From the editors of Feedstuffs
Report examines impact of increased use of non-GM feed
View our interview with Lara Moody, executive director of IFEEDER, as she walks us through the findings of the research.
The Institute for Feed Education and Research (IFEEDER) released new research today which shows that if more U.S. food companies are to require feed for their livestock and poultry be free from genetically modified (GM) ingredients, then greenhouse gas emissions on farms could rise, grain elevator and feed mill product handling and production requirements would be greater, and the price of meat, milk and eggs for consumers could increase.
The study, “Impact of Non-GM Livestock and Poultry Feed on the U.S. Feed Industry,” conducted by Iowa State University and Decision Innovation Solutions, examined the environmental and economic implications should U.S. animal food manufacturers need to boost the production of non-GM feed.
“Like many industries involved in the production of America’s food supply, the U.S. animal feed industry is diligently working to be more sustainable and efficient, using all available tools at its disposal, as part of our commitment to consumers to be good environmental stewards,” said Lara Moody, IFEEDER executive director. Read more View our Feedstuffs 365 interview
Policy opinions revealed in Consumer Food Insights Report As the U.S. House Committee on Agriculture reviews the Farm Bill, consumers shared their opinions on food and agriculture policy in a new survey.
Increased funding for research to create crops more resistant to heat drought and flooding, and conservation programs to pay farmers and ranchers to adopt climate-smart practices were the most popular policies included, with more than 80% of the consumers in support. In addition, 63% of the respondents agreed that climate change will influence food prices. Read more
Tyson Foods recently announced a new facility adjacent to its former Hanceville, Alabama, Tyson Foods River Valley Ingredients rendering plant. The previous plant was part of Tyson’s Hanceville complex and suffered a total loss due to a fire in July 2021.
The new $208 million, 121,000-square-foot facility is the single largest investment in Hanceville to date. The facility is expected to be complete in mid-2023. “This investment signals our continued support to the agricultural industry and jobs in Alabama, and we look forward to a renewed relationship with the Hanceville community and its leaders,” said Jason Spann, complex manager at the Hanceville Tyson Foods facility. Read more
Meat industry not threatened by plant-based meat alternatives
At least for now, there is no reason for the traditional meat industry to have much of a beef with producers of plant-based burgers and other meat alternatives, new research suggests.
The study showed that while sales and market share of new-generation plant-based meat alternatives have grown in recent years, those gains haven't translated into reduced consumer spending on animal meat products. Overall, the analysis suggested that plant-based meats sold in patty, link and ground form are mostly an add-on to beef and pork and tend to serve as a substitute for chicken, turkey and fish. "We thought plant-based meat alternatives would be a potential replacement for red meat, but they're not. It's more of a complement," says study co-author Wuyang Hu, professor of agricultural, environmental and development economics at The Ohio State University. Read more
Rising feed and energy costs to pressure pork producer returns
According to the latest Rabobank quarterly pork report, producers' returns will be challenged by rising costs – including feed, energy, freight, herd health and labor expenses. Production growth is expected to slow, as is global trade. Consumers' response remains difficult to gauge, as the impact of higher-cost pork is not yet fully reflected in most markets.
Producers' costs continue to escalate in most regions, led by the increase in feed costs. Grain and protein meal costs are higher following a disappointing South American crop and the recent disruption in the Black Sea; and lower global inventories increase commodity volatility. Feed costs vary by region, which provides some advantage to producers with ample local supplies in North America and parts of South America. Higher energy, freight, herd health and labor expenses will also weigh on producer returns over the balance of 2022. "The recent spike in energy costs will put additional pressure on an already stressed global supply chain, just as it was emerging from an extended disruption," says Christine McCracken, senior analyst – Animal Protein at Rabobank. Cost inflation and growing market uncertainty are affecting hog producers' plans for growth. Disease-related production loss in parts of North America, the European Union and Southeast Asia will weigh on 2H 2022 production growth, limiting global pork availability and helping to boost expected hog prices. Sow herd reductions taken in early 2022 should limit pork production in 2H 2022, with higher-cost feed expected to limit any benefit from higher slaughter weights. Read more
ADM expanding alternative protein segment with Protein Innovation Center
ADM announced that it will invest approximately $300 million to significantly expand its Decatur, Illinois, alternative protein production, as the company continues to add capacity to meet strong demand growth. ADM will further enhance its alternative protein capabilities by opening a new, state-of-the-art Protein Innovation Center.
“The global trends of food security and sustainability are driving structural changes in the food industry, including strong growth in alternative proteins, and we’re investing to ensure ADM remains a leader in this vast and exciting space,” said Leticia Gonçalves, ADM’s president of Global Foods. “The array of opportunity areas for alternative proteins in foods and nutrition solutions is continuing to grow at 10% CAGR, with alternative meat and dairy sales alone expected to grow by 14% a year and reach $125 billion in 2030." Read more
Elanco breaks ground on state-of-the-art campus
Elanco Animal Health Incorporated unveiled plans for its new global headquarters featuring environmentally-sustainable, employee-focused design and a state-of-the art innovation center.
The company – which grew from a small division of Eli Lilly & Company to a $4.7 billion independent global animal health leader – plans to enter its seventh decade by breathing life into a long-idle site close to its birthplace. “When we talk about the new headquarters, we’re talking about ‘building as a verb, not a noun,’” said Jeff Simmons, Elanco president and CEO. “We’re building Elanco’s next era of growth and innovation for one of the industry’s most trusted brands, we’re building paths to help connect Indianapolis’ historic west side with its center, and we’re building a vibrant destination for our nearly 10,000 global employees to collaborate, connect and invent.”
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Up to $5 million in funding will be provided through the partnership.
Burger King and Cargill announce a partnership with the National Fish and Wildlife Foundation (NFWF), the largest private conservation grant provider in the U.S., to support cattle ranchers committed to addressing climate change through regenerative agriculture practices in Colorado, Kansas, Nebraska, New Mexico, Oklahoma, and Texas. This five-year initiative with up to $5 million in funding, brings together two major beef brands dedicated to emissions reduction, reinforcing the important role beef and cattle play in helping the Great Plains thrive. The funding is expected to generate 1:1 matching contributions from NFWF, creating a total on-the-ground impact of up to $10 million.
Through this partnership, Burger King, Cargill and NFWF will bring financial and technical resources to ranching organizations in the Southern Great Plains to improve grassland management and reduce greenhouse gas emissions. The Southern Great Plains host a unique set of wildlife species that are specifically adapted to this grassland ecosystem, and many of these species are year-round residents that live on or migrate through ranching lands. NFWF also awarded three grants made possible by Burger King and Cargill funding to ranchers in Kansas, New Mexico and Texas to support their efforts to plan and implement voluntary grassland management practices with consideration to the unique needs of their land. Read more
