Inflationary pressures and other global uncertainties are prompting pork companies to carefully manage production in the fourth quarter, according to a new report from Rabobank.
Pork processors have already built inventory to satisfy a modest rebound from the third quarter. Holiday sales of pork products are expected to test the market’s resilience and its ability to absorb premiums, the Rabobank analysis noted. Value-conscious consumers already are seeking out lower-value cuts and trading down from branded to private-label alternatives at retail, adding to further weakness to premium product markets, the report added. Rabobank analysts also predicted that weaker economic growth expectations will likely impact pork trade volumes in the fourth quarter and into early 2023. With inflation still outpacing wage growth, lower real wages also are expected to negatively impact overall protein consumption in the current quarter and into the first half of 2023, the report said.
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This winter will mark the first time in the history of U.S. management that the Bering Sea snow crab fishery will be closed.
While other crab stocks have been declining in the North Pacific for years, the snow crab fishery’s collapse is doubly shocking for the industry. Not only is it one of the larger crab fisheries by volume in Alaska, it has also gone from booming and healthy to overfished and collapsing within five years, with little warning or clear explanation. Fishermen who made investments in permits and boats less than five years ago are now looking at bankruptcy. To read the full article, click here. Food was the No. 1 wallet priority for male spending at 23% share, according to Piper Sandler’s Fall Taking Stock with Teens survey, while clothing (30%) outranked food (21%) to capture the highest level of female wallet share since 2012.
The survey highlights discretionary spending trends and brand preferences from 14,500 teens with an average age of 15.8 years. Click here to read the full article. Drawing comparisons to the damage wrought by Hurricane Irma in 2017, Hurricane Ian’s damage to Florida crops and livestock has been estimated by University of Florida economists from $787 million to $1.56 billion.
Vegetables and citrus were hard hit by Hurricane Ian in late September, according to the preliminary analysis, available online. Despite heavy flooding prohibiting full assessments of some fields, the researchers predicted economic impacts to citrus, vegetables and livestock from Hurricane Ian, which hit southwest Florida Sept. 28. Click here to read the full article. Enjoying a glass of freshly-squeezed orange juice is about to get more expensive.
Central Florida, home to sprawling citrus groves responsible for the vast production of fresh oranges and orange juice across the country, took a hit when Hurricane Ian recently ravaged the state. The US Department of Agriculture (USDA) said it could result in record lows for the orange crop. Click here to read the full article. Driver turnover at private fleets jumped this year to nearly 23%, a record spike, according to the National Private Truck Council’s annual benchmarking survey of 104 private fleets across the U.S.
Despite a year marked by capacity constraints in many areas, including equipment and component shortages, driver shortages and rising diesel fuel prices, private fleets reported growth. In 2022, the private fleets surveyed in NPTC’s 2022 Benchmarking Survey increased shipments by about 10% from last year and increased volume by about 7%. The value of shipments also rose by 11.5%. Click here to read the full article. California’s tomato farmers are getting squeezed by water crisis as growing costs continue to rise10/18/2022 Take a summertime drive on Interstate 5 through the heart of the Golden State and it is nearly impossible to miss the truckloads of tomatoes being hauled straight from harvest to production.
This year, however, fewer tomatoes were grown as rising interest rates, inflation and the crushing drought squeezed farmers who saw their margins sliced and diced. While the cost of growing tomatoes continues to rise, it’s ultimately hitting consumers in the wallet as well. Click here to read the full article from CNN. After 80% population drop in 4 years, Alaska cancels snow crab season in unprecedented move10/17/2022 Alaska officials have canceled several crab harvests in a conservation effort that sent shock waves through the crabbing industry in the region.
Officials canceled the fall Bristol Bay red king crab harvest and, for the first time on record, are holding off on the winter harvest of snow crab, according to multiple reports. Click here to read the full article from USA Today. When the weather gets colder, food gets hotter. There’s a whole world of hot, spicy dishes—but some of them are just starting to get attention on U.S. menus.
Today’s diners have an appetite for international cuisine and heat. Datassential found that one-third of consumers want to try new global foods, and 42 percent seek out spice. Restaurants can vary their winter menus by experimenting with emerging global stars that bring the heat. Click here to read the full article. The fall emergence of Highly Pathogenic Avian Influenza (HPAI) is taking a particular toll on turkey meat producers.
HPAI was confirmed on Wednesday at commercial turkey facilities in Beadle, S.D., and Sanpete, Utah, affecting 71,400 and 47,200 birds respectively, according to the USDA’s Animal and Plant Health Inspection Service. The agency’s 2022 tally of confirmed detections on Thursday stood at 528 commercial and backyard flocks in 42 states, impacting 47.39 million birds. “This is the time of year that people start importing poultry to their farms and backyard flocks, so it is also the perfect time for poultry growers to review their biosecurity plans,” Alaska’s state veterinarian said this week. The first case of HPAI in the state was confirmed in a backyard flock of chickens and ducks in April, with additional cases in domestic flocks announced on Tuesday, the official said. The American Farm Bureau recently cautioned Americans to expect record turkey prices as Thanksgiving approaches, citing the impact of bird flu and inflation. Within the Sunshine State’s produce industry, it is Florida’s citrus growers facing devastating damage from Hurricane Ian.
In recent days since Sept. 28, when Ian struck southwest Florida, reports from the state’s vast agricultural industry have been emerging. Of course, the hurricane not only flooded gulf-side resorts, such as Ft. Myers, but the vegetable production areas of the Everglades. Ian, the rain and wind maker, also certainly roared through Florida’s southwest and central citrus and vegetable producing areas. Click here to read the full article. Pickles have been around for thousands of years, yet they appear to be as popular as ever. Whether as a side or as a burger topping, pickles have become a true staple at restaurants, especially in 2022.
In fact, 43.9% of restaurant menus mentioned pickled ingredients in the second quarter of this year, according to Technomic data. That represents a rise in popularity for pickles during the last couple years. Click here to read the full article. The International Foodservice Manufacturers Association (IFMA) released its 2023 Foodservice Industry and Segment Projections at its annual Marketing & Sales Conference. The forecast projects that operator spend in the foodservice industry will decline by 0.1 percent, considered flat on a real basis in 2023, compared to 2022. The forecast models were created in conjunction with Datassential, a foodservice research firm, and validated by operators from the Foodservice Leadership Councils, who act as advisors to IFMA and its Board of Directors. Click here to read the full article.
Do you have a plan to help yourself and your client weather difficult economic times? Some businesspeople, while complaining about tough times, feel powerless to do anything that will stimulate business. To pull through the crunch times, your prospects need your value-added solutions more than ever. Here are eight ways you can help sell your way out of tough times. Click here to read the full article.
Breakfast was the top meal of the day for the U.S. restaurant industry in August as traffic grew by 4% compared to August 2021, according to a report from The NPD Group.
The traffic growth is now within 1% of recovering pre-pandemic levels. Quick service restaurant breakfast represented 87% of all breakfast traffic and visits increased by 5% in August – 1% above the pre-pandemic level of August 2019, according to a press release. Click here to read the full article. USDA projects that calendar 2022 will wind up clocking a 10% increase in the price of meat, poultry and fish purchased for at-home dining, the largest price increase in the category in 43 years, according to the agency's most recent Food Price Outlook report.
Price increases in 2023, however, are expected to moderate to nearly normal levels, with an increase between 2% and 3% for the year, according to USDA's Economic Research Service. Inflation for all food purchased for the home — which accounts for 62% of the overall food price calculations — is projected to land at about 11% for 2022. That would be the highest rate of price increases since 1974, although retail food inflation was nearly as high in 1978 and '79 as well. In August, the month-to-month retail price changes in most meat categories actually fell compared to July: Beef and veal were down 0.3%, and pork and other meats were down 0.1%. Poultry prices rose 0.8% for the month. For food eaten away from home, the category is expected to wrap up 2022 with inflation of around 7%. That category also is expected to moderate next year to about 3.5%. Two commercial turkey flocks in South Dakota were hit, bringing to 38 the number of commercial turkey flocks hit by the virus in that state since January, affecting 1.7 million birds. Both flocks were in Clark County. Before this latest report, South Dakota last reported an HPAI outbreak May 3. Click here to read the full article.
The White House this week unveiled its new strategy for improving the health of Americans and reducing food insecurity ahead of its Conference on Food, Nutrition and Health, which got underway today.
President Joe Biden announced a goal of ending hunger and increasing healthy eating and physical activity by 2030 so fewer Americans experience diet-related diseases. Among the initiatives are proposals to develop a front-of-packaging labeling scheme and update the nutrition criteria for the "healthy" claim on food packages. The initiative also calls for facilitating sodium reduction in the food supply by issuing longer-term, voluntary sodium targets for industry, and assessing additional steps to reduce added sugar consumption, including potential voluntary targets. The White House is proposing to increase access to free and nourishing school meals, provide summer benefits to more children and expand Supplemental Nutrition Assistance Program eligibility to more underserved populations. It also wants to work with Congress to pilot coverage of medically tailored meals in Medicare, test Medicaid coverage of nutrition education and other nutrition supports, and expand Medicaid and Medicare beneficiaries’ access to nutrition and obesity counseling. The second wave of HPAI outbreaks continues, with new cases striking commercial turkey flocks in Minnesota, South Dakota and Utah. According to Sept. 20 updates from APHIS, more than 100,000 turkeys were affected by new outbreaks in Minnesota's Brown and Stearns counties. That is in addition to the 281,400 Minnesota turkeys already culled this month alone.
In South Dakota, where avian flu had been absent for months, two large outbreaks hit Clark County, with more than 60,000 commercial turkeys affected. Utah's Sanpete County also experienced an outbreak in commercial turkeys affecting a total of 73,200 birds. The rising number of HPAI cases heading into fall bears out a recent report from CoBank saying that the nation’s poultry industry and other birds remain under threat from the spread of HPAI in the coming months. For further insights on the HPAI outbreak, read in-depth coverage in the latest issue of Meatingplace magazine. Many convenience stores gained business during COVID-19 when many restaurants shut down temporarily or closed their doors for good. What role did foodservice at c-stores play in that trend? It actually started long before COVID-19. As an example, 17 years ago, Hershey participated in a c-store bakery program for the first time. Other companies were doing the same and pushed to provide made-to-order products. Eventually, we started seeing c-stores including ice cream and shakes, which was a big opportunity for topping and mix-ins for Hershey. Click here to read the full article.
Inflation isn’t just about fuel costs anymore, as price increases broaden across the economy9/16/2022 For the better part of a year, the inflation narrative among many economists and policymakers was that it was essentially a food and fuel problem. Once supply chains eased and gas prices abated, the thinking went, that would help lower food costs and in turn ease price pressures across the economy. Click here to read the full article from CNBC.
The $7.44 trillion U.S food industry is investing in e-commerce, robotics, and technology like never before.
A recent report from Exploding Topics — a trend-tracking software platform that analyzes millions of searches, conversations and mentions across the internet — unpacked several related developments impacting the food and beverage industry today. Click here to read the full article. Although price matters to older Gen Zs (ages 18-24) in the US, their taste preferences and definition of value dictate the type of restaurants they visit. As a result, Gen Zs skew towards quick service restaurants, particularly fast casual, that balance value and focused menu, according to The NPD Group.
In the 12 months ending July 2022, Gen Zs made 5 billion restaurant visits, 4.3 billion visits to quick service restaurants and 736 million to full service restaurants. Gen Z fast casual visits were up 4 percent in the period compared to a year ago. According to NPD’s recently released Winning Gen Z Consumers study, Gen Zs favor major fast casual chains that provide the menu items they want, value for the money and messaging that reflects their interests, like organics and sustainability. Click here to read the full article. With August food prices increasing 11.4% year-over-year, Americans are experiencing a fundamental shift in their everyday patterns, with some even adopting an “inflation diet.” A recent survey by consumer research platform Attest took a closer look at how consumer grocery habits have changed over the past 12-months.
“The research shows that consumers are understandably trying to save where they can in reaction to inflation, especially pulling back on premium food products and alcohol,” said Jeremy King, CEO of Attest, in a press release. Click here to read the full article. Some U.S. railroads will start halting crop shipments on Thursday, a day ahead of a potential work stoppage, an agricultural association and sources at two grain cooperatives said on Tuesday, threatening exports and feed deliveries for livestock. Click here to read the full article.
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