16 August 2024

12 minute read

By: Jim Wyckoff

South America

North America

Asia

Weekly USDA export sales for US beef, pork

Beef: Net US sales of 28,100 MT for 2024--a marketing-year high--were up noticeably from the previous week and up 99 percent from the prior 4-week average. Increases were primarily for South Korea (11,400 MT, including decreases of 400 MT), Japan (6,300 MT, including decreases of 200 MT), China (4,400 MT, including decreases of 100 MT), Taiwan (2,200 MT, including decreases of 100 MT), and Mexico (1,600 MT, including decreases of 100 MT). Exports of 14,100 MT were down 8 percent from the previous week and 11 percent from the prior 4-week average. The destinations were primarily to South Korea (3,600 MT), Japan (3,300 MT), China (1,600 MT), Mexico (1,600 MT), and Taiwan (1,400 MT).

Pork: Net US sales of 20,900 MT for 2024--a marketing-year low--were down 40 percent from the previous week and 30 percent from the prior 4-week average. Increases were primarily for Japan (8,300 MT, including decreases of 100 MT), Mexico (3,300 MT, including decreases of 200 MT), South Korea (1,900 MT, including decreases of 700 MT), Canada (1,800 MT, including decreases of 600 MT), and Australia (1,700 MT, including decreases of 100 MT). Net sales of 400 MT for 2025 were primarily for Australia (200 MT). Exports of 28,800 MT were down 13 percent from the previous week and 10 percent from the prior 4-week average. The destinations were primarily to Mexico (12,500 MT), Japan (3,800 MT), China (3,100 MT), Colombia (2,100 MT), and Canada (2,000 MT).

USDA announces one-year testing program to assess presence of H5N1 avian flu virus in beef from culled dairy cows

This initiative follows confirmation that pasteurization effectively eliminates the bird flu virus in dairy products. The testing will involve collecting approximately 800 samples nationwide from milk cows sent to slaughter, beginning in mid-September. José Esteban, USDA’s undersecretary for food safety, stated that this program aims to determine if the H5N1 virus is present in asymptomatic cows and to trace any detected infections back to their source.

This testing is part of broader efforts to ensure food safety, as USDA and other agencies continue to monitor and manage the spread of H5N1 in livestock. USDA has already conducted tests on beef tissue from cull dairy cows at select facilities, finding no viral particles in 108 out of 109 samples. The virus was first identified in U.S. dairy cattle in March 2024 and has been confirmed in herds across 13 states.

Institute for Justice sues Florida over ban on cultivated meat, citing unconstitutional protectionism. 

The Institute for Justice (IJ), a nonprofit public interest law firm, filed a lawsuit against a new Florida law that bans the production, distribution, and sale of cultivated meat. Cultivated meat is made from real animal cells without the need to raise or kill animals. The lawsuit, filed in the U.S. District Court for the Northern District of Florida, argues that the law is unconstitutional, claiming it favors local meat producers by restricting out-of-state competition and undermines the national common market.

Paul Sherman, a senior attorney at IJ, asserts that the law is not about safety but about stifling innovation and limiting consumer choice. IJ has partnered with UPSIDE Foods, a pioneering company in cultivated meat, founded by cardiologist Dr. Uma Valeti. Valeti started UPSIDE Foods to create a humane and sustainable way to produce meat, which is FDA and USDA-approved for safety and quality.

The law, signed by Florida Governor Ron DeSantis on May 1, 2024, and effective from July 1, 2024, has been criticized by some for its protectionist motives. Florida officials, including Governor DeSantis, have expressed concerns that cultivated meat poses a threat to traditional agriculture. IJ attorney Suranjan Sen argues that Florida cannot ban a product that is lawful in other states just to protect its local businesses from competition.

US dairy industry and lawmakers urge action against Colombia's powdered milk tariff threat

The US dairy industry and bipartisan lawmakers are urging action against Colombia's investigation into US powdered milk imports, which could lead to tariffs. The Colombian government's investigation, prompted by domestic producers' claims of harm from subsidized US imports, is viewed by US dairy interests as baseless and protectionist. The potential tariffs threaten $70 million in annual US exports to Colombia, jeopardizing a key market established under the 2012 Colombia Trade Agreement. US. dairy leaders and lawmakers are calling on the Biden administration to challenge the investigation, emphasizing that US milk powder is not subsidized, and that the investigation relies on outdated data. They warn that tariffs would harm both US and Colombian dairy sectors, and they seek a resolution rooted in accurate economic analysis.

Colorado identified 10 new outbreaks of bird flu in dairy herds through mandatory testing of milk samples

The testing is part of efforts to control the spread of the H5N1 avian flu virus in the dairy and poultry industries. Since bird flu was first detected in cattle in late March, Colorado has confirmed the virus in 63 dairy herds, accounting for one-third of the 190 outbreaks across 13 states. Most recent cases have been in Colorado, with the state leading in detection due to its unique bulk tank testing system.

Public health officials maintain that the risk to the public remains low, as there is no evidence the virus is becoming more transmissible. However, 13 farmworkers, mostly in Colorado, have contracted mild cases of bird flu. USDA’s strategy for controlling the virus involves isolating affected farms and offering financial support to improve biosecurity and cover veterinary costs. Colorado remains the only state with mandatory bulk tank testing, while USDA has introduced a voluntary dairy herd status program in other states.

Since the bird flu's emergence in February 2022, nearly 101 million birds in US domestic flocks have died, with Colorado accounting for 9.7 million of those deaths.

US beef export value climbs in June; pork trends lower in June but posts strong first half

June exports of US beef reached the highest value in nearly two years, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). While June pork exports were lower year-over-year, shipments through the first half of the year remained ahead of the record value pace of 2023.

Japan, Taiwan, Canada lead strong June performance for beef export value

Beef exports totaled 110,155 metric tons (mt) in June, down 4% from a year ago but the second largest of 2024. Export value reached $938.3 million, up 3% year-over-year and the highest since August 2022. Exports trended higher to Japan and were the third largest on record to Taiwan, while shipments to Canada were the largest in nearly a decade. June exports to South Korea were below last year but rebounded compared to May. Through the first half of the year, beef export value climbed 5% from a year ago to $5.22 billion, despite a 4% decline in volume (643,733 mt).

“June beef exports performed very well in Japan, which was great to see given the significant headwinds U.S. beef has faced there this year,” said USMEF President and CEO Dan Halstrom. “Export value also rebounded nicely in Korea and shipments to Taiwan and Canada were outstanding. This made for another strong month in terms of export value per head slaughtered, which was nearly $460 in June.” 

June pork exports lower, but bright spots include Korea, Central America, Caribbean

June pork exports totaled 224,392 mt, down 9% from a year ago and the lowest since September, while export value fell 5% to $659.7 million. June exports to leading market Mexico were modestly lower year-over-year but still increased in value, while shipments to Korea remained very robust. Other top performers for U.S. pork in June included Central America, the Caribbean and Canada. January-June pork exports reached 1.52 million mt, 3% above the first half of 2023, while export value increased 5% to $4.26 billion.

June was a slower month in a few of our key destinations for U.S. pork, including Mexico and Colombia, where exports have been on a blistering pace and buying accelerated again in July,” Halstrom said. “But June was another terrific month for U.S. pork in Korea, where exports could be record-large this year. Shipments also trended higher year-over-year to Central America and Canada, and it was encouraging to see export value per head slaughtered hold firm in the $66 range.”

Colorado continues to lead in highly pathogenic avian influenza (HPAI) cases among dairy cattle

On Aug. 5, the state reported 8 more cases, bringing its total to 62 since the outbreak began in the U.S. in March. Nationwide, there have been 47 new cases in 7 states over the past 30 days, with a total of 147 cases confirmed in 13 states since March. Four states have reported 20 or more cases: Colorado (62), Idaho (30), Michigan (27), and Texas (24).

Weekly USDA dairy report

CME GROUP CASH MARKETS (8/9) BUTTER: Grade AA closed at $3.0975. The weekly average for Grade AA is $3.1010 (-0.0090). CHEESE: Barrels closed at $2.0050 and 40# blocks at $1.9575. The weekly average for barrels is $1.9470 (-0.0165) and blocks $1.9220 (+0.0095). NONFAT DRY MILK: Grade A closed at $1.2000. The weekly average for Grade A is $1.2225 (-0.0200). DRY WHEY: Extra grade dry whey closed at $0.5625. The weekly average for dry whey is $0.5865 (-0.0225).

BUTTER HIGHLIGHTS: In the West, domestic butter demand varies from steady to slightly stronger. For the Central region, butter sales are seasonally steady to quiet. In the East, domestic demand is lighter. Cream continues to tighten throughout the country. Amongst butter manufacturers, cream demand continues to be mixed. Churning capacity grew in the West. However, butter production paces remain seasonally weaker, especially bulk lines for some butter makers. Butter production schedules are generally lightening across most of the nation. That said, most butter manufacturers indicate comfortability with current production paces and stocks. Bulk butter overages range from minus 3 to 10 cents above market, across all regions.

CHEESE HIGHLIGHTS: Cheese production is mixed throughout the U.S. Tightening milk availability has further slowed cheese production in the East region. Cheese manufacturers relay steady retail and foodservice demand. In the Central region, contacts note variable cheese demand. Demand for cheese curds is up, while demand for cheddar and Italian-style cheeses is quiet. Milk availability remains very tight, namely as Class I bottling orders are up for schools restarting in the southern part of the region. In the West, cheese production is seasonally steady to stronger. Contacts note an uptick in demand for sliced cheeses.

FLUID MILK: Contacts in regions across much of the United States share similar results in milk production. Seasonally low milk availability is being reported over much the country, while pockets of steadier output are being reported in the Pacific Northwest. High temperatures, humidity, and summer storms are affecting cow comfort and have farmers thinking fall will likely be the next turnaround in milk output. An increasing number of milk tankers have been moving to states in the South, as hot weather and school startups have notably tightened the milk pool. Cheesemakers in the Upper Midwest say spot milk is tight to nonexistent. Reported prices ranged from $.50- to $2- over Class III. Last year, during week 32, spot milk prices ranged from Class to $2-over Class. Cream volumes are tighter as Class III manufacturers prepare for the upcoming seasonal surge. Ice cream manufacturing needs are still prevalent, but slightly lower week over week. Cream demand is strong in the East and holding steady in the West and Midwest. Butter makers are calling on cream between the regions, but tighter availability has slowed churning just the same. Tightening supplies of condensed skim are in high demand over all the United States. Cream multiples for all Classes are 1.35 – 1.52 in the East, 1.26 – 1.45 in the Midwest, and 1.17 – 1.35 in the West.

DRY PRODUCTS: Low/medium heat nonfat dry milk (NDM) prices moved higher in the Central and East regions, while prices were mixed in the West. Limited condensed skim availability for processing has become a common theme among contacts in most areas of the country. Central/East dry buttermilk prices are steady to higher on limited availability, while prices moved lower in the West on lighter regional demand this week. Dry whole milk prices moved higher as lighter seasonal milk availability continues to keep whole milk production/availability somewhat stunted. Dry whey prices moved higher across the Central and East regions, while there were no price changes reported in the West. Whey markets in the East and Central are noted as tight, with bullish sentiment due primarily to limited stocks. Whey protein concentrate 34% prices were generally steady, but demand for condensed volumes has ticked higher. Lactose prices were unchanged, as production/availability are somewhat balanced with current ordering. Acid casein prices shifted lower on lighter demand, while rennet casein markets and prices are stable.

ORGANIC DAIRY MARKET NEWS: The Organic Insider sent out on August 8th informed readers that the USDA recently announced the National Organic Standard Board's 2025 Sunset Review of the National List of Allowed and Prohibited Substances included the renewal of 47 substances until 2030. The Vermont Monthly Organic Dairy Report showed the weighted average price for fluid milk dropped 3.7 percent from April, while the total volume and average daily production per cow increased. The Commissioner for the New York State Department of Agriculture and Markets recently warned consumers in Montgomery County and the surrounding area to avoid consumption of raw milk from an organic farm in the area. Sampling completed from a state inspector recently found Campylobacter jejuni present in the milk. The total number of organic dairy ads found in the retail ad survey increased in week 31 and week 32. The majority of organic ads this week were for organic milk. Yogurt overtook butter as the second most advertised organic dairy commodity in this week's survey.

NATIONAL RETAIL REPORT: Total conventional dairy advertisements decreased by 22 percent while total organic dairy ads increased by 3 percent. Conventional ice cream in 48-64-ounce containers was the most advertised dairy product, with a weighted average advertised price of $4.00, up from $3.90 the week before. Sliced cheese in 6-8-ounce packages was the most advertised conventional cheese item. Half gallon containers of conventional milk had a weighted average advertised price of $1.83, down from $2.14 last week.

DAIRY PRODUCTS HIGHLIGHTS (NASS): Butter production was 169 million pounds, 2.8 percent above June 2023, but 17.3 percent below May 2024. American type cheese production totaled 457 million pounds, 4.9 percent below June 2023, and 6.3 percent below May 2024. Total cheese output (excluding cottage cheese) was 1.16 billion pounds, 1.4 percent below June 2023, and 4.0 percent below May 2024. Nonfat dry milk production, for human food, totaled 128 million pounds, 26.1 percent below June 2023, and 24.4 percent below May 2024. Dry whey production, for human food, was 76 million pounds, 9.2 percent below June 2023 but 8.0 percent above May 2024. Ice cream, regular hard production, totaled 66.5 million gallons, 0.3 percent below June 2023, but 0.4 percent above May 2024.