Shane Commentary

Carl Icahn Challenging The Kroger Company Over Gestation Crates

03/31/2022

On Wednesday, March 30th, the Kroger Company announced that activist investor, Carl Icahn, has submitted a petition nominating two candidates to the Board to be elected at the 2022 annual meeting of shareholders to take place on a date to be announced.

 

At issue is the demand by Icahn that Kroger Company move more aggressively to reject all pork derived from sows held in gestation crates.  At the present time, approximately 25 percent of sows in the U.S. are group-housed in accordance with Proposition #12 and similar legislation in Massachusetts, Florida and Arizona.  The newfound concern for welfare on the part of Icahn of livestock apparently stems from a family member affiliated to the HSUS.

 

In a prepared statement, Kroger noted that it, “works closely with our key suppliers to understand animal welfare topics and make progress together towards commitments”. The company also maintains that it solicits feedback from internal and third-party animal welfare experts, advocacy groups and customers.

 

Kroger cannot claim to be concerned over livestock welfare if it countenances gestational crates   in pork production.  The system is regarded as cruel, resulting in almost lifelong confinement of sentient animals to compartments approximately six by three foot that effectively restricts normal activities.

 

The National Pork Producers Council and the American Farm Bureau Federation have petitioned SCOTUS to consider the constitutionality of Proposition #12 and the case will be heard during the coming term.

 

In the interim, a large number of retailers and restaurant chains have indicated that they intend complying with accepted welfare standards. They have been moving progressively in cooperation with suppliers towards sourcing pork derived from sows held under group housing with an allowance of 24 square feet.

 

The Kroger Company is concerned over shareholder, customer and consumer perception of corporate SGE and goes to great length to publicize commitments to sustainability, welfare and environmental issues through a Public Responsibilities Committee. If members of this Committee and the management of the Kroger Company cannot recognize the inhumanity of confining sows to gestation crates, they need to spend a few days on farms observing sow housing in both crates and group pens.

 

Following adoption of California Proposition #2 in 2008, the egg industry moved progressively to replace conventional cages with alternative systems including aviaries and barn housing. As of February 2022, 111 million laying hens were maintained in either aviaries or barns out of approximately 310 million hens in production.  Progress is indicated by the fact that during the fourth quarter of 2020, only 79 million, hens were housed in other than conventional cages.  Since 2008, Cal-Maine Foods has invested more than $418 million in facilities and equipment to convert conventional cages on some farms to alternative systems.  In compliance with state requirements and responding to consumer and customer demand, Cal-Maine Foods has committed an additional $80 million to expanding cage-free production.

 

The pork industry must recognize that the welfare train has left the station, irrespective of the outcome of their appeal to SCOTUS. Their route should be to follow the lead of egg producers and convert notwithstanding the cost. The alternative to inaction by 75 percent of the industry may be that they will either run out of packers willing to process their hogs or experience lower prices for pork derived from sows in gestation crates.  Currently Congress is considering the PIGS Act that would establish a national standard for housing parent level and growing generations.


 

USDA and DOJ Must Get Tough on Meat Smuggling

02/21/2022

During the last quarter of 2021 APHIS seized and destroyed approximately one ton of prohibited and ilegally imported pork, poultry and ruminant products from New York City retailers.  Customs and Border Patrol (CBP) agricultural specialists recently confiscated 300 pounds of bologna at the Pas del Norte border crossing.  The CBP issued 1,050 Emergency Action Notifications for prohibited animal products that were seized at the Port of Los Angeles in 2021.

 

The risk and consequense of introducing animal diseases of significance including African Swine Fever, Avian Influenza, Exotic Newcastle disease, Foot and Mouth disease, and Swine Vesicular disease justify more intensive surveillance.  As with drugs, the quantity seized is often a fraction of the total quantity smuggled.  Since many of the shipments, especially those from China are hidden in containers with manifest documents describing the contents as consumer products, additional manpower and the Beagle Brigade should be reinforced.

 

With respect to small retail establishments selling embargoed animal products, federal agents should be deployed in greater numbers and fines should be commensurate with the potential damage that could be caused to the livestock industry and ultimately to consumers.

 

Given the consequences of introducing an exotic infection, importation or retailing of illegal meat products should not simply result in confiscation and a slap on the wrist.  Punitive fines and jail time should be imposed to discourage illegal importation.  Ethnic consumers must conform to the norms of American society and relinquish their taste for exotic meats and traditional presentations of pork, beef, and poultry.

 


 

Iowa Awards Grants to Small Packaging Plants

02/02/2022

The Iowa Economic Development Authority has awarded 15 grants from the state Butchery Innovation and Revitalization Fund. Grants ranged from $40,000 to $50,000 per applicant. And were intended to allow small-scale meat processors to expand their operations and to conform to acceptable standards of slaughter and processing. The program funded with a $750,000 allocation by the Iowa Legislature requires a 50 percent match by recipients.

 

Using public funds to support businesses is acceptable if the state receives either a direct or indirect return.  If the individual projects for which there were 54 applications, provided the possibility of a return, commercial finance institutions concentrating on the agricultural sector would have been willing to extend facilities.  Given the fact that the state must use public funding to support commercial enterprises suggests a high risk.  It will be interesting to learn how the state of Iowa or for that matter any other state or the USDA assess the return from similar grants. 

 

A secondary consideration will be the actual effect on increasing the supply of red meat at a competitive price.  Since the 2020 disruption in supply of red meat as a result of COVID among workers in large plants, politicians have recognized the potential for constituent support by questioning the integrity and value of consolidation and economies of scale in red-meat packing. There is a current movement within the USDA to attempt to create an alternative product stream by establishing and expanding small-scale processors that would otherwise have been non-viable.

 

The Iowa Economic Development Authority has the obligation to justify the expenditure of public funds to support small-scale enterprises by publishing periodic progress reports and subjecting programs to review by disinterested agricultural economists.

 


 

State Attorneys General Urge Stricter Enforcement of Packers and Stockyards Act

12/26/2021

Attorneys General of a number of agricultural states have urged USDA Secretary Tom Vilsack to intensify enforcement of the Packers’ and Stockyards Act 0f 1921.

 

The Attorneys General maintain that consolidation especially in the beef industry has weakened the bargaining position of beef ranchers and hog producers.  The letter stated "this consolidation makes it more difficult for producers to get the best prices for their products, forcing many smaller cattle, hog and chicken farms out of the market".

With regard to broilers, their contention is incorrect since the major integrators own their flocks and provide chicks and feed to contract growers. These independent farmers house and care for flocks during the growing cycle and are paid for the use of their facilities, labor and utilities.  The broiler contract system absolves the independent contractor from fluctuations in the market and input costs and ensures regular income as each flock is harvested.  The Packers’ and Stockyards Act protects contract growers with regard to accuracy of weight and prevents any manipulation of he basis of payment.

 

With regard to beef, the Attorneys General encouraged interagency collaboration of government departments and sharing of information with regard to markets. The letter urged the USDA to monitor the relationship between packers and suppliers.  The Attorneys General suggested investment in new competitive entrants into meat and poultry processing adding strength to existing small and very small facilities. 

 

Financial support of small operations would be an unfair use of government funds and would ultimately support inefficiency at the expense of shareholders in existing packing companies.  The Attorneys General are obviously interested in exercising existing antitrust legislation for political ends.  The letter proposes that the USDA and DOJ investigate ways in which large packers can be dismembered such as occurred with AT&T. This company served as a virtual landline monopoly in the 1970's until enforced breakup occurred in January 1982 after eight years of litigation.  Prior to the AT&T breakup, the previous exercise of the Sherman Antitrust Act of 1890 took place in 1911 following the successful lawsuit brought against Standard Oil by the U.S. government.

 

History is the witness to the fact that when governments attempt to intervene and regulate industries, unintended consequences hurt shareholders and consumers with the major benefit, if any, accruing to politicians and bureaucrats.


 

AFBF Urges Waivers for H-2A Workers from South Africa

12/21/2021

The American Farm Bureau Federation (AFBF) and sixty other agricultural groups are urging the Administration to grant exemptions for H-2A farm workers from South Africa.  COVID restrictions placed a hold on approximately 7,000 workers.  Given the spread of the Omicron variant of COVID in the U.S. with confirmation of its presence in more than 35 states and with 75 percent of new cases due to this variant, there appears little danger in bringing in vaccinated and tested workers from South Africa for work on fruit and produce farms.

 

The need to introduce temporary workers from the Republic of South Africa and elsewhere denotes the non-availability or disinclination of U.S. citizens to undertake agricultural labor. Relocation westward from the dustbowl in the early1930s to Pacific states supported displaced farmers and contributed to the growth of food production in California, Oregon and Washington. Have we progressed too far from the principle that unemployed people follow opportunities or have our social support programs created a class of “comfortable limpets”? In the immediate term the problem of farm labor will require collaboration between the Departments of State, Homeland Security and Agriculture and will necessitate an overhaul of immigration legislation that is long overdue. It is evident that higher levels of mechanization will be necessary to reduce labor input in food production with both higher wage rates and capital investment passed on to consumers. 


 

Plant-Based Burgers Inferior in Amino Acid Value Compared to Pork and Beef

12/12/2021

Studies conducted by the University of Illinois and Colorado State University demonstrated that plant-based burgers had lower digestible essential amino acid availability compared to plant-based substitutes.  The study* applied the digestible indispensable amino acid score (DIAAS) developed by the Food and Agricultural Organization that measures availability of specific essential amino acids.  Beef and pork burgers yielded excellent protein scores in excess of 100 for all ages based on the studies conducted.  The Impossible® burger based on pea protein provided an ‘excellent’ score for children aged 3 and up.  The Beyond® burger incorporating soy protein was adjudged a good’ source of protein with a DIAAS score of 83.

 

Professor Hans H. Stein of the Department of Animal Sciences and the Division of Nutritional Sciences at the University of Illinois stated, “We have previously observed that animal proteins have greater DIAAS values than plant-based proteins as observed in this experiment.  The nutritional value of plant-based burgers was reduced when fed with a bun.  In contrast, the DIAAS scores for beef and pork burgers were not adversely affected when combined with a bun.  The study demonstrated the superior amino acid digestibility from animal protein considered a necessary component of the human diet.”

 

*Fanelli, N. et al Digestible Indispensable Amino Acid Score (DIAAS) is Greater in Animal-Based Burgers Than in Plant-Based Burgers if Determined in Pigs. European Journal of Nutrition (2021) DOI:10.1007/s00394-0210-02658-1.


 

Employers’ Participation in COVID Prevention

12/06/2021

A report by CNBC documents the Willis Tower Watson survey of 543 employers concerning mandatory vaccination of employees against COVID. A total of 57 percent of those responding indicated that they currently mandate or will require vaccination.  Of these companies, 18 percent have already implemented a mandate and 32 percent of employers will follow the OSHA Emergency Temporary Standard when it takes effect.

 

Following litigation, the Administration has shelved the mandate and enforcement of vaccination for companies with more than 100 employees that would have covered 84 million workers. It is now a reality that average daily COVID case counts are rising and are higher than in late November 2020. With the emergence of the Omicron variant, more employers are considering a firm requirement for vaccination with exceptions only for those with sincere religious beliefs or medical exemptions.  Some employers are still concerned over resignations in a tight labor market and others are adopting a wait-and-see response.

 

Tyson Foods has vaccinated over 97 percent of workers through a coordinated program of providing financial incentives, facilitating on-site vaccination and most recently a company mandate requiring protection.

 

The success achieved by Tyson Foods and the National Football League confirms that the Willis Tower Watson survey determined that only three percent of employers reported any appreciable level of resignations following introduction of a vaccine mandate.

 

Vaccination is currently required by United Airlines, Delta, CVS Health, most hospitals and retail chains.  Predictably vaccine mandates are favored by many employees and in fact have attracted new workers and contributed to retention.  Employers will offer testing on a weekly basis to non-vaccinated employees with 90 percent of respondents to the survey either now requiring or planning to enforce masking.

 


 

Study Points to the Danger of Exotic Animals in Markets in China

11/29/2021

A recent study conducted by international epidemiologists and virologists co-authored by Professor Edward Holmes, an evolutionary biologist at the University of Sidney, Australia, has disclosed a high risk associated with contact between humans and exotic animals in China.  The study was in part supported by the National Key Research and Development Program of China and will be subject to peer review with subsequent publication.  A preliminary manuscript has been released on bioRxiv an open-access repository. Sponsored research was conducted as a scientific exercise and was not intended to probe the origins of SARS-COVID-2 responsible for COVID.

 

A dozen species of game animals sold in food markets in China, yielded 71 mammalian viruses including 18 regarded as “high risk” to both people and domestic animals.  Civets responsible for the dissemination of severe acute respiratory virus (SARS) two decades ago were regarded as the species carrying the highest number of potentially pathogenic viruses.

 

As part of the study, Dr. Shuo Su of the Nanchang Agriculture University, College of Veterinary Medicine, examined 1,725 animals from among 16 species collected in 19 provinces in China.  Many of the same species were sold at the Huanan Seafood Wholesale Market in Wuhan representing a hazard to consumers and the public in general.  Among the findings of the study, pangolins, civets and bamboo rats carried norovirus and influenza B.  Cross-species transmission of mammalian viruses was confirmed including isolation of a bat-associated coronavirus in a civets and a swine pneumovirus in pangolins.  If bat viruses can infect civets, it is possible that a further “species jump” to human could initiate an outbreak according to Dr. Holmes.  He characterized the consumption of exotic species in China as “the right virus in the right animal at the right time could easily trigger a global pandemic.” Dr. Holmes noted, “The study highlights exactly why the wild life trade and live animal markets are a pandemic accident waiting to happen.”

 

Shortly after the emergence of COVID in Wuhan, the Central Government banned trade in exotic species. Consumption of terrestrial wild animals has been prohibited since early 2020.


 

Bilateral Trade in the Background in Virtual Presidential Meeting

11/21/2021

The Monday night virtual discussion between President Biden and his counterpart President Xi was wide-ranging extending over three hours.  Topics reviewed included Taiwan, human rights, and cryptocurrency.  Although the Phase One Trade Agreement of January 2020 was raised, no definitive decisions emerged from the bilateral meeting attended by top advisors and cabinet members on both sides.

 

It is comforting to observe that at least the leaders of the two nations are talking and that China watchers are parsing and evaluating post-discussion statements by officials in positions of responsibility in China.  Agricultural groups including the American Soybean Association are urging for pressure to be placed on China to comply with the requirements of the Phase One Trade Agreement and negotiating a possible Phase Two Agreement when the current pact expires at the end of 2021.

 

Statistics estimate that China has only complied with 60 percent of the predicted value of negotiated imports. This is understandable given the slow start to trade in 2020 given COVID lockdowns. In effect, China has exceeded purchases of corn and is close to target on soybeans. 

 

In a recent interview, U.S. Trade Representative Ambassador Katherine Tai counseled for moderation in dealing with China.  As a Mandarin speaker and temporary student in China, she understands some of the concerns expressed by President Xi including the need for recognition as an equal partner in the World economy. China wishes the U.S to be less aggressive on sensitive on "internal issues" such as Hong Kong and the treatment of Uyghurs.  Unfortunately, these concerns will in the short term, take precedence over agricultural trade.

 

At the end of the day China will purchase what it needs and will continue to pursue policies that are beneficial to their economy.  Requiring them to refrain from industrial espionage, countenancing breaches of cyber security and activities that almost rise to the status of cold-war  tactics will only be resolved, if ever, over the long term.


 

Chipotle to Establish Environmental Targets

11/08/2021

On November 4th Chipotle Mexican Grill announced adoption of the Science Based Targets Initiative to halve greenhouse gas emissions by 2030.

 

In making the announcement, Lori Schalow, Chief of Corporate Affairs and Food Safety Officer noted, "we are committed to continue improvement and will actively do our part to reduce our greenhouse gas emissions and protect the Planet".  These sentiments are obligatory for a company catering to a young educated and environmentally conscious clientele.

 

To achieve the desired targets, the Company will apply smart-energy management systems in restaurants, will purchase renewable energy and install energy-sparing equipment.  The company will review transportation and warehousing in an attempt to reduce emissions especially for a third-party delivery of meals that represents a growing component of Chipotle revenue.

 

Of some concern is the intention of Chipotle to "explore protein and animal management solutions and promote carbon-reducing practices".  This implies that Chipotle will either directly or through third party consultants and auditors influence production practices through the supply-chain for ingredients incorporated in Chipotle menus.  Initially it is presumed that Chipotle will concentrate on produce, although meat, poultry and eggs incorporated into menu items will come under scrutiny.

 

Perhaps the most immediate and achievable component of the program will be to reduce waste and packaging.  When services are available, Chipotle will follow closed-loop packaging, reduce waste and divert from landfills. They could also serve smaller portions benefitting both health of their customers and the environment.

 

The Science Based Targets initiative comports with an earlier Environmental, Social and Governance (ESG) concentration that will among other components have an influence on executive remuneration.

 

The question remains as to whether the Chipotle announcement and goals are greenwashing or represent a concerted attempt to conform to norms of environmental compliance. Areas of concern include reducing greenhouse gas emissions, conserving water and energy and reducing diversion to landfills. Progress towards the 2030 goal should be documented in regular sustainability reports.


 

Retailers and Shippers Gearing Up for Christmas Demand

10/31/2021

This year has experienced increased demand as COVID restrictions are lifted. Concurrently a suppliers are faced with a shortage of workers, disruption in supply chains, congestion at ports and soaring costs for inland transport. In anticipation of the imbalance between supply and demand, major retailers and shippers have addressed deficiencies in their platforms and resources. 

 

Amazon is committed to maintaining the supply chain with optimizing safety, speed and efficiency.  Their intent is to “get customers what they want, when they want it, wherever they are this holiday season.” UPS has made similar claims and is determined not to repeat delays experienced in past years.  Target and Walmart are using third party delivery services but are also promoting in-store and curbside pickup linked to E-mail and text orders.

 

The extent of investment in facilities and human resources to supply anticipated demand is evidenced by a recent Amazon release.  The company announced hiring of 125,000 supply chain employees.  Their contribution will however be limited by lack of experience and the need for training.  The company has opened 250 new fulfillment centers including regional air hubs and delivery stations during 2021 requiring 100 new physical sites established in September.  Amazon, Walmart and Target have chartered vessels to ship products from Asia and are diverting container vessels to ports other than Los Angeles and Long Beach.  Amazon anticipates operating a fleet of over 80 aircraft for distribution in an attempt to match the capabilities of FedEx and UPS.

 

Improvements in service will depend on technology including updated inventory control systems ordering, tracking and final delivery.  It appears that Walmart may be benefiting from establishing in-house computer technology. Other retailers will benefit from acquisition of high-tech startups.

 

Progressive and successful U.S. businesses demonstrate flexibility, resourcefulness, planning and coordination at the expense of less efficient competitors.  Let us hope that with declining incidence rates of COVID due to higher rates of vaccination with restoration of our economy that the 2021 Christmas season will provide benefits to shareholders, consumers and workers through high demand for chicken and turkey products.


 

Continuing Improvement in COVID Statistics

10/24/2021

Mackenzie Bean writing in Becker’s Hospital Review, citing data from the Centers for Disease Control for the period ending October 22nd documented the following improvements in COVID statistics:

 

  • The seven-day case average is now 73,079, a 15.1 percent decrease from the previous week.

 

  • The seven-day hospitalization average is 6,004 a 10.3 percent drop from the previous week.

 

  • The current seven-day number of deaths is 1,253 down 4.3 percent from the previous week.

 

  • Approximately 66 percent of the U.S. population has received one dose of a COVID vaccine (220 million) and 57.2 percent have been fully vaccinated representing 190 million.

 

  • The seven-day average number of vaccines administered per day was 795,156 as at October 21st This is a 5.5 percent decrease from the previous week, a figure that is less reassuring.

 

  • The seven-day average for positivity from testing is 5.2 percent down 4.3 percent from the previous week. 

 

  • The seven-day average test volume for the second week of October was 1.4 million down 7.4 percent from the previous week.

 

  • Currently genomic analysis confirms that 99 percent of COVID cases are attributed to the Delta variant
  • A CDC model predicts a 20 percent decline in incident cases in the coming four weeks

 

USDA to Embark on an Initiative to Reduce Salmonella Infections

10/23/2021

In an October 19th release, the USDA FSIS announced a comprehensive effort to reduce the incidence rate of infections attributed to Salmonella.  According to Secretary Tom Vilsack, one million cases of salmonellosis occur annually in the U.S. with an estimate of almost a quarter due to contaminated chicken or turkey products.  Vilsack stated, "Today we are taking action to help prevent Salmonella contamination through the poultry supply chain and production system to protect public health".  Previously CHICK-NEWS has commented on the statements by Undersecretary Sandra Eskin relating to extending FSIS involvement to pre-harvest control.  This corresponds to the Vilsack statement that including "production systems". Secretary Eskin considers that "reducing Salmonella infections attributed to poultry is one of the Department's top priorities".

 

The USDA intends to request the National Advisory Committee for Microbiological Criteria in Foods to advise on how FSIS can apply technology to improve control of salmonellosis.  Implicit in the program is pre-harvest control to reduce the quantum of contamination entering processing plants. The FSIS intends to monitor both the serotypes of Salmonella entering plants and the quantitative and qualitative levels of contamination.

 

Reference is made to the petition by attorney Bill Marler of Marler Clark, demanding that FSIS declare frequently encountered Salmonella serotypes as adulterants. The FSIS apparently received close to 400 comments on the petition before the May 25th 2020, deadline supporting the petition, Marler cited 26,500 hospitalizations, 420 deaths and 130 outbreaks of salmonellosis annually with a cost ranging from $3 to $7 billion.  It is however acknowledged that only a quarter of the cases of salmonellosis are attributed to poultry meat.  Epidemiologic evidence points to mishandling, under-cooking and deficient kitchen hygiene in both homes and institutions as responsible for infection.

 

The program contemplated by the USDA-FSIS will require public comment before rule-making.


 

USDA Awards $10 Million for Research into Cell Cultured Protein

10/16/2021

The USDA has awarded $10 Million to Tufts University to establish a National Institute for Cellular Agriculture.  The grant was part of a $146 million investment in sustainable agricultural research.

 

Professor David Kaplan, an expert in cell cultured meat will head the Institute that will cooperate with scientists at Virginia Tech, Virginia State, University of California-Davis, MIT, and the University of Massachusetts.

 

The National Center will “integrate research, education, and extension activities to develop innovative technologies and improve outreach and extension activities in cellular agriculture.”

 

Why the USDA grant?

 

The Department of Agriculture should be supporting traditional livestock production and developing technology that reduces the environmental footprint of beef, pork, and poultry.  It is evident that many of the USDA “investments in sustainable agricultural research” run counter to the needs of traditional livestock production.

 

If cell-cultured meat has a future, it is up to venture capital funds, financial institutions and industry to invest in this technology. as in the E.U and Israel.  It is apparent that many of the policies of the present Administration, and specifically the Department of Agriculture, are directed at environmental issues and the policies of the Left to the detriment of traditional agriculture.


 

USDA Promoting Small-Scale Processing

10/09/2021

On October 5th, the USDA announced an additional $100 million in loan guarantees ostensibly to improve the U.S. supply chain with special reference to the meat and poultry sectors. 

 

In July, the USDA indicated their intention to invest $500 million to expand meat and poultry processing capacity with an additional $150 million to support small and very small facilities that were impacted by COVID restrictions.  The USDA has already dispersed $55 million to improve existing small plants and the Department is reviewing 250 applications requesting $100 million.

 

In commenting on the support programs, USDA Secretary Tom Vilsack, stated “As we build back better we must create more better and fairer markets that enhance competition and create economic opportunities across America’s agriculture and food supply chain.”  He added, “This initiative is another meaningful step to act on lessons from COVID-19 to build a food system that is fair, competitive, distributed, and resilient where a greater share of the food dollar goes to those growing, harvesting, processing, and preparing our food.”

 

The USDA policy of supporting medium and small decentralized plants is supported by the National Cattlemen's Beef Association.  Ethan Lane, VP of Governmental Affairs for the Association, stated “The pandemic accentuated a number of vulnerabilities within our supply chains - chiefly the choke point at the meat packing sector which has resulted in unsustainable prices for cattle producers and increased the cost of beef for consumers.”

 

It is apparent that the events of March through May of 2020, during which COVID restricted most large pork and beef plants to as little as half the regular output, is now being used as an excuse to restructure the meat industry to the advantage of cattle producers and feeders and to reduce the power of the four largest processors.

 

With respect to the broiler industry, any shortages on shelves during the second quarter of 2020 were due to panic buying and not to any disruption in supply.  The U.S. chicken industry has developed into an oligopoly in which the top five producers are responsible for about 65 percent of production. Notwithstanding corporate concentration  there are more than 160 plants among 22 states each with an output in excess of 600,000 birds up to 2,500,000 birds per week and operating at a high level of efficiency. As opposed to red meat production the broiler industry is integrated with respect to chick production, grow-out processing, and distribution. This provides security and benefits both to contractors and shareholders and ultimately for consumers.


 

Vaccine Mandates Preceded COVID

10/03/2021

In 1777 General George Washington issued a mandate to vaccinate the Revolutionary Army against smallpox despite an anticipated two percent fatality rate from the crude vaccine used. The preemptive action allowed training to proceed and preserved the readiness of the army to save the United States.  Receiving a smallpox vaccine was both patriotic and a recognized measure to preserve life and prevent the complications of the disease.

 

Despite legal challenge to vaccine mandates, most states have over the years required school children to be protected against a wide range of diseases. Vaccination has effectively eradicated many childhood diseases in the U.S. The need to continue to vaccinate populations is illustrated by the frequent upsurge in cases of measles as a result of vaccine rejection by various religious sects. In Staphorst a town with a population of 10,000 in the Netherlands experienced an outbreak of poliomyelitis affecting 38 children within a strict Calvinist sect. The outbreak only ceased following compulsory vaccination. The military has for decades imposed vaccine mandates to maintain operational readiness among armed forces deployed to areas where a number of serious infections are prevalent.

 

The recent round of COVID vaccination mandates issued by the Administration, hospital chains, and commercial firms are justified given the need to protect workers from infection by unvaccinated colleagues.  Vaccine refusal among healthcare workers and those coming into contact with the elderly is unconscionable.  There is no “right to infect” as Justice John Marshall Harlan ruled in 1905 stating that the Constitution did not sanction Americans to behave individually as they chose.  In his ruling dealing with a smallpox vaccine mandate he stated, “Real liberty for all could not exist if people could act regardless of the injury that may be done to others.”


 

COVID Update

09/24/2021

The Johns Hopkins University, Bloomberg School of Public Health maintains a dashboard on global and national COVID statistics. Effective September 23rd the CDC reported 42.8 million diagnosed COVID-19 cases. The current 7-day average daily incidence rate is 126,760 but appearing to be trending downwards.  There are currently 89,260 COVID patients in hospital, down from 95,911 in late August.

 

The CDC has documented 686,346 fatalities. In effect the actual number of COVID deaths probably exceeds 750,000 based on the comparable 2019 mortality rate. Daily mortality that lags incidence is increasing and on September 21st 3,145 fatalities were reported. During the 1918 influenza pandemic, the U.S. with a population of approximately 105 million recorded 675,000 fatalities.

 

Currently 182 million of our population is fully vaccinated, representing 54.7 percent of the total.  Of this number, 66 percent are adults with approximately 12 million adolescents aged between 12 and 17 years. The respective proportions of vaccine types administered to date comprised 55 percent Pfizer-BioNTech; 37 percent Moderna and 8 percent single-dose J&J. The 7-day average daily vaccination rate is 126,760 down from 150,625 in late August.

 

As widely reported, most of the hospitalizations and virtually all fatalities are in non-vaccinated patients.  Serious cases of COVID amongst those who were vaccinated are generally confined to the frail elderly and those with underlying health conditions including diabetes, obesity or immunosuppression.  It is noteworthy that a high proportion of incident cases now involve children who are not yet eligible for vaccination and who have returned to school with diverse protective measures of varying intensity including distancing, masking and enhanced ventilation.

 

There is a clear correlation between low vaccination rates and hospitalization in all areas of the U.S.  States with the lowest vaccine compliance are recording the highest levels of hospitalization including admission to ICU wards.

 

Epidemiologists and immunologists have evaluated data from the U.K. the U.S. and Israel concerning the desirability of booster doses to enhance protection among those who have received one of the three vaccines available in the U.S.  At a recent meeting the FDA panel deferred on a firm recommendation for boosting of the public in general but did agree that those over 65 and people with immune suppression or conditions that would render them susceptible to the effects of COVID could receive a booster vaccine. On Friday 24th the CDC firmly recommended to the White House that all recipients over 65 years of age and those with immunosuppression and workers with a high risk of exposure to COVID should receive a booster dose six months after their second mRNA vaccine.

 

At this time the emphasis should be placed on vaccinating those who are hesitant by assuring them of the safety and efficacy of all three vaccines with the Pfizer-BioNTech mRNA product having received full FDA approval. It is estimated that 70 million eligible residents of the U.S. have yet to receive their first dose of any of the three vaccines. These individuals, many clustered in rural communities, through disseminating the virus are prolonging the pandemic and delaying recovery of our society and economy. Covid is a public health problem and not a political issue.


 

China to Resume Beef Imports from Brazil

09/14/2021

Following evaluation of the report of two sporadic cases of bovine spongiform encephalopathy (BSE) in Brazil, China has agreed to resume importing beef.  Consideration of the World Organization for Animal Health (OIE) protocols relating to spontaneous BSE in old cows apparently resulted in lifting the embargo.  It is expected that trade will resume by September 19th.

 

China has a capricious history with regard to OIE rules and precedents. Authorities are prepared to resume beef imports from Brazil but continue to embargo pork from Germany as a result of outbreaks of African swine fever (ASF) affecting wild boars in limited and confined areas of Saxony and Brandenburg. China banned chicken imports from the U.S allegedly due to the 2015 HPAI epornitic but maintained an embargo for four years notwithstanding their own AI status. During this period China transshipped more than half of the paws consigned to Hong Kong to the Mainland. Under conditions of normal and rational trade relations, the OIE principle of regionalization would allow Germany to export pork to China where ASF is endemic in most hog-producing areas of the Nation.

 

Effectively China interprets international trade regulations and implements trade policy based on self-interest and protectionism. China is an untrustworthy trade partner. They import commodities only on the basis of opportunity, need and convenience always seeking advantages and where tolerated applying coercion. No supplier can rely on a stable trade relationship with China based on price, quality and conformity with international trade rules. 


 

North American Meat Institute Reacts to Administration Criticism

09/12/2021

Following statements relating to oligopoly in the red meat and poultry industries, the North American Meat Institute has responded publicly defending the current structure of the meat industry.

 

Mark Dopp, COO of the NAMI stated, "as with almost every industry meat and poultry packers and processors of all sizes have been and continued to be effected by the global pandemic and the inflationary trends that challenge the U.S. economy".

 

He continued, "American consumers of most goods and services are seeing higher costs largely due to a persistent and widespread labor shortage".  The NAMI stresses that poultry and meat markets are competitive and dynamic that this ultimately benefits consumers.  It is a general impression in the meat industries that certain members of the Administration do not understand the supply and demand factors and how they affect markets.

 

It is apparent that the Administration is intent on altering the current concentration in red meat packing. Whether this is justified or achievable is questionable. The important question is the possible outcome of injudicious regulations or creating subsidized competition on food security and ultimately availability and the price to consumers.


 

Instacart Faces Competition in Path to IPO

09/01/2021

The August 14th edition of The Economist considered the business prospects of Instacart.  Ms. Fidji Simo originally from France recently left Facebook to assume the position of CEO of Instacart on August 2nd.  Her principal task will be to establish profitability and maintain the goodwill of supermarkets that use the services of the company. It is estimated that Instacart has annual revenue of $1.5 billion and a valuation of $39 billion.  Profitability is yet another issue.

 

Following the advent of COVID, Instacart gained prominence as the intermediary between supermarkets and customers unwilling to shop in-person.  As the economy opens and brick and mortar receives greater patronage, the role of a delivery service is questioned other than for the homebound.  Price sensitivity is evident attested by growth of Aldi and other deep discounters.  Instacart faces considerable competition from delivery services provided by Shipt owned by Target, Walmart and Amazon Fresh.  DoorDash and Uber Eats have extended their services from meal delivery to groceries. 

 

Based on her experience with Facebook, Ms. Simo will extend the scope of Instacart to become a “high-margin digital-ads business”.  Ad revenue attained $300 million in 2020 and is growing at a triple-digit rate.  Instacart is also considering robotic warehouses to be installed in collaboration with supermarket partners hence an alliance with Fabric of Israel that has developed technology and installations suitable for integrating supermarket inventory with customer delivery.  This strategy may be too late as a number of supermarket chains are establishing their own platforms and installations including Kroger and Walmart, essentially to compete with Amazon Fresh.

 

The Prospectus issued in advance of the inevitable Instacart IPO will make interesting reading. The filing will denote the intended future relationship of the Company with respect to supermarkets.


 

Consumers Accepting Face Mask Mandates

08/27/2021

New Hope, a research group has documented a willingness by consumers to wear face coverings in indoor areas.  In late July, 39 percent of respondents indicated a definite intention of remasking.  An August 9th survey indicated an increase in mask compliance to 50 percent.  Conversely, respondents who indicated that they would probably not wear masks dropped from 12 percent to six percent over the two week period.  The change in attitude is attributed to the emergence of the Delta variant and the realization that clinical cases, hospitalizations, and fatalities are increasing sharply, especially in counties and states with a low proportion of the eligible population vaccinated.  Approximately 65 percent of respondents considered that masks should be worn in supermarkets, indoor concerts, and sporting events.  A high proportion of consumers indicated that they were more comfortable in stores with a mask mandate especially for employees and fellow customers.

 

 

 

 

The FDA approval of the Pfizer-BioNTech mRNA vaccine has contributed to mandates that will be adopted by the food supply chain from production through processing to retail.  Concurrently in many jurisdictions, state, county, or municipal authorities require masks in public places relieving retailers of the obligation to unilaterally require masks. Enforcement may still be a problem, especially with customers that are opposed to commonsense precautionary measures regarded as a “freedom and individual rights issue” and not simply a public health measure.


 

U.S. and Mexico to Hold Economic Discussions

08/22/2021

According to the August 23rd edition of the USAPEEC MondayLine, officials representing the Government of Mexico and their counterparts in the U.S. Administration will hold talks in Washington on September 9th to address trade and economic issues.  Topics of concern will include maintaining the integrity of supply chains, worker migration and economic cooperation. The agriculture segment of the U.S. is dependent on southern labor and Mexico is the leading importer of U.S. poultry products valued at $465 million during the first half of 2021.

 

It is now apparent that migrants from Central America might be dissuaded from moving northward to the U.S. if they are able to participate in economic opportunities in Southern Mexico. It is possible that the U.S. will consider establishing maquiladoras in designated areas in Mexico to provide migrants from Honduras, Nicaragua and El Salvador with some form of economic security and personal safety. Most politicians recognize that constructing an intrusion-proof border with Mexico is both a financial and practical impossibility, despite the rhetoric.  It is now time to consider alternatives that will require the cooperation of our southern neighbor, and advancing humanitarian principles within the scope of the USMCA.

 


 

Food Service and Chains Subscribe to Better Chicken Commitment

08/05/2021

Welfare activist organization, Compassion in World Farming USA, has announced that Aramark, Compass Group, Nestle USA, Panera Bread, Shake Shack, Sodexo, and Target have formed the Working Group for Broiler Welfare.

 

This consortium has committed to the Better Chicken Commitment that comprises:

  • Maximum stocking density of 6.0 pounds per square foot
  • Enriched environment including lighting to meet Global Animal Partnership Standards
  • Controlled-atmosphere stun-to-kill
  • Third-party auditing
  • By 2026, slow-growing breeds will be required consistent with the RSPCA Broiler Breed Welfare Assessment Protocol.

 

These requirements will obviously restrict sourcing to specific producers that are willing to invest in compliance and will incur additional costs.  With the exception of Target, the list of participating companies (“the usual suspects”) are able to pass on additional costs to consumers.  This is especially the situation with the food service companies that supply corporate dining and universities where sentiment is more important than price. 

 

Target may come to regret their affiliation, especially when slow-growing breeds are required in four and a half years time since they will be at a competitive disadvantage relative to other major supermarket chains.  CHICK-NEWS favors choice with alternatives to conventional products offered at higher prices but with commensurate and factual information to consumers.

 

The Compassion in World Farming Standards are essentially adopted from E.U. and U.K. specifications that have little scientific justification and are based on sentiment and anthropomorphism. The underlying objective is less “welfare” than outright dismantling of livestock production in favor of a vegan diet.


 

Argentine Beef Exports Fall

07/15/2021

As a result of the injudicious decision by the Government of Argentine to restrict exports, volume fell by 6.6 percent in May 2021 to 55,700 metric tons compared to the corresponding month in 2020.  The ban on exports took effect in mid-May and accordingly June shipments will be considerably lower.  It is estimated that China receives 77 percent of beef shipments exported by Argentine. 

 

The Government attempted to reduce the price of beef for domestic consumers by imposing a ban on exports to all but a few nations. The unintended result was that abattoirs were closed reducing domestic supply, raising prices and contributing to unemployment. Restricting exports resulted in a substantial reduction in foreign earnings that will further exacerbate the dire economic situation. An example of truly ham-handed management of an economy by a beleaguered socialist Peronista government quickly running out of “someone else’s money” --to quote a pevious  U.K. Prime Minister, Margret Thatcher.


 

Nature’s Fynd Receives VC Funding

07/08/2021

Chicago-based Nature’s Fynd Inc. has raised $158 million from VC companies apparently representing Jeff Bezos, Bill Gates, and Al Gore. These names are quoted (or misquoted) frequently in press reports on wannabee IPOs. Implied endorsement provides a measure of implied approval, verging on the sanctification of any business plan involving sustainability, welfare and even profit. Natures Fynd intend to deliver meatless breakfast patties and burgers based on a range of fungal cultures early in 2022. 

 

The entire alternative foods sector with an emphasis on dairy products achieved sales of $7 billion in 2020, representing a 27 percent increase over the previous year, albeit from a small base.  Sales of alt. foods should be compared to the $733 billion conventional food industry.  Aware of the growth and popularity of alt. meats, major protein producers including Hormel, Cargill, Perdue, and Maple Leaf Foods have invested in their own brands competing with Beyond Meat and Impossible Foods. 

 

Considerable publicity is accorded to the adoption of an alt. meat product by a QSR or restaurant chain even if only as a test. In contrast there is less media coverage following the quiet removal of alt. meat menu items. 

 

Much of the growth in alt. meat products is attributed to the curiosity factor.  Given the low number of committed vegetarians among consumers and the shifting volume of flexitarians, demand will increase, but at a slower rate and nowhere near attainment of a 60 percent market share of global sales of conventional meat by 2040. Projections by some industry observers are simply extrapolations of recent annual increases over the long term.  Alt. meats as with any product undergo life cycles.

 

A major restraint to future expansion of alt. meat is the apparent lack of profitability.  Reports from public-quoted companies where financial data is disclosed denote a high cost of production and little confirmation of economies of scale in production.


 

Elimination of Feral Hogs

07/06/2021

The emergence of African swine fever in Europe and Asia has highlighted the role of feral hogs in both perpetuating and disseminating infection.  It is estimated that there are more than seven million wild hogs in the U.S. that are collectively responsible for close to $3 billion in damage to crops, fencing and pastureland each year.  If African swine fever were to be introduced into the feral hog population, the U.S. would lose export markets and the cost of control and eradication would be immense.

 

CHICK-NEWS has reported previously on measures to eliminate hogs on a county and state basis.  Colorado, Nebraska, Iowa and Minnesota now claim to have eliminated their feral hog populations.

 

It now emerges that hunting although in some cases an effective method of reducing local populations of feral hogs may in fact contribute to the larger problem.  There are documented cases of feral hogs being deliberately introduced into areas where they were previously eliminated to allow sport hunting.  Hog populations are maintained in some states including Oklahoma where hunters pay for the privilege of shooting these animals.

 

Given the present damage caused by feral hogs and the diseases they carry and their potential to destroy the domestic hog industry in the event of introduction of African swine fever, the USDA and the Department of Interior should cooperate to mount a proactive program with the objective of complete eradication.  The privilege of hunting feral hogs and the income of a limited number of hunting preserves should be sacrificed for the broader objective of preserving domestic hog production.  The U.S. Industry will produce 28,191 million lbs. of pork in 2021 representing a valuable source of protein for domestic consumers estimated to attain 50.8 lbs per capita and foreign exchange earnings through export of 6,570 million lbs. of carcass weight.


 

E.U. Wasted Funding on Agricultural Subsidies to Modify Climate

06/24/2021

A report by the European Court of Auditors released on June 21st confirmed that $140 billion spent on agricultural subsidies to reduce climate change since 2014 was effectively wasted.  The report stated that the Common Agricultural Policy, under which grants were extended to farmers, “failed to support more climate-friendly farming practices.”  The report also stated that “funds distributed during the period 2014-2020 to modify climate change had little impact on agricultural emissions.”

 

Recent evaluation suggests that the Common Agricultural Policy currently under negotiation must include practical measures to reduce greenhouse gas emissions.  Farming contributes ten percent of E.U. emissions with livestock responsible for half of this release.  To date the Common Agricultural Policy has promoted animal production and subsidies have supported dairy and beef herds.  Shifting subsidies to organic farming has apparently not reduced emissions and funds have increased levels of fertilizer application.  Other deleterious and inadvertent results from Common Agricultural Policy grants include cultivating drained peatlands liberating carbon dioxide that has been sequestered over millennia.

 

 Developing appropriate agricultural practices to reduce greenhouse gas emissions will require leadership with the application of science rather than politics that has directed  E.U. policy on agriculture for the past two decades. Experience gained in the E.U could be beneficially adopted in the U.S. in framing measures to reduce greenhouse gas emissions by agriculture.


 

Colorado Initiative 16 Rejected by State Supreme Court

06/24/2021

Two extreme activists in the Boulder, CO. area drafted Initiative #16 that was intended to appear on the 2022 state ballot.  The initiative termed Protect Animals from Unnecessary Suffering and Exploitation (PAUSE) would have effectively shut down the livestock industry in the state.  Provisions included requiring all livestock and poultry slaughtered to have spent a quarter of their "natural lifespan" before slaughter.  The natural lifespan for bovines was defined as 20 years; hogs 15 years; turkeys 10 years and chickens 8 years.  The authors of Initiative #16 included a bizarre definition of "sexual act with an animal" that would have forbidden artificial insemination, intervention at calving and lambing to relieve dystocia and a ban other conventional preventive and therapeutic practices performed by veterinarians and ranchers including neutering of pets

 

The Colorado Supreme Court rejected the measure on the basis of a violation of the single-subject rule of the Colorado Constitution. In their unanimous opinion, the justices recognized that "the Initiative’s central theme is incorporating livestock into an animal cruelty statute but expanding the definition of "sexual act with an animal" would criminalize additional conduct regardless of whether that conduct is directed at livestock or other animals".

 

The Pause Act characterizes the deep divide between urban residents and livestock producers.  In Colorado, production and processing contributes more than $5 billion to the state economy and supports 150,000 jobs.  Even though Initiative #16 as currently framed will not appear on the 2022 state ballot, it is evident that opponents of intensive livestock production will continue to propose initiatives to be submitted to voters.  Legislation by ballot incorporated in the constitutions of a number of western states is evidently detrimental with respect to agricultural, environmental and social issues and has the potential to create disruption of existing industries and activities and inflate the cost of food.


 

UGA Evaluates Drip Trays for Broilers

06/16/2021

 Michael Czarick of the Poultry Science Department, University of Georgia recently completed Project F-085 funded by the USPOULTRY Foundation to evaluate drip trays for nipple type drinkers. The study was conducted on a commercial farm comprising three houses each divided into four sections.  Five of the sections were fitted with nipple drinkers with drip trays and five sections with identical nipple drinkers without drip trays as controls. Two sections were equipped with two drinker lines with drip trays and two without. The report did not specify the make or model of the nipple drinkers evaluated.

 

There were no significant differences in “water usage”, assumed to be the readings of water meters with or without drip trays beneath the nipple drinkers.  Litter from the sections fitted with drip trays had lower moisture content and water activity from day-7 through depletion.  Through the first 21 days of the trial, there were no differences in the prevalence of footpad lesions in flocks that could be attributed to installation of drip trays.  All four flocks without drip trays showed numerically higher (but non-statistically different) footpad lesion scores at 28-days of age.  Despite isolation of Salmonella from litter in preceding flocks, the pathogen was not isolated from drip trays.

 

The results that appear to favor installation of catch trays should be evaluated in relation to the concepts expressed in an interview with Robert Hosteler of Ziggity Systems posted in this edition of CHICK-NEWS.  Appropriate adjustment of water pressure in relation to the dynamic discharge rate of the nipple drinker line relative to the growth rate of the flock, house temperature and water quality, will determine the proportion of water ingested relative to the quantity of water released from a nipple.  The difference between water delivered and water ingested represents wastage.  Drip trays are intuitively beneficial if the water discharged from a nipple drinker delivers a volume in excess of the capacity of the oral cavity. Water will dribble from the beak opening before being swallowed.  An analogy is the ability to drink from a garden hose on a hot day.  Only a fraction of water released from the nozzle is actually swallowed. 

 

The observation that Salmonella could not be isolated from drip trays is inconsistent with the fact that bacteriologic assay of the muddy residue in trays invariably indicates heavy bacterial contamination recorded by laboratories as “Too Numerous to Count’ (TNC).  Since broilers display coprophagy, drinking from drip trays should in theory result in ingestion of whatever bacteria are present in the litter.  Installation of drip trays defeats the objective of a closed watering system intended to reduce intra-flock transmission of pathogens.

 

The conclusion that may be derived from the study is that if nipple drinker watering systems are managed inappropriately or if ventilation rate is too low to remove moisture from litter, drip trays are advantageous.  If nipple drinkers with appropriate dynamic water discharge rates are installed and the system is managed appropriately with respect to water column pressure and house ventilation, drip cups are unnecessary and could be deleterious.


 

Inappropriate Proximity of CAFOs to Cultivation of Produce and Food Production

06/16/2021

The correlation between Concentrated Animal Feeding Operations (CAFOs) and contamination of green produce with Shigella-toxin producing E.coli (STEC) grown in the Yuma Valley of Arizona and the Imperial Valley of California has been clearly demonstrated. Contaminated irrigation water is the apparent link between CAFOs and produce.

 

The CDC and FDA recently investigated an outbreak of Salmonella Enteritidis with peaches as the vehicle of infection.  The Centers for Disease Control diagnosed 101 cases in 17 states.  Traceback suggested a specific peach grower-packer as the source of infection.  The peach orchard is located in an area with a broiler grow-out farm on the northwest boundary and a dairy farm on the east side of the property.

 

Over 700 samples were examined, including 180 leaves from peach trees, 20 peaches, 480 environmental samples and peach products from three packing and holding facilities. The outbreak strain of SE was not identified in any of the samples.  Salmonella Alachua was isolated from environmental samples and corresponded to surveillance swabs from the broiler farm.  Salmonella Montevideo was common to environmental samples and the dairy farm.

 

Recommendations from the extensive report suggested that growers should be aware of risks associated with airborne dissemination of pathogens from adjacent CAFOs.  Preventive recommendations should be applied in accordance with the Produce Safety Rule, a component of the Food Safety Modernization Act.  Pre- and post harvest sampling is advised, although sampling in itself does nothing to prevent contamination of the food chain unless appropriate action is taken to interpose a kill-step in processing.  The need for traceability is self-evident given the extent of the distribution of peaches purchased in stores individually or in packs.

 

The study conducted by the FDA demonstrated the interconnection between livestock production, orchards, packing plants, the distribution system and consumers.  FDA stressed that food safety is a shared responsibility.  Effectively food growers or packers should recognize the possibility (or inevitability?) of contamination of product, either through irrigation water or fugitive dust. Appropriate procedures to suppress potential pathogens are required during packing and before distribution.


 

U.S. Establishes Strike Force on Unfair Trade Practices

06/11/2021

A supply-chain strike force under the leadership of the U.S. Trade Representative, will review critical areas of vulnerability. Initial priorities will include a shortage of computer chips that created bottlenecks in the manufacture of vehicles, availability of medical equipment and PPE during the COVID-19 pandemic, reliance on India and China for pharmaceutical products and rare earths.


Adversaries USTR Tai (left) V-P He (right)

The President ordered a review of critical supply chains in February requesting reports from executive agencies within a hundred days. More detailed analysis and evaluation is anticipated within a year addressing deficiencies in domestic manufacturing with recommend remedial policies.

 

The Department of Commerce is aware of unfair trade practices from a number of foreign nations.  The 2020 Phase-One Trade Agreement with China incorporated provisions to make progress on reducing government subsidies to quasi-state and corporate entities and coercive transfer of intellectual property.

 

According to an article in Reuters, the U.S. was not looking to wage a trade war, but the strike force would focus on targeted products.  The Defense Production Act will be used to expedite manufacture of up to a hundred critical drugs and efforts are in progress to re-shore production of computer chips.  A task force will be established to evaluate home building, construction and transportation to reduce the prospect of future inflation. The Department of Commerce considers it necessary to widen the supply chain for crucial products to include allies and partners to reduce reliance on “geopolitical competitors”.

 

 Establishing a trade war with China could have severe implications on export of agricultural commodities as noted in 2018 and extending in to 2019.  Current importation of soybeans, corn, poultry and meat products by China are a reflection more of domestic need rather than any magnanimity of the part of the world’s second largest economy.  Without extreme pressure, China will not change its trade policies since the nation is committed to dominance in trade in Asia and competition, fair and unfair with the U.S. in all markets, consistent with their national aspirations.


 

Employers Can Mandate COVID Vaccination

06/06/2021

According to a May 28th release by the U.S. Equal Employment Opportunity Commission, (EEOC) employers can mandate COVID vaccination to all employees entering the workplace with certain exemptions. The guidance issued by the EEOC although employers can mandate COVID vaccination, they must provide reasonable accommodation under the Americans with Disabilities Act for those seeking exemptions.  Employers may require unvaccinated employees to wear face covering and to observe social distancing and even receive testing for infection with SARS-CoV-2 responsible for COVID. 

 

Employers may incentivize employees to be vaccinated provided benefits are not regarded as coercive.  In the process of arranging for vaccination, care must be exercised to maintain confidentiality regarding the medical information relating to all employees especially if an exemption is requested.

 

Employers can require employees to provide proof of vaccination, but vaccination information must be held in confidence and should not be included in the employee personnel file.

 

Vaccination is regarded as an exceptionally efficient method of reducing transmission of SARS-CoV-2 within the workplace and it is obviously in the interest of the employer, the employee and the community to establish a high level of immunity in the workforce.

 

As with any vaccination, immune status will wane over time and within a population of workers, introduction of new presumably non-vaccinated individuals will reduce the level of herd immunity.  It is unknown whether booster vaccination will be required at intervals since the response to vaccination that was only initiated in January has yet to be evaluated.  Studies conducted in the EU, Israel and the U.S. suggest that durable immunity persists for at least five months following two doses of either of the approved mRNA vaccines.


 

UK Considering Ban on Foie Gras

05/28/2021

As a component of the proposed U.K. Welfare and Conservation of Animals regulations, a ban would be imposed on the importation and sale of foie gras.  The trade group representing producers maintain that “foie gras is a high-quality product which complies with all EU standards regarding animal health and welfare.” The spurious justifications for perpetuating foie gras production including allusions to the gastrointestinal tract of anseriformes are gross distortions of fact and are unconvincing.

 

Foie gras production is banned in the Czech Republic, Finland, Italy, Poland, and Turkey.  Production in Britain has been illegal since 2006.  The organization representing producers has adopted the term “assisted feeding” in place of gavage that in essence represents mechanized stuffing of the esophagus and proventriculus of closely confined ducks and geese to induce a pathological fatty liver regarded as a delicacy.

 

It is seldom that CHICK-NEWS finds common ground with organizations such as Compassion in World Farming.  In the case of foie gras production, we agree with James West, Senior Policy Manager, that “production is immensely cruel and has no place in modern society”.


 

Government Program to Reduce Mustang Population Backfires

05/19/2021

For decades, the Department of the Interior has wrestled with the problem of uncontrolled breeding of mustangs on Federal land.  It is estimated that there are now 100,000 wild horses with every prospect of the population increasing to above 200,000 in the next ten years unless appropriate action is taken.

 

 In an attempt to reduce the existing population, the Department of the Interior offered a $1,000 incentive payment for individuals willing to receive and care for a mustang.  There was virtually no oversight of the program and many individuals collected their $1,000, taking as many animals as they could transport.  It is now apparent that many mustangs were not relocated but were consigned to an auction where dealers purchased animals to be shipped across the Rio Grande for slaughter in Mexico.  Effectively acquirers of wild mustangs received $1,000 from the Federal government and earned up to $500 from the sale yard. 

 

This is yet another example of a poorly conceived program with good intentions resulting in a waste of federal funds.  Biologists have recommended applying hormonal reproductive control to suppress estrus by administering commercially available products to mares using dart guns.


 

Resumption of Traffic on the Mississippi Waterway

05/17/2021

The importance of navigability on the Mississippi River was highlighted this past week following temporarily closure due to a structural failure of the Hernando de Soto bridge at Memphis.  The three-day halt of movement imposed by the U.S. coast guard resulted in a backup of more than a thousand barges by late Friday, May 14th.  All traffic over the bridge on I-40 was stopped immediately following the detection of a crack in a major structural beam. Subsequent to an engineering review, it was determined that with the shutdown, the bridge was in no danger of falling into the Mississippi and accordingly barge traffic was resumed although at a slow rate and with appropriate precautions.


Fractured Beam on I-40 Bridge

 

At Memphis, the Mississippi carries water from the Ohio and Missouri rivers and is critical to transfer corn and soybeans from the Midwest to poultry and swine installations in the southeast and for export.  Rail would be the only viable alternative to barge traffic but would be slower and more expensive.  Repair of the bridge will in all probability be a prolonged exercise and in view of the location of the damaged beam, will incur periodic disruption in barge transport both north and southbound.

 

Even with restoration of river traffic, there will be adverse effects on the poultry industry.  Transiting from Memphis Tennessee to West Memphis and Arkansas usually requires an eight-minute drive.  The alternative deviation will add eighty-five minutes to the journey imposing costs to the trucking industry estimated at $3 million per day.

 

Closure of the bridge with uncertainties concerning exports drove down commodity prices on Thursday and Friday but with restoration of barge traffic, prices will respond to normal supply and demand factors.

 

The de Soto bridge failure illustrates the dependency of the poultry industry on adequate, well-maintained infrastructure. Expenditure on the Interstate highway system and major waterways will be critical to the long-term profitability of the chicken industry.


 

Poland Facing Severe Avian Influenza and Salmonella Problems

05/06/2021

According to recent media and OIE reports, Poland has recorded more than 250 individual outbreaks of highly pathogenic avian influenza.  Over six million birds have been or will have to be depleted as a control measure.  Poland is responsible for the production of 1.3 billion broilers annually representing 20 percent of the E.U. supply of RTC. In previous years avian influenza in the E.U. ceases at the beginning of April but in many nations especially in Eastern Europe, outbreaks have persisted in both backyard and commercial operations.

 

It would appear that authorities in Poland have not learned from experience in controlling epornitics as experienced in the U.S. in 2015 and subsequently in Western Europe.  Dr. Bodgan Konopki, the Chief Veterinarian of Poland has blamed the severity of the outbreak “on the excessive concentration of poultry farms”.  He is campaigning for regulations to require spacing among farms.  This is an entirely fallacious approach since avian influenza is introduced by free- living birds and spread by deficiencies in biosecurity. Given inherent defects in conceptual biosecurity due to concentration of facilities, the poultry industry in Poland should intensify biosecurity procedures that have proven to be of benefit in areas with a high density of chicken and egg production. There are obvious deficiencies given the incidence rate and the extent and duration of the problem nationally.

Recommendations to improve biosecurity are self-evident.  These include fencing of farms, biological separation of facilities, eliminating ponds adjacent to facilities that attract free-living birds, investment in structural biosecurity and adherence to operational biosecurity. The statement by Dr. Konopki that ultraviolet from sunlight will eliminate virus and hence outbreaks is wishful thinking and is contradicted by experience in the Middle East that does not lack for either sunlight or high temperature.

 

In past years, Poland has expanded both egg and broiler production but with less than optimal attention to biosecurity as evidenced by persistent SE in both broiler and egg products.  It is possible that the veterinary infrastructure is politicized and reflects the authoritarian policies of successive conservative governments. This is based on the response to the initial diagnosis of COVID in mink released by the University of Cracow. The presence of the infection on mink farms that was refuted by the Department of Agriculture but then was reversed in the face of incontrovertible proof of infection. Lack of control over national and regional programs to suppress Salmonella infection in poultry has seriously impacted the image of Poland as a reliable supplier of wholesome egg and poultry meat following numerous outbreaks of salmonellosis in the E.U. traced back to exporters.

 

Veterinary authorities in Poland would be well advised to consult with their colleague in the U.S. and Western E.U. nations to implement effective poultry health programs including vaccination that will restore the image of their industry and to provide long-term security for producers.


 

False Allegation Concerning Meat Consumption Belatedly Withdrawn

05/04/2021

Recently Fox News and other media within the Murdoch enterprise reported that it was the intent of the Biden Administration to mandate a reduction in meat consumption. A retraction was made by individual commentators on the Fox News channel after the reports were fact checked by competing media and following a sharp denial from the White House.  The false report was subsequently amplified by both politicians and their supporters.  Only a few television reporters on the channel concerned have actually retracted their false statements and some politicians are continuing to knowingly disseminate incorrect and baseless messages using social media.

 

The origin of the misinformation was a cooperative study by academics at the University of Michigan and Tulane University, who investigated the potential environmental impact of restricting consumption of red meat. There is no question that climate change and sustainability have received considerable attention since the change in Administration.  This is a time for review of established scientific data that represents the consensus of responsible investigators.  A number of universities and government agencies are considering models that will indicate the outcome of various policy decisions. 

 

Premature release of data and fabrication of reports do not help understanding. False and sensational releases may increase ratings but they inflame public opinion to the detriment of sound policy based on bipartisan consensus.  Unfortunately politicians and the public they serve have adopted inflexible positions on climate change. Opinions range from “It’s just a big hoax” to “Unless we all go vegan, we fry”.  There has to be a science-based compromise with a clear plan going forward to reduce greenhouse emissions and to use clean energy.  To avoid disrupting the economy of the U.S. and the remainder of the world, any transition will have to be made gradually. The sooner we start the easier it will be for our grandchildren and their issue.  Floating blatant lies and misrepresentations for short-term political gain is decidedly unhelpful and intensifies both political and global temperature.

 


 

Mechanization and Automation to Reduce COVID and Future Pandemics in Packing Plants

04/23/2021

Red meat and even poultry processing plants contribute to infection of COVID and other airborne viral infections due to close proximity of workers, high humidity, low temperature, and minimal ventilation rates. The design of U.S. plants and equipment installed was previously predicated on the availability of inexpensive labor.  European producers do not have the luxury of an infinite supply of workers, even though temporary immigrant labor is used in some nations including Germany.

 

A recent article evaluating morbidity and mortality in U.S. meat packing plants and communities in which they are located demonstrated the low impact of poultry plants compared to beef and pork facilities.  It was calculated that within 150 days after emergence of COVID-19 in a given county, a beef plant increased per capita infection rates in the community by 110 percent and in the case of pork plants by 160 percent.  In contrast, the presence of a large poultry processing plant in a county only increased infection rates by 20 percent. The study documented that collectively 334,000 COVID-19 infections were attributable to meat packing plants with mortality and morbidity costs attaining $11.2 billion.

 


Advanced mechanized broiler-portioning installation

The authors note that lost productivity in pork plants attained $336 million, beef, $186 million, and for poultry $40 million. The relatively lower impact associated with poultry processing relates to a higher level of mechanization compared to red meat packing plants.  A worthwhile extension of the study would be to examine modern poultry plants with controlled atmosphere stun to kill, automated evisceration lines and mechanical portioning and deboning compared to older facilities requiring a high level of manual labor in all departments.

 

The positive effect of mechanization, even in hog plants is illustrated by the difference between the Horsens plant operated by Danish Crown that recorded a low rate of infection compared to the sister Ringsted plant where 142 out of approximately 600 employees tested positive for COVID-19 during the height of the outbreak in Denmark.  The Ringsted plant was also associated with a high rate of community transmission during March and April 2020.  The Horsens plant recorded less than 10 cases among 8,000 employees and the plant functioned without interruption through the entire first quarter of 2020.

 


Robotics installed in Danish Crown Plant

The Horsens plant is the most modern in the world using infrared laser-guided robots to make cuts including the critical tail cut.  Machine-vision guided robots continue dismemberment completing the task that would otherwise be carried out manually by many workers in a plant processing 18,000 hogs each eight-hour shift.

 

To date, capital investment has been evaluated against the availability and cost of labor.  With increased pressure for wages and benefits, unionization, a more active OSHA and greater concern for worker welfare and health, processors must reevaluate the cost of mechanization and automation.  In August, CHICK-NEWS commented “It is axiomatic that robots are refractory to disease, do not take holidays or sick leave, never participate in strikes or agitate to join unions, and have immense physical strength and dexterity compared to human labor. It is unfortunate that it has taken COVID to force a reevaluation of the human component in relation to available alternatives in meat and poultry processing.  COVID will not be the last viral pandemic and this reality and the obvious costs involved should result in a phase shift in processing similar to the changes brought about after publication of The Jungle by Upton Sinclair.”

 

Saitone, T., Schaefer, Aleks, and Scheitrum, D. COVID-19 Morbidity and Mortality in U.S. Meat Packing Counties. Food Policy doi.org/10.1016/j.foodpol.2021.102072.


 

Plant-Based Meat Sales Rising-For Now!

04/11/2021

The Plant Based Foods Association (PBFA) recently published data relating to sales of alt-meat.  Value increased by 45 percent from 2019 to $1.4 billion in 2020.  The PBFA maintains that plant based meat represents 2.7 percent of retail packaged meat, but this figure ignores the consumption of food service.  It is claimed that 22 million households purchase plant-based meat without an indication of the frequency of repeat buying. Although comparisons of growth rates for alt-meat appear exceptional when compared to conventional meat, the low base of a relatively immature product should be recognized.

 

The release from the PBFA notes the number of producing companies and their activities suggesting extreme competition.  This is probably the justification for successive price cuts by Impossible Foods to levels which still exceed ground beef and in some stores by a factor of two.  It is a matter of record that the bellwether alt-meat producers, including the Maple Leaf Foods and Beyond Meat are historically and currently non-profitable and the alt-meat industry is heavily subsidized by infusion of venture capital.

 

Despite the claims of equivalent organoleptic properties including taste, texture, and color compared to store-purchased ground beef patties and sausages, the real criterion is whether consumers can differentiate between alt-meat and real meat when cooked.  Given quality issues, availability, and above all relative cost, future growth rates will be a more reliable indicator of the acceptance of alt-meat beyond the demographic of vegetarians, curious omnivores and those with extreme environmental and sustainability concerns. 


 

Impossible Foods Launches National Advertising Campaign

04/08/2021

Impossible Foods will launch an intensive TV campaign to encourage traditional consumers of meat to switch to the Company’s vegetable-based alternatives.  The program will be entitled “We are Meat” and will feature the Impossible Burger in five spots.

 

In commenting on the campaign Jessie Becker, Senior Vice President of Marketing stated, “Once people try Impossible Burger they are blown away by its taste although consumers are skeptical based on years of sub-par experiences with conventional, plant-based products.”

 

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Competition among alt-Meat Brands

The campaign is obviously an attempt to increase sales and follows successive price reductions, although Impossible Foods products still exceed the price of ground beef at retail.  It is possible that Impossible Foods and other alt-meat producers are experiencing saturation of the vegetarian demographic and have yet to generate repeat sales among conventional meat eaters who represent the bulk of the U.S. consumers.

 

Impossible Burger has increased its penetration of the retail distribution channel with most major supermarkets stocking their burgers and sausages.  A review of display counters in supermarkets confirms extreme competition with both local and national brands presented.

Dr. Patrick O. Brown, founder of Impossible Foods claims that substitution of real meat can be achieved without compromising taste, nutrition or convenience.  This commentator will accept some benefits relating to sustainability and the environment but consumers can appreciate the difference between real meat and vegetable-based alternatives. The wide range of available beef, pork and poultry presentations provide variety and a wide choice for home-cooked meals. Alt- meat presently only competes with ground beef.

 

Dr. Brown, Impossible Foods products are not “meat” despite the intent of the TV spots and the creativity of Weiden + Kennedy.  The advertising campaign claiming equivalence with real meat will only stimulate additional restrictive legislation on labeling, onerous litigation and will generate unflattering comparisons with the “real thing”.

 


 

Corporations in Brazil Concerned over Government Policy for the Amazon

03/29/2021

Given that 60 percent of the remaining Amazon is within Brazil, policies regarding deforestation and use of land bordering the Rainforest are now of international concern. Forty chief executives of major corporations in Brazil, including JBS S.A., recently addressed a letter to President Jair Bolsonaro regarding the potential for trade embargoes as a result of current exploitation of the Amazon. 

 

Despite the cooperation between CEOs and leading academics in Brazil under the umbrella of the Concertacao pela Amazonia (Agreement on the Amazon), no constructive response has been received from Brazilia, the Nation’s capital.  Talks at a level below the Office of the President are in progress between Ambassador John Kerry, former U.S. Secretary of State and now Climate Envoy and Ernesto Araujo, Foreign Minister, and Ricardo Salles, the Environment Minister.


Pres. Jair Bolsonaro

 

When the Paris Accords were signed in 2016, Brazil was an active participant and received donations from E.U. countries to sustain the Amazon.  Since the ascendency of President Bolsonaro, deforestation has advanced at a rapid rate as evidenced by mass clearing of fringe areas accompanied by devastating fires and a profound reduction in enforcement of existing regulations.

 

The concern that the U.K. and the E.U. will pressure companies importing food and other items from Brazil to conform to world standards is evidenced in the recent comments by Fabio Tomasoni, Global CEO of JBS S.A. in the FY 2020 Annual Report, regarding sustainability and sourcing of beef.

 

The status of the Amazon will most certainly take center stage at the Earth Day Summit of world leaders in April serving as a prelude to the United Nations Summit in November. Given the economic situation in Brazil, the President will have to choose between world opinion relating to climate change and his personal popularity as a right-leaning nationalistic leader of Brazil.


 

Contentious Bilateral China-U.S. Talks in Alaska

03/21/2021

The U.S. State Department will be taking a strong line with China over structural and political issues based on the first day of bilateral talks in Alaska. Secretary of State Antony Blinken noted that the U.S. and China could achieve many things together where their interests converge. The U.S. would however continue to express concerns and act over actions by China including repression of Uyghurs in Xingjian Province, suppressing democracy in Hong Kong, cyber attacks on the U.S., economic coercion and threats to the independence of Taiwan. 


Antony Blinken Secretary of State

 

Blinken was supported by Jake Sullivan, the U.S. National Security Advisor, who criticized both military and economic coercion by China. He noted that U.S. echoed the concerns of Asian nations including Japan and South Korea.  Sullivan noted, “We do not seek conflict but we will welcome stiff competition but we will always stand up for our principles, for our people and for our friends.” Based on a policy of creating harmony among allies, the present Administration intends to create a consensus and to unify opposition to what must be regarded as aggressive and coercive actions by China.

 

At the end of the day trade relations between China and the U.S. will be based on the principle of mutual satisfaction.  Since China needs corn, soy and other commodities and will import them from the U.S. and our competitors, we should continue to supply but should use whatever leverage we have to eliminate the undesirable aspects of our relationship with China. These include unfair trade practices, cyber espionage, neglect of intellectual property and support of government-owned companies that dump products on international markets in defiance of WTO rules. 

Confining military expansion and suppression of democracy are issues beyond the concern of U.S. agribusiness but obviously are factors influencing commodity trade. Let us hope that Antony Blinken and Katharine Tai, the U.S. Trade representative have more success in dealing with the Communist government of China than previous administrations.


 

American Chemical Society Webinar on Alt-Meat

03/14/2021

A webinar organized by the American Chemical Society on March 11th was disappointing in both content and perspective.  Compared by Chris Gregson of Greenstalk Foods, none of the participants was actively involved in production or marketing of either a vegetable-based meat substitute or a cell-cultured product.  Many of the comments by the participants were basically a restatment of the obvious.  We are all aware that motivation by consumers to purchase alternatives to real meat include misperceptions over health, environmental considerations, welfare concerns, and a new angle, freedom from antibiotic resistant pathogens. 

 

Julie Mann of Puris Holdings, herself a vegan, considers that ultimately alt-meat will eliminate the need for livestock, a claim made 15 years ago by Josh Tetrick when he launched the first of his alt-egg ventures with HSUS support.  Andrew Ive of Big Idea Ventures claims to have funded 43 companies and his focus concerns the economics of alt-meat.  The issue that he studiously avoided is that publicly quoted companies involved in vegetable-based meat substitutes are reporting losses. Beyond Meat and the Vegetable Protein segment of Maple Leaf Foods have yet to come close to breaking even despite immense investment and increasing production levels. 

 

Andrew Ive did however note that vegetable based products gained consumer acceptance when moved from vegan sections in supermarkets to meat coolers.  Ive notes that producers of vegetable-based products are improving product presentation and innovation is apparent as major processing companies use equipment and additives respectively devised by Buhler of Switzerland and Givaudan of France.  Ive believes that progress will be made by combining the aspirations of entrepreneurs with technology.

 

Joshua March of Artmys Foods stressed quality issues in relation to vegetable-based alternatives.  To date alt-meat products do not reproduce the organoleptic qualities of real meat with respect to taste, texture and appearance, both raw and cooked.  March also questions the nutritional content of vegetable-based meats.  While conceding the absence of cholesterol and possibly contaminants, alt-meat is more “processed” than conventional meat.

 

The status of cell cultured meat was glossed over although there has been considerable progress by companies in Israel including Aleph Farms, Future Meat Technologies, Biofood Systems, and Super Meat.  Again, the ACS panel while acknowledging technical progress failed to address the large differential in cost of production between cell cultured and conventional meat.

 

Recently, Singapore has emerged as a champion of alternatives to meat. This is partly due to the fact that the Government of the city-nation recognized that 90 percent of their food is imported and they recognize their vulnerability especially with regard to protein.  Accordingly, regulations to allow the manufacture and sale of cell-cultured meat were hastily enacted.  Josh Tetrick appears to have taken advantage of a favorable regulatory climate and claims to be serving a cell- derived chicken substitute in a restaurant in Singapore.  From comments by Andrew Ive, it is apparent that the product is in fact a vegetable-based meat alternative with inclusion of some cell-cultured material without specifying the relative volumes of vegetable and cell-derived components.  Contrary to the transparency demonstrated by Memphis Meats in the U.S. and developers in both Israel and the E.U., Tetrick has never revealed details of his production process nor has he identified or provided images of his production facilities.

 

The ACS Webinar was less than informative, possibly due to the selection of participants who appear to have either aspirational or investment approaches to alt-meat. Presenters with actual real-world experience in production and marketing would have contributed to a more enlightening program.


 

Broiler Production in Brazil-Lessons for the U.S?

03/07/2021

USDA-FAS GAIN report on Brazil, BR2021-0069, dated February 26th projected 2021 broiler production in Brazil.  For the market year beginning January, USDA projects total production at 14.150 million metric tons, 1.9 percent higher than in 2020.  Projected exports will be 3.905 million metric tons up 4.3 percent from 2020 and representing 27.5 percent of production. 

 

During 2020, Brazil exported 3.741 million metric tons valued at $5.2 billion with a unit price of $1,390 per metric ton.  By comparison, the U.S. exported 3.577 million metric tons valued at $3.56 billion with an average unit value of $995 per metric ton.  The U.S. figure includes both bone-in chicken and feet since the USDA elected to combine the two products from April 2020 onwards.  Figures for volume and value from Brazil exclude feet and represent 26 percent of all world chicken exports. 

 

Domestic consumption in Brazil will attain 10.25 million metric tons up 1.1 percent from 2020 and corresponding to a per capita consumption of 106 pounds, based on a consuming population of 213 million.  The increase in domestic consumption occurred despite a 15 percent increase in retail price of chicken during 2020. Chicken increased at a disproportionately lower rate compared to beef, the major source of animal protein. 

 

Forecasts for 2021, take into account, the increased costs of ingredients.  In January 2021, corn averaged $230 per ton and soybean meal was $370 per ton.  Increases in production cost for chicken through 2020 were reflected as a progressive escalation through the year with a December value of 34 cents per lb. compared to 24 cents per lb. in December 2019.  The average retail price for frozen chicken in 2020 was 41 cents per lb.

 

Brazilian chicken comprised 22 percent of import volume by China during 2020 amounting to 3.99 million metric tons valued at $5.73 at a unit price of $1,436.  The large demand by China for pork and chicken was occasioned by the ongoing losses due to African swine fever commencing in late 2018 and extending through 2019 and 2020 as herds were being restored.  Demand by China, Saudi Arabia and Japan has led to expansion in production dedicated to the export market.  Currently Brazil has 46 plants authorized to export chicken meat to China and the Middle East, concentrated in the five major producing states.  A specific market for Brazil is the supply of halal chicken with Indonesia now regarded as a potential large-scale importer.  Exports during 2020 were supported by continuing outbreaks of H5N8 avian influenza in the EU, Eurasia and Southeast Asia.

 

In comparing exports both with respect to volume and unit price, it is evident that Brazil can offer importers specific products suitable to their demand.  This includes carcasses consigned in narrow weight ranges from 1.0 kg at 0.1 kg increments to 1.5 kg.

 

 In addition to WOGs, bulk parts and added-value products Brazil offers halal, non-GMO, antibiotic-free and other categories.  In contrast, the degree in product differentiation from the U.S. extends simply from right to left leg quarters.  The U.S. is essentially selling a commodity on price with 95 percent shipped as frozen bulk quarters in addition to feet, which despite a far lower nutritional value, enigmatically command a higher price than dark bone-in meat. If the U.S has aspirations of increasing the proportion of exports of RTC from 16 percent of output and attaining unit prices and levels approaching Brazil, Thailand and individual producers in the Ukraine, an importer-oriented approach to specific needs will be necessary. This implies dedicated complexes with nutritional programs, harvest weights, processing and presentation consistent with the frequently narrow specifications of importing nations.   


 

Push to Vaccinate Meat Packing Plant Workers

03/05/2021

Following the lead of Foster Farms and Perdue Farms, having initiated COVID vaccination of workers in their plants, JBS USA and Pilgrim’s Pride will vaccinate employees in nine major locations in eight states where vaccine will be made available.  In some plants, large-scale vaccination clinics will administer vaccine, but in other locations limitations on availability of vaccines and State policy on priority will result in inevitable mosaics of immunity in a given facility which is undesirable. 

 

Tyson Foods intends extending vaccination to as many 15,000 employees in Iowa during the first week of March.  Cargill is also administering vaccines to workers.  Smithfield Foods is awaiting vaccine for the Sioux Falls, SD. plant where more than a third of the 3,700 employees tested positive for the virus by mid-June 2020. Vaccination in large plants may only be completed by late April.

 

It is considered imperative that workers in meat packing plants and poultry processing facilities should be vaccinated given their proximity on processing lines and in cafeterias and change areas.  Associations representing the livestock industry have actively promoted vaccination for plant workers given their vulnerability and their impact on communities in which large plants are located.


 

U.K. Food Standards Agency Warns Over Raw Breaded Chicken Products

02/21/2021

In the face of two consecutive outbreaks of salmonellosis, the Food Standards Agency of the U.K. along with Public Health England in collaboration with health authorities in Scotland and Wales have warned consumers of the dangers of undercooked raw breaded chicken products including nuggets. 

 

Consumers are apparently not following cooking instructions and in many cases are warming raw breaded products in a microwave allowing survival of Salmonella and other pathogens.

 

In 2019, extensive outbreaks of salmonellosis were attributed to consuming inadequately cooked breaded chicken products in Canada.  Given the risks involved it is questioned whether any producer should market raw breaded chicken products irrespective of label instructions and cautions.


 

Adequate Ventilation Critical to Suppressing COVID Infection

02/19/2021

COVID is transmitted readily by inhalation of contaminated aerosol droplets.  Studies have shown that stagnant air facilitates infection especially in high-risk locations such as meat packing plants, school rooms, entertainment venues and prisons. Studies at the Tönnies plant in Germany demonstrated that deficiencies in air movement contributed to a high rate of infection that was resolved only following modification of the air handling and filtration installations.

 

The Centers for Disease Control and Prevention has issued guidelines for reopening schools that apparently have not specified enhanced ventilation to complement masking and distancing.  Infectious disease specialists have urged the Administration to include enhanced ventilation rates in advisories following the lead of the World Health Organization.

 

Dry hydrogen peroxide generators can be installed in confined spaces to continuously decontaminate air, destroying both viral and bacterial pathogens.  For information on these installations click onto the Synexis logo on the right side of the welcome page.


 

Progress in Suppressing COVID-19

02/16/2021

It is evident that there is an improvement in both the incidence and hospitalization rates for COVID-19. This follows the January surge reflecting injudicious travel, gatherings and a neglect of precautions over the late December holiday period. Statistics as of Monday 15th February include:-

 

  • Incident cases have been declined to 65,000 per day as of Saturday 13th representing a 39 percent decline on the basis of a seven-day rolling average.

 

  • The positive rate on COVID testing has dropped to 6 percent from approximately 13 percent in mid-January.

 

  • Daily deaths still are in the region of 3,000 per day but mortality is a lagging indicator.
  • Hospitalizations have declined to 67,000 with 14,000 under ICU care.

 

  • 70 million doses of COVID vaccine have been delivered to states.

  • 52 million vaccines have been administered with a daily rate increasing to 2.2 million for Saturday and Sunday 13th, 14th, February. Considerable disruption has been caused by extreme weather over a broad area of the U.S.

 

  • To date in the U.S. there have been 27.6 million confirmed cases with 485,000 fatalities recorded.

 

  • The CDC recommends reopening of schools with appropriate precautionary measures.

 

  • On a cautionary note, public health authorities have warned of the increase in variant isolates including the U.K. B.1.1.1.7 identified in 40 states in addition to domestic variants arising by mutation.

 

U.S. Trade Representative 2020 Report to Congress on China

01/27/2021

The 2020 report to Congress on China trade policy was compiled and submitted by the Office of the U.S. Trade Representative (USTR).  Following accession of China to the World Trade Organization, there was an expectation that the Nation would adhere to international rules.  China failed to comply with an anticipated change in policy to pursue a market-oriented approach to trade.  In contrast, China intensified state-owned manufacture, followed coercive policies on investment, engaged in corporate espionage, ignored intellectual property rights, pursued central control of the economy and engaged in currency manipulation.  Unfair competition was evident in predatory pricing of steel, aluminum and solar panels collectively distorting trade to the detriment of the economies of trading nations.

 

The U.S. alone or in combination with other members of the WTO resorted to available measures including tariffs, bilateral negotiations and litigation in an attempt to restrain nonconforming practices exercised by China.

 

Following the Phase One trade agreement concluded in mid-January 2020, the USTR considers that there is evidence that China is moving forward “in good faith with the implementation of its commitments.”  Issues that have yet to be resolved include state subsidies, maintaining excess capacity in state-owned enterprises, illegal cyber-acquisition of intellectual property and lack of regulatory transparency. The USTR believes that negotiation should continue for a Phase -Two agreement.  Concurrently restructuring of the WTO is underway and should result in more rapid resolution of conflicts possibly restraining China.

 

It remains to be seen whether the Biden Administration with Amb. Katherine Tai as the USTR will be able to make progress in curbing the excesses of China.  This will require the support of major industrialized nations since cooperation was not considered a priority during the tenure of her predecessor, Robert Lighthizer. He followed a more isolationist approach to world trade, relying on tariffs and where indicated or not, bluster from Presidential Advisor and Sinophobe, Dr. Peter Navarro.


 

Vaccine Stockpiling, A Prudent Precaution

01/18/2021

Following the 2019 re-emergence of Ebolavirus infection in central Africa, a vaccine was developed that proved effective in controlling an outbreak in the Democratic Republic of the Congo requiring immunization of 300,000 people.

 

International health organizations headed by vaccine provider GAVI with the support of WHO and UNICEF have now stockpiled 500,000 doses of the Ervebo vaccine manufactured by MSD in Kenya.  Studies showed that the vaccine was 97 percent effective against Ebola an infection that has a fatality rate in excess of 50 percent.