Latest News & Updates in KC Agriculture - November 2021
/Developments
Special Report: The Solution Could Become A Problem: A new study appearing in the current December issue of Applied Animal Science suggests that USDA’s beefing up investment in medium and small-scale meat processing maybe should not be regarded as the ultimate protection for the protein supply chain against the next black swan event. Some of the biggest economic disruptions from the COVID-19 pandemic – noted the authors of the analysis led by John Anderson of the University Department of Agriculture Economics and Agribusiness – occurred in food supply chains, particularly in the protein sector. The study – Lessons From the Covid-19 Pandemic for Food Supply Chains – can be found here. Applied Animal Science is a peer-reviewed journal of the American Registry of Professional Animal Scientists (ARPAS) that covers scientific discoveries and applications for the animal sciences and animal health systems.
Although the goal of improving food supply chain resilience is a worthy one, the authors state, there will be no easy routes to this goal. The modern commercial food supply chain is complex, technologically advanced, and consists of large companies that keep per-unit costs of operation low. “The pandemic has generated great interest in not only shortening food supply chains but also in greatly reducing the scale of operation of the chain’s components.”
The analysis suggests that while this might offer advantages in terms of resilience to extreme events like the coronavirus pandemic, it would do this at the expense of efficiency of operation, resulting in higher costs throughout the system for both consumers and producers.
Pandemic-related disruptions to meat supply chains and the economic hardship associated with those disruptions have generated tremendous interest in improving supply chain robustness and resilience. Much of that interest focuses on encouraging local and regional processing operations, and creating shorter supply chains. At the same time, commercial interests will most likely aggressively pursue further automation to mitigate the effects of labor supply disruption.
Local and regional processing operations have received large relief packages. At the same time, large major commercial operations are becoming even more efficient due to post pandemic adjustments of their own. Thus, local and regional operations may face an even more challenging competitive environment than before the pandemic. There is a real danger, the study concludes, that interest in smaller-scale, local food systems, which has attracted significant investment during the pandemic, will taper off, leaving them in an even more competitive environment than the environment that existed before the pandemic.
Source: Applied Animal Science, December, 2021; Agri-Pulse Communications, November 23, 2021.
NovaQuest, a biopharma and life sciences investment firm specializing in human and animal health investing, and TechAccel, a technology and venture development organization, announced today that NovaQuest has acquired TechAccel’s ownership stake in Covenant Animal Health Partners. Covenant is a novel product development partnership originally formed by TechAccel and Reliance Animal Health Partners in 2018. The acquisition leverages NovaQuest’s capital and expertise, and Covenant’s development and registration know-how and ability to bring “revenue-ready” animal health products to market. Covenant will address critical market needs across production and companion animals and will advance new assets into industry partner portfolios. Read more here.
2021 Christmas tree inventory has been affected by supply chain disruptions and high transportation costs. The situation had importers, growers, sellers and buyers frazzled on Black Friday, when Christmas tree shopping begins in earnest. But Jami Warner, executive director of the American Christmas Tree Association, a trade group representing the artificial tree industry, assures “Christmas is not canceled, everyone will be able to find a Christmas tree.” ACTA notes this year’s supply of real Christmas trees will be squeezed by the summer’s heat dome in the Pacific Northwest, while supplies of artificial trees, largely coming from China, will be affected by the same shipping and labor problems plaguing many industries. Warner predicts price hikes of 10 to 30% over last year, “a lot of that on the artificial side.” She urges consumers to shop early because otherwise, “your tree may not be the tree you were looking for.” Doug Hundley, seasonal spokesman for the live tree National Christmas Tree Association, is more optimistic about this season’s supply. He said prices for live trees will be more like 5 to 10%t higher than last year, following the trend of the past several years. The Canadian Christmas Tree Association says demand for holiday trees has been rising for the past five years and that there is potential for a shortage this year due to extreme weather events. The Pacific Northwest is the largest producer of live trees, with about 5 million trees cut annually, Hundley said, accounting for nearly 25% of the national supply. He said the region’s stock is down 10% due to this summer’s heat and drought, so the reduction of available trees could be half a million.
Some good news: The number of monarch butterflies migrating to California for the winter spiked this year after a historic low. Every year, monarch butterflies from all over the western U.S. migrate to coastal California, to escape the harsh winter weather. In the 1980s and 1990s, more than a million made the trip each year. Those numbers have plummeted by more than 99% in recent years. "The last few years we've had less than 30,000 butterflies," biologist Emma Pelton said. And last year the drop was below 2,000 butterflies. But this year, the numbers are starting to pick up. Biologists and volunteers across California have already counted more than 100,000 monarchs. Richard Rachman is the coordinator for the Xerces Society's annual Thanksgiving monarch count in Los Angeles County, and has been buoyed by the numbers.
American Foods Group, based in Green Bay, Wisconsin, plans to build a new 2,400-head-per-day beef-processing plant by 2024. It will be located in Warren County in eastern Missouri. Once fully operational, the plant is expected to create about 1,300 jobs and generate about $1 billion in economic activity in the region, according to the Greater Warren County Economic Development Council. Warren County and the state of Missouri will be evaluating potential partnership strategies to help facilitate the location of the facility.
The National Corn Growers Association joined four other agricultural groups in encouraging the U.S. Court of International Trade to overturn an earlier decision by the International Trade Commission, which imposed tariffs on imported phosphate fertilizers from Morocco. The U.S. Department of Commerce recommended in February 2021 that the ITC implement tariffs over 19% on imported fertilizers from Morocco after the Mosaic Company, which manufactures fertilizers used in the U.S. and abroad, filed a petition with the department seeking the levies. The ITC voted in March to impose the tariffs while adding similar levies on Russian imports. As a result, critical sources of imported supply have been shut out of the U.S. market, and the costs for fertilizers have increased for farmers. In the meantime, Mosaic, whose control of the phosphate market has grown from 74% to over 80%, is gaining a near-monopoly over the phosphate fertilizer supply in the U.S. In fact, Mosaic’s share price has quadrupled since a March 2020 low.
USDA began issuing approximately $270 million in payments late this month to contract producers of eligible livestock and poultry who applied for pandemic assistance. The Consolidated Appropriations Act, 2021, provided funding for payments to contract producers of eligible livestock and poultry for revenue losses from Jan. 1, 2020, through Dec. 27, 2020. Contract producers of broilers, pullets, chicken eggs, turkeys, hogs and pigs, ducks, geese, pheasants and quail were eligible for assistance, along with eligible breeding stock and eggs of all eligible poultry types produced under contract.
Merck Animal Health, a division of Merck & Co., Inc., was named best animal health company in North America by IHS Markit, a U.K.-based global publisher reporting on the animal health industry. The recognition is based on the company’s strong financial strength and product innovation. IHS Markit cited Merck Animal Health’s ongoing levels of growth by the company’s companion pet and livestock businesses. IHS Markit also cited Merck Animal Health’s combined core expertise in traditional animal health products and its market-leading position in the burgeoning digital technology solutions in the area of tracking, monitoring and traceability as major strengths.
FYI: Some veterinary industry leaders say there’s a shortage of U.S. veterinarians, while others say there’s only a perception of one amid scheduling difficulties during the pandemic. “I strongly believe there is a shortage of veterinarians in the U.S.,” said Rustin Moore, dean of Ohio State University’s veterinary college. According to policy expert and Fountain Report contributor Mark Cushing, “The veterinarian shortage is acute and chronic.” But AVMA President Jose Arce said he thinks there’s a “perception of a shortage because pet owners can’t see their veterinarian as quickly as they would like to right now.” The Bureau of Labor Statistics anticipates veterinary positions to increase 16% by 2029. Moore said veterinary school applications have spiked, and there does not seem to be enough schools to take in all the qualified applicants.
Events
Beef producers will discover the value of management and genetics at the 22nd annual Missouri Livestock Symposium on December 3 and 4 in Kirksville, Missouri. Farmers and ranchers will hear from University of Missouri Extension state specialists on Saturday as they cover several topics for beef producers. Details are on the internet at www.missourilivestock.com; or at the Adair County MU Extension Center, 660-665-9866.
Foundations VIII – An Introduction to the Animal Health Industry, a one-day training program, will take place on Zoom on December 14. The program, led by longtime executives Chris Ragland and Terry Sheehan, offers a comprehensive industry overview for those who are new to the business. This one-day course will feature six 50-minute educational modules with key market primers. It’s aimed at individuals who have been in the industry for two years or less, and for others who could use a more in-depth perspective. The Foundations program is offered by Axxiom Consulting and Fountain Report publisher Antelligence. Cost is $695. The course syllabus is available now from Antelligence. More information available from Antelligence publisher, Chris Kelly, chris.kelly@antelligence.com.
People
Lenexa, Kansas-based Farm Journal announced that Cliff Becker has been promoted to executive vice president of the company’s Livestock Division. Becker is a past Chair of the Board of Directors for the Agricultural Business Council of Kansas City. In this new role at Farm Journal, Becker will continue to provide leadership to a broad portfolio of best-in-class livestock media brands while also launching new initiatives for beef, dairy and swine audiences. “Cliff dedicates his knowledge and passion for agriculture and food to supporting Farm Journal’s clients and audiences while sharing his leadership talents with organizations across the industry,” said Charlene Finck, Farm Journal president. “His devotion to serving the livestock producers is exemplary and an engine for creating new platforms and events.” Becker’s leadership includes collaboration with Farm Journal’s Trust In Food social purpose initiative to launch Trust In Beef, a new producer-to-plate engagement campaign that ignites an urgency in producers to make actionable, sustainable pivots in on-farm production practices while communicating the industry’s evolution across the value chain to improve the beef's industry’s declining reputation with consumers. Becker also led Farm Journal’s recent acquisition of United Pork Americas, an international swine industry conference and exposition. The event is an extension of Pork Expo Brazil, which has attracted more than 150,000 international swine industry stakeholders to the event in South America over the past two decades. United Pork Americas is an extension of this successful brand, bringing world-class education, networking and entertainment to the United States. Since joining Farm Journal in 2012, Becker has served in several roles for the company and continues to expand his contributions to agriculture, serving on the board of directors for World Dairy Expo, the National Ag Center and Hall of Fame, the Agricultural Business Council of Kansas City, Western Illinois University, Cattle Feeders Hall of Fame and the Animal Agriculture Alliance.
Local veteran farm broadcaster Mark Oppold was named Farm Broadcaster of the Year at the National Association of Farm Broadcasters’ annual meeting this month in Kansas City. His career in farm broadcasting has spanned over 40 years, and most recently he was a news director at RFD-TV.
At the end of 2022 Dennis Rodenbaugh will take the reins of Dairy Farmers of America as president and CEO. Rodenbaugh will succeed Richard Smith, who is retiring after leading the organization for the past 16 years. Rodenbaugh currently serves as executive vice president and president of council operations and ingredients solutions for DFA.
Bayer Crop Science president Liam Condon will leave the company at the end of the year, succeeded by Rodrigo Santos. Condon has led Bayer Crop Science since 2016 and has been with Bayer since 2006 and prior to that withSchering, which was acquired by the company. He also has experience in Bayer’s health care and pharmaceutical units.
Bruce Everhart, Waldron, Indiana, was introduced as the new president of St. Joseph-Missouri-based American Hereford Association (AHA) during the Annual Membership Meeting Oct. 23 in Kansas City, Missouri. Everhart and his wife, Shoshanna, own and operate Everhart Herefords, a more than 50-year-old purebred operation consisting of 25 head. Everhart is also a board member and past president of the Indiana Hereford Association.