8 December 2023

8 minute read

By: Jim Wyckoff

North America

Asia

Commercial broiler operation in Arkansas confirmed to have highly pathogenic avian influenza (HPAI)

USDA’s Animal and Plant Health Inspection Service (APHIS) verified the presence of HPAI in a commercial broiler flock located in Johnson County, Arkansas. This outbreak affects approximately 109,000 birds. Notably, there were 55 confirmed cases of HPAI in commercial poultry flocks in November, and as of December, three more cases have been reported, indicating an ongoing concern for the poultry industry in the region.

France ordering a third dose of vaccines against highly pathogenic avian influenza (HPAI)

The vaccines will be administered to ducks in specific high-risk areas. This decision comes in response to "new scientific evidence" and aims to proactively prevent a surge in HPAI cases. France recently elevated the risk level for HPAI from "moderate" to "high" due to the detection of new cases. More than 30 countries have utilized HPAI vaccines since 2005, according to the World Organization for Animal Health (WOAH), while some countries, including the United States, have not employed such vaccines. USDA, in September, blocked imports of poultry and poultry products from France, citing concerns that vaccinating poultry against HPAI could potentially mask the presence of the virus, leading to the inadvertent export of infected animals or contaminated products to the United States.

Bluetongue (BTV) cases increase in UK cattle  

Following routine surveillance, two additional cases of bluetongue virus in cattle have been identified on a farm near Cantley, Broadland, Norfolk. A 10km temporary control zone (TCZ) has been declared around the premises and both animals will be humanely culled to minimize the risk of onward transmission. Movement restrictions apply to cattle, sheep and other ruminants. This brings the total number of cases to 11 on 6 different premises. According to authorities, there is currently no evidence that bluetongue virus is circulating in Great Britain. Surveillance is ongoing. Producers can check if they're in a zone on the bluetongue disease control zone map. Farmers can access and call the dedicated bluetongue hotline to get advice or ask questions linked to the current situation – call the bluetongue hotline on 024 7771 0386. In the UK, bluetongue, including BTV-3, is a notifiable disease, so anyone suspecting the disease must take action and report it to the Animal and Plant Health Agency (APHA). Further information on clinical signs and resources can be found here: https://ruminanthw.org.uk/bluetongue-virus/

World Organization for Animal Health (WOAH) is calling for more testing of African Swine Fever (ASF) vaccines

Particularly the vaccine produced by AVAC Vietnam JSC. This decision comes after Vietnam announced plans to export 5 million doses of its ASF vaccine. WOAH expressed concerns that AVAC Vietnam has not shared sufficient data with international researchers and organizations, despite the company asserting the safety and effectiveness of their vaccine.

Gregorio Torres, head of the science department at WOAH, emphasized the need for further testing on the AVAC vaccine, while AVAC's chief operating officer, Nguyen Van Diep, stated that they have shared vaccine data and that their vaccine has been safely used in 17 provinces. The AVAC vaccine was initially discovered by USDA researchers but developed in Vietnam due to the absence of the ASF virus in the United States.

USDA clarified that it did not have access to the trial data from Vietnam.

Meanwhile, WOAH is actively discussing new global standards for evaluating ASF vaccines, with potential approval expected in May. Another vaccine produced in Vietnam, also based on a USDA platform, has shared positive trial data and is currently undergoing testing in the Dominican Republic. ASF vaccination has been a significant focus for the U.S. industry due to the absence of the virus in the United States.

Smithfield Foods ends contracts with 26 Utah pig farms, citing oversupply

Smithfield Foods said on Tuesday it will end contracts with 26 hog farms in Utah, in the latest contraction by the world’s largest pork processor. A company statement cited an “industry oversupply of pork, weaker consumer demand and high feed prices: as challenges.

China’s meat imports inch up from October but down sharply from year-ago

China imported 557,000 MT of meat during November, up 0.9% from October but down 16.4% from last year. Through November, China imported 6.82 MMT of meat, up 1.8% from the same period last year.

New cases of HPAI confirmed

USDA’s Animal and Plant Health Inspection Service (APHIS) confirmed new cases of highly pathogenic avian influenza (HPAI) in commercial poultry operations. These cases include two commercial broiler production operations in Stanislaus County, California, with a combined total of 494,300 birds affected. Additionally, a commercial turkey meat bird operation in Barron County, Wisconsin, with 113,800 birds, has also been impacted by HPAI.

Weekly USDA dairy report

CME GROUP CASH MARKETS (12/01) BUTTER: Grade AA closed at $2.6550. The weekly average for Grade AA is $2.6000 (+0.0842). CHEESE: Barrels closed at $1.5200 and 40# blocks at $1.5200. The weekly average for barrels is $1.4825 (+0.0008) and blocks, $1.5740 (-0.0193). NONFAT DRY MILK: Grade A closed at $1.1800. The weekly average for Grade A is $1.1860 (+0.0027). DRY WHEY: Extra grade dry whey closed at $0.4000. The weekly average for dry whey is $0.3980 (-0.0012).

BUTTER HIGHLIGHTS: Cream volumes are reported to be tighter in the eastern region compared to the central or western regions. Cream is indicated to be widely available in the central region, while processors in the southern part of the eastern region indicate not quite tight but not ample cream volumes. Butter production was mixed during the recent holiday weekend with some butter makers running busy production schedules and others slotting in some downtime. Plant managers relay strong to steady post-holiday weekend production schedules. Many manufacturers note comfortable December retail inventory levels. A few western butter makers relay availability of unsalted butter spot loads will be tight for the remainder of the year. Domestic demand is mostly steady. Bulk butter overages range from 3 to 10 cents above market, across all regions.

CHEESE HIGHLIGHTS: Milk volumes available for cheese processing are ample in the East. Plant managers relay production schedules are steady, though demand has plateaued. Retail demand is noted to be steady, but contacts noted foodservice demand continues to be lackluster. In the Central region, milk prices have bounced back from the Thanksgiving week, ranging from flat to $1 over Class. Cheese demand is holding a steady pattern, and contacts share surplus loads of cheddar are generally spoken for. Barrel quantities have increased. In the West, Class III demand is steady to stronger for cheese processing. Spot milk availability ranges from strong to abundant, though some plant managers relay cheese production schedules are below capacity. Retail cheese demand continues to outpace foodservice demand in the West.

FLUID MILK: Farm level milk outputs are strengthening across most regions, the exception being a slight downward tendency present in the mountain states. In the East, milk production is steady to stronger. Cream is readily available in the Northeast, and Class II and Class III demand is solid throughout the eastern states. Cow comfort conditions continue to improve in the Midwest. Contacts share that feed quality and quantity is high. Milkfat and milkfat-per-cow numbers indicate ideal cow comfort conditions. Spot milk prices bounded back from the Thanksgiving week sub-Class price levels to reach flat market to $1 over Class. In the West, cooler temperatures continue to improve conditions. California producers note milk production increased this week over last, and they note butterfat and protein levels in milk are increasing. Cream supplies are looser for most of the western states, and spot loads are said to be more available than in recent weeks. Spot milk demand is steady and loads are available. FOB cream multiples for all Classes are 1.00-1.28 in the East, 1.16-1.25 in the Midwest, and 1.05-1.32 in the West.

DRY PRODUCTS: Low/medium heat nonfat dry milk (NDM) supplies are noted to be tighter in the Central and Eastern regions. Domestic NDM demand is noted to be quiet in the Central and East, but steady in the West. Production schedules of low/medium and high heat NDM are steady in the West. Liquid buttermilk supplies are lighter in the Eastern and Central regions since micro-fixing continues to outpace churning. Supplies have tightened as a result. Dry buttermilk production is steady in the West, but spot availability is said to be tight. Dry whole milk demand has picked up in recent weeks. Spot loads of dry whole milk have become more available, but inventories remain tight. Dry whey production schedules are steady across the country as cheese production schedules are strong. Whey protein concentrate demand remains strong, though contacts note inventories of WPC 34% are tightening. Lactose inventories continue to tighten, but contacts note spot and contract demand is steady. Acid and rennet casein spot inventories are available for purchase.

ORGANIC DAIRY MARKET NEWS: The September 2023 European organic milk average pay price increased in Germany, Bavaria and France compared to August 2023 average pay prices. In a recent report from a Pacific Northwest livestock auction, organic cull cows traded slightly higher than conventional cull cows. Compared to last period: Trade activity and demand was moderate for organic feed corn. The total number of organic dairy advertisements increased by 141 percent over last week's retail survey ad numbers. Most organic commodities appearing in last week's survey saw a growth in their ad numbers this week. Organic ice cream and sour cream were the only organic commodities which saw declines in the number of ads they appeared in this week. The three most advertised organic dairy produces found in this week's survey were: cheese, milk, and yogurt.

NATIONAL RETAIL REPORT: Total conventional dairy ads increased by 40 percent, and organic dairy ads increased by 141 percent. Cheese was the most advertised dairy commodity for both conventional and organic categories. Conventional block cheese, shredded cheese, and sliced cheese in 6-8 ounce packages have weighted average advertised prices of $2.35, $2.46, and $2.56, respectively. Weighted average advertised prices for conventional milk in half gallon and gallon containers increased, while the prices for organic milk in half gallon and gallon containers decreased. Conventional milk in half gallon containers has a weighted average advertised price of $2.45, compared to $4.26 for organic half gallons.

OCTOBER COLD STORAGE (NASS): Total natural cheese stocks in refrigerated warehouses on October 31, 2023, were down 1 percent from the previous month but up 1 percent from September 30, 2022. Butter stocks were down 11 percent from last month and down 1 percent from a year ago.