Editorial

GAO Criticizes FDA over Progress in Implementing FSMA

The Government Accountability Office (GAO) has criticized the U.S. Food and Drug Administration (FDA) for failure to meet the mandates imposed under the 2011 Food Safety Modernization Act (FSMA).  Legislation enacted during the Administration of President Obama was intended to create a more proactive FDA and to increase the capacity of the Agency to predict, identify and control outbreaks of foodborne illness. 

 

The GAO review identified failure to issue guidance on HACCP for human food, on prevention of intentional adulteration and establishing a national food emergency response laboratory network.  The FDA has delayed publishing a manual of acceptable agricultural practices for leafy vegetables and fruits notwithstanding regular seasonal outbreaks of foodborne bacterial disease.  The FDA has yet to establish a system to track and trace imported food and domestic production as consumed in the U.S.

 

Following identification of deficiencies, the GAO issued a series of recommendations.  These included:

 

  • Establishing a timeframe for HACCP guidance and preventive controls as required by FSMA. 
  • The Commissioner of the FDA is required to report on progress implementing guidance to protect against intentional adulteration of food. 
  • FDA should develop plans and milestones with timelines for product tracing, good agricultural practices for fruits and vegetables
  • Expedite the required national emergency response laboratory network.

 

The FDA has presided over a sequence of potentially avoidable food problems including contamination of infant formula, foodborne disease outbreaks attributed to leafy greens, heavy metal contamination of infant foods.  The reorganization of the FDA has consumed the time of administrators and has generated insecurity.  This self-inflicted obstacle coupled with injudicious termination of qualified scientists and field personnel has seriously weakened the Agency.

More than a decade ago, EGG-NEWS supported initiatives by professional associations to establish a Food Safety Agency separate from the FDA that could concentrate on aspects of food and nutrition. These critical components of the Nation’s health have traditionally been underserved by the FDA hence the Washington aphorism that the “F” in FDA is pronounced silently!

 

Poultry Industry News

VAL-CO Innovations at the IPPE

WEEDEN SPRINKLER SYSTEM

 

VAL-CO, recently appointed as international distributors of the Weeden sprinkler will display the system on their Booth B10021. Weeden Sprinkler Systems was established in 1995 and has remained in the founder family after acquisition by Kevin Weeden in 2003. 

 

The system is design to supplement conventional pad cooling during periods of high temperature. Sprinklers are installed at approximately 24’ intervals down the length of the house located in two rows 12’ from the side walls.  The system is operated in conjunction with evaporative cooling pads that should be activated only when ambient temperature exceeds 88 Fº.  The Weeden sprinkler system permits delaying the operation of cool cells reducing humidity in the house and saving water. 

 

The Weeden control panel incorporates two separate time clocks to activate the sprinklers that stimulate movement of the flock and contribute to cooling of birds. Specific zones can be selected in the house to operate independently.  This permits operation of sprinklers at a higher intensity at the exhaust end of the house where temperatures may be higher than at the air inlet end when houses are operated in tunnel mode.  The controller can be pre-programed for flock age and temperature to conform to the biomass in the house and to respond to weather conditions.

 

Activating the sprinkler system promotes growth by stimulating birds to rise from recumbency on litter and to seek food and water. Droplets on the head and back plumage evaporate subject to adequate air movement, producing an external cooling effect.

 

Sprinkler intervals commence for a ten second duration at 30-minute intervals and can increase up to a 20-second cycle every seven minutes during extreme heat.  At maximum duration of 20 seconds, each sprinkler operated at line pressure above 30psi releases 10 ounces of water covering an area of 500 sq. ft.  Again, depending on the critical airflow, the system can release five gallons of water within a 25,000 sq. ft. house per 20 second cycle.  Maintaining a high rate of evaporation limits litter moisture since droplets are converted to vapor that is exhausted from the house.

 

Coarse droplets from the Weeden sprinkler system are approximately 1mm in diameter and approximately 10 times the size of mist particles released by high-pressure foggers.  Sprinklers are equipped with check valves to prevent dripping, and all sprinklers start and stop at the same time.

 

The Weeden sprinkler system has been evaluated by the University of Arkansas, Division of Agriculture Research and Extension.  Studies have shown that relative humidity in houses is lower using the Weeden system compared to houses fitted with conventional pads that tend to be overused. This results in reduced water usage and drier litter.  In a typical broiler house located in Mississippi, operation of the Weeden system resulted in a 64 percent reduction in water used to an average of approximately 9,000 gallons per cycle with a 5 percent reduction in average in-house humidity at the expense of a 3F increase in average summer temperature within the house.  Stimulating feed, and water intake contributed to enhanced growth providing the grower with 0.16 cents per pound higher settlement value over two successive summer cycles compared to controls without Weeden Sprinklers.

 

The Weeden sprinkler system operated in accordance with recommended parameters in conjunction with evaporative cooling pads could enhance growth and return subject to maintaining appropriate longitudinal air movement through the house.

 

 

COMFORT NEST™

With an emphasis on breeder hatchability, increasing the proportion of nest-laid eggs and achieving clean shells are important objectives contributing to hatch and hence profitability.    VAL-CO will demonstrate the Comfort Nest™ installation at the IPPE.  The double-wide nests with a 19” wide entry are more attractive to hens than conventional single-hole nests, reducing floor eggs. 

 

Eggs roll out gently onto a 5” wide polyethylene side-mounted belt with holes allowing ventilation and contributing to unsoiled eggshells. An optional 5" cloth belt is available depending on customers' preference. Nests are equipped with closers to allowing hens to exit nests but deterring re-entry. This reduces the occurrence of broody hens or low-ranked birds hiding in nests and soiling of pads by hens roosting in nests at night.

 

VAL-CO Comfort Nests are constructed with heavily galvanized steel including partitions. The system can be installed in houses up to 600’ in length. 

 

The automated Comfort Nest™ system can be supplied with a VAL-CO egg collection table constructed from steel for  optimal durability.

 

 

MACH 57™ SERIES FANS

 

Responding to the need for greater efficiency in ventilation, VAL-CO has introduced the MACH 57™ series designed for exterior mounting. Within the MACH 57™ range, VAL-CO offers the 50 Hz models with either 1.5 or 2.0 HP rated at 32,000 cfm with 0.05" swp declining to 25,000 cfm at 0.20" swp.  The 60 Hz models range in displacement from 31,200 cfm to 34,100 cfm at 0.05" swp.

 

All fans are designed for optimal air speed and displacement and are fabricated from galvanized coated steel and constructed with corrosive resistant materials.  The MACH 57™ range uses many common components in common with 54" VAL-CO fans to reduce inventory of spare parts.

 

The MACH 57™ fan is available with a compatible exterior mount with a cone and dampers.  The unit is constructed of polypropylene and fiberglass for a long service life.  The interior of the mount is coated black to reduce entry of light.

 

The MACH 57™ series fans can be supplied to operate with voltages ranging from 208 to 230v, 190 to 380v or 208 to 230/460v supply.

 

 

SRP® AUX INFRARED BROODERS 

 

VAL-CO will feature SRP® infrared brooders designed for optimal chick comfort to promote growth.  The AUX range offered in the U.S. comprises 20 ft. units rated at either 80,000 or 100,00 BTU/hr.  SRP® series infrared tube heaters eliminate hot spots over litter and can be ordered with SMART Optizone controllers that allow decentralized zoning, remote monitoring, allowing changes in set points and alerts.

 

The 20 ft. long radiant tube heaters are endorsed by agricultural engineers affiliated with the UGA Extension Poultry Science Service based on their field evaluation based on even distribution of heat promoting regular distribution of chicks.  Temperature variations at litter level are less than 10F in houses. Thermal imaging during brooding provided data supporting the litter-level temperatures located adjacent to outside feeder lines and inside drinker lines. 

 

The University of Georgia extension specialists recommend installing two rows of 20 ft. heaters within 6 ft. of the outer feed lines lengthwise in the brooding area.  This arrangement distributes heat evenly over the litter area closer to the sidewalls reducing litter moisture and places the tube heaters closest to incoming cold air from the sidewall inlets. This helps to counteract leakage of cold air through fissures in the sidewalls of older houses.

 

Further field trials are in progress to evaluate advantages from longer infrared radiant brooders with special reference to fuel consumption, evenness of the flock, feed consumption efficiency and settlement values for flocks.

 


 

FUZE® V GRILL-LESS FEEDER PANS AVAILABLE WITH ONCE ILLUMINATION

 

VAL-CO, will promote the combination of their FUZE feed pan LINES in association with ONCE by Signify Optient lighting. Synergy from the two systems will promote flock uniformity with optimal growth and yield.

 

The FUZE® V Grill-Less feed pan was designed in cooperation with leading growers.  Objectives were to reduce chick mortality and to improve feed conversion efficiency.  Features of the FUZE® V include:

 

  • Access to feed in pans from day of placement

 

  • An adjustable collar to regulate feed level according to flock age

 

  • The lip of the pan is designed to prevent scratching and wastage

 

The Optient lighting system from ONCE by Signify is installed above the feed line to attract broilers of all ages in accordance with natural behavior.  Field trials show an improvement in feed conversion of up to four points at the time of harvest.  Energy consumption is reduced by up to 70 percent compared to conventional LED ceiling lights. Some growers use only the Optient installation after the end of the brooding period.

 

 The modular LED lights are easy to install using a patented twist-and-hook arrangement.

 

VAL-CO has been appointed as the exclusive U.S. distributor for the Optient lighting system and can supply installations separately for retrofit or as a combined package.

 

 

Valli Baby Area Rearing Aviary

 

It is universally accepted that rearing aviaries should be compatible with housing of the flock after transfer.  Manufacturers of alternative housing systems including Valli of Italy have conducted extensive research and development on brooding systems to ensure that flocks achieve maturity at a uniform weight and time so as to optimize peak and subsequent production.

 

The Valli Baby Area system will be displayed on the VAL-CO booth. The rearing aviary incorporates design features to facilitate management of replacement flocks. Chicks can be monitored after placement in a single tier.  The front grills can be adjusted continuously from closure to complete opening to allow flocks to access litter.  The external perches are adjustable in height to conform to the growth of the flock.  The Valli Baby Area rearing system offers optimal use of floor space with appropriate positioning of the chain feeder and nipple drinker lines.

 

Valli offers a range of options with regard to the number of tiers and the flexibility inherent in the system allows retrofitting to existing houses sold, installed and serviced by VAL-CO.

 

  

 

U.S. Broiler and Turkey Exports, January Through October 2025.

OVERVIEW

 

Total exports of bone-in broiler parts and feet during January-October 2025 attained 2,585,961 metric tons, 4.1 percent lower than in January-October 2024 (2,697,121 metric tons). Total value of broiler exports increased by 0.7 percent to $3,883 million ($3,856 million).

 

Total export volume of turkey products during January-October 2025 attained 155,960 metric tons, 15.6 percent less than in January-October 2024 (184,727 metric tons). Total value of turkey exports increased by 14.5 percent to $636 million ($555 million).

 

Average unit price attained by the broiler industry is constrained by the fact that leg quarters comprise over 96 percent of broiler meat exports by volume (excluding feet). Leg quarters represent a relatively low-value undifferentiated commodity lacking in pricing power. Exporters of commodities are subjected to competition from domestic production in importing nations. Generic products such as leg quarters are vulnerable to trade disputes and embargos based on real or contrived disease restrictions. To increase sales volume and value the U.S. industry will have to become more customer-centric offering value-added presentations with attributes required by importers. Whether this will increase margins is questionable given that leg quarters are regarded as a by-product of broiler production. A more profitable long-term strategy for the U.S. industry would be to develop products using dark meat to compete with and displace pork and beef in the domestic retail and institutional markets. Due to a shortage and hence high price for beef presentations this opportunity is now evident.

 

HPAI is now accepted to be panornitic affecting the poultry meat industries of six continents with seasonal and sporadic outbreaks. The incidence rate and location of cases in the U.S. has limited the eligibility for export from many plants depending on restrictions imposed by importing nations. Incident cases in the U.S. have continued at a low rate in egg-production flocks and in turkeys but a resurgence is anticipated during the first quarter of 2026.

 

 

Uncertainty surrounding tariff policy is an added complication potentially impacting export volume in 2026. In the event of reduced exports, leg quarters would be diverted to the domestic market resulting in a depression in average value derived from a processed bird.

 

To offset an anticipated decline in exports of U.S. agricultural products the USDA will make available $285 million during 2026 for trade promotion including trade reciprocity missions and credit guarantees under the GSM-102 program.

EXPORT VOLUMES AND PRICES FOR BROILER MEAT

 

The following table prepared from USDA data circulated by the USAPEEC, compares values for poultry meat exports during January-October 2025 compared with the corresponding months during 2024:-

 

      PRODUCT

    

     Jan.-Oct. 2024

       

      Jan.-Oct. 2025

      

       DIFFERENCE

Broiler Meat & Feet

 

 

 

Volume (metric tons)

     2,697,121

          2,585,961

  -111,160   (-4.1%)

Value ($ millions)

            3,856

                 3,883

          +27   (+0.7%)

Unit value ($/m. ton)

            1,430

                 1,502

          +72   (+5.0%)

Turkey Meat

 

 

 

Volume (metric tons)

        184,727

            155,960

   -28,767    (-15.6%)

Value ($ millions)

               555

                   636

         +81    (+14.5%)

Unit value ($/m. ton)

            3,005

                4,078

    +1.073    (+35.7%)

 

                  COMPARISON OF U.S. CHICKEN AND TURKEY EXPORTS

                                    JANUARY-OCTOBER 2025 COMPARED TO 2024

 

                                                       

BROILER EXPORTS

 

Total broiler parts, predominantly leg quarters but including feet, exported during January-October 2025 compared with the corresponding months in 2024 declined by 4.1 percent in volume but value was up 0.7 percent. Unit value was 5.0 percent higher to $1,502 per metric ton.

 

During 2024 exports attained 3,251,000 metric tons valued at $4,689 million, down 10.5 percent in volume and down 1.1 percent in value compared to 2023. Unit value was up 10.7 percent to $1,442 per metric ton

Broiler imports in 2025 are projected to attain an inconsequential 67,000 metric tons (134 million lbs.) compared to 82,000 metric tons (180,000 million lbs.) in 2024

 

The top five importers of broiler meat represented 51.1 percent of shipments during January-October 2025. The top ten importers comprised 69.3 percent of the total volume reflecting concentration among the significant importing nations.

 

Eighth-ranked China declined 43.1 percent in volume to 78,306 tons and concurrently by 31.3 percent in value to $242 million over the first ten months of 2025 compared to the corresponding period in 2024. Unit value increased by 20.9 percent to $3,093 per metric ton reflecting the high proportion of feet in consignments

 

Nations gaining in volume compared to the corresponding period in 2024 (with the percentage change indicated) in descending order of volume with ranking indicated by numeral were:-

        

2. Taiwan, (+35%); 4. Philippines, (+31%); 5. Canada, (+15%); 10. Haiti, (+27%);          11. Ghana, (+16%); 13, Dominican Rep., (+1%) and 17. Congo-Kinshasa), (+85%)

 

Losses during January-October 2025 offset the gains in exports with declines for:-

1. Mexico, (-8%); 3. Cuba, (-10%); 6. Guatemala, (-1%); 7. Angola, (-19%);

8. China, (-43%); 9. Viet Nam, (-31); 12. UAE, (-6%); 14. Hong Kong, (-38%)

and 15. Georgia, (-23%).         

 

TURKEY EXPORTS

 

The volume of turkey meat exported during January-October 2025 declined by 15.6 percent to 155,960 metric tons from January-October 2024 but value was 14.5 percent higher at $636 million. Average unit value was 35.7 percent higher at $4,078 per metric ton.

 

Imports of turkey products attained 15,000 metric tons (33 million lbs.) in 2024 with a similar projection for 2025.

 

Mexico imported 124,127 tons during the 10-month period representing 79.6 percent of volume. Value attained $506 million comprising 79.6 percent of value at a unit price of $4,073 per ton. Canada imported 5,065 tons valued at $18 million with a unit price of $3,514 per ton. 

 

It is important to recognize that exports of chicken and turkey meat products to our USMCA partners amounted to $1,264 million in 2021, $1,647 million during 2022, $1,696 in 2023 and $1,732 million over the first ten-months of 2025. It will be necessary for all three parties to the USMCA to respect the terms of the Agreement in good faith since punitive action against Mexico or Canada on issues unrelated to poultry products will result in reciprocal action by our trading partners to the possible detriment of U.S. agriculture. This is especially important as all three nations have recently elected chief executives and administrations.

 

The emergence of H5N1strain avian influenza virus with a Eurasian genome in migratory waterfowl in all four Flyways of the U.S. during 2022 was responsible for sporadic outbreaks of avian influenza in backyard flocks and serious commercial losses in egg-producing complexes and turkey flocks but to a lesser extent in broilers. The probability of additional outbreaks of HPAI over succeeding weeks appears likely with recorded outbreaks in turkey farms in ND, SD and MN. Consistent with fall migration of waterfowl. Incident cases affecting egg-production and turkey flocks will be a function of shedding by migratory and domestic birds and possibly free-living mammals or even extension from dairy herds. Protection of commercial flocks at present relies on the intensity and efficiency of biosecurity including wild-bird laser repellant installations, representing investment in structural improvements and operational procedures. These measures are apparently inadequate to provide absolute protection, suggesting the need for preventive vaccination in high-risk areas for egg-producing, breeder and turkey flocks.

 

The application of restricted county-wide embargos following the limited and regional cases of HPAI in broilers with restoration of eligibility 28 days after decontamination has supported export volume for the U.S. broiler industry. Exports of turkey products were more constrained with plants processing turkeys in Minnesota, the Dakotas, Wisconsin and Iowa impacted.  The future challenge will be to gain acceptance for limited preventive vaccination of laying hens and turkeys in high-risk areas accompanied by intensive surveillance. It is now accepted that H5N1 HPAI is panornitic in distribution among commercial and migratory birds across six continents. The infection is now seasonally or regionally endemic in many nations with intensive poultry production, suggesting that vaccination will have to be accepted among trading partners as an adjunct to control measures in accordance with WOAH policy.

 

The live-bird market system supplying metropolitan areas, the presence of numerous backyard flocks, gamefowl and commercial laying hens allowed outside access, potentially in contact with migratory and now some resident bird species, all represent an ongoing danger to the entire U.S. commercial industry. The live-bird segments of U.S. poultry production represent a risk to the export eligibility of the broiler and turkey industries notwithstanding WOAH compartmentalization for breeders and regionalization (zoning) to counties or states for commercial production.

 


 

USDA-WASDE REPORT #667. January 12th 2026

OVERVIEW

Understandably the January 12th edition of the World Agriculture Supply and Demand Estimates (WASDE) #667 projecting the 2026 season was extensively revised with respect to corn and soybeans from the previous post-shutdown December 9th edition reflecting the 2025 crop. Crop size and ending stocks were derived from previous harvest data, projections for domestic use and the effect of tariff policy and competition that influence export volumes

 

The January WASDE report projected that the 2026 corn crop will be harvested from an expanded 91.3 million acres, (90.0 million acres in 2025). The soybean crop will be harvested from an almost unchanged 80.4 million acres, (80.3 million acres in 2025).

 

The January WASDE yield value for the 2026 corn crop was raised 0.5 bushels to 186.5 bushels per acre. By comparison corn yield was 183.1 bushels per acre in 2024. Soybean yield was held at 53.0 bushels per acre, unchanged from 2025 reflecting previous harvests. By comparison soybean yield was 51.7 bushels per acre for the 2024 crop.

 

The January WASDE projection for the 2026 ending stock of corn was raised by 9.8 percent from December to 2,227 million bushels. The January USDA projection for the 2026 ending stock of soybeans was raised 20.7 percent from December to 350 million bushels consistent with domestic use and export projections.

 

The January WASDE raised the projected corn price for the 2026-2027 market year by 10 cents to an average of 410 cents per bushel. The projected average season price for soybeans was lowered by 30 cents to 1,020 cents per bushel. The price of soybean meal was lowered from the December  WASDE by $5 to $295 per ton.

 

USDA commodity prices suggest stable feed costs for livestock and poultry producers given projections for yields, domestic use and exports. In some areas return from corn will be below break-even given relative yields, production costs and depressed per bushel prices. The USDA has announced an allocation of $12 billion to row-crop farmers to compensate for prolonged low commodity prices resulting from reduced exports occasioned by tariffs imposed by the U.S.

 

 Projections for world output included in the January 2026 WASDE report, reflect the most recent estimates for the production and export of commodities especially in the Southern Hemisphere with an emphasis on volumes and prices offered by Argentine and Brazil. Economists also consider the impact of weather patterns arising from Southern Oscillation events especially on Brazil and Argentina.

 

It is accepted that USDA projections for exports will be influenced by the fluid situation relating to tariffs. Estimates of exports are also based on the perceived intentions and needs of China. This Nation sharply curtailed purchases of commodities and especially U.S. soybeans since the 2024-2025 market year and the current year to date.

 

CORN

Production parameters for corn were updated from the December WASDE, reflecting the predicted yield, and updated projections for domestic use and trade. The January WASDE Report projected a 2026 crop of 17,021 million bushels, compared to 16,752 million bushels for the previous 2025 record harvest. The “Feed and Residual” category was raised 100 million bushels. (1.6 percent) for 2026 to 6,200 million bushels. The Food and Seed category was projected at 1,370 million bushels down 10 million bushels. The Ethanol and Byproducts Category was retained at 5,600 million bushels consistent with estimated demand for E-10 and higher blends for driving needs during winter months. Projected corn exports were held at 3,300 million bushels, based on recent orders and shipments. The anticipated ending stock of corn will be up 9.8 percent to 2,227 million bushels or 12 percent of projected availability.

 

The forecast USDA average season farm price for corn in the January WASDE report was 410 cents per bushel. At close of trading after the noon January 12th release of the WASDE, the CME spot price for corn was 421 cents per bushel, 2.7 percent above the USDA projection and 6.0 percent below the December 9th CME price.

 

JANUARY 2026 WASDE #667 Summary for the 2025 Corn Harvest:

 

Harvest Area

91.3 million acres

(98.8 m. acres planted, with harvest corresponding to 92.4% of acres planted)

 

Yield

186.5 bushels per acre

(Updated from 186.0 bushels per acre in the Dec. WASDE)

 

Beginning Stocks

 

  1,551 m. bushels

 

 

Production

 

17,021 m. bushels

 

 

Imports

 

       25 m. bushels

 

 

Total Supply

 

18,597 m. bushels

Proportion of Supply

 

Feed & Residual

 

  6,200 m. bushels

 

33.3%

 

Food & Seed

 

  1,370 m bushels

 

 7.4%

 

Ethanol & Byproducts

 

  5,600 m. bushels

 

30.1%

 

Domestic Use

 

13,170 m. bushels

 

70.8%

 

Exports

 

  3,200 m. bushels

 

17.2%

 

Ending Stocks

 

  2,227 m. bushels

                               

                                12.0%

 

Average Farm Price: 410 cents per bushel. (Up 10 cents per bushel from the December WASDE)

 

SOYBEANS

Projections for soybeans were adjusted from the December WASDE to reflect the 2026 crop. Yield of 53.0 bushels per acre was retained but with a slightly higher area of 81.2 million acres planted compared to 2025. The January WASDE raised the projection of the 2026 soybean crop by 0.2 percent to 4,262 million bushels. Crush volume was raised 0.6 percent from December to 2,570 million bushels consistent with increased demand and industry capacity. Projected exports were reduced by 3.7 percent to 1,575 million bushels despite the prospect of increased imports by China following uncertainty over tariffs and diplomatic conflict. Ending stocks were anticipated to be 350 million bushels, up 20.7 percent from the December WASDE estimate. Prior to 2018, China, the largest trading partner for U.S. agricultural commodities, imported the equivalent of 25 percent of U.S. soybeans harvested.

 

The January USDA projection for the ex-farm seasonal price for soybeans was reduced 30 cents to 1,020 cents per bushel. At close of trading on January 12th following the noon release of the WASDE, the CME spot price was 1,050 cents per bushel, 2.9 percent above the January USDA projection and 3.5 percent below the December 9th CME price.

 

JANUARY 2026 WASDE #667 Summary for the 2026 Soybean Harvest:-

 

Harvest Area

80.4 million acres

81.2 m. acres planted. Harvest corresponding to 99.0% of planted acreage)

 

Yield

53.0 bushels per acre

(Updated from 53.5 bushels/acre in the September WASDE)

 

Beginning Stocks

 

    325 m. bushels

 

 

Production

 

  4,262 m. bushels

 

 

Imports

 

       20 m. bushels

 

 

Total Supply

 

  4,607 m. bushels

Proportion of Supply

 

Crush Volume

 

  2,570 m. bushels

 

55.8%

 

Exports

 

  1,575 m. bushels

 

34.2%

 

Seed

 

       73 m. bushels

 

 1.6%

 

Residual

 

        39 m. bushels

 

 0.8%

 

Total Use

 

  4,257 m. bushels

 

92.4%

 

Ending Stocks

 

     350 m. bushels

                                

                                  7.6%

 

Average Farm Price: 1,020 cents per bushel (Down 30 cents per bushel from the December WASDE)

 

SOYBEAN MEAL

The projected parameters for soybean meal were updated from the December WASDE. Production will be up 0.9 percent to 60.8 million tons, consistent with the 0.6 percent increase in soybean crush volume of 2,570 million bushels. Projected production reflects the stagnant demand for biodiesel despite expanded U.S. crushing capacity. Crush volume is driven both by exports and domestic consumption for livestock feed and for soy oil supplying the food and biodiesel segments. The projection of domestic use was 42.0 million tons. Exports were estimated at 19.4 million tons.

 

The USDA projected the ex-plant price of soybean meal at $295 per ton, down $5 per ton from the January WASDE as an average for the season based on supply and demand considerations. USDA predicted an ending stock of 450,000 tons representing 0.7 percent of supply.

 

At close of trading on January 12th the CME spot price for soybean meal was $298 per ton, up $3 per ton (1.0 percent) compared to the USDA projection of $295 per ton and down 1.0 percent from the December 9th CME price.

 

 JANUARY 2026 WASDE #667 Projection of Soybean Meal Production and Use

Quantities in thousand short tons

Beginning Stocks

     398

Production

60,752

Imports

     725

Total Supply

61,350

Domestic Use

42,025

Exports

19,400

Total Use

61,425

Ending Stocks

     450

Average Price ex plant:  $295 per ton (Down $5 per ton from the December WASDE)

 

IMPLICATIONS FOR PRODUCTION COST

The price projections based on CME quotations for corn and soybeans suggest higher feed production costs for broilers and eggs.  Going forward, prices of commodities will be determined by World supply and demand and U.S. domestic use and exports.

 

For each 10 cents per bushel change in corn:-

  • The cost of egg production would change by 0.45 cent per dozen
  • The cost of broiler production would change by 0.25 cent per live pound

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

  • The cost of egg production would change by 0.35 cent per doze
  • The cost of broiler production would change by 0.30 cent per live pound.

 

WORLD SITUATION

 

With respect to world coarse grains and oilseeds the January 2026 WASDE Report included the following appraisals by USDA:-

 

COARSE GRAINS:

“Global coarse grain production for 2025/26 is forecast up 14.8 million tons to 1.591 billion.

This month’s foreign coarse grain outlook is for greater production, virtually unchanged trade, and higher ending stocks. Foreign corn production is forecast higher with an increase Global coarse grain production for 2025/26 is forecast up 14.8 million tons to 1.591 billion.

 

This month’s foreign coarse grain outlook is for greater production, virtually unchanged trade, and higher ending stocks. Foreign corn production is forecast higher with an increase for China, where production is raised to a record 301.2 million tons based on the latest data from the National Bureau of Statistics. Foreign corn ending stocks for 2025/26 are higher, mostly reflecting an increase for China. Global corn stocks, at 290.9 million tons, are raised 11.8 million.”

 

OILSEEDS:

“Foreign 2025/26 oilseed production is raised 2.4 million tons mainly on higher soybean production partly offset by lower cottonseed and rapeseed output. For sunflowerseed, higher production for Argentina is offset by lower production for Russia. Rapeseed  production is also lowered for Russia”.

 

“The 2025/26 global soybean outlook includes higher production, increased crush, lower exports, and higher ending stocks. Global soybean production is increased 3.1 million tons to 425.7 million, reflecting higher crops for Brazil and the United States but lower output for China. Brazil soybean production is raised 3.0 million tons to 178.0 million on beneficial weather conditions in the Center West during the peak of the growing season. Further, positive early-season conditions and consistent rainfall in the south of Brazil also bolsters yield prospects, especially compared to previous years when the region faced drought. Soybean crush and soybean meal exports are raised for Brazil and the United States, and pairs with higher soybean meal imports for the European Union. EU soybean crush and soybean imports are lowered on higher imported soybean meal supplies. Global soybean exports for 2025/26 are  reduced 0.1 million tons to 187.6 million as higher exports for Brazil are offset by lower U.S. shipments. Global ending stocks are increased 2.0 million tons to 124.4 million, mainly on higher stocks for the United States and Brazil.”

 

 

World and U.S. Data Combined for Coarse Grains and Oilseeds:-

 

Factor: Million m. tons

Coarse Grains

Oilseeds

Output

  1,591*

693

Supply

1,914

835

World Trade

          250

215

Use

1,592

579

Ending Stocks

          322

      145


*Values rounded to one million metric ton

  (1 metric ton corn= 39.37 bushels. 1 metric ton of soybeans = 36.74 bushels) 

  (“ton” represents 2,000 pounds)


 

Updated USDA-ERS January 2026 Poultry Meat Projection

On January 16th 2025 the USDA-Economic Research Service released updated production and consumption data with respect to broilers and turkeys, covering 2024, a projection for 2025 and a forecast for 2026.

 

The revised 2025 projection for broiler production is for 48,046 million lbs. (22.003 million metric tons) up 3.0 percent from 2024. USDA projected per capita consumption of 103.0 lbs. (46.8 kg.) for 2025, up 1.9 percent from 2024. Exports will attain 6,645 million lbs. (3,020 million metric tons), 0.5 percent below the previous year.

 

The 2026 USDA forecast for broiler production will be 48,600 million lbs. (22.090 million metric tons) up 1.2 percent from 2025 with per capita consumption up 0.7 lb. to 103.7 lbs. (47.1 kg). Exports will be 1.1 percent higher compared to 2025 at 6,715 million lbs. (3.052 million metric tons), equivalent to 13.8 percent of production.

 

Production values for the broiler and turkey segments of the U.S. poultry meat industry are tabulated below:-

 

Parameter

  2024

(actual)

     2025

(projection)

    2026

(forecast)

  Difference

2024 to 2025

 

Broilers

 

 

 

 

Production (million lbs.)

46,994

48,046

  48,600

     +2.3

Consumption (lbs. per capita)

  101.1

      103.0

  103.7

     +1.9

Exports (million lbs.)

6,680

6,645

   6,715

      -0.5

Proportion of production (%)

14.2

13.8

    13.8

      -2.8

 

 

 

 

 

Turkeys

 

 

 

 

Production (million lbs.)

5,121

4,832

   4,975

      -5.6

Consumption (lbs. per capita)

13.8

13.1

    13.3

      -5.1

Exports (million lbs.)

486

 412

     400

    -15.2

Proportion of production (%)

 9.5

  8.5

      8.6

    -10.5

 

Source: Livestock, Dairy and Poultry Outlook released January 16th 2065

 

 

The January 16th USDA report updated the projection for the turkey industry during 2025 including annual production of 4,832 million lbs. (2.196 million metric tons), down 5.6 percent from 2024. Consumption in 2025 is projected to be 13.1 lbs. (6.0kg.) per capita, down by 5.3 percent from the previous year. Export volume will attain 412 million lbs. (187,272 metric tons) in 2025. Values for production and consumption of RTC turkey in 2025 are considered to be realistic, given year to date data, the prevailing economy, variable weekly poult placements, production levels, losses from HPAI and inventories consistent with season.

The 2026 forecast for turkey production is 4,975 million lbs. (2.261 million metric tons) up an optimistic 3.0 percent from 2025 with per capita consumption up 1.5 percent to 13.3 lbs. (6.1 kg). Exports will be 2.9 percent lower than in 2025 to 400 million lbs. (181,81 metric tons) equivalent to 8.0 percent of production. This implies a reduction in selling prices for whole birds and products

 

Export projections do not allow for a breakdown in trade relations with existing major partners including Mexico, Canada and China nor the impact of catastrophic diseases including HPAI and vvND in either the U.S. or importing nations.


 

Poland Criticized in E.U. Audit

Poland has emerged as a significant producer and exporter of table eggs and poultry meat.  It is documented that in 2024 Poland exported 245,000 tons of shell eggs corresponding to 338 million dozen.  In the same year, Poland exported 2.0 million metric tons (4.4 billion pounds) of RTC mostly to E.U. nations representing 69 percent of total national output.

 

Over the past decade, eggs and poultry meat shipped by Poland have been implicated in outbreaks of salmonellosis.  The E.U. Health and Food Agency conducted audits that disclosed profound deviations from acceptable practices with regard to prevention of Salmonella infection in flocks and in implementing accepted quality control procedures.  The most recent 2024 E.U. Commission audit* recognized some improvements but clearly criticized authorities in Poland for neglecting their collective responsibility in ensuring an acceptable standard of food safety. 

 

Defects included failure to follow established HACCP principles in compliance with relevant E.U. regulations to prevent or minimize the risk of Salmonella contamination.  The audit disclosed inadequate training of technical personnel at the laboratory and processing levels.  In many instances, the Competent Authority represented by state officials in Poland failed to enforce E.U. regulations.

 

The creditability of the regulatory system in Poland and the reliability of product safety is now in question and will jeopardize future exports.  The neglect of E.U. standards leading to outbreaks of salmonellosis among consumers of eggs and broiler meat exported by Poland should serve as a warning to producing nations to intensify programs of control, detection and remediation.

 

 

*EU Commission- Director General’s Health and Food Safety Report 2024-8029


 

Shuttered Cargill Turkey Plant to be Repurposed by Tyson Foods

On December 5th, Tyson Foods acquired the former Cargill turkey processing plant in Springdale, AR. for $23 million.  The facility is located on a 45-acre property and is approximately 350,000 square feet in extent.

 

Tyson Foods intends to convert the plant to further-processing requiring an investment of between $100 and $130 million.

Industry observers suggest that Cargill intends to withdraw from turkey production in the U.S. but without confirmation from the Company. Cargill will maintain a presence in the poultry industry through its joint-venture investment in Wayne-Sanderson Farms.


 

New Appointments at USDA-APHIS

On January 12th the U.S. Department of Agriculture announced leadership appointments within the Animal Plant Health Inspection Service (APHIS).  Dr. Michael Watson the Administrator of the Agency will retire at the January.  Dr. Rosemary Sifford Deputy Administrator for Veterinary Services and U.S. Chief Veterinary Officer recently retired.

 

Their replacements will be Ms. Kelly Moore who will serve as Acting Administrator of APHIS and Dr. Alan Huddleston who will serve as the Acting U.S. Chief Veterinary Officer.  Dr. Adis Dijab Associate Deputy Administrator of APHIS will provide operational oversight and continuity.

 

Ms. Moore is currently Acting Chief Operating Officer for USDA Marketing and Regulatory Programs and is a veteran of the U.S. Marines.  Dr. Alan Huddleston has extensive experience in epidemiology and program development and will continue the tradition of strong cooperation in the international arena and will cooperate with states and the U.S. livestock and poultry industries.


 

Settlement Over Wage Suppression Lawsuit

On January 8th, defendant Agri Stats Inc. settled with plaintiffs alleging price fixing by major red-meat packers.*  The Greater Omaha Packing Company was the fourteenth defendant to reach an agreement in the case leaving only Smithfield Foods apparently willing to go to trial at this time.  Settlement values have amounted to $202.8 million ranging from $100,000 for the Greater Omaha Packing Company to $72.5 million for Tyson Foods with JBS USA Food Company settling for $55 million and Cargill Inc. at $29.8 million representing the largest settlements. 

 

Plaintiffs’ attorneys have requested the Court of Jurisdiction to approval final settlement agreements with Greater Omaha and Agri Stats.  This Company will not pay any monetary value but will cooperate in litigating claims against Smithfield Foods for the alleged or actual “conspiracy or agreement between defendants relating to reducing competition in the hiring and retaining of or to fix, depress, restrain or exchange information, otherwise reducing the compensation paid.”

 

*Civil Action #1: 22-cv-02946-PAB-STV


 

Aldi Expansion in 2026

Aldi will expand in the U.S. during the 50th year of operation in the U.S. with 180 new locations including Maine together with new distribution centers in Florida, Arizona and Colorado. At the end of 2025, Aldi operated 2,614 stores in the U.S. with a goal of 3,200 locations by the end of 2028 requiring capital investment of $9 billion on stores and logistics.

 

According to Atty McGrath, CEO of Aldi U.S. as quoted by CNBC “Consumers now really are not looking for fancy stores and tens of thousands of different items to choose from.”  She added, “They are really savvy shoppers.  They know that private labels can save them money without sacrificing quality.” 

Industry analysts credit Aldi with an eight percent increase in store traffic during 2025, outpacing conventional supermarkets and adding 17 million new customers.


 

Advance announcement of PEAK in Mid-April

The 2026 Peak Exhibition organized by the Midwest Poultry Federation will take place over April 14 through 16 in the Minneapolis Convention Center.

 

The program will include the progressively-expanding tradeshow incorporating TED talks. Other program activities will comprise educational sessions, entertainment coupled with fellowship and collegial interaction.


 

Shane Commentary

Study on Human-Derived H5N1 Isolates Provides Assurance on Zoonosis

A recent molecular evaluation was conducted on H5N1 isolates collected from workers involved in depopulation of infected flocks in Washington State during late October and early November 2024.  Over the period April 2024 through June 2025 70 human cases of H5N1 infection were documented.  These included 41 cases after exposure to infected dairy herds infected with genotype B3.13.  A total of 24 cases followed exposure to infected commercial flocks infected with D1.1 genotype, with two cases following exposure to backyard flocks and three cases with  an unknown source.

 

Extensive studies were conducted by the Centers for Disease Control on virus isolated from eight adult workers demonstrating conjunctivitis and mild respiratory symptoms.  Virus was detected applying PCR.  Sequencing was completed on the neuraminidase gene of H5N1 on five cases and from the neuraminidase gene from four cases. 

 

Virus was propagated on MDCK cells and in embryonated eggs.  All isolates were characterized as HPAI H5N1 clade 2.3.4.4b genotype D1.1.  There were no changes in the genome known to be associated with adaptation to mammalian cells or related to increased infectivity for, or contagion among humans.  The isolates obtained from workers in Washington were compatible with avian alpha 2,3 sialic acid receptors.

 

Notwithstanding the absence of genetic markers associated with zoonosis, it was recommended that ongoing surveillance and evaluation of clade 2.3.4.4b viruses is necessary to detect mutations that may be precursors of the emergence of a zoonotic strain.

 

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