Alberta Cattle Ranchers Worried About Border Disruptions

Groups representing ranchers and feedlot operators in Alberta are concerned that ongoing border disruptions may hurt an agricultural sector already struggling from COVID-19. A days-long demonstration is tied to an ongoing nationwide protest over federal rules for unvaccinated or partially-vaccinated truckers coming into Canada from the U.S. Several trucks have blocked the border crossing into the U.S., although protestors opened one lane going in each direction last week. The CBC says only limited amounts of traffic are getting into Montana. The Alberta Beef Producers, the Alberta Cattle Feeders’ Association, and the Canadian Cattlemen’s Association spoke out last week, calling for a “timely resolution and the restoration of our essential supply chain.” In a joint statement, the groups say, “Every day the industry is unable to move cattle, beef, or access feed, puts the entire supply chain at risk.” Before the protest, the Alberta ag sector had dealt with trucking shortages and limited rail access.

USDA Issues Transitional Nutrition Standards for Schools

The USDA announced updates to the school nutrition standards that give schools a path forward. The agency says these actions support the dedicated school meal program operators who provide critical nutrition to millions of children every day at school. The new standards begin in the school year 2022-2023 and continue through the following school year. The new requirements allow schools and childcare providers to serve one percent low-fat milk, as well as nonfat flavored milk and nonfat or low-fat unflavored milk. At least 80 percent of the grains served in school lunches and breakfasts each week must be whole-grain rich. The weekly sodium limit for school lunches and breakfasts will remain at the current levels for 2022-2023, and the school lunch limit will drop 10 percent the following year in 2023-2024. All of the other nutrition standards, including fruits and vegetable requirements, will remain the same as the 2012 standards.

Monday Watch List

Markets

Traders will come back from the weekend, checking for any changes in the latest forecasts or situation in Ukraine. USDA's weekly report of export sales is due out at 10 a.m. CST and there is a report on U.S. consumer credit for December at 2 p.m. USDA's next WASDE report is set for Wednesday at 11 a.m. CST.

Weather

Colder temperatures still reside across the Midwest, but warmth will be spreading through the Plains and points eastward throughout the week. Drier conditions are also expected until a clipper grazes the northern extent of the country Tuesday night and Wednesday.

Food Prices Rise in January

World food prices rose during January and remained near ten-year highs. The United Nation’s Food and Agricultural Organization vegetable oils pushed prices higher. Reuters says the Food Price Index tracks the most globally-traded food commodities. The index averaged 135.7 points in January, up from 134.1 during December. higher food prices are contributing to a wider surge in inflation as global economies try to bounce back from COVID-19. The FAO says those higher prices are a risk to the poor populations in countries that have to bring in most of their food. The vegetable oils index rose 4.2 percent month-on-month in January to reach a record level. The push higher in vegetable oils came from reduced availability of exports and other supply-side constraints like labor shortages and weather challenges. In a statement, the FAO’s Markets and Trade Division says, “There is a concern that the impacts of these constraints will not ease quickly.”

USDA Provides Disaster Assistance Update

USDA provided an update on the upcoming disaster assistance at this week’s Cattle Industry Convention. The assistance is for agricultural producers impacted by weather-related disasters in 2020 and 2021. “Over the past two years, as agricultural producers struggled with the ongoing impacts of COVID-19, they’ve also been hit hard by more frequent and intense natural disasters,” says Robert Bonnie, USDA Undersecretary for Farm Production and Conservation. USDA intends to streamline the process for producers, and the agency will distribute at least half the available $750 million by the end of March. The program to to assist crop producers will follow a process similar to that of the livestock assistance with the first phase of implementation this spring. The first phase will use existing Federal Crop Insurance or Noninsured Crop Disaster Assistance Program data as the basis for calculating initial payments. That will help speed up implementation and encourage participation in these programs too.

NCBA Unhappy with JBS Court Settlement

The National Cattlemen’s Beef Association is upset with a court settlement reached by JBS as part of a class-action lawsuit against the four biggest meatpackers in the U.S. DTN says the court case and the $52.5 million settlement involves price-fixing and the four meatpackers constraining the fed cattle supply. The NCBA wants to find out what happened to the industry’s demands for a federal investigation into beef markets going back to 2019. They’re looking for more transparency from the Justice Department. Iowa Senator Chuck Grassley, a co-author of the Cattle Price Discovery and Transparency Act, says the settlement is a “spit in the ocean” for JBS compared to its record profits during COVID-19. “The settlement confirms what cattle producers have been telling me when they try to get a fair price in the marketplace,” Grassley says. “It’s time to put an end to these price-fixing schemes by the Big Four once and for all.”

Optimism for the Future of the Cattle and Beef Industry

The National Cattlemen’s Beef Association heard domestic and international leaders who spoke during the Cattle Industry Convention and NCBA Trade Show. Ag Secretary Tom Vilsack, Undersecretary Robert Bonnie, and British Ambassador Dame Karen Pierce expressed optimism about the future of the cattle and beef industries. Vilsack committed to addressing challenges that producers are facing regarding the supply chain, processing capacity, and drought. Bonnie, the Undersecretary for Farm Production and Conservation, recognized the industry’s role in conservation and that cattle producers play a critical role in environmental stewardship goals. Pierce shared her optimism in strengthening the relationship between the United Kingdom and the United States through continuing negotiations to reach a free trade agreement. As the U.K. places high importance on sustainable beef production, Pierce says she’s confident in the sustainability goals set last year by the NCBA. “We see tremendous opportunities between the two countries,” says NCBA Vice President of Government Affairs Ethan Lane.