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Iowa Ag Department To Take Care, Custody, Control Over 1.3 Million Pure Prairie Poultry Chickens

The Iowa Department of Agriculture and Land Stewardship has been granted an emergency court order to take immediate care, custody and control of approximately 1.3 million broiler chickens owned by Pure Prairie Poultry.

Information forwarded to KCHA/KCZE by District 58 State Representative Charles Thomson, reads that, on Monday (09.30), Pure Prairie Poultry notified the state ag officials that, due to the company’s financial position, they were unable to purchase feed for the chickens on 14 Iowa farms the Charles City chicken processing plant contracts with to grow broilers.

Upon notification, the Ag Department coordinated with state and federal agencies, as well as industry partners, to seek a possible solution. With no immediately available solution and citing significant potential animal welfare concerns, the Department, under its authority in Iowa Code Chapter 717, was granted an emergency court order to take care, custody, and control of the birds and they are coordinating with farmers.

Thomson says the Ag Department has a fund for such emergency operations, but they will seek reimbursement of the taxpayers’ costs from responsible parties, including through possible legal remedies.

The Ag Department has also notified relevant local law enforcement of the situation.

Source: KCHA news

Downtown Diner celebrates the commitment of poultry, egg and dairy farmers to Canada’s food security

Today marked a special celebration of Canada’s poultry, dairy and egg farmers with the unique Downtown Diner pop-up on Sparks Street in Ottawa. The event, which invited Parliamentarians and the Ottawa community to try dishes and refreshments made with local ingredients, showcased the dedication of these farmers in supporting Canada’s food security.

Farmers representing Egg Farmers of Canada, Chicken Farmers of Canada, Turkey Farmers of Canada, Canadian Hatching Egg Producers and Dairy Farmers of Canada took part in the event and answered questions about farming and agriculture. Farmers also took the occasion to discuss government policies and legislation that ensure Canada can continue to prioritize a strong national food system, such as Bill C-282 (supply management). The support was overwhelming with over a thousand attendees dropping by the pop-up diner to meet farmers and show their support for made-in-Canada food.

Through supply management, poultry, egg and dairy farmers work together to ensure a stable and predictable supply of local poultry, egg and dairy products, all while delivering essential benefits to Canadians. Supply management supports thriving rural economies and local infrastructure and ensures that young people can see a future in farming. Not only does supply management allow Canada to produce enough food to feed Canadians year-round, it also delivers on Canadians’ values and priorities by offering high-quality food that is locally produced. A direct benefit of supply management is that there are farmers and farm families across the country who ensure Canadians have reliable access to poultry, egg and dairy products.

The Downtown Diner is just one way Canada’s poultry, egg and dairy farmers are helping Canadians learn about where their food comes from and the tools they use to support the food security of our country. Visit eggfarmers.ca, chickenfarmers.ca, turkeyfarmersofcanada.ca, chep-poic.ca and dairyfarmersofcanada.ca to learn more about Canada’s poultry, egg and dairy sectors and how they are prioritizing our national food system.

About Egg Farmers of Canada

Now in its sixth decade as one of Canada’s leading agriculture organizations, Egg Farmers of Canada manages the national egg supply and promotes egg consumption while representing the interests of over 1,200 regulated egg farmers and egg farm families from coast to coast. Visit eggfarmers.ca for more information.

About Chicken Farmers of Canada

Chicken Farmers of Canada represents nearly 2,900 chicken farmers from coast to coast and ensures that the chicken that reaches Canadian’s tables is trusted, preferred, and sustainable. Visit chickenfarmers.ca for more information.

About Turkey Farmers of Canada

Turkey Farmers of Canada is a national organization representing Canada’s 510+ turkey farmers. Created in 1974 under the federal Farm Products Agencies Act, the Agency encourages cooperation throughout the Canadian turkey industry, promotes the consumption of turkey meat, and oversees the supply management system for turkey in Canada. Visit turkeyfarmersofcanada.ca for more information.

About the Canadian Hatching Egg Producers

Founded in 1986, the Canadian Hatching Egg Producers represents 225 farmers from British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Quebec. Our mission is to continue to grow a profitable broiler hatching egg industry in Canada in order to ensure a strong, efficient and competitive industry and a dependable supply of quality broiler hatching eggs to the Canadian chicken industry. Visit chep-poic.ca for more information.

About Dairy Farmers of Canada

Dairy Farmers of Canada (DFC) is the national policy, advocacy and promotional organization representing the nearly 10,000 Canadian dairy producers. DFC strives to create stable conditions for the dairy sector in our country. It also seeks to maintain policies that promote the sustainability of Canadian dairy production and promote dairy products and their health benefits. Visit dairyfarmersofcanada.ca for more information.

Source:

 

Got a permit for that chicken coop?

Anyone who keeps outdoor birds in Wales and England will now have to register them as part of efforts to prevent fresh outbreaks of bird flu.

Birds kept indoors are not affected, but anyone with chickens, fowl or pigeons living outdoors will need to register their coops for free.

Farmers said it was “vital” to protect the poultry population, but one pigeon fancier said he feared the hassle would drive some to quit the hobby.

There have been few recent avian influenza cases in the UK involving captive birds in recent years and in 2021 there was a high of 360 cases, leading to millions of birds being culled.

Owners who fail to register risk being fined or even imprisoned, though officials at the UK government’s Animal and Plant Health Agency (APHA) stressed any punishment under the new regulations would be “proportionate”.

Previously only people keeping 50 or more birds in their flock had to register.

Guto Lloyd-Davies keeps one hen at his home in Denbigh area and said it was a hassle to have to register for a solitary bird, but added that it made sense to know where birds are to help halt the quick spread of disease.

Welsh government Huw Irranca-Davies on a chair in a garden with a rooster
Deputy First Minister Huw Irranca-Davies says the register will help to communicate with bird keepers

Deputy First Minister and Secretary for Rural Affairs Huw Irranca-Davies said it would mean communication with bird keepers in the case of an outbreak.

Farmer and presenter Alun Elidyr called for the registration system to be made easy and accessible to everyone, including those in rural areas with poor internet service.

Pigeon fanciers also come under the new registration system and Tim Gunter, 38, from the Rhondda Valley Pigeon Federation warned that older people may struggle with online services, leading to “a lot of fanciers finishing”.

Tim Gunter Tim Gunter standing beside John Gunter who is holding a pigeonTim Gunter
Pigeon fancier Tim Gunter, seen with his father John, says the older generation will “struggle” with the new rules

“There’s no reason for [the government] to know,” he added.

“It’s a hobby so why should we register,” he asked, adding that pigeons are not known to carry avian flu.

Richard Irvine, chief veterinary officer for Wales said: “The APHA will be able to contact bird keepers if there are outbreaks of a notifiable disease in their area, such as bird flu, to inform them of the steps they need to take to protect the health of their birds”.

“Hygiene and smart biosecurity remain essential to protect flocks from the threat of diseases.”

Source: BBC

2025 IPPE Attendee Registration and Housing Open Oct. 7

Attendee registration and general housing for the 2025 International Production & Processing Expo (IPPE) will open on Monday, Oct. 7. Attendees will experience the world’s largest annual display of technology, equipment, supplies and services used in the production and processing of eggs, meat and poultry, and those involved in animal food manufacturing. Already, the 2025 IPPE has more than 574,000 square feet of exhibit space and 1,190-plus exhibitors. Be sure to register online to receive a discounted price of $85 (USD) through Jan. 10, 2025. Beginning Jan. 11, the registration rate is $135.

“We’re excited to showcase an extensive range of solutions that attract industry leaders from around the world. These innovators are dedicated to business development, implementing best practices and staying competitive in today’s fast-paced market. We look forward to welcoming both our domestic and international attendees to the 2025 IPPE,” remarked IPPE show management.

The 2025 IPPE will provide attendees with an opportunity to build relationships, discover new suppliers and vendors, and connect with colleagues from across the world, all in one location and at one time. Sponsored by the American Feed Industry Association, Meat Institute and U.S. Poultry & Egg Association, the IPPE trade show floor will feature the latest solutions, technologies, research, processes, services and products available from the global animal food and protein industries. More than 80 hours of world-class education programs will also be offered throughout the week, along with numerous on-floor attendee activities and networking opportunities.

The “Members to Atlanta” (M2A) program allows qualified attendees from member companies of all three associations engaged in the production of poultry, eggs and meat for consumption, production of feed, and for pet food manufacturers, to attend complimentary. The program is supported through the sponsorship of elite IPPE exhibitors, which include Aviagen, CEVA Animal Health, Cobb-Vantress, Inc., Elanco Animal Health, Heat and Control, Kemin Industries, Inc., Soybean Meal Information Center and Zoetis.

“We thank these exhibitors for their generous support of the M2A program. The program allows IPPE to continue to grow attendance by attracting a global audience of meat, poultry, egg and animal food professionals,” said IPPE show management.

IPPE will take place at the Georgia World Congress Center in Atlanta, Ga. For more information and to register for the 2025 IPPE, visit ippexpo.org.

2025 IPPE SHOW DATES/HOURS:
Tuesday, Jan. 28: 10 a.m. – 5 p.m. EST
Wednesday, Jan. 29: 9 a.m. – 5 p.m. EST
Thursday, Jan. 30: 9 a.m. – 3 p.m. EST

Source: US Poultry & Egg Association

Poultry imports in China decline in early 2024

In the first seven months of 2024, China experienced a notable decline in poultry imports, reflecting significant shifts in the global poultry market. This trend has been influenced by various factors, including changes in international trade dynamics, domestic production adjustments, and health concerns.

Decline in imports

Between January and July 2024, China’s poultry imports decreased by approximately 20.9%, dropping from $2.94 million to $2.32 million. This reduction is part of a broader trend observed over the past year, where imports have steadily declined due to various external and internal pressures.

Factors contributing to the decline

Several key factors have contributed to this decline in poultry imports:

  1. Health concerns and trade restrictions: One of the primary reasons for the drop in imports is the outbreak of Newcastle disease in Brazil, one of China’s major poultry suppliers. This led to a significant reduction in Brazilian poultry exports to China, with imports from Brazil falling by 29% year-on-year to 276,100 tons in the first seven months of 2024. Health concerns and subsequent trade restrictions have played a crucial role in this decline.
  2. Domestic production adjustments: China’s domestic poultry production has also seen adjustments. While overall production has been stable, there have been efforts to increase self-sufficiency and reduce reliance on imports. This shift is part of a broader strategy to enhance food security and control supply chain vulnerabilities.
  3. Economic factors: Economic conditions, including fluctuations in currency exchange rates and changes in consumer demand, have also impacted import levels. The economic environment has influenced purchasing power and the cost-effectiveness of importing poultry compared to domestic production.

Impact on the market

The decline in poultry imports has had several implications for the Chinese market:

  • Price fluctuations: Reduced imports have led to fluctuations in poultry prices within China. While domestic production has helped mitigate some of the supply shortages, prices have experienced volatility due to the reduced availability of imported poultry.
  • Market opportunities for domestic producers: The decline in imports has created opportunities for domestic poultry producers to expand their market share. Companies that can meet the quality and safety standards demanded by consumers have benefited from the reduced competition from imported products.
  • Consumer preferences: There has been a shift in consumer preferences towards locally produced poultry, driven by concerns over the safety and quality of imported products. This trend has further supported the growth of domestic poultry production.

Future outlook

Looking ahead, the future of poultry imports in China will depend on several factors, including the resolution of health concerns in major exporting countries, economic conditions, and domestic production capabilities. While the current decline presents challenges, it also offers opportunities for China’s poultry industry to strengthen and adapt to changing market conditions.

In conclusion, the first seven months of 2024 have seen a significant drop in poultry imports in China, driven by health concerns, domestic production adjustments, and economic factors. This trend has reshaped the market, presenting both challenges and opportunities for stakeholders in the poultry industry.

Source: avinews.com

Consumer interests join with the poultry industry in asking USDA for more time on the Salmonella rule

    Leading consumer interests advocating food safety are asking USDA’s Food Safety and Inspection Service (FSIS) for a six-month comment extension for the new poultry standard for Salmonella that was rolled out in July.

    The request was made to the federal rulemaking docket and USDA’s Under Secretary for Food Safety Dr. Emilio Esteban.

    The consumer interests request a six-month extension so that FSIS can provide an opportunity for public comment and genuine stakeholder dialogue on the need for and feasibility of a complementary Salmonella standard.

    In asking for more time, the consumer interests acknowledge they are joining with the poultry industry in wanting more comment time.

    “Stop Foodborne Illness (STOP), Consumer Reports, the Consumer Federation of America, and the Institute for Food Safety and Nutrition Security at The George Washington University Milken Institute School of Public Health are writing to explain why we joined the Poultry Safety Coalition’s recent request for an extension of the comment period on USDA’s Salmonella in poultry rule-making.  We urge you to grant a six-month extension, and we outline here what we hope can be accomplished with that additional time.” states the request.

    The consumer interests were also careful not to offend the USDA.

    “First, however, we want to applaud and express sincere appreciation for this FSIS rulemaking initiative,” they said.  “It breaks critically important new ground by proposing the first legally enforceable finished product standards to limit the presence of dangerous Salmonella in poultry.  This is a common sense but long overdue reform.  You, Secretary Vilsack, Deputy Under Secretary Eskin, and the FSIS team deserve much credit for this USDA breakthrough in food safety policy.  Properly constructed, enforceable product standards will make a big difference for consumers and public health.”

    And they were clear about their reasons for asking.

    “We joined in requesting an extension of the comment period because we are concerned that the proposed rule is not sufficiently comprehensive and may by itself foreclose important reforms that we believe USDA should consider for inclusion in the final rule,” it continued.  “Additional time is required for USDA to notify stakeholders regarding these alternatives and to solicit written comment and genuine public dialogue to produce the best possible rule.”

    Representatives Steve Womack, R-AR, and Jim Costa, D-CA, co-chairs of the Congressional Chicken Caucus, were the first to ask USDA Secretary Vilsack for an additional 180 days for comments on the proposed Salmonella Framework.

    The National Chicken Council (NCC) followed and wants at least a 90-day extension of the comment period for the Food Safety and Inspection Service’s proposal.

    The USDA proposal is a rule that would stop poultry producers from selling chicken and turkey contaminated with high levels of certain Salmonella.

    The rule would make it illegal to sell chicken, chicken parts, ground chicken, and turkey if contaminated with certain Salmonella. The USDA’s Food Safety and Inspection Service will apply the rule, which was more than three years in the making.

    “We also urge FSIS to convene one or more public stakeholder dialogue meetings that include FSIS leaders and staff, consumer and industry representatives, and independent experts to provide an opportunity for genuine exchange among FSIS and its stakeholders on the issues related to a Salmonella spp. standard,” said the consumer groups. “Such meetings should be open to the public in conformance with (procedural) requirements and be designed both to inform FSIS and build understanding among stakeholders on the key issues and possibilities for resolving them.”

    “For an issue of such impact on consumers and on which USDA is breaking important new ground, we think USDA should provide a setting in which consumer voices can be heard alongside other industry and other stakeholders,” says the request.

    The consumer interest groups suggest that FSIS grant a six-month extension from Nov. 7

    Source: Food Safety News

    Organic Acid For Better Bird Health & Processing

    Organic Acid’s Dual Role: Improved Bird Health, Safer Processing

    Bacteria are one of the major microbes present in poultry. While many bacteria are harmless, there are some pathogenic bacteria which can be detrimental to bird health and performance. Pathogenic bacteria present in poultry can be broadly classified into two categories:

    • The first is bacteria which are harmful to the birds such as Escherichia coli or Clostridium perfringens which affect the health and growth of the birds. This type of bacterial infection can be primary – causing disease directly – like E. coli infections, or secondary – happening after another infection – for example, Clostridium infection after coccidiosis infestation.
    • The second is bacteria like Salmonella and Campylobacter. They are usually harmless residents of the gastrointestinal (GI) tract of the birds, but when the bacterial load is high going into the processing plant, this increases the potential risk of human foodborne illness. Importantly, the probability of meat contamination during processing increases significantly if the bacterial load of the birds is high.1,2
    Pathogenic Bacteria in Poultry

    For a producer, these two different bacteria categories should both be addressed to make sure that the birds are performing well during the growth period and food safety is also supported. While antibiotics are able to prevent some of these issues, the continued push within the industry to reduce antibiotic usage necessitates the implementation of alternate strategies. Gut acidifiers, if used in proper form, offer a safe way to address these issues effectively.

    Gut Acidifiers

    Gut acidifiers are organic or inorganic acids, and their salts, which lower the pH in the gastrointestinal tract. Formic, propionic, butyric, citric, sorbic, lactic and benzoic acids are some of the common organic acidifiers used in animal feed. While in the past, acidifiers were primarily used to decrease the bacterial load in the animal feed, recent evidence indicates they are able to act on bacteria in vivo as well.

    The resulting decrease of pH after acidifier administration in the gastrointestinal tract helps birds in numerous ways. Inhibition of the growth of pathogenic microbes is, of course, the major benefit. Maintaining a low pH in the stomach of proper activation and functioning of digestive enzymes, complementing the stomach hydrochloric acid to enhance protein digestion and improving overall gut health are also benefits of acidifier administration.3,4

    Mode of Action of Gut Acidifiers/Organic Acids

    While organic acids offer multiple health benefits as discussed above, one of their primary functions is the impact on bacteria in the GI tract. Organic acids like formic acid and their salts have been shown to decrease the growth of harmful gram-negative bacteria such as Clostridium perfringensEscherichia coli and Salmonella ssp. Further, there is evidence that they do not negatively impact, and possibly even enhance, the growth of beneficial gram-positive bacteria such as Lactobacilli ssp.12

    When the organic acid (salt form) reaches the GI tract intact, the salt will dissolve when it comes into contact with water, forming the acid again because of its inherent chemical nature. For example, when sodium formate is supplemented, it dissolves and forms formic acid in the stomach. While there might be very subtle differences between supplementing the acid directly or supplementing the salt of the acid in terms of effectiveness and functionality, supplementing the salt form provides advantages in terms of handling during manufacturing and at the feed mill.

    IMG-KANA-00725

    In the GI tract, when the acid comes into contact with the bacteria, it enters the bacteria through the cell membrane and dissolves inside the bacteria. When an acid dissolves in a liquid medium, it separates in a process called ionization. Because of the ionization process, the dissolved acid dissociates into two ions, an anion (RCOO-) and a proton (H+). For example, formic acid which has a molecular formula of HCOOH when dissolved in water becomes HCOO- and H+. The anion (HCOO-) accumulation itself has negative effects on the bacterial cell metabolism, but the majority of the detrimental effect to bacteria happens through proton accumulation. The proton, because of its chemical nature (more proton = more acidic or lower pH, pH is inversely proportional to proton concentration) starts decreasing the pH inside the bacteria as its concentration goes up.

    The majority of harmful bacteria tend to keep their internal pH around 7 because all the vital molecular functions happen efficiently at that pH. Since the accumulating H+ is going to bring the pH down, the bacteria tries to pump the excess H+ ion outside the cell (efflux) using ATP, otherwise known as the cellular currency. If more acid is present in the environment, more acid enters the bacterial cell resulting in the H+ efflux machinery to be continuously active depleting the energy for vital functions eventually leading to the bacteria’s death.5,6,4

    Delivering the Organic Acids to the Right Intestinal Region

    Organic acids, or their salts when administered as such, won’t be able to reach the lower parts of the GI tract where most of the pathogenic microbes reside because they will be utilized in the upper GI tract. These pathogenic microbes in the hindgut act as a reservoir for not only diseases in birds and meat contamination during processing, but also, they persist in the environment even after thorough cleaning of the barn and act as seeders to colonize the next batch of birds. Keeping these pathogenic microbes at a lower load helps the subsequent flocks as well.

    Microencapsulation helps release the acid in specific regions of the gastrointestinal tract – including the lower part of the GI tract – making them more effective and helping to control the inclusion level. If the organic acid is targeted towards both the pathogenic microbes of the birds and also to prevent foodborne pathogen contamination, as discussed above, the product should be able to work in both the upper and lower part of the GI tract.

    Kemin has a proprietary encapsulation process which allows a molecule to be encapsulated in such a way that the product impacts specific regions of the GI tract. This encapsulation process addresses both categories of bacteria, poultry disease-causing bacteria and foodborne illness-causing bacteria.2,7

    Right Place Right Time

    Uniqueness of Formic Acid

    Each organic acid has unique properties and benefits based on its chemical structure. One of the major factors for the effectiveness of formic acid is its small molecular size and chain length (HCOoH), which allows it to enter the bacterial cell easily compared to other organic acids.

    Formic acid is also unique in that it has one of the lowest pKa (acid dissociation constant, 3.75) of any organic acid. pKa is the pH at which half of the acid is dissociated. A lower pKa indicates that it’s a relatively strong acid and would be able to donate its H+ ion easily. In other words, once inside the bacterial cell, the H+ ion becomes free easily, which will bring the pH down quickly, and the bacteria needs to spend its energy at its own detriment to export it out and maintain the pH.8

    FORMYL Na

    FORMYL Na is an encapsulated form of formic acid salt manufactured using a proprietary process which delivers the active molecule throughout the gastrointestinal tract. Multiple research and field trials conducted indicate that FORMYL Na was able to reduce the issues associated with disease-causing microbes in live birds, improve performance and decrease the bacterial load as birds go to processing. FORMYL Na, by utilizing the unique nature of formic acid and proprietary encapsulation technology, provides value to producers by improving bird health and decreasing the thread of foodborne illnesses.9-11

    To learn more, visit www.kemin.com/formylna.

     

    References

    1Thøfner, Ida and Christensen, Jens-Peter, 8 – Bacterial diseases in poultry, in Advancements and Technologies in Pig and Poultry Bacterial Disease Control, N. Foster, I. Kyriazakis, and P. Barrow, Editors. 2021, Academic Press. p. 199-227.
    2Amalaradjou, Mary Anne Roshni and Bhunia, Arun K., Chapter Five – Modern Approaches in Probiotics Research to Control Foodborne Pathogens, in Advances in Food and Nutrition Research, H. Jeyakumar, Editor. 2012, Academic Press. p. 185-239.
    3Ahmed, S. T., Hwang, J. A., Hoon, J., Mun, H. S., and Yang, C. J., (2014). Comparison of single and blend acidifiers as alternative to antibiotics on growth performance, fecal microflora, and humoral immunity in weaned piglets. Asian-Australas J Anim Sci. 27: 93-100.
    4Pearlin, B. V., Muthuvel, S., Govidasamy, P., Villavan, M., Alagawany, M., Ragab Farag, M., Dhama, K., and Gopi, M., (2020). Role of acidifiers in livestock nutrition and health: A review. J Anim Physiol Anim Nutr (Berl).
    5Vassilis Papatsiros. V. G., C. Billinis, The Prophylactic Use of Acidifiers as Antibacterial Agents in Swine, in Antimicrobial Agents, D.V. Bobbarala, Editor. 2012, InTech.
    6Jacela, J. Y., DeRouchey, J. M., and Tokach, M. D., (2009). Feed additives for swine: Fact sheets – acidifiers and antibiotics. Journal of Swine Health and Production. 17: 270-275.
    7Mannina, Paolo, Mani, Venkatesh, Rubach, Jon, Camellini, Claudia, Arduini, Lauro, and Lao, Ye, (2018). Development of a New FORMYL Product for the US Poultry and Swine Market. Kemin 18-00030.
    8Ricke, Steven C., Dittoe, Dana K., and Richardson, Kurt E., (2020). Formic Acid as an Antimicrobial for Poultry Production: A Review. Frontiers in Veterinary Science. 7.
    9Mani, Venkatesh, Rubach, Jon, Mannina, Paolo, and Poss, Mitch, (2017). Evaluation of a Micro Encapsulated Formyl Na Treatment on Mitigation of Necrotic Enteritis And Improving Growth Performance In Broilers. Kemin 17-00227.
    10Van Meter, Patty, Mani, Venkatesh, Rubach, Jon, Mannina, Paolo, and Poss, Mitch, (2019). Formyl™ Na Process Validation Testing. Kemin 19-354.
    11Iseri, Vanessa, (2020). Evaluate FORMYL™ Na on broiler performance and Salmonella and Campylobacter prevalence at the processing plant. Kemin 20-6430.
    12Lückstädt C, editor. Acidifiers in animal nutrition. Nottingham University Press; 2008.

    FORMYL Na

    FORMYL Na helps reduce pathogens from production through processing.

    New USDA Rules Affecting Poultry Growers

    The United States Department of Agriculture (USDA) recently proposed four new rules affecting poultry growers. Two of the rules have gone into effect, and two of the rules remain proposed rules, as of September 2024. Jason Jackson offers some insight into these new rules and what they mean for poultry growers.

    Port strike would have impact on U.S. cotton, meat, poultry exports

    The U.S. Department of Agriculture said Tuesday, October 1, 2024 that consumers shouldn’t expect food shortages in the near term because of the port strike; however, economists say a long strike could prompt changes on grocery shelves and at the checkout.

    Nearly 50,000 members of the International Longshoremen’s Association went on strike Tuesday after it and the United States Maritime Alliance failed to reach a settlement by the September 30, 2024 deadline.

    The strike has shut down ports along the East Coast and the Gulf of Mexico, key to the movement of U.S. cotton, meat and poultry exports. These commodities are important for Arkansas, which is No. 3 in the U.S. for broilers and cotton, No. 24 in cattle and calves, according to the 2024 Arkansas Agriculture Profile.

    USDA said that “our analysis shows we should not expect significant changes to food prices or availability … we do not expect shortages anytime in the near future for most items.”

    USDA also said that bulk shipping of products such as grains would be unaffected by this strike. Bulk grain loading facilities typically operate with their own employees or with different labor unions.

    COTTON AND SHIPPING

    “Cotton is entirely dependent on containerized shipment,” said Scott Stiles, an extension economics program associate for the University of Arkansas System Division of Agriculture.

    According to the National Agricultural Statistics Service, 20 percent of the U.S. cotton crop has been harvested.

    “Eleven-point-eight million bales of the 2024 crop are projected to be exported,” Stiles said. “I would conservatively estimate that 55 percent of the 11.8 million bales would be shipped out of ports affected by this strike.”

    Stiles said that some shipments bound for Asia can be diverted to the West Coast.

    “The East Coast has largely handled cotton shipments to markets such as Turkey,” he said. “If the strike is prolonged like the last one in 1977 that lasted six weeks, will Turkey switch its cotton purchases to Brazil or West Africa?”

    U.S. export sales of cotton are already off to the slowest start since 2015, Stiles said, and any “interruption in the U.S. ability to export only makes this situation worse.”

    Eight-six percent of U.S. cotton demand is attributed to exports.

    “Producers have watched market prices slide from 85 cents in February to 66 cents in August,” Stiles said. “Prices have recovered recently to the 73- to 74-cent area but have stalled as it became apparent that the port labor dispute would not be resolved by the Sept. 30 deadline.”

    December cotton futures closed 52 points lower today to settle at 73.09 cents per pound.

    MEAT AND POULTRY

    Should the strike be prolonged, consumers could be seeing changes.

    “Approximately 20 percent of broilers are destined for export markets,” said Jada Thompson, poultry economist for the University of Arkansas System Division of Agriculture. With the volume of ocean-bound freight that runs through East Coast ports, the strike “could have very real consequences either in spoiled products, lost revenues, or additional, unexpected storage costs.”

    James Mitchell, a livestock economist with the Division of Agriculture, said, “this could have a significant impact on beef and pork trade flows. Beef trade to Mexico, Colombia, Costa Rica, Panama, and Honduras, for example, is affected, accounting for approximately 12 percent of beef exports through July 2024. The Caribbean makes up 4 percent of pork exports through July 2024.”

    The strike “doesn’t impact all beef and pork exports uniformly. We export a wide variety of products to many different places. And those products are all valued differently,” he said. “The dollar impact will depend on which types of products are affected, the quantities, and the value of those specific export products.”

    Source: Magnolia Reporter

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