Jim Lochner, chief operating officer of Tyson Foods Inc., has said a new paradigm exists in the supply and demand fundamentals in U.S. protein production: grain costs and exports are replacing domestic demand as chief drivers of profitability and production.
This shift in input costs began in the mid 2000s, which coincides with the U.S. government's mandate that a portion of the nation's gasoline be mixed with ethanol at a level of 10%. Ethanol in the U.S. is made primarily from corn, which is also a primary ingredient in livestock feed. Today, about 40% of the U.S. corn crop is used in ethanol production.
This new demand has contributed to high corn prices for producers. High input costs, along with increasing global demand for protein, have reduced the amount of meat and poultry available, according to Lochner. "Total production of major proteins appears to be about flat versus last year, but with extremely strong exports, it's likely there will be even less meat and poultry per capita," he said.
According to Lochner, Tyson is dealing with this paradigm shift by focusing on customer service, innovation and insight-driven food solutions; optimizing commodity businesses and driving out inefficiencies; focusing on multinational expansion, particularly in Mexico, China, Brazil and India; and upgrading raw material through initiatives like renewable energy from animal fat and other technologically advanced platforms.
Webinar discuss feed enzymes for poultry feed millers
extension outreach appointment, Dr. Tom Overton, professor of dairy management
within Cornell University’s College of Agriculture, spends much of his time
working with NY dairies, their nutritionists and vets on issues related to
transition cow management. In his opinion, one of the areas of opportunity for
dairy farms can be found in the management of the pre-calving diet. With
his team, Overton is currently involved in a commercial research study involving
55 farms focused on the influence of particle size on dry cow diets. “We’re
finding that diets are quite sortable with large differences in particle size
distribution,” Overton explains. “[The industry] needs to do a better job in
terms of particle size to make [the rations] less sortable.” In a
total mixed ration, sorting is problematic because cows tend to favor the grain
component and therefor may not consume the necessary fiber and nutrients. In
this video, Overton discusses his team’s research involving pre-calving dairy
diets at the World Dairy Expo. The 2014 edition of
the World Dairy Expo, which was held in early October in Madison,
WI, drew more than
300,000 visitors from roughly 90 countries. The event featured 2,500 head of
dairy cattle and more than 250 exhibitors.
Near-record meat prices spur demand for animal feed
Seventh Animal Agriculture Sustainability Summit will also cover ways to communicate sustainability efforts to consumers, suppliers and stakeholders
Food Chain Innovation Valeron AVA radiant
barriers are energy-efficient radiant barriers for poultry houses. Valeron AVA
is a lining material with two reflective aluminum surfaces for optimizing
energy usage, helping to keep poultry cool in hot climate and conserving heat
in colder zones.
National Chicken Council elects Simmons Foods’ Todd Simmons as vice chairman, Case Foods’ Mike Popowycz as secretary-treasurer
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