VOL. 3, NO. 3 • summer 2008
the newsmagazine for the food industry professional Real American stars... A little taste of home goes a long way
Every once in awhile a good deed is done that just can’t go unnoticed. A simple inquiry for the name of a company turned into a very generous gesture from the industry.
Knowing of the numerous colleagues and industry contacts Urner Barry’s senior vice president Michael O’Shaughnessy has, Scott Hunt, a trader with Food Source, requested the name of a beef jerky company. Scott had a special reason for wanting the jerky, he was looking to purchase some for his brother, Raymond, and his buddies serving in Iraq.
Scott’s brother, U.S. Army Sergeant First Class Raymond Patrick Hunt, had just sent his family a letter after a grueling week on the front lines. Following a memorial service for some comrades, Raymond and U.S. Army soldiers in Iraq take time out to pose with their generous gift from Oberto Jerky. Standing from left to right are SGT Victor Delacruz, Tank Gunner; PV2 J. Kranick, Tank Loader; SPC Thomas Hall, Tank Driver; PV2 Zack his buddies experienced seven days under Blum, Tank Loader; SFC R.P. Hunt, Tank Platoon Sergeant; SPC Karl Wendler, Medic; SGT Michael Emmons, Tank heavy fire, very heavy fire—shooting, Gunner. Front, left to right: CPL Wesley Prough, Tank Driver and SGT Mario Rivera, Tank Gunner. firefights, bombs, rocket propelled grenades, etc. In his own words, “the past Scott expressed Raymond’s daily life in Red Meat Division Joe Muldowney, who week has certainly been a life changing, Iraq to O’Shaughnessy, who in turn passed contacted his associate at Oberto Sausage significant emotional event.” it on to Urner Barry’s Vice President of the Company, Bruce Firnhaber. Upon “The past hearing that Raymond week has In the kitchen with Chef Sam Hazen… and his buddies certainly could use a “taste of been a life home” by way of beef Family heritage ignites jerky, a very generous changing, gift was sent from significant passion for cooking Oberto along with emotional much appreciation for event.” Chef Hazen With both a grandfather (on his mother’s Raymond and all his claims that Jurgielewicz side) and a father as gourmet chefs, it was comrades for all they do for our country. Brand Long pretty much written in the stars for Sam Island ducklings Hazen to follow in the same path. “I grew Raymond and company are to be com- are “the best Pekin duck in the mended for their heroism. Thanks for all country.” Continued on page 18 you do.UB
VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 1 908-1747
2 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008
X ______Sign here for approval and fax to: 732-341-0891 Dated ______URNER BARRY’S REPORTER • VOL. 3, NO. 3 • summer 2008 Center of the plate
On the Cover: A little taste of home goes a long way A simple inquiry on behalf of U.S Army Virginia soldiers in Iraq for a food favorite High Quality turns into a generous gesture from Oberto Sausage Company. Poultry Turkey On the Cover: Family heritage Meats & Parts ignites passion for cooking Meet renowned Chef Sam Hazen, rowers visionary and principal creator of Tao G restaurant, and find out who’s got the best Pekin duck in the country! Cover story Cooperative, Inc. Main Ingredients 20 The egg industry is benefitting from supply side 39 Conservation will limit supply of scallops economics 40 Feed costs and bad weather reduce tilapia sup- 22 Chicken: Finding equilibrium in today’s market ply in the U.S. economy 42 Tuna getting caught in a net of challenges 24 Turkey: Strong exports, whole birds helping to 43 Halibut, a well-managed fishery balance troubling times for breast meat 44 Crab consumption on the rise 26 The burdened boxed beef market 46 Taste of Chilean Sea Bass drives market prices 28 Hamburgers not immune to factors pushing food prices higher 47 Alaskan Pollack experiencing significant price 6349 Rawley Pike increases 30 Influences on the lamb and veal complexes P.O. Box 228 48 Many factors pressing on shrimp complex 32 U.S. pork: the world’s product Hinton, Virginia 50 Catfish: competition within one market 34 By-product industry poised for growth 22831-0228 52 The lobster market retreats 35 Variety meats: the essential extras 36 U.S. farmed salmon supplies remain tight amid Page 52 Phone (540) 867-4000 continued biological issues 38 Not so different challenges exist at the new Fulton Market Fax (540) 867-4320 News Bites www.vapoultrygrowers.com 5 Mall shoppers can now add shrimp to their 10 Leadership and honor at heart of this year’s mealtime options Executive Conference & Marketing Seminar 7 Turkey trendsetters tout turkey appeal 16 Air-chilled chicken For all your 17 Munich’s Viktualienmarkt Page 7 19 Will you succeed in this economy with outdated turkey business skills? 54 New line-up of Seafood Import Workshops processing needs, 61 Freegans: making recycling a lifestyle choice including A la carte 6 To your health Fats: the good, bad and ugly 57 From the Recipe Box: Grilled Pork Spareribs antibiotic-free 8 Adventures in eating Hopping for a greener 58 The Reporter’s Guide to... Turkey protein turkey. 62 Foreign relations Japan: Land of the rising sun 14 The Reporter quiz Test your pork knowledge VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 3 A note from the publisher... In this special issue, Urner Barry’s Reporter looks at the markets and near term the newsmagazine for the food industry professional outlook of the most popular center-of-the-plate food items. Widely reported in the general news media are the record-high food cost increases. Among the chief Pu b l i s h e r reasons for higher food prices is the United States’ ethanol policy which has taken Paul Brown Jr. as much as 30% of the feed corn crop and moved it to ethanol production. As a result, corn prices have gone up. This fact alone has significantly increased a major Se n i o r Ed i t o r Russ Whitman cost input of our protein production including one affecting the poultry, egg, beef and pork markets. Similarly, soybean production has been impacted by biodiesel
Ma n a g i n g Ed i t o r demands, and other grains have increased in price as additional requirements have Joe Muldowney been placed on them because of the demands on the corn supply, and in some cases, poor seasonal worldwide production of wheat and rice. Contributors Janice Brown Other reasons exist for the higher food prices too. Increasing energy costs, both as Ken Coons Liz Cuozzo a factor in production and transportation, have been contributing largely to this Greg Deppeler issue, as has the weak dollar. Fishing fleets and trucking companies around the Dave Herrick world have been especially hard hit by higher fuel costs. With the United States Brooke Joensen competing in the world market against stronger currencies, imports have become Jim Kenny more expensive. That is not all, the weak dollar also increases exports of U.S. Linda Lindner domestically grown food products which limits supplies here and potentially drives Bruce Longo up prices. The emerging middle-class in places like China and the Middle East are Haidee McGuire Angel Rubio enjoying a stronger economic position, and they too are increasing international John Sackton demand for proteins and foodstuffs. Jane Unger MaryAnn Zicarelli So the stage is set for continuing strong, if not escalating, food prices. Foodservice and restaurant demand, particularly in the casual and fine dining sector, is Co p y Ed i t o r s expected to decline, while retail demand will likely be generally steady to increasing. Lynn Dekovitch This can be attributed to the overall poor economy; including eroding real estate Linda Lindner values, and high fuel prices which limit discretionary income. Economic conditions
Cr e a t i v e Di r e c t o r are predicted to improve in 2009. Glenn F. Juszczak During these trying economic times for the food industry, we will continue to cover Pr o d u c t i o n Ma n a g e r for you the most critical issues facing today’s food industry, along with the lighter Chris Ashley fare that we hope makes this publication educational and fun to read as well. On behalf of the staff at the Reporter, I hope you enjoy this issue. Good reading! As s o c i a t e De s i g n e r s Maria Morales Gary Swarer
Adver tising Janice Brown Brooke Joensen Paul B. Brown Publisher
Subscription In f o r m a t i o n 800-932-0617
“A Tradition of Being the Best” 4689 South 400 West • P.O. Box 480 An Urner Barry Publication Huntingburg, IN 47542-0480 Published Quarterly Committed To Excellence! Featuring Printed in the U.S.A. Copyright © 2008 High Quality Fresh/Frozen Editorial and Publishing Offices Turkey Meats, Parts, & Ground Turkey Tel. 732-240-5330 • Fax 732-341-0891 182 Queens Boulevard, Bayville, NJ 08721 Contact Ann Block (812) 683-6626, www.urnerbarry.com • [email protected] Ryan Downes (812) 683-6627 or Greg Meyer at (812) 683-6625 • Fx# (812) 683-4226 Nothing may be reproduced in whole or part Website: www.farbestfoods.com without written permission from the publisher. E-mail: [email protected]
4 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008
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Dated ______Dated ______Shrimp—the right meal for the right price... Mall shoppers can now add shrimp to their mealtime options
The first thing that might come to mind amount of shrimp was plentiful that when thinking about shrimp is a special you didn’t have to search through meal at a fine restaurant. This assumption piles of rice or pasta to find the is clearly understandable, as shrimp shrimp.” meals usually command a high price. Additionally, as is true of almost all In an exclusive interview food items, the current market with Urner Barry, Vanessa situation continues to see an Abramowitz, president of increase in prices which has Shrimp Market, commented caused a number of individuals to that “Our goal is to let eat out less, and shrimp people know is no exception. A that shrimp is new fast-food concept, not necessarily a however, is looking to special occasion thwart that current challenge. Its aim … food item but for anytime, and to bring fine-quality shrimp to consumers at affordable prices too! Not to without hurting their wallet. mention it is delicious and healthy.” key ingredient was for Shrimp Market’s Also, Abramowitz added “We want to success, Abramowitz said it wasn’t garlic or Approximately one year ago, “Shrimp educate people about the many ways a spice, but “It is about doing things right Market” came online with its first shrimp can be prepared … shrimp isn’t and doing them right always.”UB restaurant in Florida’s Aventura Mall. Of only good with cocktail sauce.” course, if you are under the impression that shrimp is only a high end food, you With a well thought out plan, Shrimp might question whether eating it at a food Market is currently celebrating its first court is worth trying. anniversary. Everything from concept to logistics and quality control were well Ricardo Baraldi, a resident of Delray thought out. The company is completely Beach, Florida and friend of Urner Barry’s vertically Reporter contributor, Angel Rubio, was integrated “Our goal is to a skeptic too and visited Shrimp Market with its let people know 800-367-0760 then gave his opinion. As he was waiting subsidiary that shrimp is on line to order his meal, Baraldi had a Cartagena not necessarily a chance to examine all that Shrimp Market Shrimp special occasion (563) 556-0760 had to offer, and had this to say: “When Company in food item…” I was looking at the menu, I felt as if I Colombia. Full Service Brokers of was on the back seat of the bus when All shrimp Forrest Gump was having a very profound is prepared and processed specifically for BEEF, PORK conversation about shrimp … there was each different platter in Colombia and pasta with shrimp, tempura shrimp, garlic delivered to the Florida unit. “I have full & POULTRY shrimp, tortilla crusted shrimp, jambalaya control of the supply chain and quality shrimp, grilled shrimp, shrimp lo mein, control process which allows me to Domestic and Export thai shrimp, etc. ... you get the picture.” provide our customers with shrimp of the Baraldi then said that once he tried his utmost quality and excellent taste,” said meal the taste and quality of the shrimp Abramowitz. Randy, Cindy, Mark, Darin & Lisa was superb. With all this in mind, Shrimp Market’s 36 Bluff Street, PO Box 171 Each entrée is priced at $6.95 with success shouldn’t surprise anyone. The Dubuque, IA 52004-0171 higher priced options available for two or company is currently planning on opening more people. All single items contain a 14 new locations along the East Coast, Fax 563-556-4131 substantial serving of three to four ounces including one in New Jersey’s new “super of shrimp. Baraldi finally added that “the complex,” Xanadu. When asked what the
VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 5 The skinny on dietary fats... Fats: the good, bad and ugly
Fat is flavor. We’ve all heard it a number of contributing flavor to the dishes they are times, but we’ve also been bombarded with added to. fat’s negative attributes. Aside Four major types of fats exist in foods: from providing “There are monounsaturated fats, polyunsaturated many different flavor, did you fats, saturated fats and trans fats. These ©iStockphoto.com/Mark Poprocki know that fat has types of fats, different fats have different effects on other positive all with unique cholesterol levels in the body, some good, vegetable oils as well as fatty fish such as fundamental flavors.” some bad and some are very ugly. The salmon, mackerel, herring and trout. purposes as Federal Drug Administration recommends, well? It is efficient at storing energy, and is on average, for total fat intake to be Many foods are being marketed as being actually essential to our overall health. adjusted to fit total caloric needs. a good source of Omega-3 and Omega-6 fatty acids—two types of polyunsaturated Fat fuels our bodies. It is the primary Both monounsaturated fats and fats. These essential fats are beneficial means which all animals store energy for polyunsaturated fats have proven to because they have been proven to later use. Our bodies do not require large have beneficial effects on health when improve inflammatory diseases, lower amounts of fat, but quite honestly, we consumed in moderation and when blood pressure and triglycerides, increase cannot survive without it. In addition to used to replace saturated fats or trans good cholesterol and reduce anxiety and giving your body energy, fats are building fats. They help reduce bad cholesterol depression. Omega-3s are commonly blocks of every cell. They help your body levels in the blood and lower the risk of found in walnuts, some fruits and absorb some nutrients and produce heart disease and stroke. Visibly, both vegetables and a host of coldwater fish, important hormones. Fat also carries flavor of these types of fats are typically liquid while Omega-6s are found in eggs, poultry compounds which help coat the taste buds. at room temperature. Examples of foods and vegetable oils. high in monounsaturated fats include There are many different types of fats, vegetable oils, such as olive, canola, peanut, Saturated fats and trans fats are the main all with unique flavors—beef differs from sunflower and sesame oil. Other sources dietary factors in raising blood cholesterol, pork which differs from chicken which include avocados, peanut butter and many and are therefore known to increase the differs from duck. Then there’s all the nuts and seeds. Examples of foods high in risks of heart disease and stroke. Saturated oils—peanut, sesame, olive, hazelnut; all polyunsaturated fats include a number of fats are typically solid or waxy at room temperature and occur naturally in many foods. The American Heart Association How turkey stacks up against other proteins recommends limiting the amount of Sources: Nutri-facts Update. Chicken & turkey data source: USDA Handbook 8-5 and research conducted in cooperation saturated fats to less than seven percent of with USDA. Beef & veal data source: USDA handbook 8-13, revised 1990 and Bulletin Board 1994 (beef) and USDA one’s total daily calories. Trans fats come Handbook 8-17, 1989 (veal). Pork & lamb data source: USDA Handbook 8-10, 1992 (pork) and USDA Handbook 8-17, from adding hydrogen to vegetable oil 1989 and Bulletin Board, 1994 (lamb) through a process called hydrogenation. Calories Calories Total fat Saturated Cholesterol Sodium Protein Iron Trans fats are commonly found in from fat grams Fat grams milligrams milligrams grams %DV commercial baked goods and margarine. Turkey Breast 120 10 1 0 55 45 26 8 Chicken Breast 120 15 1.5 0.5 70 65 24 4 Although fat provides added flavor to Beef (Top Loin, Steak) 180 70 8 3 65 60 24 10 foods and is necessary for the body to Beef (Eye Round) 140 40 4 2 60 55 25 10 function properly, eating too much can be harmful to one’s health. When choosing Pork (Top Loin, Chop) 170 60 7 2 70 55 26 4 fats, lean cuts of chicken and beef and Pork (Tenderloin Roast) 140 35 4 1 65 50 24 6 types of fish which contain Omega-3 fatty Lamb (Loin Chop) 180 80 8 3 80 70 25 10 acids prove the wisest choices. What is Lamb (Shank) 160 45 5 2 90 65 26 10 becoming clearer and clearer is that the Veal (Loin, Chop) 150 50 6 2 90 80 22 4 key to consuming fats is to substitute the Veal (Cutlets) 130 25 3 1 90 60 24 4 good in place of the bad.UB
6 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008 Versatile, adaptable, and timeless… Turkey trendsetters tout turkey appeal
For the fourth year, the National Turkey In spring and summer months, Federation (NTF) will feature the culinary customers can find combinations creativity of three “Turkey Trendsetters” of roasted turkey with copious fresh on their award-winning Web site vegetables, imported cheeses and www.eatturkey.com. homemade sauces. Cooler weather features the famous Fallwich sandwich Turkey was an Marjorie Druker, chef and owner of the and Turkey and Winter Root Vegetable easy fit for Chef Omar Martinez and his “Screamin’ Gobbler” sushi roll. New England Soup Factory is the first to soup, both available at www.eatturkey.com. be featured. Chef Druker’s inspiration In addition, turkey and havarti cheese roll- comes from New England’s rich culinary up sandwiches have fit for his “California Style Sushi and landscape and her appreciation for earned a perennial “...our gringo Southern BBQ” themed restaurant. “With wholesome, high-quality ingredients. She is spot on the menu. style of our gringo style of sushi, we are very intimately involved in the food preparation sushi...lets fortunate that it lets us combine turkey and recipe development for both New “Chef Druker has and sushi ingredients like never before,” us combine England Soup Factory locations (outside taken a timeless said Martinez. of Boston, Mass.), where they roast fresh concept and made turkey turkey daily for soups and sandwiches. it sharply modern and sushi Martinez’s interview and Screamin’ “Nothing tastes as good as homemade through her artisan ingredients Gobbler recipe will be available at turkey soup made the old-fashioned way,” spirit and playful like never www.eatturkey.com beginning in June.UB says Druker. curiosity,” remarks before...” Sherrie Rosenblatt, In the interview that appears on the NTF’s vice president of marketing and NTF Web site, Druker said, “Turkey is communications. “A true appreciation for a versatile must-have in a quick-service every detail of the culinary process—quite setting. It has a personality that can easily literally, from soup to nuts—shines through be dressed up or down, depending on the in her trendsetter commentary.” mood.” In addition to Druker’s famous From the Farm handcrafted, seasonal soups that “change Following Chef Druker will be Omar to Deli, like a wardrobe,” the fashionable menu Martinez, sushi chef at Tex Wasabi’s Rock- includes unique sandwiches, salads, side N-Roll Sushi BBQ in Santa Rosa, Calif. we are your dishes and desserts. Chef Martinez describes his establishment Source as a place “where east and west come for Turkey! Guided, but never restricted by the together to throw a non-stop party and seasons, turkey provides the year-round enjoy a variety of unique flavors.” Tex Buyers & Sellers Domestic & International platform for fresh creations at the New Wasabi’s blends California style sushi and England Soup Factory. The fall-inspired Southern BBQ for one-of-a-kind fusion “Alliance Builders” of: Whole Birds, Bone in Breasts, recipe for Druker’s delectable Turkey and cuisine with a funky, hip atmosphere. Raw Meats, Tray Pack Parts, Wild Rice Dijonnaise soup is available Further Processed Products, at www.eatturkey.com, along with her Martinez will feature the recipe for his Turkey Hatching Eggs, complete “Turkey Trendsetter” interview. Screamin’ Gobbler on www.eatturkey.com. Turkey Poults, Live Contracts The Screamin’ Gobbler combines roasted Jeff Stauffenecker turkey, jalapenos, pepper jack cheese, Carl Wittenburg avocados, green onions, mayonnaise and Sara Almich Never an Asian-inspired spicy mayonnaise. The restricted by smooth blend of spicy, unique flavors keeps 605 Crow Lake Street seasons, roasted Brooten, MN 56316 fresh turkey is the consumers coming back for more of this base for Chef Druker’s creative approach to sushi. Like the menu Phone: 320-346-4033 Turkey and Wild Fax: 320-346-4038 Rice Dijonnaise says, “first you’ll gobble, then you’ll scream!” soup. Toll Free: 1-877-BUY-TURK Martinez explains that turkey is an easy www.proteinalliance.com VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 7
X ______Sign here for approval and fax to: 732-341-0891
Dated ______Help stop global warming one kangaroo at a time... Hopping for a greener protein
Kangaroo meat is a juicy, lean, high Kangaroo meat is very soft, has tender and stroke. “We can quality game meat that is extremely low muscle fibers, and little connective tissue. Kangaroo dramatically in fat. Many consider kangaroo one of meat is also reduce the finest game meats available. With its There is virtually no fat in kangaroo meat. extremely high rich, gamey flavor, and its enticing aroma, The 2% fat content in kangaroos has been in protein, iron our carbon it is often compared to venison or hare, found to be the highest known source of and zinc. footprint by and combines very well with other foods. CLA (conjugated linoleic acid), which is eating more of found in dairy products Not only is the local Aussie and lamb, as well as this game meat wildlife.” PUFA molecules (long- extremely good chain polyunsaturated for your health and well being, it is also fatty acid). CLA good for the environment! According to contains potential a report published by Greenpeace, we can anti-carcinogenic and dramatically reduce our carbon footprint anti-diabetes properties by consuming more of the local Aussie and aids in preventing wildlife. The report states that Kangaroos obesity and high release virtually no methane through blood pressure. PUFA belching or flatulence as do other livestock molecules improve animals. This is significant because blood flow and reduce experts say nearly a quarter of the planet’s the blood’s tendency to greenhouse gases come from agriculture clot, therefore lowering livestock which release the potent heat- the risk of heart attack trapping gas methane. ©iStockphoto.com/Carolina Garcia While kangaroo meat is a rarity in our supermarkets here in the United States, it is exported all over the world. The French, • Beef • Pork • Poultry • Germans, Belgians, and Swiss consume Raw Material for more per capita than Australians. There Further Processing was also a significant boost in kangaroo • Fresh • Frozen • Cooked • exports to Europe in the wake of diseases Private Label or affecting cattle in Britain. In fact, less Custom Process Packaging expensive kangaroo cuts are being used to make other sausages and salamis in countries such as Russia, Romania, and Specializing in: Serbia. Kangaroo is also available in Japan, • All Natural and Organic • Wild Game • the Philippines, and other countries such • Grass Fed Beef • Berkshire Pork • Quail • as Asia, South Africa and, of course, the U.S. and Canada. In America, it is usually available exclusively in restaurants. Meat Brokers and Traders for the Industry Servicing: Food Processors, Wholesale Distributors, Kangaroo is available in all types of cuts and Retail Supermarkets and can be prepared like most other types of red meat. It is best served rare or medium rare rather than well done, otherwise it will become dry and chewy. It is not recommended to add salt to the MAIN OFFICE SOUTH CAROLINA OFFICE 610 Middle Country Road 64-B1 Egret Run Lane meat prior to cooking as this draws out the St. James, New York 11780 Pawleys Island, SC 29585 juices and prevents browning which also Phone: 631-862-1500 Phone: (843) 278 - 1543 results in dry meat. It is usually seared in Fax: 631-862-2305 Fax: (843) 278 - 8014 a skillet over high heat, and then finished E-mail: [email protected] E-mail: [email protected] at lower heat or in the oven. Prime cuts can also be cooked on the barbecue or www.NaturalChoiceFarms.com included in stir-fry dishes.UB
8 • URNER BARRY’S REPORTER UB/ VOL. Reporter 3, NO. 3 • summer Third 2008 Page Ad X ______Sign here for approval and fax to: 732-341-0891
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VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 9 Experienced… timeless… proven… Leadership and honor at heart of this year’s Executive Conference & Marketing Seminar
This year, “It is the great Urner Barry’s leadership of 32nd annual Urner Barry’s Executive executives that Conference and funnels down Marketing to each and Seminar every one of the in April company’s staff celebrated the members…” company’s sesquicentennial—the 150th anniversary of service to the food industry! Since 1858 Urner Barry has provided the most accurate market information to the industry, all the while upholding its leadership position in the field.
The company’s Executive Conference and Award presenter NFPDA’s Anthony D’Urso (second from left) with Urner Barry’s company principals: left to right, Marketing Seminar was once again held Rick Brown, Paul Brown, Jr, and Mike O’Shaughnessy. at the Bellagio Hotel and Casino in Las Vegas, Nevada. Kicking off event festivities was a lavish welcome reception featuring an abundance of land and sea foods, the crowd favorite steel drum band and beautiful weather.
The conference’s next two days saw a spectacular line-up of intriguing keynote speakers, informative industry sessions, Huckabee, economist Joel Naroff and a golf outing and spouses’ luncheon—all Darden Restaurant’s Jeffrey Spotz seleected to add to attendees’ experience. captivated conference goers with Former Presidential Candidate Mike enlightening and thought provoking presentations. Immediately following his speech Governor Huckabee spent time signing copies of his books “From Hope to Higher Ground” and “Quit Digging Your 2008 Egg Man of the Year award recipient Pilgrim Pride’s Wayne Mooney. Grave with a Knife and Fork.”
An annual highlight of the conference is who was joined for the occasion by an Urner Barry’s most anticipated ‘”Person entourage of family members to help of the Year” award ceremony. Dating honor this much deserved award. Mr. back to 1986, this award usually honors Corbitt devoted his entire adult life to the individuals who have made outstanding poultry industry and came to influence life-long contributions to the poultry many individuals both inside and outside and egg industries. This year’s recipient of industry circles. Congratulations and for the “Poultry Person of the Year” was accolades were made to all award recipients Land O’Frost’s Carl Abbott; and the for their years of dedicated service and “Egg Person of the Year” was awarded leadership to the industry. to Pilgrim’s Pride’s Wayne Mooney. A National Turkey Federation’s Ted Seger (left) presenting to Urner Barry’s Vice President Poultry lifetime achievement award was presented This year’s annual awards ceremony held a Division, Russ Whitman (right). to Ben Corbitt, Western Poultry Sales, special surprise for Urner Barry principals
10 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008 Governor Mike Huckabee poses with Urner Barry Lifetime Achievement Award recipient Ben Corbitt (center) pictured with his son, Steve (right), and Urner Barry’s President Paul B. Brown, Jr. Vice President of the Poultry Division, Russ Whitman (left).
United Egg Producers’ Gene Gregory (right) presenting Urner Barry Vice President Poultry Division, Russ Whitman (left) with 2008 Poultry Man of the Year, Land O’Frost’s an award to Urner Barry’s Senior Vice President, Rick Carl Abbott (center) and Urner Barry’s Senior Vice President, Mike O’Shaughnessy (right). Brown (left).
Paul B. Brown, Jr, President; Michael United Egg O’Shaughnessy, Senior Vice President; and Producers’ Gene Rick Brown, Executive Vice President. The Gregory, former three company executives were honored National Turkey by their own employees with awards for Federation “Great Leadership.” chairman, Ted Seger “It is the great leadership of Urner Barry’s and NFPDA’s executives that funnels down to each and Anthony every one of the company’s staff members D’Urso.UB and which continues to bring prosperity and vision to this great organization,” said Urner Barry Events Coordinator MaryAnn See Zicarelli. additional photos Other special awards were presented to on next Urner Barry for its excellence in service page... to the industry on the occasion of the Urner Barry proudly displays their sponsors with special features for those supporting company’s sesquicentennial from the our Executive Conference for 10+ and 20+ years in the registration area of the Bellagio.
VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 11 Another great conference in Vegas... More photos from Urner Barry’s Executive Conference
Winning Foursome: (left to right) Chad Van Kley, Michigan Turkey Producers; Greg Meyer, Farbest Foods, Inc.; Kevin Phillips, Case Farms; Ted Rueger, Eastern Poultry Distributers
left to right: Cliff Rhodes, Boar’s Head Provisions Company, Inc.; Ted Seger, Farbest Foods, Inc.; Jim Sumner, USA Poultry & Egg Export Council; Steve Block, Farbest Foods, Inc.
Mike Miller, Chief Operating Officer with Cattle-Fax addresses Executive Conference audience.
President and Jim Davis, Hartmann North America; Shaun Loughrey, Hartmann North America; founder of Carol Hodges; Bob Hodges, Moark LLC. Naroff Economic Advisors, Joel Naroff, giving his insight on This year’s Spouses’ Lunch and Tour the country’s included a luncheon at Wolfgang economic state. Puck’s restaurant followed by activities at the Springs Preserve.
Darden Restaurants’ Jeffrey Spotz, Vice President, Meats, Commodities Purchasing and Risk Management answers questions from the audience at the 2008 Executive Conference & Marketing Seminar. 12 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008 VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 13 Moark_image_ad_rev1.indd 1 12/19/07 2:47:13 PM The “Reporter” quiz... Test your pork knowledge
1. The saying “living high on the hog” 4. What is originated among army enlisted men the average who received shoulder and leg cuts weight of a while officers received the top loin market-ready cuts. hog in the a.) True U.S.? b.) False a) 840 lbs. b) 255 lbs. 2. Exports of U.S. Pork have grown nearly c) 188 lbs. 300 percent since 1995; for how many d) 269 lbs. years has the U.S. been a net exporter of pork? 5. What’s the heaviest hog ever recorded? a) 13 a) 480 lbs. b) 8 b) 2552 lbs. c) 20 c) 1480 lbs. d) 17 d) 3021 lbs.
3. What’s the highest known price ever 6. Which primal contributes the most to paid for a hog? the overall weight of the average hog a) $105,000 carcass? b) $120 a) Ham c) $225,000 b) Loin
d) $45,000 c) Shoulder Answers
d) Side worldwide.
percent of total meat consumed consumed meat total of percent
c) Pork, which accounts for 42.6 42.6 for accounts which Pork, c) P A C K E R S O F 7. How long did the longest single 10.
sausage measure?
b) China b) LIQUID, a) 1844 feet 9.
b) 6320 feet a) Harry Truman Harry a)
FROZEN, DRIED c) 6480 feet 8.
& SHELL EGGS d) 5917 feet 1986. 22,
Barcelona, Spain on September September on Spain Barcelona,
8. Which president said “No man should in cooked was length in feet 5917
d) A single sausage measuring measuring sausage single A d) be allowed to be president who does 7. ESTHERVILLE
FOODS, INC. not understand hogs”?
Estherville, IA a) Harry Truman carcass. entire the of percent 25
a) The Ham, which accounts for for accounts which Ham, The a) 712-362-3527 b) John F. Kennedy 6.
SIOUXPREME c) Abraham Lincoln EGG PRODUCTS, INC. 1933. in Tennessee Jackson,
Sioux Center, IA d) George W. Bush
712-722-4787 of Butler Burford by owned long,
SONSTEGARD 9. Which country is both the number feet 9 measuring and lbs. 2552
FOODS, INC. one producer and consumer of fresh weighing Bill” “Big named hog
Sioux Falls, SD b) 2552 lbs. A Poland China China Poland A lbs. 2552 b)
605-338-4642 pork in the world? 5.
a) United States d) 269 lbs. 269 d)
SONSTEGARD b) China 4.
FOODS, INC.
Springdale, AR c) Mexico Show. Livestock 479-872-0700 d) Denmark Houston the at 1998 5, March on
SONSTEGARD
of GEORGIA hog, a for paid be to known ever
a) $105,000 is the highest price price highest the is $105,000 a) Gainesville, GA 10. Which is the world’s most widely eaten 3.
770-534-5644 SUN RISE meat? 13. Every year since 1995. 1995. since year Every 13. a) a) Broiler 2.
FARMS
Harris, IA b) Beef
True a) 712-735-6010 c) Pork 1. d) Lamb/Goat
14 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008
X ______Sign here for approval and fax to: 732-341-0891
Dated ______VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 15 Making its mark in a competitive niche… Air-chilled chicken
In the world of “Supporters… Opponents of water immersion, poultry, natural, believe…the however, state that there is a free-range and much higher chance of cross flavor of the organic have contamination of bacteria because become all too meat is more all the chickens are placed in the familiar labels. intense.” same vat. When air-chilling chickens each O’Shaughnessy says, “Americans are extra Increasingly bird is handled separately. sensitive to costs these days and most are however, there’s another name in town happy to eat more bargain priced poultry.” that’s beginning to make quite a splash— Supporters of air-chilled poultry also air-chilling. Common in Western Europe believe because the meat does not come in Sometimes, however, you get what you pay for almost half a century, air-chilling is still contact with water, the flavor of the meat for. Studies have shown that water-chilled fairly new in the United States. It refers is more intense. In short, it tastes more chicken absorbs up to 12 percent of its to a specific method that uses cold air like chicken. weight in added moisture during the hour instead of ice water to cool chickens after long process. slaughtering. According to Urner Barry’s Senior Vice President, Michael O’Shaughnessy, air- While air-chilling can take up to three Most chickens that are slaughtered in the chilled chicken has not really caught on hours, no water is retained during the U.S. are immersed into communal vats in large part because of the extra expenses process giving the consumer more meat of ice cold water to bring the chicken’s that are passed on to the consumer. per pound of chicken. Whether or not air- body temperature down to at least 40° F; Air-chilled chicken costs substantially chilled chicken ever becomes mainstream a temperature the USDA has established more than traditionally cooled product remains to be seen but it does have for processors. At this temperature or and is often priced closer to what potential for broader than niche appeal if lower, bacteria growth is severely retarded. organic or locally raised chickens fetch. costs don’t prove excessive.UB
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16 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008
X ______Sign here for approval and fax to: 732-341-0891 Dated ______A feast for the senses… Munich’s Viktualienmarkt pork heads and hoofs, to beer garden. Here tourist and local alike head and feet on poultry gather under the trees for a fresh beer and or a fresh swordfish make plans for their next trip to this great, head on ice—with its bill historic market.UB still intact! According to Munich’s city Web site, the quality and selection of fresh foods Eye appeal provides much of the lure are often better than the to the casual window shopper. usual city supermarkets. Here shellfish, swordfish and You can also find a lot octopus compete for attention. of specialty items from multiple potato varieties to horse meat to organic food grown by a co-op. Fresh poultry and game, including special stock The freshest meats and poultry and an extensive variety of available and breeds not available cuts, parts and portions make the Viktualienmarkt the place to shop for at your typical market, household and professional cooks alike. jump out at you from behind thick glass. This When visiting Germany, no food presentation usually gives the shopper an industry traveler will want to miss out unobstructed view of the stand’s offerings on the culinary without even stepping through the door. temptations “Fresh poultry The Viktualienmarkt has a reputation of offered at and game,.. having higher prices than your average Munich’s breeds not supermarket but, in truth, many goods Viktualienmarkt. here are cheaper than elsewhere. available at Located in the very center your typical Originally a true farmer’s market, few items of Munich, market, jump are actually grown, raised or produced by this historical out at you the sellers there, but there are exceptions. “farmers market” from behind Look for hand-drawn signs which have the is where the local thick glass” word “eigene” but realize that this usually housewives buy refers to a particular item and not the food, as do professional cooks from the top entire selection of goods at the stand. restaurants. After getting a little sustenance or the We’ve Got Founded in 1807 as a small herb market, evening’s meal, in traditional Munich Your Turkey! Viktualienmarkt has developed over the fashion, the Viktualienmarkt has a great years into one of Munich’s biggest markets with an awesome array of meat, cheese, fish, fresh fruit and vegetables. More of a courtyard with open and enclosed storefronts than a market, upon entering, Traders of one is instantaneously tempted by the Turkey, Turkey Parts aroma of game, cheese, fish and exotic and Raw Materials fruits and spices that can be found through P.O. Box 408 • 375 Pierce Industrial Blvd. the aisles of stalls. Here you can buy the Blackshear, Georgia 31516 Domestic & Export freshest fruit and vegetables in the whole Office (912) 449-5700 • Fax (912) 449-2438 E-mail: [email protected] Contact John, or Mike at city as well as the most wholesome poultry, Tel. 910-875-6500 meat and seafood. Serving the Southeastern U.S. with Liquid & Frozen Fax 910-875-6205 Egg Products [email protected] Wandering through the market is a delight. 5 Pound Carton Don’t be surprised at seeing anything from to Tanker Load Quantities P.O. Box 950, Raeford, NC 28376
VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 17 In the kitchen with Chef Sam Hazen… Chef honed craft in family restaurants and kitchens
Continued from page 1 three years. When asked if he currently teaches, Hazen responded, “I teach up with great food,” says Hazen. As a young everyday in the restaurant. Teaching is boy, Hazen worked at his family’s two an incredible tool to running a successful restaurants where he learned everything kitchen and restaurant.” he needed to know about the foodservice industry. From Hazen, visionary and principal creator of kitchen to the “I grew up the highly successful Tao restaurants in plate, Hazen was New York and Las Vegas, has constructed with great well-schooled a renowned experience at all of the superior quality and applauded Jurgielewicz about food, but food,” says restaurants he has been a part of. as “the best Pekin duck in the country.” it didn’t stop at Chef Hazen.” On the seafood side, Hazen enjoys working the restaurant; Chef Hazen works with some exceptional with Chilean Sea Bass and talked about Hazen also touts his mother for being an proteins. He specifically commends Marc the high quality of the fish and works with exceptional cook at home. Sarrazin of Debragga & Spitler for his fine his suppliers to ensure sustainability. quality meats, and praises his sirloin and With his official schooling taking place at fillet mignon cuts along with their Amish What was Hazen’s response when asked the Culinary Institute of America (CIA), natural chickens. The chef also notably what the protein industry can do to Hazen became a fellowship honoree and mentioned fourth generation Jurgielewicz improve? He simply stated, “Keep doing went back and taught at the Institute for Brand Long Island ducklings for their what they’re doing!”UB WIN TRANSPORT INC WE CAN HANDLE ALL YOUR TRANSPORTATION NEEDS!
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18 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008
X ______X ______Sign here for approval and fax to: 732-341-0891 Sign here for approval and fax to: 732-341-0891 Date ______Dated ______Skills meat and poultry processors want to have... Will you succeed in this economy with outdated business skills?
In lean times, don’t blame the economy but strongly reinforce each other. These for disappointing results. Downturns are MBA level courses that hit head-on expose inefficiencies. With the right how you can succeed in the current business skills, you can eliminate those economic slowdown. problems and turn the economy to your advantage. • NAMP partners for the first time with a leading trade magazine on But standard educational resources for Mark Eystad’s course, “Applying the developing the professional skills you Course instructors were carefully selected Principles of Lean Manufacturing to need to prosper often are not relevant for their expertise in the skills meat and Meat and Poultry Operations.” It to the meat poultry processors want to have, and for follows Dr. Larkin’s courses on June and poultry “Learn MBA their specific application to our industry. 26 at the same hotel. Throughout the industry. To level business day-long course, Mr. Eystad, a highly address the respected consultant to numerous large survival • Harvard Business School’s Ian Larkin need, NAMP conducts two of the courses: one for processors, skillfully applies what he has created a skills with owners/management on June 23-24, knows works to medium and smaller bold new series NAMP’s new and the second for sales/marketing on processors. of professional professional June 24-25. Both are at the Four Points development development by Sheraton at Chicago’s O’Hare • NAMP partners again with the courses. courses.” Airport. The two courses stand alone, American Meat Science Association to offer their new QA 101 course for the second time, June 21-22, at the University of Florida in Gainesville. Do you have the NAMP and AMSA teamed up last December to introduce the course in ® Chicago. It drew participants from throughout North America, and was COMTELL EDGE? extremely well-received.
The first three of the courses, except for QA 101, are scheduled on consecutive days at the same Chicago location. Sign up for two, or all three, to help keep travel costs Market Prices, down and make the most of your valuable time. The courses are open to anyone News and in the meat and poultry industry, non- Analysis members are welcome, too. To encourage wide-spread participation, for the Food we’re offering discounts for multiple course registration and for bringing two or more Industry people from the same company. Find more information at www.NAMP.com.
® Also check out NAMP’s signature COMTELL ... Center of the Plate Training, August all the tools you need. 5 – 7, at Colorado State University in Ft. Collins, CO. It’s co-sponsored by the Visit www.comtell.com Beef Checkoff, the Pork Checkoff and America’s Pork Producers, and the Lamb or call 800-932-0617 Checkoff.UB
VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 19 Egg outlook... The egg industry is benefitting
During the past 50 years, the do buyers and sellers know whether the The price of eggs, like other proteins, is egg industry has changed financial postures they tender each other influenced by many factors. Direct costs drastically on both sides are “fair”? Obviously, the laws of supply including packaging, transportation, labor, of the supply and demand and demand will affect the ultimate price. feed, and other traditional operating equation. On the supply side, production Some 150 years ago, however, buyers and expenses are fundamental to the equation. has become concentrated in the hands of sellers independently concluded that Indirect costs are also an influence… large corporations. Before, many smaller information amortization of buildings and land, water producers scattered throughout the was key… “Specialty eggs… and sewer, electric power, fuel and energy. country, were supplying product to the information have certainly Direct and indirect costs obviously play a consumer usually on a local or regional that would established a major role in what the ultimate price of an basis. On the demand side, purchasing provide egg transaction will be, just like they would foothold in both power has migrated from the old-fashioned education for any consumer product, be it a durable corner grocery store of the 1950s to on what the industry or nondurable good. The more efficient a regional supermarket chains as well as prevailing and, indeed, in producer is, the bigger the profit margin “box” stores along the lines of Wal-Mart prices were the eyes of will be, all other factors being equal. and Costco. locally, consumers.” regionally During the price discovery process, a Prices at which eggs are exchanged are and nationally. This need gave birth market reporter gleans information from still negotiated between buyer and seller. to what has become the Urner Barry two sources: public domains and privately Typically, a volume purchase will be on a daily quotation on the price of eggs, the reported trades. Several venues fall into contracted basis, spread over a period of standard by which all contract and spot the category of “public domains” but, time, and supplemented as necessary by market exchanges are both measured and essentially, these are organizations with acquisitions on the spot market. But how determined. an industry affiliation which, for a fee, arrange for spot trades to occur. Buyers tell the organization what they want and the price they are willing to pay, sellers relate what they have available and how much they want for it, and the clearing house endeavors to put them together at a financial position with which both parties can feel comfortable.
To be as effective as possible, a reporter must go beyond the public domain. It’s necessary to establish good working relationships with buyers and sellers within the industry so they can obtain information on private transactions as well as those made publicly. Interestingly, a good reporter will not just obtain the economic posture of transactions, but volumes, sources and destinations, additional short and long-term buyer and seller needs, a feel for prevailing supply and demand conditions…in short, all of the qualitative issues which can have an immediate and future effect on the dynamics of the industry.
A reporter, armed with both qualitative and quantitative information, develops a sense of the forces at work within the marketplace. This “sixth sense” enables a reporter to anticipate trends, to
20 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008
X ______Sign here for approval and fax to: 732-341-0891
Dated ______The egg industry is benefitting from supply side economics
understand the intricacies involved with U.S. population, the wholesale price of a future. Specialty eggs (cage free, free range, certain exchanges or acquisitions, and to dozen large eggs, and the number of layers organic, etc.) have certainly established a be more keenly aware of the motivations of (amount of chickens producing eggs). foothold in both the industry and, indeed, both buyer and seller at any distinct point in the eyes of consumers. Various animal in time. A reporter must remain unbiased, With population increasing and six million rights supporters have actively sought to impartial, dispassionate and, above all, fewer layers in the field than during 2006, ban the current way (battery cages) the objective. average wholesale prices have risen. majority of our egg supply is produced, even turning it into a ballot issue in No discussion on eggs would be complete What does the future hold? The only thing selected states. Will it be universally without examining the nuances associated that is certain is the uncertainty of the adopted? Only time will tell, just like only with the supply and demand time will tell what will happen sides from a macro perspective. to cost postures associated Classical economic theory WHOLESALE U.S. HUMAN with feed, grain, and other has always stated that both YEAR PRICE POPULATION LAYERS inputs. However, if appropriate a decrease in supply and/or (per dozen) (millions) (millions) attention is paid to the supply an increase in demand can 2006 $0.7537 297.5 289.4 side of the economic equation cause pricing structures to which, in the egg industry, rise. Using 2006 as our base 2007 $1.1695 302.7 284.9 has probably the biggest effect year for comparison (and 2008 ytd $1.4617 304.1 283.1 upon pricing structures, the 2006 was by most standards a resultant financial postures will relatively average year for the Sources: Egg prices: Urner Barry; population: U.S. Census Bureau; not exhibit the pendulum-like egg industry), the accompanying number of layers: USDA swings that the industry has table shows annual averages of typically experienced.UB Photo © Kati Molin | Dreamstime.com Center of the Plate TrainingSM from the producers of The Meat Buyer’s Guide
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VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 21 Chicken outlook... Chicken: Finding equilibrium in today’s market economy Chicken is widely traded considered along with the record costs of patterns during this period. both domestically and feed and fuel, some of the most challenging on the export front. times in recent history are confronting the Freezer stocks are the other big issue In poultry circles it is industry. right now. The USDA is reporting figures certainly the most widely recognized and “…with at nearly record high levels with some consumed poultry, followed distantly During the discretionary holdings as much as 70% over last year for by turkey. Available in just about any past few spending under the same period. Although export needs form imaginable, its marketing appeal is months, and the value of exported chicken products tighter reigns, widespread. market are at all-time highs, the situation is being conditions foodservice and complicated by the current lack of available During the industry’s infancy, change and values related business cargo containers and rail cars to get was slow in coming to the poultry trade. were mixed fell short of product to its destination. In turn, freezer Logistical challenges from transport to when potential.” stocks are building and costs of storage are storage limited market accessibility. The compared to increasingly significant. advent of refrigeration truly turned the the same time period a year ago. As was tide for the chicken trade, allowing the largely the case in the fourth quarter of Looking forward to 2008 the industry will processor to concentrate on convenience, 2006, a weak dollar continued to entice be keeping a watchful eye on several fronts. foreign buyers, Recent announcements of production Chicken Eggs Set thereby helping cutbacks, both in terms of bird weights and to place dark the number of head slaughtered were well 19 States meat lines at received. Prompted by historically high feed historically strong costs and the need to balance bird weights values. Wider against conversion, as well as white meat ranging interest supply against demand, lower hatchery for white meat figures will be paramount to controlling ggs in millions
E items destined the supply of white meat. During recent for previously weeks, egg sets and chick placements are untapped showing signs of slowing. international markets provided The balance of first half 2008 will be Source: USDA encouragement focused on production cutbacks. Despite for the industry as very good demand for back half items, variety, food safety and a host of other well. Wing values, however, did not attain the challenge facing the industry will topics which were previously pushed to the the highs experienced in 2007. Higher be to balance feed conversion against background. ` head counts and heavier birds played a weight gain and white meat supply against noted role in providing adequate offerings demand in an economy where the chicken In more recent years, the challenge for and, with discretionary spending under industry may be poised to benefit from an the chicken industry has been to balance tighter reigns, foodservice and related increasingly stretched consumer dollar.UB export requirements with traditional business fell short domestic needs and preference for white of potential. Breast Stocks in Cold Storage meat. Leg quarter requirements in Russia, meat managed Frozen Poultry, Chicken - Total Asia and the Middle East have propelled fairly well through values of all dark meat lines higher. While about mid-quarter this has been a boon for some segments but then in the of the industry, increased production wake of retreating has resulted in growing inventories demand, values
and availability of front half of the bird diminished. An illions of pounds lines including breasts, cutlets, wings early Lenten season M and tenders. The result has been erratic is often associated performance at the foodservice, fast-food with negatively and retail levels. When high production is influencing trade Source: USDA
22 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008 VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 23 Turkey outlook... Turkey: Strong exports, whole birds helping to balance troubling times for breast meat
The turkey market is a sizes range from 8-26 pounds but are their quarterly low in early January and, multi-faceted one that usually between 12 and 24 pounds. at $.74/lb., were $.07 per pound above encompasses everything Heavy toms, those raised to 38 pound 2007. Availability was characterized as from whole birds for and heavier weight classes, are used for being adequate but confidently held and traditional holiday feasts through value deboning prices began to advance by late January. added products like lunch meats and purposes to “The weak Breast meat requirements were spotty for hot dogs. But without doubt, it’s the primarily supply dollar is heavily most of the first quarter and at the end of Thanksgiving turkey that is most closely breast meat for influencing March showed few signs of improvement. associated with this unique and flexible finished goods The quarter averaged about $.15 behind buyers of line of poultry. utilization last year as heavier bird weights and a in deli lines. traditional higher head count coupled to produce The domestic turkey has been genetically Drums, export items.” adequate supplies. The continued weak engineered over many years to provide wings, necks, dollar allowed for consistently good export unsurpassed breast meat yields, strong legs tails, gizzards, hearts, and livers, along demand for drums, thigh meat and other and excellent feed conversion. A typical with thighs, are each marketed through traditional export items. Trade sentiment young tom or hen is kept in the field exporters, retailers, distributorships and during the quarter was heavily mixed; at anywhere from 17-22 weeks, dependent further processors. times reflecting high running commodity upon its application in the turkey market turkey values while at other times being chain. Over the past decade, heavy hens So far the 2008 turkey market has had its consistently reminded as to the affects of have relieved light toms as the bird of share of challenges but has largely lived up record input costs. choice for the retailer. Traditional retail to expectations. Whole bird quotations hit During the course of the first quarter, buyer interest was consistent if not active for whole birds and traditional export items. Breast meat demand did not materialize for needs which were any more than regular and adequate availability limited price movement. Cold storage holdings, while low and very manageable for whole birds, advanced to levels sharply above last year for the parts and other category. While not viewed as much of a challenge at the outset, when coupled with substantially higher slaughter figures and sluggish demand patterns, marketing breast meat increasingly proved challenging.
The second quarter ushered in mounting concern over not only excess production, • Packers of whole birds but also extremely high fuel, energy and and bone-in breasts feed costs. Consumers’ disposable income was being bartered out with increasing • Frozen tray pack scrutiny as households positioned • Fresh boneless meat themselves in a recessionary-like stance. • Private Label is available Some participants in the turkey industry attribute tighter consumer purse strings to CONTACT: the presently less than seasonable demand Kent Puffenbarger, Patrick Fowler or Chris Seme patterns being reflected from within the white meat complex. Trading down is www.PrestageFoods.com an increasingly popular term to describe St. Pauls, NC 28384 • 1-800-679-7198 the tendency of the consumer to alter
24 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008
X ______Sign here for approval and fax to: 732-341-0891
Dated ______Turkey Meat Whole Body Turkeys Breast, Tom, Fresh Frozen 16 lb. Delivered $ per pound $ per pound
Source: Urner Barry Source: Urner Barry their eating habits to include lower cost market conditions have been surprisingly challenging and processors will have to alternatives during recessionary-like times. strong and consistent. The weak dollar is work through inventories before regaining For turkey this may mean consumers will heavily influencing buyers of traditional a more stable sales platform.UB utilize lesser quality luncheon meats which, export items. Even as part and thigh because of the lower end trims and fillers meat values hit historical highs, export that are used in their production, will buying power remains strong and The One With Taste... contribute to a decline in the consumption demand active. Retail packaged toms of breast meat. Given the present cost and hens are not earning the margins Means Profits! structure of not only the turkey industry, that present market levels might suggest. Nothing assures profitability like authentic, delicious taste - exactly what you’ll find in but all protein industry segments, this is an In an input environment where feed every product with the House of Raeford name. alarming scenario. Slaughter levels are still costs are prohibitively high, processors’ We offer the world’s most complete line of trending higher and a short-term supply successful efforts at asking and getting paid turkey and chicken products and back every item with our uncompromising commitment to correction is not immediately forthcoming. advancing values are not doing much if quality, service and real taste. That said, recently diminished egg sets and anything to provide corporate profitability. House of poult placements do hold hope for reduced Looking forward however, it’s the lack Raeford Farms, Inc. production levels as early as late July or of spot interest for breast meat that’s 800-8-TURKEY • www.houseofraeford.com August. perhaps most troublesome to the industry. Although efforts are being made to reduce In the meantime, early second quarter slaughter, the first quarter has proved
X ______ImportersSign here / for Exporters approval and fax to: 732-341-0891 Vista WholesaleDated / ______Trading Food Exchange Inc. Domestic and International Suppliers of Perishable Food Products CONSISTENT ABLE Specializing in: • TURKEY QUAL ITY, DEPEND SERVICE CHICKEN For Domestic Inquiries, • PORK Please Contact Vincent Louis at BEEF Tel. # 718-542-4401 or Fax # 718-542-0042 Website: http://www.vistafood.com FISHE-mail: [email protected] • [email protected] SERVICE CENTERS Bronx, NY • Blue Springs, MO • Hope Mills, NC • Forest, MS • Land O Lakes, FL San Antonio, TX • Colleyville, TX • Manchester, NH • Toronto, Canada VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 25
X ______Sign here for approval and fax to: 732-341-0891 Dated ______Boxed beef outlook... The burdened boxed beef market
At one time or another feed the livestock has and will continue to we have all wished for be passed onto the retail consumer of beef. the proverbial crystal ball, as one can never Not only has the supply of corn to the be too prepared for a disastrous event. ethanol market impacted the center of Certainly back in early 2003, the the plate protein markets, but it has beef industry realized it fell victim driven food industries such as dairy to terrible misfortune. Bovine and other grain markets to raise their spongiform encephalopathy (BSE), prices accordingly. The U.S. citizen is or more commonly known as mad- currently facing radically high prices for cow disease, was detected in a cow in food as we are the United States in 2003. Since that experiencing “Traditionally, discovery, the boxed beef market has the most severe food and energy been under negative pressure and has been never regain its pre-BSE status and also global food economies have very volatile. feel that the industry will be plagued by price inflation been mainly too much capacity and slumping demand. in history due disconnected…” The temporary shutdown of key export Indeed, since 2003 the beef packers have to the all-time markets due to the first case of BSE in struggled with over-capacity and under- high prices of grains and soybeans. utilization of their Omaha, US No 2 Yellow Corn (Cash Price) facilities. Beef packing From the consumer perspective, pressure companies have even on home budgets is firmly entrenched. closed plants in an Along with the historically high cost of fuel effort to improve their associated with the ethanol market, the operating margins. A crash of housing markets in combination case in point would with a volatile mortgage industry has also be Tyson Fresh Meats, forced the buyer of beef to seek less-
$ per bushel as they have reduced expensive cost alternatives. While beef their capacity by pricing may not be at historical highs, approximately 3,400 per consumers are struggling with their Source: Chicago Board of Trade day by shutting down expendable dollar, and the strife with two beef processing home budgets is expected to linger for the U.S. proved very harmful to packer plants. JBS Swift, on the other hand, had some time. operating margins. Not only did the the thought that by purchasing one of their conditional closures of export markets competitors they may be somewhat more Will the beef market ever feel like weigh heavily with beef producers and efficient. it did prior to the year 2003? How cattle feeders, but the negative impact was will the consumer of beef handle the felt by the beef consumer. Besides the closures of export markets, aforementioned impacts on their finances? the years following the BSE incidents Perhaps now would be a good time to own Some say the beef packing industry will of 2003 also saw several key influential that crystal ball.UB developments. Topping that list is corn and Since 1979 ethanol production. U.S. Beef & Veal Exports Total Traditionally, food and energy economies have been mainly POULTRY SPECIALTIES, INC. disconnected, however, All Categories Poultry the vast construction of Retail • Food Service • Industrial • Export fuel ethanol distilleries Professional Sales & Procurement Service has now merged the Thousands Call Butch, Jim, Tommy or Jason two industries. Given 479-968-1777 the demand for fuel, (Fax) 479-967-1111 the price of corn has P.O. Box 2061 • Russellville, Arkansas risen to historically Email: [email protected] high levels. The cost to Source: USDA
26 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008
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Dated ______VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 27 Grinding materials outlook... Hamburgers not immune to factors pushing food prices higher
Read the newspaper, watch U.S. Drought Map - May 13, 2008 TV and you’re more than likely to see something on food inflation. Hamburgers, a major staple in the U.S. diet, are not immune to the factors “…drought that push food in cattle prices higher. Recently, the producing price to produce regions has forced farmers a hamburger Intensity: has advanced to liquidate D0 Abnormally Dry sharply. their cow D1 Drought - Moderate Observers point herds…” D2 Drought - Severe D3 Drought - Extreme to a combination D4 Drought - Exceptional of the current “food for fuel” ethanol mandates, along with the potentially Cow numbers are significant in drought areas of the Sources: long-term downgrading of middle-class Southeast, California Texas and the upper Midwest. America’s diet from steaks to burgers, as likely catalysts. While this may be true, you may also be surprised to learn some of the drought in cattle producing regions has makes most of its lean boneless beef from. other factors that appear to cause today’s forced farmers to liquidate their cow herds consumers to dig deeper when purchasing as animals do not have adequate pasture to Worldwide competition for their next burger. graze. (see map above) beef increases
Hamburger and ground beef products Where’s the beef? For much of the first half of 2008, Russia can be produced from many different has been outbidding the U.S. for items that types of raw materials. Generally speaking, Given the factors above, one would think would have otherwise been sold as grinding there are two components: one which is that the U.S. would have ample supplies of materials. (see graph below) In the case of very lean, and the other which is very fat. leaner boneless beef, and that this in turn Uruguay, outbidding the U.S. is easier Processors have historically used 50/50 would result in lower prices. Indeed, some since that country is subject to a 26.4% beef trimmings (50% meat, 50% fat) a by- of this is true. As previously mentioned, duty on all but a small quantity of their product of steak and roast production and the drought and higher costs of raising U.S. beef exports. There have been periods 90/10 (90% meat, 10% fat) lean boneless cattle has resulted in an increase in the where Russia has suspended beef trade beef, which is produced from dairy cows amount of lean beef that the industry has with Brazil, a major beef supplier, drawing and cattle breeding stock. produced over the past several months. additional product away from the U.S. The quantity of imported beef used in Australia too, has displaced the U.S. as the Domestic supplies— hamburger production is significant, and primary beef supplier to the Pacific Rim. here today, gone tomorrow? the weak dollar, coupled with emerging (see graph top left, next page) Previously, some competition for beef supplies, has affected of this product (especially fatter trimmings) Looking at the cattle population is helpful the U.S.’s ability to draw meat out of our would have had to come to the U.S. when assessing the current and future sup- trading partners. Supplies of leaner raw Uruguay Beef Exports to Russia ply of beef. The price of cattle has not kept materials from Australia, New Zealand, pace with the increasing costs of inputs. The Uruguay and areas of Central America bleak outlook with high feed prices affects supplement our supply of domestic lean cattlemen’s returns and makes it less attrac- beef. Unfortunately for U.S. lean beef tive for farmers to raise, feed and sell cattle. producers, they can’t compete in some of those lucrative markets because many In the cattle industry, the “factory” is female won’t import U.S. beef from animals over cattle (cows). In addition to input costs, 30 months of age, which is what the U.S. metric tonnes weight carcass Source: inac 28 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008 Imports of Beef from Australia Q1 Cow Slaughter millions lbs. Head (in thousands)
Source: USDA Source: Australian Government Buying power of the Buying power of the Uruguay who was the second largest U.S. Dollar vs. Australian Dollar U.S. Dollar vs. Uruguyian Peso exporter of beef to the U.S. only a couple of years ago, now sends only meager 100% - 100% - 90% - 90% - amounts of beef into the country. (see 80% - 80% - graph) 70% - 70% - 60% - 60% - Imports of Beef from Uruguay 50% - 50% - 40% - 40% - 30% - 30% - 20% - 20% - 10% - 10% - 0% - 0% - Jan 1, 2000 May 9, 2008 May 2004 May 9, 2008 Source: Federal Reserve Bank of NY Source: Federal Reserve Bank of NY Photo © Carolinasmith | Dreamstime.com carcass weight metric tonnes weight carcass
Source: inac With the exception of March, cow slaughters are generally higher for the first ALLEN FAMILY quarter. (see graph, top right) Yearly cow slaughters are also higher: FOODS, INC. Yearly Cow Slaughter A Family Enterprise Since 1919 126 N. Shipley Street
Head (in thousands) Seaford, DE 19973
Source: USDA Despite large supplies of lean domestic boneless beef, prices have been relatively high in 2008. 302/629-9136 When you pay more for that burger over 302/629-9532 (FAX) the next couple of months, consider the weak dollar and emerging markets abroad. (see ‘buying power’ graphs) Additionally, Your Premier Poultry Supplier while more domestic animals are coming to market today, know that sooner or later, • Case Ready Prepackaged this trend will reverse. Hopefully, by then, the dollar will be stronger and the U.S. will • Rotisserie • COV Roasters be able to compete more effectively for lean • CVP and CO2 Whole Birds and Parts grinding materials.UB
VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 29 Lamb and veal outlook... Influences on the lamb and veal complexes
“Special occasion” milk by-products, such as levels for the domestic lamb carcasses have or “difficult to whey and whey protein been mixed going into the second quarter prepare” have concentrate. Bryan Scott, of 2008 with lighter selections demanding been consumer executive Vice President a premium while the heavier selections biases confronting both the of the American Veal have been trending lower. Marketing the lamb and veal complexes for Association attributed heavier selections has been more of a quite some time, yet several the limited availability challenge in specific regions of the country. other challenges are now of milk products to Seasonal trends for the boxed lamb cuts coming to the forefront. increases in global have been relatively accurate so far this High fuel costs are demand, droughts year. impacting many industries’ in Australia and mandated bottom line and these two cuts in milk production in the Whether you are talking about issues that sectors are no different. Other recent and EU. That rising trend of have been around for years major concerns are the rising costs for feed milk and milk by-products or new concerns, it is clear and the substantial increases in imports. is expected to continue to see that the markets for most of the first half are always changing, and Looking at of 2008 as supplies are participants will need the market “Look for both projected to be limited. to be able to adjust with for veal, the lamb and them. Look for both the higher costs veal industries to In the lamb sector, a lamb and veal industries of milk continue to evolve substantial increase to continue to evolve to and milk to meet consumer in imports from both meet consumer needs and by-products needs...” Australia and New continue to work through have lead Zealand over the last ten outside influences.UB to increases in the price for veal cuts. The years continues to set off ©iStockphoto.com/Jill Chen feed for milk-fed calves is derived from alarms in the U.S. market. Despite the weak U.S. dollar, YS Carcass Lamb Y4+65/75 (TL) the domestic market remains attractive for lamb imports from both Egg Company Inc. Australia and New Zealand. Producers of
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30 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008
X ______Sign here for approval and fax to: 732-341-0891
Dated ______Empacadora Celaya, S.A. de C.V. An enterprise proud of its origins in Celaya Una empresa orgullosamente Celayense
Founded in 1976, Empacadora Celaya is one of the top Fundada en 1976, Empacadora Celaya es una de las producers of high-quality deli meats in Mexico. principales productoras de carne delicatessen en México.
It began as a small family business in the city of Celaya, Inició como un pequeño negocio familiar en la ciudad Guanajuato. de Celaya, Guanajuato.
To keep up with increasing Al día de hoy, Empacadora Celaya consumer demand, Empacadora ha experimentado tal crecimiento Celaya is currently expanding its que su planta procesadora se está processing plants to double expandiendo, con la intención de production. duplicar sus niveles de producción.
Capistrano una de las marcas más exitosas de la compañía, ofrece una línea completa de jamones y carnes frías One of the company’s most delicatessen a precios muy successful brands, offers a competitivos. complete line of high-quality ham and deli meats at very Promocionada bajo el slogan competitive prices. “Capistrano es frescura y nutrición”, demostrando su compromiso con It is marketed under the slogan: la misión de la empresa: “Capistrano: Freshness and Nutrition”, which clearly “Cumplir orgullosamente con cada compromiso establecido demonstrates the commitment to the company’s mission con nuestros clientes, satisfaciendo las necesidades de statement: “Our goal is to proudly satisfy each and every nutrición de la sociedad”. customer order while satisfying the nutritional needs of society.”
Additionally, Empacadora Celaya offers a full line of products Adicionalmente, Empacadora Celaya le ofrece una gran from a host of their family brands, all with the same variedad de productos en otras marcas de excelente excellent quality. calidad.
For more information visit our Web site / Para mayor información visite nuestra página: www.capistrano.com.mx Or contact us at / O contáctenos en: [email protected]
Celaya Guanajuato México Telephone: (52) 461 61 88500 Ext. 5100
VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 31 Pork outlook... U.S. pork: the world’s product In the United States pork consolidated; there are fewer farms and and have led to lower fixed costs for the has always seemed to take a more hogs per farm, and these farms different stages of production, while at the back seat to the beef market tend to only perform one part of the total same time helping to contribute to better in terms of both popularity process. In fact, from 1992 to 2004 the margins for producers and overall lower and shelf space; this is not the case in most number of hog farms fell by more than prices at the market. other parts of the world. In terms of global 70% from 240,000 to less than 70,000. consumption, pork is the most consumed The amount of hogs per farm has also The number of hogs produced also major protein in the world, surpassing increased with the continues to increase thanks to a chicken—which is its real competition in average size of U.S. “While chal- combination of better breeding and better this country. While most other parts of the hog operations lenges do survival rates due to veterinary advances. world are eating more pork, the meat is growing from 945 exist, the Packers have been more than willing to not coming from commercial production, head in 1992 to financial run the larger numbers as this allows them but rather small personal farms. The U.S. 4,646 head in to run their plants more efficiently and cut incentive commercial hog industry has existed more 2004. The rapid their fixed costs. The only complication or less since the start of our country and shift to fewer and will always is moving the meat—and lately that has has been growing ever since. Today the larger operations be there and not been a problem. Growing world United States has the largest commercial that specialize in someone populations and developing nations hog production in the world in terms of a single phase of will always are looking to the U.S. as a high-quality dollars and continues to expand. production and figure out source of the protein they already prefer use production how to capi- and domestic operations are expanding to The commercial hog raising process contracts has talize on it.” meet that need. Almost all of the major is also changing and barely resembles resulted in packers have large export contracts with what we saw only 15 years ago. Many of substantial productivity gains for hog various countries around the world, and the smaller family type farms have been farms. These changes came out of need, the number of countries interested in U.S. pork continues to grow.
URNER BARRY’S Exports have increased at a higher rate Seafood Import Data Online than many would have ever anticipated; FOREIGN this past January saw export sales 27% TRADE DATA higher than the year before. Larger GAIN ACCESS TO: increases are expected to be seen as the year goes on and 2008 is estimated to finish out Compliance Manuals at 3.7 billion pounds, nearly triple our level Directory of Foreign Agencies for 1998. These increases are coming from both existing customers who are growing Urner Barry’s Foreign Trade Data A Practical Guide to the Regulation and buying more, and new customers gives you detailed information of Seafood in the United States coming into the market. China has been a huge factor and has been buying double on each and every frozen NEW: Searchable Census Database the amount we traditionally see as their waterborne shipment of seafood population is not only growing in size but entering the United States Call toll free also in affluence. This is the case in many other parts of the world as well where including: 1-800-932-0617 developing nations are taking advantage • Commodity names E-mail: [email protected] of their own economic prosperity and the current low value of the U.S. dollar to • Importer and exporter names Tel. 732-240-5330 Fax 732-341-0891 enjoy a higher quality protein. Production & addresses http://shop.urnerbarry.com has been increasing at a rate 5-10% a year • Volume of shipment in order to keep up. • Origin country NEW: Searchable Some feel there is a downside to this • U.S. port of entry Richard Gutting, lawyer and seafood increase in exportCensus business Database and the • Date of arrival regulation expert, will be sharing his increased production that follows. Export research and expertise with orders are typically only for a handful of Foreign Trade Data customers items; hams, butts, varieties and picnics to name a few. Recently some new items
32 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008
X ______Sign here for approval and fax to: 732-341-0891
Dated ______have been garnering increased interest in the cost of corn, the number one from export buyers, namely boneless loins component in most animal feed. Getting and carcasses, and this is helping to lend animals to market has also become more additional support. The problem is that expensive with the increase in diesel prices J you can’t only slaughter for these items, which also affects the cost of transporting you get all of the others as well. This has the sold meat. Some sellers are citing ason’s resulted in some situations where certain recent shipping increases of as much as items have been oversupplied on the 50%. These increases have begun to be domestic market and their values have transferred on down the line and are suffered as a result. Bellies are an example starting to be felt by consumers at the of an item that has little to no export retail level, but the full increase has yet to interest and at times suffers domestically be passed on. F because of it; spareribs are another. These situations will likely continue and they will Most experts say it will be well into oods do little to keep packers from aggressively 2009 before all of the cost increases are trying to fill the growing amount of export transferred down to the consumer; and orders that are out on the market. this will present some challenges for our industry. Production has increased Costs of production continue to significantly but per capita consumption plague not only the pork sector, but has not kept up; currently export business I all agricultural industries. Of specific is making up most of the difference. These nc. hindrance are the escalating costs of customers, however, are buying because feed and transportation. Ethanol is the it is cheap right now—thanks to the value hottest fuel alternative at the moment of the dollar, but what happens when and currently we are choosing to focus that changes? How will consumers react our effort on corn-based production. The when the full effects of increased costs are BEEF focus has lead to an enormous increase finally transferred to sticker prices? These are some of the tough questions our VEAL • PORK industry is facing and Total U.S. pork production there are more than a few people scratching POULTRY • OFFAL their heads.
The answer is simple and it is the same one we have come THOMAS to in the past when illion pounds
M we have been faced LUCACCIONI with challenges. PRESIDENT The industries, the companies and the people they 208 E. HELEN ROAD employ will have to ALATINE Total U.S. pork exports adjust, re-evaluate P , IL 60067 and re-organize the way they think and do business in order to suit the market conditions ( 8 4 7 ) at that time. While challenges do 3 5 8 - 9 9 0 1 exist, the financial illion pounds
M incentive will always be there and CELL: (847) 431-8444 someone will always figure out how to [email protected] capitalize on it.UB *Estimated. Source: Comtell, USDA history. VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 33 X ______Sign here for approval and fax to: 732-341-0891
Dated ______By-product outlook... By-product industry poised for growth
Biodiesel refers to a non items such as cleaning supplies, cosmetics, produce biodiesel. Waste vegetable oil’s petroleum-based, low- candles and soap, among others. Demand availability is likewise limited and further emission, renewable in that sector has also been a driving force feedstocks are required to compete with the diesel fuel made by for the inedible tallows. growing demand of the biodiesel sector. utilizing vegetable oils or animal fats That being said, we could see interest from typically known as greases, tallows or The volatility of the Chicago Board of the biodiesel sector shift from the choice lard. Government subsidies have caused Trade (CBOT) in the first quarter of 2008 white grease to the renderer tallow in the significant domestic growth in this sector; has limited the upward potential of this near future.UB growth which has resulted in prices for market. both animal fats and vegetable oils to soar There “Government to historically high price levels. is some subsidies have speculation WESTERN POULTRY caused significant Renderer and packer tallows, as well as that SALES COMPANY vegetable oils, are also commonly used demand domestic growth in the chemical sector for production in from the in this sector.” Visalia, California 93279 • Tel. 559-732-0489 feed sector could back off, however, demand from the For All Your chemical and biodiesel sector is expected to Poultry Needs remain strong as the increase in biodiesel facilities to come online continues. Specializing in Raw As animal fat, tallows, lard, choice white Turkey Meat grease, etc., are limited in supply, they Call Ben or Steve at cannot be viewed as the only sources to 559-732-0489
X ______Sign here for approval and fax to: 732-341-0891
Dated ______
800.832.8325 F: 708.849.8094 [email protected]
34 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008 Variety meat outlook... Variety meats: the essential extras Most people feel they have meats. Mexico’s interest a decent understanding especially lies in tripe and of the foods they eat, both head meat while Korea’s where they come from and interest lies in tongues what they are made of. We know that pork and oxtails. These types chops come from pigs and all those steaks of items tend to appeal in the meat to these more traditional case come “Recent trends cultures that have from one part in white table- historically always eaten or another cloth dining have them; recent influxes of of the cow. these cultures into the turned to some Most of us United States have led to even have an of the variety an increase for them in the appreciation meats, and with domestic market. for the size of good results.” the animals Many of these variety we slaughter in our food supply with items do not appeal to cattle typically in the 1200 pound range the typical domestic consumer, however, challenges as those in any other. Increases and hogs somewhere near 270 pounds. and can be a challenge to market on their in fixed costs, for example are having the These animals, however, are much more own. To get passed this negative perception same effect on the variety meat sector as than steaks, hams, chops and trimmings; processors tend to use these items in they are on the other protein markets; the entire animal is used in one way or combination with others to make certain costs are going up and prices will need to another... Which begs the question, where products. For instance, cheek meat, head move accordingly, without exceeding and do all those other parts go and what are meat and hearts are commonly used in the therefore hindering demand.UB they used for? grinding mix of cheaper, lower grade hot dogs and hamburgers. Kidneys are typically The market for these types of animal parts used in applications that call for cooking and products is creatively referred to as the with moist heat such as braising or adding “variety meats” market and is littered with them to a stew. Pig’s feet are typically items that many of us either didn’t know pickled while many other items are fried, existed, or can’t believe people actually such as chitterlings. While these may be use. Items such as tongues, cheek meat, an example of the more traditional uses of hearts, kidneys, livers, chitterlings, feet, these items, some new and interesting ones neck bones, salivary glands, tripe, snouts, are popping up in some surprising places. tails etc; are harvested during both the beef and pork industry’s slaughter process. Recent trends in white tablecloth dining These items tend to be more traditional have turned to some of the variety meats than many people think and have been and with good results; one such example is harvested and used since even before with beef cheek meat. This thick muscle is humans domesticated animals. Originally said to have a good, rich flavor while still these items were harvested simply as retaining tenderness and being open to a additional meat for general consumption variety of preparation methods. A trendy with the exception of certain organs that offering, cheek meat has been becoming held specific religious and ceremonial more and more popular and supplies are functions. typically seen as hit or miss. Tongue meat is another example of traditional variety item Today, these items are isolated and lend getting some new twists as both Asian and quite a bit of sellable product to the overall Mexican markets embrace their use in new final value of each animal; without these ways by local chefs. varieties markets no packer would turn a profit. The typical destination for many of Markets for these items look to continue these items tends to be export where they to grow as more of the world is opened are consumed as part of traditional cultural up to trade and as communities of menus. Countries such as Mexico and immigrants in this country continue to Korea are big buyers of certain U.S. variety grow. Prices of variety items face the same
VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 35
X ______Sign here for approval and fax to: 732-341-0891
Date ______Farmed salmon outlook... U.S. farmed salmon supplies remain salmon were curtailed this year with many supply from Chile—a situation that has news stories continuing to point out caused persistent frustration for U.S. supply issues: Infectious salmon anemia traders since the summer of 2006. As of (ISA), slow growth rates, inefficient feed mid-to-late April, reports continued to conversions, unfavorable exchange rates, surface regarding a decrease in supply and increasing fuel and feed costs as well as fewer products available for 2008. labor issues have all contributed to the current supply uncertainty. Constant headlines in the news seem to be reminders of the challenges that Chile fac- Seafood consumption in the Over the past few years, the Chilean es. On March 28, 2008, The New York Times United States is growing. farmed salmon industry has seen double published an article that had the potential Looking at the most recent digit growth in exports. U.S. Annual Consumption of Seafood figures, however, the growth 2004 through 2006 in this industry did not come from salmon. experienced increases of 25%, 20%, and 28% The majority of salmon consumed by the respectively. In 2007, U.S. is farmed Atlantic salmon. Arriving however, the salmon mainly from Chile, there is also a portion industry in Chile only that is exported from Canada. About 535 saw a 2% increase in Pounds million total pounds of farmed salmon value and 3% in volume. were imported in 2007, an approximate increase of 3% from 2006 levels. Farmed Atlantic salmon marketers in the U.S. are Expectations of a greater supply of Chilean still facing a decreasing Source: National Fisheries Institute
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36 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008 X ______Sign here for approval and fax to: 732-341-0891 Dated ______tight amid continued biological issues to be a major blow to the industry. Chilean “The most important thing the the number of fish that come from this salmon companies were accused of using Chilean industry can do right now region is small, their value is quite high unapproved antibiotics as well as unap- is to try and get out in front of the and no production will hurt the local proved antibiotics. The article also touched issue by introducing their practices communities there. on labor issues which have continued to and successes to the wider consumer surface in the headlines and have become community.” The Alaskan wild salmon harvest in 2007 a very sensitive subject all over the world. was 212 million pounds, and a significant The shrimp industries in Thailand and In response to the negative press, the decrease for 2008 is expected—only 137 Bangladesh are also dealing with serious Chilean industry has been active by launch- million pounds. The decline is being allegations of violating labor laws. ing ad campaigns, creating groups such as attributed solely to the pink harvest (an the G6, consisting of the largest salmon additional species of wild salmon), which Salmon of the Americans, an association producers in the country, which will tackle on even years is much less than the runs of salmon producers in both North the disease problems and be more forth- in odd years. and South America, had an immediate right in speaking about the issues. response to The New York Times’ article, and Looking forward, the farmed salmon Seafoodnews.com editor John Sackton had Marine Harvest, the largest exporter industry will see less volume from Chile this to say regarding the issues… of farmed salmon to the U.S. last year this year. Production from Canada is and the largest salmon producer in the increasing, but there may not be enough “[If local labor groups connect with world said it will cut harvest operations supply to fully cover the lack of supply environmental NGOs] this is a very in Chile by 50,000 tons or roughly 30% from Chile. The Alaskan wild salmon potent threat. The support of a local of their production in 2008. In addition, harvest is forecasted to be one of the top opposition group gives the NGOs the G6 said that in 2007 they combined five harvests in history, yet much less than a much stronger moral position, for 670,000 tons. 2008 predictions are last year because of the lower even-year since they then put themselves in the between 610,000 and 660,000 tons. run for pink salmon.UB position of defending the victims of a Atlantic salmon are estimated to be around rapacious industry.” 300,000 to 350,000 tons in 2008.
“So the threat of Coapach and The outlook appears grim for Chilean Agopa to make common cause with farmed salmon; however, U.S. marketers international NGOs for a boycott do not have many other choices for of Chilean salmon could create real finfish. Fresh tilapia, for instance, is problems for the industry, beyond currently experiencing all time highs in the existing issues of dealing with a the U.S. market. 5-7 ounce fillets, for disease outbreak and some production example, are currently at $3.75-$3.85 slowdowns.” per pound, whereas, Chilean salmon 2-3 pound fillets are seeing prices of Sackton goes on to say that big retail $3.35-$3.45. customers are very sensitive to these MIDWEST campaigns because the NGOs have Another option is wild salmon; however, an ability to spend a lot of money on production is much less than farmed. POULTRY publicity. Additionally, he explains that Wild salmon consumed in the U.S. comes these campaigns are hard to stop. almost exclusively from Alaska, with some SERVICES coming from U.S. Annual Consumption of Salmon the West Coast Three generations of of the U.S. and Canada. This experience in fresh eggs. year, however, only the state Midwest Poultry Servics, L.P. of Washington is an industry leader
Pounds will have a wild with a reputation built on salmon harvest outstanding service. as the Oregon Call us to experience the difference. and California fisheries have Midwest Poultry Services, L.P. P.O. Box 307, Mentone, IN 46539 closed. Although Source: National Fisheries Institute Phone: (574) 353-7651 • Fax: (574) 353-7223 VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 37 Fulton fish market outlook... Not so different challenges exist at the new Fulton Market After 180 years of selling decided to close their doors while others the lower volume of available fish. In fish on the streets of lower consolidated or expanded. Now, after more addition, fishing efforts have been dictated Manhattan, some transition than two years since the transition, the by costs. Fishing trips are carefully planned took place when the New York Fulton market continues to operate with business according to the Market was relocated to the Bronx, NY. as usual. likelihood of a “…the market Sellers that were facing financial difficulty plentiful catch continues to The still new Hunts Point Food as well as the operate with Distribution Center clearly demonstrates prospect that that buying patterns have changed from market conditions business as the old NY Fulton Market. Today, the will yield a profit. usual.” majority of business is done on Mondays, As a result, the Thursdays and Fridays with most sellers overall supply has decreased, causing an reporting lackluster sales on both Tuesdays overall increase in market price. Higher and Wednesdays. Prior to the move, only market prices have in turn suppressed the one day in mid-week experienced dull sales. overall demand for groundfish and flatfish.
Challenges for the market exist at Hunts Many restricted fishing areas will re-open Point as they did in Fulton. So far, during on June 1st and sellers in the NY Fulton 2008 supply issues have been reported by Market anticipate that supplies of flatfish Bobby Donahue from Lockwood & Winant, many suppliers of flatfish and groundfish. and groundfish will improve, thus boosting New York Fulton Fish Market. Fishing restrictions have contributed to their business.UB
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38 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008
14645v3X ______QualityAd.indd 1 2/21/07 3:28:26 PM Sign here for approval and fax to: 732-341-0891 Dated ______Scallop outlook... Conservation will limit supply of scallops
Scallops are among the top Sea Scallops, Domestic, Dry, IQF, 10/20 Count ten seafood items consumed in the U.S. They are landed primarily in Eastern Canada and the central and mid-Atlantic regions of the United States. In an attempt to conserve it as a natural resource, the scallop industry is highly regulated. Canada is on a strict $ per pound quota system, while the U.S. plan calls for a total allowable catch. The much larger U.S. catch (three to four times Canada’s haul) is regulated by days at sea, number of persons per boat, allowable gear, size of vessel, “…successful Source: Urner Barry and opening of conservation closed areas. efforts have resulted in Since 1999, the return domestic landings of a healthy have steadily fishery.” improved. The industry hit bottom in terms of landings in 1998 when the fishery yielded only 13.166 million pounds. Since then, successful conservation efforts have resulted in the return of a healthy fishery. 2007 landings CHICKEN - TURKEY - PORK are estimated at 58 million pounds, or 341 FRESH - FROZEN - FURTHER PROCESSED percent above 1998 levels. Expectations for 2008 are 48 million pounds, and for 2009, Retail and Foodservice •www.esmarketing.com 52 million pounds. Landings reached a peak of 64.8 million pounds in 2004. Louis Ellman • President •[email protected] • General Manager • [email protected] Domestic production is supplemented by Lauren Adelson imports, which in the lean years meant as 900C Lake Street, Ramsey, NJ 07446 much as 80 percent of total supply, and Tel. 201-995-1911 •Fax 201-995-9732 more recently accounts for roughly half of the supply in the U.S. In 2007, the U.S. Tim Petit Kenny Seeger imported 56.6 million pounds of scallops. Sales Manager Sales Manager 285 Vineyard Way 31 Wesley Way From 2002 through 2004, the unusually Doylestown, OH 44230 Wilmington, OH 45177 high supply situation caused market prices Tel. 330-658-3517 Tel. 937-382-0196 to suffer. The following year (2005), a Fax 330-658-3516 Fax 937-382-8161 roughly nine percent decline in supply [email protected] [email protected] caused market prices to spike. More David Simpson Gary Morgan recently, the market has been largely 105 Cedar Street, Suite D-3 2057 Fawn Lane unaffected by supply. A spike in supply in Monroe, NC 28111 Batavia, OH 45103 2006 went largely unnoticed, as have more Tel. 704-283-9444 Tel. 513-732-3891 recent declines in supplies. Experts point Fax 704-282-4179 Fax 513-732-0704 to a rather robust export market. [email protected] [email protected]
The current market is flat, and largely in- Jack Lutz Ben Zapp 2450 Devils Backbone Road 80\75 Gettysburg Square line with the five-year average. Total supply Cincinnati, OH 45233 Fort Thomas, KY 41075 is expected to decline 11 percent in 2008, Tel. 513-407-5568 Tel. 859-814-9198 limiting the possibility of much downside Fax 513-451-5568 Fax 859-360-0270 risk.UB [email protected] [email protected] VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 39 X ______Dated ______Sign here for approval and fax to: 732-341-0891 Tilapia outlook... Feed costs and bad weather reduce tilapia supply in the U.S.
Tilapia is a versatile fish that industry struggling if growth has been so had no option but to find an immediate is quickly gaining popularity. substantial? substitute. They turned to frozen tilapia No doubt, you will find it from China which was fortunately readily available at any restaurant Briefly, two years ago, production problems available and at a substantially lower price. you visit. It is also frequently offered at the in Costa Rica caused a significant shortage As a matter of fact, tilapia imports from seafood department of your local grocery of fresh China have increased 43% and 35% in store as either a fresh or frozen item. It tilapia fillets “…producers’ 2006 and 2007 respectively, even when is not a “fishy” fish, and is often thought during Lent, profit margins faced with food safety issues last year. of as a high-value option by many in the the highest were seriously Moreover, many of those buyers of fresh business. Despite all these attributes, the demand being squeezed product who switched to Chinese frozen tilapia industry has been struggling over season of the as rising fillets didn’t show much interest until the the past year or so. year. This input costs ... beginnings of 2008. resulted in Demand for low-cost frozen Chinese unfortunate were placing In the second half of 2006 the fresh tilapia fillets has been unprecedented— long term increased fillet market experienced a flat behavior. surpassing 30% of annual growth during consequences pressure on the Production from Costa Rica was in the past three years. Similarly, fresh fillets for many market.” the midst of showing signs of recovery. produced in Latin America have also marketers Supplies were more than adequate, thanks proved fairly appealing to those who prefer of fresh product in the U.S. When prices to growth from other countries like fresh products. How, you may ask, is this began to rise, many traditional fresh buyers Ecuador and Honduras, and prices began
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40 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008
X ______X ______Sign here for approval and fax to: 732-341-0891 Sign here for approval and fax to: 732-341-0891 Dated ______Dated ______to gradually trend lower at the beginning of news about the lift of tariffs for shrimp 2008 began with the market facing a 2007. By Lent of 2007, only prices of larger imports from Ecuador into the U.S. made radically different scenario. Traditional fillets were experiencing slightly elevated some tilapia producers switch to shrimp importers of frozen fillets were levels, but thereafter, prices simply kept production, getting out of the tilapia experiencing difficulties replacing going down until late 2007. industry altogether. As a result, imports inventories during the last quarter of of fresh tilapia from Ecuador started to 2007. Preparing supply for the Lenten Producers’ profit margins were seriously decline gradually from mid-2007until season is critical, and Chinese packers being squeezed as rising input costs, February of 2008. took this increase in demand as a window especially those for feed—which according of opportunity to increase prices. The to many producers account nearly for 60 Ecuador’s market share accounts for reasoning behind increasing replacement to 70% of the total production costs—and approximately 35% of the total supply, costs to U.S. importers was fundamentally low selling prices were placing increased however, months ago this figure fluctuated based on stricter inspection laws which pressure on the market. Additionally, around the 50% mark. When compared resulted from the food safety scandals to last year, exports of 2007. In fact, it was getting very risky Soy Meal Continuous Front-Month Futures from this country are for exporters to offer product given that approximately 20% exporting licenses were being revoked left lower. Yet, total U.S. and right. Also, prices for the components imports of fresh fillets of tilapia food— corn, soy, and fishmeal— from C&SA are up, have all skyrocketed and have therefore and other producing increased the cost of feed. Finally, Chinese countries like Costa New Year festivities seriously disrupted Rica and Honduras shipments of product during the highest have readily covered demand season for fish in the U.S. as it was demand and increased just one day different from the beginning their producing of Lent. All these issues collectively placed capacities in a signifi- significant pressure on wholesale tilapia Source: CBOT and Urner Barry cant manner. prices with many importers absorbing higher, yet affordable, replacement costs.
After Lent, China experienced severe winter weather with dramatic decreases in temperature and blizzards in the southern provinces of the country. Fish mortality reached approximately 65 to 70%. Supplies were seriously affected and U.S. importers had no option but to bid higher on the remaining inventory. So, given that expected stocks were going to be extremely short, replacement costs continued to increase during March and April with wholesale prices in the U.S. increasing more than $0.60/lb since the mortality news broke.
Recently, the pages have turned. Producers from both regions have pushed prices up because of higher input costs. To pressure prices even further, a short supply of product from China has forced buyers to seek fresh tilapia, leaving importers and distributors to take care of their contractual obligations and not offer much on the spot market. Consensus indicates that the market will not soften for at least the mid-term period. Simply put, prices are up, demand is up, costs are high, and supplies are short. Soon, the inevitability of passing the higher supply chain costs onto the consumer will become a reality.UB
VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 41
X ______Sign here for approval and fax to: 732-341-0891
Dated ______Tuna outlook... Tuna getting caught in a net of challenges
Catching, processing, America, as well as increasingly popular in the U.S. For “…fishing and distributing tuna is domestically. The instance, tuna is an essential element in considered an industry fishing industry is companies… sushi and sashimi, two basic yet popular unto its own which leads one of the largest have had little Japanese dishes that are highly treasured into the equally big business of producing components of the choice but to by American consumers. Of all the and selling canned tuna. For example, South East Asian raise prices…” commercially traded species of tuna, this industry is valued at U.S.$3 billion economy and yellowfin, also known as ahi, is regarded annually. Yet, tuna is a wild-caught fishery fuel costs are whittling away profit margins. as the most valuable tuna catch and has and high fuel costs, among other factors During the past few months, fishing developed quite a following across the such as a weak economy and unfavorable companies in these countries have had little U.S., particularly in the forms of steaks exchange rates, are negatively impacting it. choice but to raise prices to U.S. importers. and fillets. Nonetheless, demand is being negatively impacted by the weak economy, The majority of tuna consumed in the Most tuna is sold canned, although fresh high wholesale prices, and consumers that U.S. comes from South East Asia, and in and frozen presentations, such as steaks, are less likely to dine out or pay a premium lesser volume from Central and South boneless pieces, or fillets, are becoming at the grocery store.
Due to their adaptability to the grill, tuna steaks are generally a summer season item. Pricing usually fluctuates little. Selling levels in the U.S. managed to increase slightly in September of 2007 but have remained relatively flat since then. Pricing can vary widely depending on the grade with sashimi grade tuna, for example, commanding premiums. Although pricing in the U.S. has remained relatively steady, overseas offers have not. Importers have been forced to take the hit of a higher cost plateau while selling at the same level during the past few months. Finally, we Let’s face it – must not forget that a weak dollar makes fresh tuna tuna imports more expensive. is expensive. Many importers continue to report higher replacement costs. Fresh domestic and We know. imported, number one graded tuna—or We’re one of the largest sashimi graded—prices have averaged $7.35 year-to-date. This is an increase of 5% over fresh tuna buyers in the world. the five-year average price. Pricing for the That’s why we’ve sourced the months of January, April and May of 2008 have exceed the average monthly price for big albacore that swim in the pure, the last five years. The increase in fishing deep waters of the South Pacific. costs outweighs the market price increase over the last five years. At about half the price of yellowfin and
bigeye tuna, tombo’s attractive deep pink meat Inconsistent supplies of both domestic and imported fish, along with significant makes it a great value that will put new sizzle in your fresh tuna sales. increases in fuel costs, have challenged the industry. With the summer grilling season, the threat of advancing wholesale prices in an environment where the consumer’s discretionary income isn’t going as far will be just another of the many issues currently facing the tuna fishing industry.UB
42 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008 Halibut outlook... Halibut, a well-managed fishery
Halibut is the largest of pounds. May’s landings, however, were demand is barely “The current all flatfish and one of the nearly 2.5 million pounds less than 2007 absorbing the demand largest of all fish, capable of as the combination of inclement weather available supply. is barely growing to over 500 pounds. and curtailed fishing efforts have caused Due to a slow- It is managed by a public organization reduction in the overall supply. This down in overall absorbing called the International Pacific Halibut equates to a 33% reduction for the month. demand, frozen the available Commission. Each fishing area has its The total allowable catch, TAC, for 2008 is inventory from supply.” own quota. In the U.S., fishermen are 48,040,800 and year-to-date landings as of last season is still allotted an individual fishing quota (IFQ), May equal 29% or 14,044,219. The current available so producers are not motivated to while in Canada, each licensed vessel freeze any surplus supply at this time. receives an individual quota (IVQ). In addition to quotas, the fishery Halibut pricing has remained about has set openings and closings with the same as last year with the average the season typically running from year-to-date price of 10-20 kilo fresh March through November. The fish being $5.48, 20-40 kilo $5.80, halibut fishery is known to be one and 40 and up at $6.12. Steady of the most well-managed, and the market prices are in part due to available supply seems to indicate its buyers’ resistance to higher prices. sustainability. Strong landings are expected and should build inventories of frozen 2008 Alaskan landings during March product. Frozen supply during the off and April exceeded levels from Ronnie DiGregorio of Carl’s Seafood at the New York Fulton Fish season should yield adequate to fully a year ago by over a half million Market holding whole, fresh halibut. adequate supplies.UB
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VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 43 Crab outlook... Crab consumption on the rise
Crab consumption U.S. annual per capita crab consumption harvesting and fishing, in the United thus creating a lack of States is growing. supply and replacement After a spike product in the United in 1998, 1999 and 2000 States. Most of the smaller experienced a downturn in crab, 20-24 count and consumption, and since then 20 and up count come there has been nowhere to go from Russia and are very but up! Crab consumption in the Pounds popular for retail and U.S. is comprised of dungeness wholesale; these sizes crab, king crab, opilio (snow continue to be in high crab), and blue crab. demand. The mid-sizes are not as popular in the U.S., Alaskan king crab however, larger sizes, 9-12s Highest levels since 2004 Source: National Fisheries Institute and especially 6-9s, are favorite items for buffets The U.S. red Alaskan king crab market two species, usually commands a premium and even in retailers’ seafood cases. has not reached the current pricing levels over the gold product. since 2004. The biggest factor affecting the Opilio (Snow crab) market is the lack of Russian product this Illegal fishing was reported as a common year. The U.S. is supplied by both Alaska occurrence in Russia after the break-up of One of the reasons why we may have and Russia for red and golden king crab. the Soviet Union. As a result, the Russian experienced a large increase in 1998 crab Red crab, being the more popular of the government has cracked down on illegal consumption could be due to the Alaskan
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X ______X ______Sign here for approval and fax to: 732-341-0891 Sign here for approval and fax to: 732-341-0891 Date ______Dated ______opilio crab season. The years 1997, 1998, In addition to Alaska, the United States however, the U.S. market appears to be and 1999 saw 117, 243, and 194 million also receives a large percentage of its opilio adequately supplied of snow crab for the pounds from Eastern Canada, Newfoundland current demand. landed “… larger and the Gulf of Saint Lawrence. Alaskan each year sizes, 9-12s opilio typically commands a premium over Crab Meat respectively. and especially the Canadian snow crab, which it is more Then in 6-9s, are commonly referred to as on the east coast. The supply of Indonesian crab meat is 2000, the short. Replacement costs have been on the favorite items quota was This year the Newfoundland quota was rise and importers report that it has been a drastically for buffets and set at 54,320 tons, which is roughly 120 challenge to secure product. Market prices cut to only even in retailers’ million pounds. This is a slight increase have reached an all-time high. Demand 33 million seafood cases.” from the 2007 quota. The Gulf quota, on continues to absorb the available supply pounds where the other hand, was cut 10% to 20,900 and most sellers who are normally building it remained for the next six years. In the tons or about 44 million pounds. inventory at this time of year struggle to same year, (2000) crab consumption fell maintain stock. The market for jumbo back to 1996 levels. Currently the Alaskan The Canadian snow crab season revolves lump meat exceeds the five-year average opilio market quota has increased again, heavily around the Japanese and their by 19.3% and has increased 17.6% since but it is a far cry from the 243 million buying patterns. Japanese generally buy 2007. Since January of 2008 prices have pounds landed ten years ago. The 2007-08 Gulf crab, but they also reportedly buy crab increased 13.3%. season quota is set for 67 million pounds from Newfoundland as well. The amount and thus far has maintained stronger of product the U.S. will see from Canada Chinese crab meat has gained popularity pricing than the current five-year UB price will depend on the amount of product in the market place. It is readily available average. As the end of this season draws to which the Japanese commit. Last year, and the average market price of jumbo near and the Alaskan quota is almost for instance, the Japanese bought 9,500 lump meat is 41.5% less than Indonesian completely met, pricing has softened some. tons out of the 20,000 tons the country meat. The species of crab from China is Currently, the supply in the U.S. market is produced. The weak dollar and rising fuel different than that of Indonesia and some fully adequate. costs will not be helping the U.S. situation; differences in taste and texture exist.UB
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VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 45
X ______Sign here for approval and fax to: 732-341-0891 Dated ______Chilean sea bass market outlook... Taste of Chilean sea bass drives market prices Chilean sea bass, which documentation. Buyers should insist that bass soared to “Importers are is also known as the their supplier or broker show them the all-time high competing Patagonian toothfish, proper paperwork to ensure that the fish levels with the despite the misconception, they purchase is officially approved. average price of with European is not an endangered species. The fishery frozen headed buyers to is closely managed by the Commission Another option available on the and gutted 8-10 secure product for the Conservation of Antarctic Marine marketplace is Marine Stewardship kilo boxed fish from overseas.” Living Resources, and requires that Council (MSC) certified Chilean sea being $8.33 and documentation go along with all imports bass. This certification brings the fish one $8.14 per pound respectively. Following the to prove their legality. U.S. Customs and step further and ensures that it meets all two year record-high pricing, in 2007 the NOAA officials do not allow any Chilean environmental standards for sustainable average price slipped to $7.34 per pound sea bass into the country without this and well-managed fisheries. MSC certified which is more in line with the five-year Chilean sea bass average of $7.46. 2008 has shown some Sea Bass, H & G, Chilean, Skin-on, Frozen, 8-10 kg. comes from the strength thus far as the year-to-date average Antartic region near price has increased to $7.47. the island of South Georgia and the Imports in the U.S. decreased in 2007 to South Sandwich 566,582 pounds from 800,270 pounds Islands which are in in 2006. The overall supply in the U.S. the South Atlantic for 2008 has increased thus far by 6,614 $ per pound Ocean. pounds from 2007.
In 2005 and 2006 The recent increase in market prices wholesale prices has been reported as a result of rising Source: Urner Barry of Chilean sea replacement cost. Importers are competing with European buyers to secure product from overseas. Importers’ inventory has varied and toted fish seems to dominant the supply over boxed fish.
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X ______X ______Sign here for approval and fax to: 732-341-0891 Sign here for approval and fax to: 732-341-0891 Dated ______Dated ______Alaskan Pollock outlook... Alaskan Pollock experiencing significant price increases
Alaskan Pollock is a major Worldwide Alaska Pollock Production groundfish resource and in 7,000,000 the U.S. it is a well-managed fishery. A 30% cut in the 6,000,000 U.S. quota for 2008 has increased prices U.S. russia Other significantly. A strong European demand 5,000,000 for U.S. Alaskan Pollock combined with a strong Euro has placed U.S. buyers in a 4,000,000 competitive disadvantage. 3,000,000 etric tons
U.S. prices have increased dramatically M and are expected to strengthen further in 2,000,000 the second half of 2008. The market for 1,000,000 Russian production; which is processed in and imported from China has also strengthened.
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Alaskan Pollock products are expected to Source: FAO be strong through 2008.UB
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VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 47
X ______Sign here for approval and fax to: 732-341-0891 Dated ______Shrimp outlook... Many factors pressing on shrimp complex
Shrimp is the highest of imported farm-raised white (P. vanamei) Trading over the last several years has per capita seafood item and black tiger shrimp (P. monodon) remained in a very narrow range with ups consumed in the United headless, shell-on (HLSO) shrimp and and downs in the market limited to 10 or States. Most product is value-added shrimp. Also included are 15 cents; however, in the second quarter imported, especially from Asian sources wild-caught shrimp together with U.S. Gulf of 2008 we are beginning to see significant such as Thailand, as United States of Mexico caught shrimp and Mexican upward pressure on the market. domestically caught shrimp represents less Pacific coast shrimp. than 10% of the overall U.S. shrimp supply. Although total shrimp imports through The balance of imported shrimp come from Generally, the seasonal start of shrimp the first quarter of 2008 are only off 2% Latin America, mainly Ecuador and Mexico. production (this varies throughout the from 2007 levels, Thailand imports are world) begins in May and continues down almost 12%. Last year Thailand The shrimp complex is generally made up through much of the year. Imports are at supplied 1/3 of the shrimp imported into their lowest early in the season the United States, and so far numerous HLSO Farm-Raised White Shrimp Index and steadily increase until peaking reports indicate that Thailand production in October and November as will be down this year. Shrimp imports inventories are built for holiday from Indonesia and Malaysia, however, are demand. up sharply to date this year mitigating any immediate shortfall of supply. The farm-raised white shrimp market began the first several Southeast Asian white production will $ per pound weeks of 2008 steady to slightly likely be centered on 26-30 count shrimp. higher. Late-January and February 41-50 count and smaller shrimp are saw some general softening, but expected to be in tight supply. In the past, Source: Urner Barry more recently has turned stronger. imported Chinese shrimp made up a
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48 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008
X ______Sign here for approval and fax to: 732-341-0891 Dated ______large portion of the smaller white shrimp adversely affected shrimp consumption imports. In 2008, imports from China especially in the food service sector. Large will be down because of various import black tiger shrimp may be especially restrictions. vulnerable in this sector. Large cooked and Forty-nine years of raw peeled black tiger shrimp market prices Cooked shrimp imports are down almost have also been barely steady to somewhat global experience 24% compared to a year ago. Inventories weaker in the first quarter. for immediate delivery are limited for a Major supplier to fairly active retail buying interest. Thailand There are a lot of factors pressing on the is the main source of cooked shrimp, and shrimp complex. The U.S. dollar continues wholesalers, hotels, with production expected to be down to trade against many foreign currencies at restaurants, retailers and current new lows, making imports more expensive supplies and increasing the competitiveness of those and the U.S. Military already low, “Shrimp imports bidding for product against us. The U.S. cooked shrimp from Indonesia economy has weakened. Food prices and BEEF will likely and Malaysia, fuel prices have seen record, or near record continue in however, are increases, forcing consumers, it has been PORK fairly tight up sharply to reported, to change their buying habits and supply. date this year cut back on dining out. POULTRY mitigating any Latin immediate Finally, seasonal production and imports TURKEY American shortfall of will ramp up from all areas beginning in production May. Demand during this period, and for DUCK supply.” centers on holiday delivery, should also improve. With 41-50 count all these factors noted, the market is rated SEAFOOD shrimp. Production throughout the region somewhat steady for the second quarter TURKEY will ramp up beginning in May. European but unsettled thereafter.UB demand is currently very active and SAUSAGE expected to continue to put competitive pressure on offerings to the United States, LAMB possibly pushing prices higher in order to Taurus secure product. Food Products, SMOKED MEATS Inc. Mexican farm-raised and wild shrimp will DUCKS be seasonal beginning in August. Size ranges are generally heaviest in 26-30 count Imported & Domestic VEGETABLES and larger shrimp. The U.S. domestic Boneless Beef, POTATOES shrimp season will also be in high gear Pork & Variety Meats by August. It is unclear at this time how the high fuel prices will affect the fishing P.O. Box 709 BREAD & PASTRIES Carefree, AZ 85377 effort, but the pressure for higher priced DAIRY shrimp will be apparent. Highwood, IL 847-681-0351 HLSO black tiger shrimp have been 800-828-7877 Corporate Office generally weak. Many buyers have made Fax: 847-432-1485 2920 Regatta Boulevard the switch to more amply supplied white Carefree, AZ Richmond, California shrimp, eliminating some of the market for 480-488-4323 black tigers. Also Vietnam, beginning in 800-458-2383 94804-0013 December 2007, has dramatically increased Fax: 480-488-7751 its imports into the U.S. compared to a 866- RWM-MEAT Santa Fe, NM year ago. Imports from Vietnam during 505-820-2951 (866-796-6328) that period are up 51% or almost eight 888-520-5600 million pounds. This volume more than Fax: 505-820-0715 www.richmondwholesale.com made up for the drop in imports during E-mail: [email protected] the last three months from India and [email protected] Bangladesh. Michael Berman A weakening U.S. economy may have also William J. Berman
VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 49 X ______Sign here for approval and fax to: 732-341-0891
Dated ______Catfish outlook... Catfish: competition within one market
Chinese Catfish (Ictalurus), as those from Vietnam, have placed antibiotics. Pangasius from Vietnam, BASA, TRA, SWAI from additional competition on domestic catfish on the other hand, faces a direct tariff. Vietnam and China producers. Despite lobbying efforts from the domestic (Pangasius) and domestic Catfish too catfish industry; food safety scandals, high Both species Ictalurus and Pangasius are tariffs, and an Catfish farming has been a major success part of the catfish family yet they must be automatic FDA “ …all three story in the United States and has grown labeled differently. Only Ictalurus can be detention at port markets … tremendously since the early 1980s. The sold as “catfish” in the U.S.—a measure of entry, among compete species typically farmed in the U.S. is adopted by the domestic catfish industry other indirect directly and commonly known as channel catfish, and approved by the U.S. government trade barriers, the indirectly in Ictalurus spp. Recent imports of Chinese in order to distinguish between the two. Chinese catfish and the U.S.” catfish (also referred to as “channel Chinese catfish currently faces automatic Pangasius (basa, tra, catfish”) and imports of tra, basa, and detention from the FDA at the port of swai) markets have grown tremendously swaiAd 6.75x5 (Pangasius 2/9/07 spp.) from 4:31 China, PM asPage well 1 entry and must be inspected for banned over the past three years. The domestic catfish industry, however, covers the largest portion of the total catfish market; all three markets, domestic catfish, Chinese catfish, and Pangasius compete directly and indirectly in the U.S.
Domestic Catfish (Ictalurus)
In the U.S., the government considers catfish farms to be agriculture, or part of the farming industry rather than the fishing industry. Average price of fresh and frozen fillets decreased gradually and continuously in the second half of 2007 even though production levels were lower than those in 2006. Conversely, production levels in 2008 are 8% higher when compared to those obtained in 2007, and prices have been gradually increasing since the beginning of the year; yet, pricing levels during the first four months of 2008 are lower when compared to those in 2007. Domestic farmers have faced high feed and transportation costs, low selling levels, and tough competition from cheaper imported products. Nonetheless, there is a limit as to how much of those increasing costs can be passed along the supply chain. Some farms have decided to cut back in production in order to bring price up again and thus regain profit margins.
Chinese Catfish (Ictalurus)
Imports of Chinese catfish were entering the U.S. heavily until the last quarter of 2006. That year finished off with an astonishing 236% increase when compared to 2005 levels. That being said, in January 2007, imports of frozen fillets reached their highest figure on record. Then, food safety
50 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008 scandals made it to the mainstream media catfish farmers, and product tested showed residues of on one banned antibiotics; the FDA raised the red hand, have flag and ordered that all Chinese catfish, succeeded in including basa from China entering the their fight U.S. be tested for banned antibiotics. to pass Imports plunged for the next couple of inspection months and so did pricing. to the USDA Pangasius (Basa, tra, swai) under the Federal Meat Similar to the Chinese catfish market, Inspection the amount of imports of frozen fillets of Act of the Pangasius has grown dramatically in the farm bill. Many passes, past few years. In 2006, imports recorded observers believe domestic an increase of 160% when compared to the inspection producers the previous year, even though a tariff program under the will still have was in place for product coming from USDA will only apply to to compete against Vietnam. Imports of Pangasius outweigh channel catfish (ictalurus) and not Pangasius (basa, tra, those of Ictalurus with Vietnam as the Pangasius (basa, tra, swai). As quoted on swai) from Vietnam and China, largest supplier covering more than 50% Seafoodnews.com, John Sackton mentions among other producing countries. So, if of the market share. Pricing has remained that “imported catfish will not be able to Chinese goods, let alone food products, relatively steady and growth of imports for get USDA label, since it will take years, if re-gain buyer’s confidence, Chinese catfish 2007 only reached 9.9%. ever, for the USDA and China to negotiate and Pangasius will likely continue their an equivalency agreement that would growth in the U.S. market and be able to The situation is still blurry as to what allow China to export catfish that could be provide consumers with an affordable and could happen in the near future. Domestic labeled as USDA inspected.” Even if this safe protein.UB
VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 51 Lobster outlook... The lobster market retreats
Live American or among buyers from Europe Maine Lobster and Asia. These countries (Homarus americanus) competed effectively for product against the weak U.S. Contrary to last year at this time, the dollar forcing prices here supply of Maine live lobster has been fully higher in order to secure tails. adequate and landings continue to be reported as good to excellent in quality. Seasonally, the Australian Sellers, who typically rely heavily on cold water tail production production from Canada at this time of begins in November with U.S. year, have been imports building in January. able to depend “…this is a wild For the first quarter of 2008 on a steady fishery and imports were up from a year supply from high fuel costs ago. Inventory of some sizes Maine. was carried over into 2008 as will also affect buying interest slowed due production Caribbean Spiny Lobster, Panulirus argus, tail. Production to the record high prices and slowing Coloration is yellow or reddish brown to green or from Canada costs.” U.S. economy. Thus far in 2008, carried bluish. Note four large spots on tail and also back at has also been inventories and new season production the end of the tail fan. fully adequate to ample which has given have met a quiet demand. The U.S. market importers more negotiating power than has been generally weak and continues buying interest from Asia and Europe’s last year. unsettled. stronger currencies will continue to compete with U.S. requirements.UB As a result of the fully adequate supply, Imports of warm water tails have recently pricing so far this year has not come close been stable. New season warm water to the record-high levels that were seen last tail production begins in Brazil on June year at this time. 1st followed by Caribbean production beginning in July and August. Here again Sellers and importers are expecting that the there is some carried-over inventory which supply should continue to meet or exceed is currently being discounted to stimulate their needs for the season and should keep demand. The market is unsettled. prices from spiking to the record-high levels that were reported last year. The Canadian season for American Lobster is underway. Initial landings are reported LOBSTER TAILS good but production of tails is off to a slow start in favor of in-shell and live production. Lobster tails are broken up into essentially Prices for initial offerings of tails are down three types: American or Maine lobster from their 2007 highs. Buying interest Crystal Farms, Inc. (Homarus americanus) a lot of which is at the lower levels is reported improved. produced in Canada; warm water lobster However, the market is unsettled. Lobster USDA tails (Panulirus argus) which are produced meat has also settled lower. primarily in Brazil and various Caribbean GRADED EGGS countries especially Bahamas, Honduras, Lobster tails have been barely steady to and Nicaragua; and cold water lobster weak and unsettled given that some seasons PO BOX 7101 tails which are produced mostly in West are just underway. Market prices appear to CHESTNUT MOUNTAIN GA 30502 Australia (Panulirus cygnus). South Africa be retreating from their 2007 highs due to also produces cold water tails and other the slowing U.S. economy and higher food SALES INFORMATION varieties of lobster tails are produced and fuel costs which are placing demands around the world. on consumer’s discretionary income JIM BROCK especially in the food service sector. In fact, 2007 saw record U.S. market prices for it is suspected that tails in some instances (770) 967-6152 Office tails from all over the world. Anecdotally have been removed from menus. However, (770) 967-7242 Fax catches, in many instances, were down this is a wild fishery and high fuel costs will and demand was generally active especially also affect production costs. In addition, www.crystalfarmsga.com
52 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008
X ______Sign here for approval and fax to: 732-341-0891
Dated ______Freshness First Quality Flavor & Firmness NATURE’S CATCH 1090 Willis Road • Clarksdale, MS 38614 Commitment 1-800-964-FISH • [email protected]
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® Wayne Reynolds Bob Rike David Cole Gayla Kennedy Alec Herring Donnie Pepper (910) 328-1288 (803) 798-0725 (601) 932-5997 PENNSYLVANIA Selena Jackson MISSOURI Fred Bloom • Bill Buehler (910) 875-5757 ARKANSAS Randy Witt Brett Linder • Ted Bloom Bill Lewis Tom Drewianka Bob Willoughby NORTH CAROLINA (479) 968-3332 (417) 235-5700 (717) 291-5855 David Wilson (910) 695-0661 INDIANA TEXAS Dan Morris Jackie Cates GEORGIA - International Sales Brian Kanedy (936) 564-0539 Allen Ligon (404) 380-1450 (260) 358-1897 JP Petiot (404) 424-9341 www.bihfarms.com VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 53
X ______Sign here for approval and fax to: 732-341-0891 Dated ______You can’t afford to be uninformed... New line-up of Seafood
Richard Import Workshops Gutting, Jr.
Urner Barry, the most trusted name in from buyers and regulatory agencies. market information, is offering the Seafood Negligent parties could face audits, product Import Workshop seizure and/or the loss of business and Series presented by “This is your criminal penalties. Richard Gutting, chance to Jr. and Mary acquaint This workshop introduces a new step-by- Snyder, two well- yourself step system that includes the use of product known experts on on the specifications, classifications and databases, importing seafood supplier agreements and audits, and entry compliance and constantly checklists. Examples will demonstrate how policy. This is changing you can incorporate these components into your chance to rules and your daily compliance operations. Mary Snyder acquaint yourself regulations...” on the constantly The upcoming schedule of workshops is: changing rules and regulations, as well June 4, 2008 – Boston, MA is $699. The price includes all reference as what agencies are stepping up their October 1, 2008 – Seattle, WA material, (which is valued at over $278), enforcement. December 3, 2008 – Miami, FL speaker presentations, and lunch. February 27, 2009 – East Rutherford, NJ Anyone engaged in the international trade Contact Urner Barry at 800-932-0617 to of seafood is facing an increase in demands The cost to attend this full day workshop reserve your spot today!UB
Serving Your Poultry Needs Fully Cooked/Ready to Cook IQF • Breaded & Grill Marked Organic Tenders & Filets Antibiotic Free Providing quality IF Breast Filets Certified Halal chicken products and Formed Nuggets & Patties Portion Control Fresh and Frozen customer service Jumbo Fresh Parts - Boneless Breast CVP / CO / Ice to domestic and 2 Industrial Sales international International Sales Mechanically Separated business partners. Chicken Chunk Meat Call today for more information or a visit: 1-800-422-4425 Fax (302) 855-7222 Batesville, AR • Siler City, NC • Pittsboro, NC • Mocksville, NC • Mt. Bethel, PA 54 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008
X ______Sign here for approval and fax to: 732-341-0891 Dated ______Foodmarket.com top ten stories...
Top ten
Top stories based on hits February 25, 2008 through May 20, 2008 1. JBS to Buy 2 US Beef Companies—Positions Itself to Become Largest American Beef Processor - 3/5/08 2. JBS Executive Responds to Letter That Criticized Acquisition - 3/28/08 3. Lawmakers Rethink Corn-Based Biofuel as an Energy Solution - 5/2/08 4. With Sale, Smithfield Trims Beef from Lineup - 3/7/08 5. Ethanol from Corn is Hardly a Bargain - 4/8/08 6. Executive at Tyson Takes Aim at Ethanol - 3/27/08 7. The Growing Food Cost Crisis - 3/18/08 8. Beef Brisket Contains Healthy Fatty Acids - 5/5/08 9. Brazilian Beef Processor Rustles Up Cattle Industry - 3/31/08 10. Egg prices cracking budgets - 3/24/08
Wabash Brown Ballas Valley Produce Egg Products Produce Co. Corp. Dubois, Farina, Zanesville, Indiana 47527 Illinois 62838 Ohio 43701 Larry Seger Larry Pemberton Leonard Ballas Tel. (812) 678-3131 Tel. (618) 245-3301 Tel. (740) 453-0386 Fax (812) 678-5931 Fax (618) 245-3552 Fax (740) 453-0491
VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 55
X ______Sign here for approval and fax to: 732-341-0891 Dated ______Seafoodnews.com top ten stories...
Top ten
Top stories based on subscriber hits February 20, 2008 through May 25, 2008 1. SCOM - Boston Seafood Show In Perspective - 2/29/08 2. SCOM - Dollar falls below ¥100 yen for first time since 1995 - big implications for seafood - 3/13/08 3. SCOM - The $18 Million dollar headache for the shrimp industry (editorial comment) - 2/27/08 4. SCOM - Russia issues formal indictment in massive king crab poaching case for Gontmakher - 5/21/08 5. SCOM - Consumer research shows ethics matter more than sustainability for seafood (Editorial comment) - 5/12/08 6. LN - Newfoundland crab fishermen call for tie-up in face of dropping crab prices - 4/29/08 7. SCOM - Many Florida restaurants deliberately misrepresenting seafood - 5/12/08 8. LN - Pacific Glacier heading to Dutch Harbor after effective response to fire on board (photos) - 2/28/08 9. SCOM - Will the MSC stand up to Greenpeace?? (Commentary) - 3/26/08 10. SCOM - Alaska crab fishing going gang busters - 14 million pounds ahead of last year at this time - 2/20/08
CAL-MAINE FOODS, INC. 3320 Woodrow Wilson Jackson, MS 39209 Contact Dolph Baker (601) 948-6813
Fax (601) 949-7845
56 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008
X ______Sign here for approval and fax to: 732-341-0891 Dated ______From the recipe box... Gr i l l e d Po r k Sp a r e r i b s
Ribs are an easy, yet time consuming meal. There are many different ways to prepare them for the grill, leading one to conclude that there is no one “right” way. However, if you don’t have four to six hours...perhaps ribs are not for you. Cooking time can be reduced by first boiling the ribs for an hour or so before transferring to the grill, but there are many who believe this greatly reduces flavor.
To start, select a nice 2-4 pound sparerib portion or loin back rib of choice. The amount will depend on the number of people. Be sure to choose one that is not too fatty, but with some fat to keep the ribs from drying out while grilling. It is advisable to prepare the ribs by removing excess fat as well as the membrane 2-12 hours prior to placement on the grill to allow the seasonings to soak in. By preparing the night before you are also freeing up your time to tend to the grill and enjoy the total grilling experience.
To prepare ribs: cook on other side for an additional three Dry rub seasoning (mix together) Mix all the dry ingredients together and set hours. 4 oz paprika aside. About 30 minutes prior to removing from ½ tsp black pepper (ground) Remove excess fat and membrane from the grill, raise grill temp to 300° and baste the 1 tsp onion powder rib portion. ribs with BBQ sauce of choice, careful not 2 tsp garlic powder to burn the sauce. Rinse under cold water, and pat dry. 1-2 oz of white sugar Remove from grill. Cut ribs apart, serve and Reserve 2 oz of rub mixture to add to Generously coat ribs with dry rub enjoy! BBQ Sauce (see recipe card) seasoning and refrigerate 2 to 12 hours.
When ready to grill: Heat and maintain grill at 250°. BBQ S Place seasoned ribs on grill rack curl side up a u c e to hold some moisture. Over high heat, mix sauce ingredients in a medium saucepan and bring to a boil. After approximately three hours, flip ribs to Stir occasionally to prevent burning or sticking. Lower flame and simmer for at least 30 minutes. Don’t forget to stir! 30 minutes prior to removing ribs from grill, baste liberally with sauce. 1 tbsp onion powder 1 tbsp ground mustard 2 oz worchestire sauce 1 tbsp black pepper ground 2 oz lemon juice 5 oz white sugar 1-2 oz corn syrup 5 oz brown sugar 32 oz ketchup 8 oz apple cider vinegar 16 oz water 2 oz of the dry seasoning
VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 57 Just the facts... Th e Re p o r t e r ’s Gu i d e t o ...Turkey
Turkey is marketed in numerous forms in increasingly, turkey is being sold in value- smoked, fried and almost any other both raw and cooked versions. Although added, convenience-laden forms. Turkey is imaginable method. Turkey size is largely the traditional whole body turkey maintains marketed whole, as parts, bone-in breasts dependent upon gender and application an iconic presence during Thanksgiving and boneless meats or trims. It can be in with RTC hens typically running 8-22 and to a lesser degree Christmas, the form of a roast, deli-style, marinated, pounds and toms 22 pounds and up.
Whole Body Turkeys Young whole turkeys are packaged primarily for retail or HRI distribution and weigh between 8 and 40 pounds. Traditionally the 8-24 pound classes are considered consumer sizes while the larger toms to 40 pounds are institutionally oriented. They may be marketed in either fresh or frozen form, generally with a giblet pack (gizzard, heart, liver, neck). Typically, they are basted but may be non-basted (natural) as well. Depending on buyer requirements, whole body turkeys are packed in either a private or processor label, with our without a timer.
Bone-in Turkey Breast The whole bone-in breast is removed from the carcass at the junction of the vertebral ribs and the backbone. Hen breasts weighing between 4 and 8 pounds are typically consumer packed with basting, a net, first portion of wing meat and some neck skin. Institutional packaged breasts usually weigh between 8 and 20 pounds but are available in heavier classes. Basting, some neck skin, and the first portion of wing meat are usually included. Although each processor may have a slightly different cut, the back is typically partially removed. Consumer sized breasts are sold to the consumer based on price and convenience and attract considerable Easter and Mother’s Day business through retail features. Institutional sized breasts are buffet line oriented and move best through HRI channels.
Boneless Turkey Breast Meat Turkey breast meat is the basis for the bulk of deli-style turkey breast meat products. Boneless breast meat is generally presented in several forms. It can be boneless and skinless without rib meat, boneless skin-on without rib meat, or boneless skin-on with rib meat. Depending on the application, the meat is then spiced, packaged and then cooked to its final form. Unlike lesser quality cuts of white meat, turkey breast meat is usually used whole in lobe form as opposed to being emulsified or mixed. Lobe sizes vary from 2.25 pounds to 3 pounds and more depending on the requirements of the further processor. Meat may come from young toms, young hens or breeder toms and hens.
Young Turkey Thigh The thigh is separated from the drum by a cut at the knee and is all dark meat. In turkeys, it is usually marketed as boneless, skinless meat but may also include the bone and skin. Thigh meat is a popular further processing item, but for the domestic market is usually associated with ground turkey. Thigh meat is ground, occasionally mixed with drum meat, and sold as a leaner alternative to traditional ground beef. Boneless, skinless thigh meat is also a very popular export item with Mexico, Russia and Asia leading importers of frozen product. The basis for turkey hams is most often thigh meat.
58 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008 Just the facts...
Young Turkey Drumsticks This part is the lower portion of the leg, which gets separated from the thigh, and is all dark meat. Tendons are not removed and skin is usually on. Tom and hen drums are purchased according to the application and are used extensively in ground turkey. Smoked turkey drumsticks are a popular foodservice item at many resort destinations. Hen drumsticks are a popular tray pack item as the smaller size benefits this application. Boneless drum meat, or “punched” drums as they are known in the industry, is often substituted for boneless, skinless thigh meat.
Young Turkey Whole Wing Wings are all white meat. When marketed whole they contain all three joints cut from the carcass at the shoulder joint. The whole wing is used largely in tray pack applications for retail distribution but is also sold in bulk, smoked or deboned as wing meat for further processing. Sometimes a wing is marketed as a two-joint wing which is the portion that includes either the drummette and flat middle or the flat middle and tip.UB
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Office: Office: Office: 55 Miracle Mile, Suite 210 4650 Arrow Hwy., Suite G24 12505 Coastal Hwy. Coral Gables, FL 33134 Montclair, CA 91763 Ocean City, MD 21842 Tel. 305-620-0700 Tel. 909-445-9060 Tel. 410-250-7270 Fax 305-620-0366 Fax 909-445-9664 Fax 410-250-3190 Hector Perez Kevin McNelis Jamie Doherty
VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 59
X ______Sign here for approval and fax to: 732-341-0891 Dated ______SAVAGESAVAGE P O U L T R Y , I N C . FORECASTING SOLUTIONS FOR THE MEAT AND
Jan. 29, 2008 MARYLAND OFFICE POULTRY INDUSTRY e at 12.097 million head. The arger than a year ago and Back to Market Fundamentals ear average from 1996- Billy Savage January 1 U.S. cattle-on-feed was record larg imes, the increased demand Includes Jan 1 COF number was over 120,000 head l e dynamics of cattle feeding Volume 8, Number 3 tly lower over the past • BEEF more than one million head larger than the 10-y in the cost to feed cattle in ay in the very 2005. As Cattle-Fax has pointed out several t pply) versus the South has Fed cattle be fed in the North Quarterly Ginger Trader for corn for ethanol production has changed th Fed cattle prices have traded steady to sligh data indicates. In t that point a rally is still in the past 2 years. As a result, the difference couple of weeks, last quoted at $90 to $91 live and $145 dressed. the mid $90s. It is impor- the North and Midwest (closer to the corn su cattle were on feed on Trade volumes have been moderate. Look for pricesigher toduring st the next 30 Reports and increased. This change has encouraged more cattle to Fred Cline low $90s over the next couple of weeks. A prices could move into uthern Plains and • PORK and Midwest during the past 2 years, which the COF expected into April that would take prices into load cattle inventory. We Iowa and Nebraska combined, over 500,000 more up over 400,000 head tant to note that if corn stays high or moves h on in the next issue of Jan 1 than compared to the 10-year average from 1996 The to bottom2005. However, line is, al- LIVE Webinars days, the fed price rally may fail to occur and raged more cattle to on-feed numbers have also grown in the Central and So Je Vivalo the upper $80s instead as sellers seek to un in the West. In Kansas and Texas, COF on Jan 1 was ing capacity does not will likely have a better read on this situati and in California and Arizona over 200,000 head.try is significantly shifting to • POULTRY Obsono. st of the cuts recently; With cattle in though the change in the cost to feed cattle has encou Phone: 866-2SAVAGE be fed in the North, the feeding capacity and pack Loin and Colorado along support the idea that the cattle feeding indus Loin values have traded very near even for mo roduct this spring could the North. supply is currently forecast to PSMOs continue to be a seasonal exception to the rule.Choice loins could st quarter and average lly, supplies will Fax: 410-543-8919 tough pen conditions in part of Nebraska, Iowa arly May. The spread Regional Supplies • LIVESTOCK with higher corn prices, the amount of Choice p Select loins would be Based on Cattle-Fax data, the total fed cattle rward. Texas supplies be lower than expected. So, a fairly strong rally for e likely to be on the increase in the second quarter compared to the fir lies remaining more flat ril and May. In the develop starting in mid-February and lasting into e 3 percent above a year ago for April through June. Regiona between Choice and Selects would be wide as increase in the Panhandle from this point going fo est supplies of the first discounted if this scenario plays out. Prices ar are set to increase the fastest with Kansas supp ow. Supplies in the North defensive early this summer. ould begin to press over the next 60 days before beginning to increase in Apf weeks and decline oduct may be North Plains, the trend is just the opposite. The larg lt of this shift in sup- in recent weeks ALABAMA OFFICE Rib ad between Choice quarter in Nebraska and Colorado are right n . Rib prices are likely near a seasonal low and sh e very wide by late should begin to decrease within the next couple o the past month higher in the coming weeks. The amount of Choice pr through the remainder of the first quarter. As a resu ments of more limited than originally thought and the spre y driven by grilling plies, the fed price premium the South has captured and Select ribs should begin to widen and becomuld struggle if the U.S. wilbegin to decrease and price spreads will narrow0 head. Over this time period ould peak over head more than in spring. Although demand has been very sluggish during From September 2007 to December 2007, place Lewis Wood otaled 374,000 head because of macroeconomic factors, a spring rall ance of the year. Bottom Line: demand is still forecast. This summer prices co cattle into feedyards were up nearly 700,00 heduled to be marketed in economic landscape continues to worsen. Supplies sh placements weighing less than 700lbs totaled 337,000gains, cattle feeders may Chris Fly the next 30 days and trend lower through the bal nuckles, insides and 2006 and placements weighing more than 700lbste. This t could potentially pull ing supply than is ct. Round items are more. The largest placed against numbers are sc May and June. However, depending on cost of upon whether or not Round nally. While many of be trying to market cattle at an aggressive ra in mind that competing Most round cuts saw flagging demand as peeledar klast year, keep in mind Phone: 866-3SAVAGE fed slaughter levels forward leading to a larger spro be larger compared to a eyes saw price declines necessary to move produ educing supplies. currently forecast. This scenario will also depend likely headed lower as demand softens seaso enomenon is very packer profitability moves into the black and keeping these round cuts saw prices climb into Feb/M er. protein supplies, mainly pork, are also expected t Fax: 251-970-5273 that it was due mainly to the severe winter weather r year ago. Larger supplies are on the horizon and this price ph unlikely this year without similar extreme weath asonal decline in orted by a cutback in Chuck emand is firm mation. The chuck market would greatly benefit from a se leverage to the beef production. The market will also be supp ould have a signifi- . Please do not copy or redistribute this infor pork production, which is expected as we go forward.ess Dcan be regained. MISSISSIPPI OFFICE for chuck cuts, but weak fed prices will give the retailer. The export sector remains a wildcard but c cant positive impact on some cuts if market acc
Steve Farmer ©2008 OBSONO. All rights reserved. This publication is protected by USA Federal copyright law Phone: 888-430-2320 Fax: 601-919-2330 CALL TODAY! 732-240-2349 www.savagepoultry.com http://shop.urnerbarry.com Obsono LLC is a joint property of Urner Barry Publications and Cattle Fax
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60 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008
X ______Sign here for approval and fax to: 732-341-0891 Dated ______Living off of society’s excess… Freegans: making recycling a lifestyle choice Diving into dumpsters for food, squatting and instead focus on community, social in abandoned buildings for shelter, concern, generosity, freedom, cooperation unemployed—we are not referring to the and sharing. This is not an entirely new homeless population that is forced to message or novel idea, the difference lies live by these means, but rather a growing in who is saying it. Most freegans are not contingent of citizens who are voluntarily drop-outs, drug addicts or criminals, but choosing this lifestyle. rather college educated. In many instances they are gainfully employed. Freegans, by definition are people who “freegan” itself is coined from a compound employ alternative strategies for living Freegans choose to live the way they of the word of free and vegan—a person based on limited participation in the do out of social concern and personal who avoids products from animal sources conventional economy and minimum beliefs. They don’t have to live this way. or products tested on animals. Freegans consumption of resources. Freegans shy They view almost all areas of the world’s claim they can easily subsist on the excess away from the society they view as being economic system as somewhat detrimental our society and economy inherently based on materialism, moral apathy, to both animals and the environment, produces. competition, conformity and greed, and especially to human beings. The term Waste minimization is another area of concern for freegans who will choose to THE HARVEST FAMILY OF COMPANIES repair broken items rather than replace them, and Since 1989, From Our Door to Yours. are constantly “Most freegans recycling in an are not drop effort to reduce outs, drug the massive addicts or amounts of waste criminals, but our society rather college produces. Some educated.” other freegan Distributors of ideal might seem a little more familiar; Eco friendly transportation and “going the Finest Protein Products green.” These buzz words are new hot Beef • Pork • Poultry • Seafood topics in our society, however, the ideals are nothing new to freegans as they are Veal & Lamb • Processed Meats • Cheese the building blocks of the freegan theory. Sales Offices in: While dumpster diving and squatting are definitely not going to appeal to all areas of San Diego ...... 800-653-2333 society; certain freegan ideals do seem to Los Angeles ...... 800-653-2334 be talking hold. Los Angeles (Joseph Solomon Sales) ...... 323-584-3160 Sacramento ...... 916-399-8982 Getting foods from dumpsters, using Phoenix...... 800-883-6328 abandoned or unoccupied buildings as Denver ...... 800-306-6328 housing, getting what they need out of Kansas City ...... 800-653-6328 what others throw away. These fringe Orlando ...... 800-883-7777 members of society are determined to get Portland (Western Boxed Meat) ...... 800-547-9801 by without taking more then they need Make us your first call! from the system.UB VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 61 Major economic power... Ja p a n : Land of the rising sun Japan is a country of islands along the for poultry and Eastern coast of Asia. In total land area, bovine spongiform Japan is slightly smaller than California. encephalopathy Only 15% of its land is arable. Its (BSE) for beef, in agricultural economy is highly subsidized important Asian and protected. Japan normally produces markets will provide a surplus of pork’s continued rice, but large “Japan’s self export strength. quantities of sufficiency wheat, corn Japan closed its doors rate for food and soybeans to imports of U.S. are imported dropped from beef in 2003 when from the 73% in 1965 to the United States United States. 40% in 2005.” discovered its first Japan is the case of BSE. Exports largest market for U.S. agricultural exports. to Japan from U.S. beef plants resumed Japan’s industrialized, free market economy on July 27, 2006. is the second largest in the world. It is As a condition for highly efficient and competitive in areas the return to trade, linked to international trade although the government productivity is lower in areas such as of Japan adopted Siltanen ©iStockphoto.com/Samuli agriculture, distribution and services. numerous measures Port of Yokohama, Japan The fields in which Japan enjoys high to govern the technological development include importation of U.S. beef, limiting the Japan’s self sufficiency rate for food semiconductor manufacturing, optical supply in the market. Currently Japanese dropped from 73% in 1965 to 40% in fibers, optical media and fermentation import regulations permit U.S. bone-in 2005. A major factor behind the decline processes in food and biochemistry. and boneless beef from age/source-verified is that under the constraint of land, cattle 20 months of age and under. production can no longer satisfy the Japan’s fisheries have played an important Excluding variety meat, Japan is the No. people’s needs given the changes which role in providing animal protein and 3 market, with exports increasing 23% have occurred in the Japanese people’s helping the Japanese population acquire a in the first quarter of 2008. According to eating habits. Japan’s present food self healthy diet. The Japanese fishing industry Japanese import statistics, beef imports sufficiency rate is the lowest among major is currently undergoing major changes from Australia fell 16% in the first quarter, industrialized countries, and Japan is due to a deterioration of marine resources but still accounted for 80% of total thus the world’s largest food importing in their waters and the decrease in and Japanese beef imports. country.UB aging of the work force. Add to this the strengthening of international fishing regulations and the appreciation of the Japan / U.S. comparison Yen, and we see how Japan’s imports of fishery products are increasing. At present AREA 377,835 sq km 9,631,418 sq km about two-thirds of the seafood consumed COASTLINE 29,751 km 19,924 km by the Japanese people is produced by the POPULATION 127,288,419 295,734,134 Japanese fishing industry. LIFE EXPECTANCY 82.07 years 77.71 years GDP $4.417 trillion $11.75 trillion Japan remains the largest export customer GDP (per capita) $33,800 $40,100 for U.S. pork. The U.S., Denmark and AGRICULTURE AS A %GDP 1.5% 0.9% Canada are the primary suppliers to Japan AGRICULTURAL PRODUCTS rice, pork, poultry, grains, fruits, vegetables, for this commodity. A number of factors fish, vegetables, cotton beef, pork, dairy have contributed to increasing trade in LABOR FORCE 66.07 million 147.4 million pork worldwide. The weak U.S. dollar, UNEMPLOYMENT RATE 4% 5.5% which is expected to continue, is making POPULATION LIVING BELOW POVERTY LINE N/A 12% U.S. pork products an attractive buy. OIL PRODUCTION / CONSUMPTION .125 / 5.35 7.8 / 19.65 Disease-related closures—avian influenza (million bbl/day) (million bbl/day)
62 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008 Advertiser index... Allen Family Foods...... 29 Midwest Poultry Services...... 37 JUST RELEASED! American Egg Products...... 17 MoArk LLC...... 13 Australian Premium Brands...... 2 Moore Stephens Frost...... 23 NEWLY UPDATED Baker Commodity...... 4 NAMP...... 21 Beaver Street Fisheries...... 15 Natural Choice Farms...... 8 20082009 EDITION Bird-in-Hand Farms ...... 53 Nature’s Catch ...... 53 Cal-Maine Foods...... 56 Nicolosi Foods...... 44 Crystal Farms...... 52 Northern Beef Industries...... 45 D & R Foods...... 5 Nucal Foods...... 40 Since 1979, the Who’s Who in the Dutch Valley Foods...... 34 Perdue Farms Inc...... 38 Fish Industry has been recognized E & S Marketing...... 39 Poultry Specialities Inc...... 26 Eastern Poultry Distributors...... 40 Prairie Natural Meats...... 51 as the industry’s undisputed source Empacadora Celaya...... 31 Prestage Farms Inc...... 24 for buying and selling contacts eSignal ...... 43 Protein Alliance...... 7 Estherville Foods...... 14 Radlo Foods...... 60 in the North American Seafood Farbest Foods...... 4 Richmond Wholesale Meat Company...... 49 G & C Foods...... 41 Royal Harvest...... 46 Industry. This ALL NEW edition Great Northern Products...... 48 Ruggerio Seafoods...... 27 of Urner Barry’s Who’s Who in the H & N Foods International...... 42 Savage Poultry Inc...... 60 Harbor Seafood Inc...... 64 Sigma Seafood International...... 50 Fish Industry is fully updated and Harvest Meat Company...... 61 Taurus Food Products...... 49 verified, boasting over 5,500 listings Hickman’s Egg Ranch...... 18 Townsend Inc...... 54 House of Raeford...... 25 Turkey Valley Farms...... 46 of seafood companies in the US Icelandic USA...... 35 Virginia Poultry Growers Co-op...... 3 Interplast Packaging Inc...... 20 Vista Food Exchange...... 25 and Canada. The directory boasts Jason’s Food Incorporated...... 33 Wabash Valley Produce...... 55 detailed information about each Kuhl Corporation ...... 44 West Liberty Foods/Norbest...... 9 L & S Foods...... 59 Western Poultry Sales Company...... 34 company listed such as products Maloney Seafood...... 36 Westside Foods...... 16 Manning Poultry Sales...... 17 Win Transport...... 18 handled, contact names, product Michigan Turkey Producers Co-op...... 47 Zephyr Egg Company...... 30 forms, product origin, sales volume, company web site and much more. SEAFOOD IMPORT WORKSHOP SERIES You will learn how to… Seminars are held t Meet U.S. governmental requirements 2008-2009 throughout the THE INTERNATIONAL DIRECTOR OF FISH TRAD t Streamline your import operations ERS Y t Integrate seafood product specifications year in cities across with supplier choice the U.S. t Negotiate supply agreements t Conduct supplier audits t Use entry checklists
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VOL. 3, NO. 3 • summer 2008 / URNER BARRY’S REPORTER • 63 Urner Barry Publications, Inc. P.O. Box 389, Toms River, NJ 08754-0389
64 • URNER BARRY’S REPORTER / VOL. 3, NO. 3 • summer 2008