From the editors of Feedstuffs
Bayer considers breakup of pharma and agriculture business
Bayer AG’s new chief executive said he’s weighing a breakup of the pharma and agriculture conglomerate, a move that could undo much of the legacy of his predecessor, including the troubled acquisition of Monsanto.
Bill Anderson, who took over as CEO in June, said he may separate Bayer’s consumer-health or crop-science operations. Baumann rejected such a step, even after the $63 billion takeover of Monsanto turned sour and activist investors demanded action.
“We are redesigning Bayer to focus only on what’s essential for our mission, and getting rid of everything else,” Anderson said following disappointing third-quarter earnings. That will likely impact the workforce as well as the company’s structure, he said.Earnings plunged 31% to €1.69 billion ($1.80 billion) before interest, taxes, depreciation and amortization last quarter, falling short of estimates, hurt by falling prices for glyphosate, the active ingredient in its blockbuster weed killer Roundup. Read more
Vilsack says new poultry rule adds transparency and accountability
Agriculture Secretary Tom Vilsack announced a new rule Wednesday intended to help poultry growers better compete in the market. The Transparency in Poultry Grower Contracting and Tournaments Final Rule is one of several Packers and Stockyards Act changes USDA is proposing to help small and midsize producers.
Vilsack also announced additional action USDA is taking to help crop producers and ranchers.
“This rule and the other actions we are announcing today bring transparency and accountability to transactional relationships across the poultry industry, seed industry and federal procurement, and they are critical steps in USDA’s competition and farmer fairness agenda,” Vilsack says.“They are also a powerful complement to the many other steps USDA is taking, from investing $1 billion in our supply chains to enhancing our labeling regulations — to create a fairer marketplace so more producers have the tools for success,” says Vilsack.
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Perdue enters snack category with Chix Mix
Product made from most of the same ingredients found in company’s chicken feed.For the first time ever, Perdue announced the launch of Chix Mix, a limited-edition snack food inspired by the high-quality, all-vegetarian diet that the company feeds its chickens. Featuring a delicious mix of corn, wheat and edamame, Chix Mix is made from most of the same ingredients that go into the company’s chicken feed. Plus, we added a dash of tasty BBQ spices just for humans.
In recent years, consumers have become increasingly interested in the health and quality of the foods they eat, as 63% of consumers like to know where their food comes from, according to the Power of Meat report from the North American Meat Institute and FMI. Perdue feels the same way about the feed it provides its chickens. That’s why the company has committed to using only the highest quality vegetarian diet with no animal by-products or antibiotics ever. When combined with the company’s best-in-class animal care practices, the result is healthier birds – and better tasting chicken.Read more
Farmers more optimistic, report improved financial conditions
There was a slight uptick in agricultural producers’ sentiment in October, as the Purdue University/CME Group Ag Economy Barometer index rose four points to a reading of 110. The modest improvement in farmer sentiment resulted from farmers’ improved perspective on current conditions on their farms as well as their expectations for the future. The Index of Current Conditions rose three points to 101 while the Index of Future Expectations rose five points to 114. This month’s Ag Economy Barometer survey was conducted from Oct.16-20.
“Farmers in this month’s survey were slightly less concerned about the risk of lower prices for crops and livestock and felt somewhat better about their farms’ financial situation than a month earlier,” said James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.
Farmers’ more optimistic view of their farms’ financial situation was reflected in the Farm Financial Performance Index, which rose six points in October compared to September. This month’s index value of 92 was the highest farm financial performance reading since April and pushed the index 7% above its reading from a year ago. The index’s rise stood in contrast to USDA’s’ forecast for 2023 net farm income to fall below 2022’s income level.“Reports of higher-than-expected corn and soybean yields in some Corn Belt locations, along with a modest rally in corn prices, likely contributed to this month’s rise in the financial conditions and the barometer indices,” said Mintert.
First livestock carbon credit inset market launched
Athian announced the establishment of the first-of-its-kind voluntary livestock carbon insetting marketplace, with the first accepted protocol aimed at reducing enteric methane emissions and improving feed utilization by using innovative feed management products from Elanco Animal Health.
This new carbon marketplace creates an opportunity for farmers to monetize their greenhouse gas emission reductions, according to the Nov. 2 news release.
Scoular announced Nov. 2 that it has designated its state-of-the-art grain handling facility in Adrian, Mo., as a sustainability showcase hub.
The site will incorporate a range of features — from solar panels to a companywide safety training center — that test and develop sustainability solutions for farmers, feed and food customers and the greater community. The overarching goal is to significantly decrease resource consumption and greenhouse gas emissions while improving product quality and safety.
Several projects already have been launched:
Over the summer, variable-frequency drive motors were installed on fans for the facility bunkers, along with metering that tracks wind speed and controls motor output. It is estimated that this technology will reduce annual facility energy consumption by as much as 67 percent, according to the company’s news release.
Cargill has completed an expansion and modernization project at its integrated soybean crush and refined oils facility in Sidney, Ohio. The upgraded facility, which came on line in September, will help Cargill better serve farmers and meet the growing demand for soy products across food, feed and renewable fuel markets, according to a Nov. 1 announcement.
The project nearly doubles the previous crush capacity at the facility, providing greater market opportunities for area farmers and feed customers through creating demand for soybeans and offering greater access to soybean meal and hulls. Additionally, customers will have an improved on-site experience as they will be able to more quickly and efficiently receive soybeans and load out products, according to Cargill.
“We’re proud to make this investment at our Sidney facility. We’ve been in business for 45 years here, and we appreciate the long-standing relationships with local farmers, food and feed customers and the local community,” said Justin Rismiller, U.S. crush soy commercial leader for Cargill.
