Catching up with the past week’s ag/food news
Yoplait Sales Drop
Yoplait sales have fallen by 22% as the brand’s popularity continues to diminish. I have to point out that I hate Yoplait. I dislike pretty much everything about it; the flavor, texture, smell, everything. But then I feel the same way about almost all of the big name brand yogurts. The stuff is mostly inedible, and if you read the list of ingredients on some of these brands you’ll see why.
Drought in Spain
Spain has been having some serious drought issues this year which has been wrecking havoc with it’s farmers. The country has lost almost more than a quarter of it’s soft wheat production this year because of the weather and will probably have to import 40% more wheat than last year. There have been significant losses to the corn and barley crops as well.
The Guadalquivir delta, the Spain’s biggest rice producing area, is having serious problems with it’s water supplies. The aquifer from which water is pumped to irrigate crops is almost completely depleted, with only about 20% of the aquifer remaining, largely because of unregulated and illegal wells being drilled apparently by strawberry growers. There are reports of farmers renting drilling rigs and dragging them out in the middle of the night to or on holidays to drill wells without permits. There are an estimated 10,000 illegal wells in the area. They’ve even built their own reservoirs hidden in the forests in the area to store water they’ve been pumping illegally.
The aquifer is not being replenished because of the drought and increasing temperatures. The river itself is becoming increasingly salty as sea water creeps up into the river. Within a very short time they will have pumped the aquifer dry and put themselves entirely out of business by going after short term profits now and sacrificing the long term existence of their businesses.
China and Pork
The demand for pork in China is showing no sign of slowing down anytime soon. The country just started it’s first government approved pork pricing index on their commodities exchange to try to help stabilize prices. The pork supply in China is still dominated by small farms that are sensitive to price swings. As the market fluctuated, pork farmers would react accordingly, cutting way back in production during times of low prices and causing a subsequent wild upsurge in prices during the subsequent shortage of pork. Gee, sounds bit like the US milk market, doesn’t it?
The index could also be leading up to the introduction of futures and options contracts which could help stabilize prices as well.
The country is also trying to end urban pig production to get the animals away from waterways and densely populated areas to reduce pollution, the spread of disease, etc. There have been bans on pig production in cities and towns being put in place by local authorities all over the place.
China and Beef
With China now importing US beef (sort of) a lot of people are speculating on what effects the Chinese market will have on the US beef industry.
At the moment, no effect at all, really, because China won’t accept the hormone and drug laced meat that most commercial growers are dumping on the US consumers. Virtually none of the commercially produced beef in this country meets Chinese health and safety standards. The beef now being exported to China is basically just PR fluff so politicians can pose for pictures with thick steaks in Beijing while pretending they actually did something.
The Chinese market is potentially huge, but it’s going to require ranchers to grow cattle from birth without the use of the hormones and drugs they’ve been using for decades. It will be interesting to see what happens here and if US growers can adapt to the market.
Walmart Goes Angus?
Walmart is facing extreme competition from places like Aldi, Save-a-Lot and newcomer Lidl in the cut price grocery business, and it’s sales have been flat or even shrinking, so the store is trying to improve its image by claiming that all of it’s beef is now “certified Angus“. The store apparently made some kind of deal with Cargill an Tyson to get Angus steaks and roasts at the same price as whatever it was they used to sell before. They’re doing it only for steaks and roasts and not ground beef products.
Walmart might be better served by looking at the quality of it’s stores and it’s whole “shopping experience” than by trying to put yet another marketing scam in place. From unstocked shelves to dirty floors, to untrained employees, to failing to staff the checkouts lanes, to, well, you get the idea. At least three times in the past year I’ve been in one of the local stores to find entire categories of product just — just gone. One day it was sugar. There was literally not a single container of sugar on the shelves. Anther time it was iodized salt. Again, not a single container of iodized salt. Another time it was white flour…
Milk Price Insanity: Nobody Knows What’s Going On
Watching the various agricultural media outlets is utterly infuriating some days. On the very same day, in the very same ag news outlet, I found these two stories:
Milk Prices are Exceeding Expectations
Dairy Prices Fall
Oh for heaven’s sake… trying to figure out what’s actually happening is enough to make one bang one’s head against the nearest wall.
One article claims milk prices are going up, another, often in the exact same news outlet, claims they’re going down. Another claims the future is utterly horrible, another claims the future is bright and sunny…
Does anyone really know what the hell is going on?
Wisconsin Is Cheese
Well, okay, so it isn’t made of cheese, but some days it seems like it around here. Still, Wisconsin is one of the largest producers of cheese in the world, and home to some of the biggest cheese related companies in the world.
The little town of Plymouth, Wisconsin, about 20 minutes from here, apparently handles 15% of all of the cheese produced in the entire country. It’s the home of Sargento, one of the biggest cheese processors in the country. Satori is big, and some privately owned companies like Masters Gallery Foods, all have locations in Plymouth that process, package and warehouse cheese products.
These few companies are a Big Deal around here, employing thousands of people at processing and shipping facilities scattered all over this area. Sargento just put in a huge addition here in the town where I live and there is talk that they’re going to expand the facility again in the next few years. Sargento alone employs over 1,000 people in just Plymouth and hundreds more here in Hilbert.
There Are Consequences When You Piss People Off
Mexico is no longer the largest buyer of US corn. It has spent about $1 billion less when compared to last year. The country is actively talking with Argentina and Brazil to buy corn. Mexico is becoming very nervous about the horrible comments that have been made by this administration about the country and it’s people, and is no longer looking at the US as a reliable trading partner.
You can’t blame Mexico, really. Having your citizens branded as murders, rapists and drug dealers as this administration has done isn’t exactly what you could call a ‘friendly gesture’, now is it?
EPA Approves Chlorpyrifos, Gets Sued
The EPA, against the advice of almost everyone (except the manufacturer), approved the continued use of a rather nasty insecticide, chlorpyrifos. If you click the word over there to get to the Wikipedia link, you’ll find this is nasty, nasty stuff, causing developmental problems in children, muscle weakness, seizures, coma, vomiting, paralysis, and suffocation from lung failure. Exposure to it is especially bad for children, causing low birth weight and extensive neurological problems.
Like I said, it’s nasty stuff. The EPA was on track to issue an outright ban on it’s use because of the scientific data it had developed in November of last year.
But then we had an election and, well, now Pruitt says no, it isn’t bad, and the decision to continue to permit it was based on “meaningful data and meaningful science.”
And it then refuses to give Associated Press copies of the scientific studies Pruitt claims that determined it is safe.
Editorial Comment: This kind of thing absolutely infuriates me. Study after study that I’ve turned up indicates chlorpyrifos is dangerous at even very low exposure levels, especially to children. Then Pruitt and the “new” EPA come along and claim they have studies that indicate it’s safe, and won’t tell anyone what those studies are, who did the studies, where the data came from, nothing…