Americans to Eat 1.35 Billion Chicken Wings for Super Bowl

The annual Chicken Wing Report by the National Chicken Council estimates that Americans will consume 1.35 billion wings during Super Bowl weekend, an all-time high. The report released Thursday says the number of wings that will be consumed during next weekend’s Super Bowl between the Philadelphia Eagles and New England Patriots is up 20 million wings, or 1.5 percent from last year. NCC spokesperson Tom Super assured consumers “there will be no wing shortage” to contend with when heading out to the grocery store before the big game. The number of wings consumed, according to NCC is enough to put 625 wings on every seat in all 32 NFL stadiums. The report also finds that 59 percent of U.S. adults who eat chicken wings say they typically like to eat their wings with ranch dressing. Further, according to the survey, 60 percent of wing eaters prefer traditional, bone-in wings while 40 percent chose boneless.

NBB Celebrates 25 years of Biodiesel

Biodiesel supporters kicked off a yearlong celebration this week at the National Biodiesel Conference and Expo in Fort Worth, Texas, celebrating the National Biodiesel Board’s 25th anniversary. A NBB representative told attendees during the event, after noting that the U.S. went from zero to three billion gallons of biodiesel production in 25 years, that “we are at the tipping point, on the verge of greatness,” adding that “anything is possible,” in the future. Information presented during the annual conference showed that in 2017, the U.S. biodiesel industry used more than six billion pounds of soybean oil and another six billion pounds of other fats and oils, creating demand for agricultural products and byproducts.

USDA Helped Improve Essential Services for 7 Million Rural Residents in 2017

Agriculture Secretary Sonny Perdue says the Department of Agriculture assisted more than seven million rural Americans during the 2017 fiscal year. Perdue says USDA invested in nearly 400 projects that provided “essential services” that “help communities significantly improve their schools, hospitals and public safety facilities, and improve the quality of life.” USDA infused $1.5 billion into rural areas in 2017 through the Community Facilities Direct Loan Program for projects such as schools, libraries, municipal centers, first responder vehicles and equipment, social service buildings, recreational activities and other community needs. The agency says USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. The assistance supports infrastructure improvements; business development; housing; community services such as schools, public safety and health care, and high-speed internet access in rural areas.

2018 Drought Concerns Shifting South

Last year, drought worries centered around the northern Plains and grazing conditions in the Dakotas and across Montana. Those areas remain dry, but the intensity has weakened, according to the latest U.S. Drought Monitor. Moving into 2018, drought intensity and area is spreading, extending over the Southwest, southern Plains and Great Plains, according to the American Farm Bureau Market Intel service. Parts of Texas have not seen any measurable precipitation for more than 100 days. A swath from northern Texas, extending into parts of the Oklahoma panhandle region, and further into southern Kansas, is rated in extreme drought, according to the monitor. All of Oklahoma falls under a drought classification, with much of the state rated in moderate drought. The Monitor reports that agricultural impacts from the drought are being felt in Utah, Kansas and Oklahoma, and include decreasing hay and soybean yields, deteriorating wheat and grazing conditions, and decreasing water supplies as ponds and wells are going dry. Some of these effects started from moisture deficits dating back to the summer of 2017. Meanwhile, much of the Western Corn Belt is under some form of classified drought.

Not All Canada Ag Happy with TPP 11

Not all ag sectors in Canada are thrilled with the Trans-Pacific Partnership Agreement, known as the Comprehensive and Progressive Trans-Pacific Partnership, or TPP 11. Canada’s dairy and chicken producer groups claim the deal will “chip away” at their markets. Chicken Farmers of Canada says the agreement still includes concessions on market access for chicken products in response to U.S. demands. AgCanada reports Canada granted those concessions in 2016 coming out of negotiations for the original TPP trade deal, before the U.S. withdrew from the 12-country agreement early last year. With the U.S. out of the partnership, the group said, “those concessions should have been taken off the table.” A spokesperson for Chicken Farmers of Canada says the nation has “reached the limit” of concessions for any future negotiations, referring to the North American Free Trade Agreement, adding that if the U.S. wants market access to Canada “they are welcome to rejoin” the TPP 11 agreement. Dairy Farmers of Canada agreed, calling NAFTA “another vehicle that threatens to weaken the Canadian dairy industry.”

Wheat Organizations from the U.S., Canada, and Mexico Call for Successful NAFTA Agreement

Arlington, Virginia (January 25, 2018) — Today, organizations along the North American wheat value chain sent a letter to President Trump, President Peña Nieto, Prime Minister Trudeau, as well as to lead negotiators from each country, Ambassador Lighthizer, Minister Freeland, and Minister Guajardo, stressing the importance of the North American Free Trade Agreement (NAFTA) to the wheat industry. Ranging from seed to bread and baked goods, key groups from the wheat value chain signed onto the letter. 

“As we enter the sixth round of negotiations, it’s important to remember that NAFTA created the world's largest free trade area between the United States, Mexico, and Canada,” said Gordon Stoner, President of the National Association of Wheat Growers (NAWG) and a wheat farmer from Outlook, Mont. “NAFTA has benefited not only wheat growers but all our partners along the entire value chain from farmers to consumers and everyone in between. The fact that wheat producers and end users from all three countries would speak with one voice about the importance of NAFTA should speak volumes to our leaders.” 

“The relationship between U.S. wheat farmers and Mexican flour millers and wheat food companies took off with NAFTA,” said Mike Miller, Chairman of U.S. Wheat Associates (USW) and a wheat farmer from Ritzville, Wash. “It is a highly successful partnership, with tariff-free access, that helped make Mexico our largest customer the past two years and supports revenue for wheat farmers from dozens of states.”

In the letter, the groups emphasized that an updated trade deal is critical to ensure that all stakeholders can work together to provide the highest quality products at the greatest value for both the supply chain and consumers. Further, the letter states that an integrated supply chain between the three countries is only effective with NAFTA in place. 

“The industry understands the need to modernize the 23-year-old agreement, but it must be done in a way that benefits the food and agriculture sectors in all three countries,” continued Stoner. “It’s critical that all parties remember during the negotiations that when one link breaks, the entire chain is weakened.” 

The following organizations signed the letter: American Bakers Association; Cámara Nacional de la Industria Molinera de Trigo (National Chamber of Industrial Wheat Millers, Mexico); Cereals Canada; NAWG; North American Millers’ Association; USW; Western Canadian Wheat Growers. 

U.S. meat protein supplies continue to expand

U.S. meat protein supplies continue to expand, but product flow remains good and freezer inventories are only marginally higher than last year, an indication that meat demand remains in good shape, analysts said in the Daily Livestock Report, published by The Steiner Group.

The combined inventory of beef, pork, chicken and turkey in cold storage at the end of December was about 2.18 billion pounds, 2.4 percent higher than a year ago and 8.6 percent higher than the five-year average.

With more meat products going into export markets, it is reasonable to expect cold storage stocks to increase over time, the report noted.

Beef

Total beef inventories at the end of December were 489.5 million pounds, 13.8 percent less than last year and just 0.7 percent higher than the five-year average.

“The main reason we see the beef inventory number as positive or bullish for the market is because overall beef production and imports increased during December while exports were slightly lower,” the analysts said.

Pork

USDA reported that there were 491 million pounds of pork in cold storage at the end of December, 3.2 percent more than a year ago but still about 6.7 percent less than the five-year average. Normally pork stocks decline in December as retailers draw down ham stocks for Christmas features.

This year stocks declined 2.3 percent, not as much as last year but still ahead of the five-year average pace of 1.7 percent. “We generally view the overall pork inventory number as neutral for that reason,” the analysts said.

Chicken

“Chicken supplies remain heavy even as strong exports have allowed producers to quickly deplete the inventory of leg quarters. The supply of breast meat in cold storage remains burdensome,” the analysts said.

Total breast meat stocks were 188 million pounds, 1 percent less than last year but 23 percent above the five-year average. Leg quarter stocks fell 18 percent from last year and 19 percent from the five-year average.