evidence that glyphosate is not carcinogenic, Bayer is determined to defend all actions notwithstanding the 13,000 plaintiffs who have filed claims.

The management of Bayer are opposing any suggestions to break up the company although specific assets peripheral to the core of the business have been sold or are offered for sale.


 

Albertson’s Companies Promoting Signature Select™ House Brand

05/30/2019

Albertson’s Companies will add more than 300 new products and update branding for the Signature Select range. In addition, Signature Home and the Snack Artist brands will be incorporated into the Signature Select portfolio. This combination of house brands launched in 2016 comprises 2,400 products. Signature Select is one of four $1 billion brands alongside            O-Organics, Lucerne and Signature Café.

Bill Luna, Director of Brand Design and Packing Operations stated “The Signature tag provides an iconic and consistent brand mark and designs and reflects unique qualities of each product in each category”.

The Signature Select range will include seasonal and holiday items in addition to ethnic and plant-based offerings.


 

European Consumers Consider Climate Change in their Food Purchases

05/30/2019

Euromonitor International released results of surveys on May 17th reflecting lifestyle attitudes among consumers. Approximately 42 percent of respondents consider that climate change will impact their life-style between 2019 and 2024. Approximately a quarter of global consumers surveyed are trying to reduce meat intake thereby driving sales of vegetable-based substitutes.

David Hedin, consultant at Euromonitor International stated “Meat intake is mostly reduced by consumers trying to reinforce healthy eating habits and worrying about climate change. Growing attention to welfare for animals, farmers, societies and employees at large are also factors”. Euromonitor considers that global meat substitutes will attained $20 billion in sales in 2018.


 

Genomic Analysis Used to Define Epidemiology of 2015 HPAI Epornitic

05/30/2019

Scientists affiliated to molecular diagnostic laboratories at the University of Georgia, the University of Connecticut and the U.S. Department of Agriculture recently published findings on genomic assay of H5N2 avian influenza virus isolated during the 2014-2015 outbreak of highly pathogenic avian influenza. A total of 182 full genome sequences were completed for isolates from commercial layer and turkey farms in Minnesota and adjoining states. The following conclusions were derived:

  • The outbreak was in all probability introduced by migratory waterfowl
  • Inter-farm transmission was facilitated by movement of personnel and vehicles
  • Infection of individual farms was enhanced by deficiencies in biosecurity. Conversely, high levels of biosecurity provided protection with respect to farm-to-farm transmission.
  • It was evident that rapid depletion of affected flocks reduced transmission to farms in close proximity
  • High density of poultry in a specific area contributed to dissemination of virus

The electronic manuscript did not consider the role of feed delivery vehicles in the spread of infection. This was the likely possibility given that a high proportion of the turkey farms were supplied from a common feed mill.

Previously the USDA published on risk factors associated with infection of turkey grow-out farms. Factors included collection of mortality and garbage by a common service, and obvious deficiencies in structural and operational biosecurity.

Although deriving conclusions from genomic assays is justified, detailed epidemiologic investigation with on-site evaluation of risk factors is necessary to understand the dynamics of a highly contagious disease.


 

Whole Foods Testing Convenience Store Concept in New York City

05/23/2019

In a continuing effort to capture sales and establish an optimal model, Whole Foods Market has developed a convenience store concept termed Whole Foods Market Daily Shop. The test of the concept is located adjacent to a Whole Foods store in Chelsea New York City. True to the Whole Foods DNA, the Market Daily Shop will offer organic products and local items. The store includes a fresh food section, juices and pastry, sandwiches, soups and salads. Customers can order and consume items in store. This appears to be a hybrid convenience store/QSR/mini-market appealing to a high-income urban demographic.


 

Sparboe Foods Sells Iowa Operation

05/23/2019

In a May 17th release, Sparboe Foods announced the sale of its New Hampton, IA plant to Deb El Food Products. Sparboe will continue to operate shell egg production and packing in their home base of Minnesota in addition to complexes in Iowa and Colorado.

Beth Schnell, CEO of Sparboe thanked New Hampton employees for years of dedication and service emphasizing that her company will focus on the shell egg business.

Elliot Gibber, president and CEO of Deb El Food Products stated “This purchase will position us to significantly accelerate our progress in achieving our vision of being a world-class and trusted supplier of high-quality egg products”. Deb El operates processing facilities in New Jersey and New York.


 

Heat Treatment to Decontaminate Poultry Houses

05/23/2019

Dr. E. R. Benson of the University of Delaware conducted a study on decontamination of poultry houses using heat. The project #F073 was funded by the USPOULTRY Foundation with a grant from Peco Foods. A Salmonella serotype and LaSota strain of Newcastle disease were used as indicator organisms. Heat treatment was applied for at least three continuous days at temperatures ranging from 100 to 120 F.

The study demonstrated that to be effective, heat treatment should be applied to houses only after removal of carcasses and litter since it was not possible to consistently attain temperatures which inactivated Newcastle disease virus in the presence of four inches of litter.

Maintaining the required temperature for at least three continuous days during winter may represent a problem in other than well-insulated and sealed buildings. Given that both Newcastle disease and avian influenza are more prevalent during winter months, to be effective, heat treatment will require considerable energy input even in sealed houses under optimal conditions. 

To evaluate the effectiveness of heat treatment following depopulation of an infected flock, appropriate sampling and laboratory assay will be required to confirm that pathogens have been inactivated before re-stocking.


 

Whole Foods to Reduce Plastic Packaging

05/23/2019

Effective July 2019, Whole Foods Market will eliminate plastic straws and replace PET rotisserie chicken containers in stores in the U.S., the U.K., and Canada. It is expected that these changes will reduce plastic destined for disposal by 400 tons annually.

A. C. Gallo, president and Chief Merchandising Officer for Whole Foods Market stated “We recognize that single-use plastics were a concern for many of our customers, team members and suppliers and we are proud of changes in packaging and we will continue to look for additional opportunities to further reduce plastic across our stores”. Previously Whole Foods Market eliminated Styrofoam meat trays and disposable plastic grocery bags at checkout counters.


 

Iowa State Awarded Recruiting Grant

05/23/2019

The USPOULTRY Foundation awarded a $7,000 student recruiting grant to Iowa State University, made possible in part by a gift from West Liberty Foods. The USPOULTRY Foundation has awarded recruiting grants totaling $328,000 for the 2018-2019 school year to 34 colleges and universities with either a poultry science department or a poultry studies program.

The Foundation has supported student recruiting since 1994 enabling colleges and universities to attract students who will enter the poultry industry.


 

CDC Documents Salmonella Outbreaks from Backyard Chickens

05/23/2019

In a May 16th release, the CDC reported on incident cases of salmonellosis in owners of backyard chicken flocks. The report noted 52 cases in 21 states with five hospitalizations. A quarter of the cases involved children under five years of age. The most likely vehicles of infection were day- old chicks and a few ducklings purchased from agricultural stores and mail-order hatcheries.

The CDC issued the usual precautions regarding preventing direct contact with live poultry, confining birds to the exterior of a home and handwashing after handling chicks. Although these common sense precautions will reduce the possibility of infection, chicks and duckling are usually brooded inside a home and are handled by children. The increase in incidence rate of chick and duckling-derived salmonellosis is attributed to injudicious purchase over Easter.


 

Secretary of Agriculture Dr. Sonny Perdue Visited Japan and South Korea

05/23/2019

In a mid-May promotional trip to Japan and South Korea, Secretary of Agriculture, Dr. Sonny Perdue met with his counterparts to discuss exports of U.S. farm products. The meetings followed discussions on trade issues and will continue with preparations for the proposed meeting between Prime Minister Abe of Japan and the President.

The United States-Korea Free Trade Agreement was reviewed. A specific topic included the application of science-based decision-making criteria in establishing policy following outbreaks of catastrophic diseases.

The USAPEEC arranged receptions for Dr. Perdue in both nations.


 

Zoetis Placed on Fortune 500 List

05/23/2019

The 65th Annual Fortune 500 list of the largest U.S. companies ranked by total revenues includes Zoetis for the first time ranking #487. The threshold for inclusion on the list is $5.6 billion in revenue.

Zoetis has a market capitalization of $49 billion and traded over a range of $78.90 to $103.97 over the past 52-weeks. The Company has a trailing 12-month operating margin of 31.4 percent and a net profit margin of 23.5 percent.  For the first quarter of FY 2019 Zoetis posted a net income of $312 million on sales of $1.455 Billion


 

Alltech Appoints Senior Managers

05/23/2019

Dr. Mark Lyons, president and CEO of Alltech Inc., has announced a series of senior management appointments. In the Alltech release, Dr. Lyons stated “The depth of experience and industry know-how of the four new team members is the passion they share for advancing agriculture, empowering our customers and delivering on our shared vision of a planet of plenty”. Lyons added “They have an authentic connection to our company culture and most importantly they bring great strength of character to our leadership”. The appointees are:

  • Brian McCawley, Senior Vice President of Sales focusing on North America.
  • Mike Osborne, Key Account Advisor will be responsible for advancing sales of additives in North America.
  • Christopher Speight, Chief Financial Officer for the Americas

Jonathan Forrest Wilson, President of Alltech Greater China


 

USPOULTRY Foundation Approves a Grant to Investigate False Layer Syndrome

05/23/2019

The University of Georgia will receive a grant from the USPOULTRY Foundation in part provided by a gift from Cargill to investigate the cause and prevention of false layer syndrome. This condition first described in the 1960s, re-emerged in the U.S and Canada sporadically in 2017 and is attributed to exposure of pullets to specific strains of infectious bronchitis.

Introduction of routine vaccination of pullets at the hatchery with infectious bronchitis strain Ma5 appears to provide sufficient protection and together with subsequent live and inactivated vaccines has resolved the problem. Notwithstanding the current situation, a detailed study into the pathogenesis of the condition and the specific strains of infectious bronchitis virus involved will be beneficial to the industry, especially if the condition reappears or if other strains of infectious bronchitis emerge affecting the urogenital system.


 

Multi-State Outbreak of Salmonellosis Attributed to Imported Tahini

05/23/2019

Tahini and halva under the Karawan brand imported from Israel has been implicated in a multi-state outbreak of Salmonella Concord. The pathogen affecting patients was isolated from unopened samples of product.

To date, four illnesses have been diagnosed with one hospitalization. Cases were confirmed in New York (2); Massachusetts (1) and Texas (1).

This case illustrates the ability of CDC to identify outbreaks of foodborne infection involving only a few patients residing in more than one state. Databases coupled with PCR assay and more diligent diagnostic procedures can identify the presence of specific pathogens. Application of routine Whole Genome Sequencing allows investigators to positively correlate isolates from patients with a specific food or processing plant.


 

Eggs Served as Street Snacks in Japan

05/23/2019

Vendors in markets serve fried eggs on a formed vegetable base eaten from a small tray. Price equivalent to $3 per serving


 

Egg Packs in Japan

05/23/2019

Eggs are marketed in PET 10-packs under refrigeration in small urban supermarkets, basically large convenience stores at $2.20 to $3.00 per pack


 

Unique Egg Pack in Japan

05/23/2019

Eggs at a rural store in Japan packed in a round PET container with cells and plastic net. Detailed nutritional data imprinted on label indicating a ten-day shelf life consistent with preoccupation with “freshness” in Japan. Displayed under refrigeration at $2.20 per 10 eggs.


 

Target Reports on Q1 of FY 2019

05/22/2019

In a press release dated March 22nd Target Corporation (TGT) announced results for the 1st Quarter of Fiscal 2019 ending May 4th.

The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as $ x 1,000 except EPS)

1st Quarter Ending

May 4th 2019

May 5th 2018

Difference (%)

Sales:

$17,627,000

$16,781,000

+5.0

Gross profit:

$5,379,000

$5,156,000

+4.3

Operating income:

$1.135,000

$1,041,000

+9.0

Pre-tax Income

Net Income

$1,020,000

$795,000

$927,000

$718,000

+10.1

+10.7

Diluted earnings per share:

$1.53

$1.33

+15.0

Gross Margin (%)

30.5

30.7

-0.7

Operating Margin (%)

6.3

6.2

+1.6

Profit Margin (%)

4.4

4.3

+2.3

Long-term Debt:

$11,357,000

$10,223,000

+9.3

12 Months Trailing:

     

Return on Assets (%)

6.5

   

Return on Equity (%)

25.5

   

Operating Margin (%)

5.6

   

Profit Margin (%)

3.9

   

Total Assets

$40,619,000

$41,290,000

-1.7

Market Capitalization

$40,620,000

   

Consensus expectations for TGT were:- Revenue $17.32 billion; EPS of $1.43 and same-store sales growth of 4.2 percent.

52-Week Range in Share Price: $ 60.15 to $90.39

Market post-release noon May 22nd $78.48 up 9.1 percent

Forward P/E 12.7 Beta 1.0

Comparable store sales growth in Q1 2019 attained 4.8 percent compared to 3.0 percent in Q1 2018

Traffic increased 4.3 percent in Q1 2019 compared to 3.7 percent for Q1 2018
 

Effective May 4th 2019 TGT operated 1,851 stores with an area of 239,797 ft2

In commenting on Q1 results Brian Cornell, Chairman and CEO stated "Target had an outstanding first quarter, as our team delivered a great experience for our guests and drove strong growth in traffic, comparable sales, operating income and earnings per share," He added "over the last two years we have made important investments to build a durable operating and financial model that drives consumer relevance and sustainable growth. Target's first quarter performance and market-share gains demonstrate that the model is working. Throughout this year, we will continue to extend the reach of our same-day fulfillment options, strengthen our portfolio of owned and exclusive brands, remodel and open more stores and invest in our team. We're confident that we're well-positioned to deliver strong financial performance in 2019 and beyond."

TGT issued EPS guidance for Q2 corresponding to a range of $1.52 to $1.72.


 

Val-Co® Launches E-Commerce Val-Co Store

05/21/2019

Val-Co has established an E-commerce website www.val-co.store to supply a range of watering, feeding, ventilation components and repair parts. New products include nipples, rebuild kits for regulators, bin bottom conversion kits, fans, vent actuators and numerous electronic components for ventilation, feeding and watering systems.


 

First Quarter Egg Production in Brazil Higher than in 2018

05/21/2019

According to a report from the Brazilian Institute of Geography and Statistics egg production in Brazil attained 908 million dozen (30.2 million cases) during Q1 of 2019, approximately 5.5 percent higher than the corresponding quarter of Fiscal 20018.

 

The Brazil-Arab News Agency reported exports of one percent of eggs produced  by Brazil to Middle East nations during the first quarter of 2019, an advance of 7 percent over Q1, 2018.


 

National Retail Federation Opposed to Increasing Tariffs on Goods from China

05/21/2019

The National Retail Federation (NRF) has released a statement opposing the imposition of 25 percent tariffs on $300 billion in Chinese goods that have yet to be included in the round of mutually punitive tariffs.  In a statement by Matthew Shay, CEO of the NRF the organization noted, “We support the Administration’s efforts to deliver a meaningful trade agreement that levels the playing field for American businesses and workers” He added “the latest tariff escalation is far too great a gamble for the U.S. economy.” 

 

The NRF statement included, “Taxing Americans on everyday products like clothes and shoes is not the answer for holding China accountable.  Working with our allies who share the same concerns and immediately rejoining the Trans-Pacific Partnership are more effective ways to put pressure on China without hurting hardworking Americans.”  A study commissioned by a pro-business group, “Tariffs Hurt the Heartland” has projected that placing a 25 percent tariff on all remaining imports from China would result in up to two million American jobs losses, will cost the average family $2,300 each year and lower GDP by one percent.

 

Contributors to the CNBC Before the Bell program on May 21st predicted that existing tariffs are now being placed on current purchases and that proposed escalation or extension would result in store closures. In quarterly reports and analyst calls CEOs are already warning of lower margins and predicting impacts on the bottom line as a result of trade disputes.


 

Kroger Focusing on Home Chef® Meal Kits

05/20/2019

Despite intense competition and negligible profitability in the home-meal kit market, the Kroger Company has added convenience-related items to the Home Chef range.  Pilot testing of heat-and-eat lunch kits will begin in late May at 68 Kroger stores in Illinois and Ohio.

 

Home Chef Meal Kits are available in 900 Kroger banners and offer the advantage of speed, variety and elimination of post-meal cleanup.  Kroger claim a five-minute preparation time followed by cooking for 30 minutes. A meal will serve two diners at under $9 per serving. 

For the new Home Chef range, six new recipes will be added incorporating conventional and ethnic dishes with new recipes each month.  A Kroger spokesperson stated, “Our new meal solutions provide additional flexibility for families and individuals who want to get a meal on the table quickly.”

 

It appears that rapid home dining has progressed full circle from TV dinners through from-scratch preparation to meal kits.


 

Passing of Arthur Papetti

05/20/2019

EGG-NEWS regrets to record the passing of Arthur Papetti on May 2nd at the age of 87.

 

Born into the family business which became Papetti’s Hygrade Poultry and Eggs, he and his brother Tony concentrated on egg production and distribution.  He was a pioneer in egg processing and built a business on satisfying needs for specific egg liquid products.

 

He was a board member of the Prepared Food Association, the United Egg Association, the New Jersey Poultry Association and other industry-related organizations.  He received Urner Barry Man of the Year award, the Golden Egg Award and was regarded highly in the industry.


 

Cargill to Recall Southern States® Feed Due to Elevated Aflatoxins Level

05/20/2019

Cargill Animal Nutrition is recalling feeds under the Southern States® brand due to the presence of aflatoxins.  Products were recalled during the first quarter of 2019 and involved equine and poultry formulations.

 

Products were manufactured at the Cleveland, NC plant and distributed in northeast and Mid - Atlantic States. The recall was initiated following notification of violative levels by the North Carolina Department of Agriculture.  No adverse effects have been reported.


 

Information circular on HPAI available to travelers entering Japan

05/20/2019


 

Salmonellosis Linked to Imported Tuna

05/19/2019

In a May 9th 2019 release the Food and Drug Administration announced that JK Fish of Vietnam was added to import alert 16-120 allowing the Agency to detain product without physical sampling and analysis.

This action was taken following isolation of Salmonella Newport from samples of ground tuna imported to the U.S. and sold to restaurants and food service companies. Thirteen illnesses have been diagnosed and confirmed with two hospitalizations. Seven states have recorded cases ranging from Connecticut to Washington.

 On April 15th, Jensen Tuna voluntarily recalled frozen ground tuna following the initial diagnoses. The Centers for Disease Control and state public health authorities analyzed information leading to ground tuna as the most probable vehicle for infection and FDA established the trace-back to Jensen Tuna and their supplier in Vietnam.


 
















































































































































































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