Daily Feed: Rabobank under pressure due to financing mega meat & dairy
Daily Feed: Rabobank under pressure due to financing mega meat & dairy
?FEB 13, 2023
A perfect storm hits Tyson Foods revenue, badly!
Rabobank under pressure due to financing mega meat & dairy.
China can’t get Australian beef fast enough
Animal Feed & Futures
Efstratia Papanikou, an American researcher and plant physiologist, has analyzed the potential impact of different animal feed ingredients that could become popular this year.
1. Seaweed is expected to grow in popularity as a sustainable alternative protein source, but faces production cost challenges.
2. Insects are expected to grow by 27.8% annually and potentially become worth $8 billion by 2030, but consumer acceptance remains to be seen.
3. Sorghum is being considered as a resource-saving ingredient due to its better yields in dry conditions. Soybean meal will see a significant increase due to the US government’s focus on biodiesel, leading to increased consumption worldwide.
4. Flaxseed, rich in omega-3 fatty acids, protein, fiber, and phytoestrogens, is expected to become more available in extruded form.
In the EU, processed animal protein (PAP) has been readmitted as a nutrient-rich and sustainable feed ingredient, but the animal nutrition industry has outdated knowledge on how to utilize it.
Top Listed Meat Companies
The US agriculture sector has posted its best year ever for exports, reaching a total of $196 billion in 2022, according to Agriculture Secretary Tom Vilsack. The data shows that agricultural exports increased by 11% from the previous record set in 2021, and the value of sales increased in all of the top 10 markets for US exports, including China, Mexico, Canada, and Japan. The top exports from the US were soybeans, corn, beef, dairy, cotton, and tree nuts, with many products reaching record values. Vilsack credited the success to the efforts of the Biden-Harris administration in creating new markets, strengthening relationships with trading partners, investing in infrastructure, and promoting US products around the world. He also highlighted opportunities for growth in Africa, Latin America, the Middle East, and Southeast Asia.
Meat Company News
2 Sisters Food Group
Donald Kers, the CEO of UK poultry company 2 Sisters Food Group, is leaving his position to become the CEO of Ireland-based Valeo Foods.
BRF
As of 1:02 PM on Monday, Feb 13, the common stock of BRF S.A. (ADR) (BRFS) is being traded at a price of $1.33, which represents an increase of 6.4% or $0.08 from its previous close of $1.25. The stock’s price has varied between $1.28 and $1.36 during the day. The trading volume today is lower than usual, with only 3,963,132 shares traded as compared to the average daily volume of 6,754,115 shares.
Charoen Pokhand
Charoen Pokphand Foods has integrated blockchain technology into its digital traceability system for fresh pork and chicken products. The company plans to extend the technology to its shrimp and cooked meat businesses to maintain the quality and hygiene of their food products. The technology allows customers to access information about the product, including origin, quality and food safety certifications, and sustainable production through scanning a QR code on the packaging.
Pilgrims Pride
Pilgrim’s Pride, the second-largest chicken producer in the US, saw its shares rise 9% on Thursday due to falling chicken prices boosting demand. Despite a glut in supplies affecting its Q4 earnings, the company is poised to benefit from a shrinking US cattle herd that will result in higher prices for beef products in the future.
Mowi
Salmon producer Mowi has signed a significant contract for remote operated vehicle (ROV) services in the aquaculture industry with Underwater Contracting (UCO), a provider of underwater services to the offshore energy, inspection, construction, and aquaculture markets. UCO will provide 15 submersible ROVs that will work 365 days a year to perform various tasks for Mowi, such as monitoring fish, inspecting equipment, removing dead fish, and carrying out repairs. The services will be provided in the UK, Europe, and North America.
Royal Greenland
Royal Greenland, the largest provider of coldwater shrimp and Greenland halibut, has named a new interim CEO for its US operations following the exit of the former CEO. Soren Eschen, a 30-year veteran of the company and former sales director of south and east Europe, has taken on the role. He replaces Soren Dalsager, who recently left to lead the US branch of Spanish seafood company Profand.
Sysco
Sysco UK has launched its latest electric vehicle, the “Climate Stripes” electric lorry, in a call for cross-industry collaboration to tackle climate change. The electric lorry has a range of around 280 km and two temperature zones.
领英推荐
Tyson Foods
Tyson Foods reported an adjusted operating income of $453 million, down 68% from a year ago. Adjusted earnings per share was 85￠, down 70% from 2022. The decline in earnings was attributed to weaker results in the chicken, pork, and beef industries, despite strong performance in the Prepared Foods sector.
Top 10 Listed Dairy Companies
Dairy Company News
Arla Foods
Arla Foods, a European dairy cooperative, reported a 23.2% increase in its revenue to €13.8 billion in 2022, which was attributed to the increase in prices. The co-op, which is owned by over 8,900 farmers from 7 countries, reported a strong performance despite a volatile year, enabling it to provide a higher prepaid milk price, including a supplementary payment of 2.2c/kg milk, to its farmer owners. The average prepaid milk price increased by 40.5% to 52c/kg and the performance price was 55.1c/kg, a 38.8% increase from the previous year. Despite this, the net profit allocated to farmers was at the bottom end of the target range of 2.8-3.2%. However, the company warned that 2023 will be another difficult year.
Danone
Danone, the largest producer of yoghurt in South Africa, has appointed Eric Barrere to oversee the continued success and growth of Danone Southern Africa and its brand portfolio, which includes NutriDay, Ultra Mel, Yogi Sip, Inkomazi, DanUp and the recently added Alpro plant-based portfolio.
FrieslandCampina
FrieslandCampina plans to improve its butter production network in the Netherlands and make it more sustainable through relocation. Butter production will be moved to Lochem, while the company’s production site in ‘s-Hertogenbosch will be closed. The Lochem production site will be expanded with the addition of a sustainable butter plant that will significantly reduce CO2 emissions. This move is a response to the rise in demand for cream products in the food service market, resulting in a structural overcapacity in butter production. By merging all butter production in Lochem, the company aims to achieve more efficient production. The construction of the Lochem production location is expected to take two years and create 27 new jobs, while the closure of the ‘s-Hertogenbosch facility in mid-2025 will result in the loss of almost 90 jobs, partly absorbed by natural turnover.
Saputo
Saputo Inc. hit a new 52-week high on Friday after announcing a dividend. The stock price rose as high as C$37.50 and was last traded at C$37.27, with a volume of 833,901 shares traded. The stock had previously closed at C$35.29. The dividend will be paid on Friday, March 17th and will be given to stockholders of record on Tuesday, March 7th, which will be $0.18 per share. This equates to an annualized dividend of $0.72 and a yield of 1.93%. Saputo’s dividend payout ratio is 74.23%.
Top 10 Listed Seafood Companies
A recent report by Future Market Insights estimates that the sales of shrimp will reach a valuation of $60.4 billion in 2023 and is projected to grow at a CAGR of 7.4% during the forecast period of 2023 to 2033, reaching $123.8 billion by 2033. The increasing demand for shrimp is attributed to its high nutritional value and low-fat protein content, as well as the shift towards a protein-rich diet due to rapid economic growth and rising affluence. Shrimp farmers worldwide are also adopting improved production methods that outperform conventional ones, leading to increased year-round production and improved environmental sustainability. The market for shrimp-based products, particularly canned and frozen forms, is expected to grow in the next decade due to increasing demand for seafood products in the global food industry. North America is one of the top importers of shrimp in the world, driven by strong demand for these products.
Seafood company news
ARASCO, Cargill, and NEOM
ARASCO, Cargill, and NEOM Food have signed an agreement to work together to support sustainable practices in the Saudi Arabian aquacultural sector. The goal is to achieve self-sufficiency in aquaculture protein demand by 2030 in an environmentally friendly manner. The CEO of ARASCO, the Head of NEOM Food, and the Global President of Cargill’s Aqua Nutrition business signed the memorandum of understanding in December 2022. The three companies will collaborate to find sustainable ways to meet the growing demand for aquaculture, including through research into sustainable feed sources.
Maruha Nichiro
The Chairman of Maruha Nichiro, Shigeru Ito, has resigned due to health reasons. He previously served as the CEO of the world’s largest seafood company and will be stepping down on January 31st.
Top 10 Listed Logistics Companies
Shipping company A.P. Moller-Maersk has warned of a four-fold decrease in profits this year due to lower container volumes and freight rates. The Copenhagen-based company, which transports goods for companies such as Walmart, Nike, and Unilever, had raised its profit forecast twice last year due to a surge in consumer demand and pandemic-related logjams at ports, which boosted freight rates. However, freight rates have since dropped as the pandemic-fuelled import bubbles deflate and a recession looms. Maersk expects a 2.5% decrease in global demand for shipping containers by sea this year. The company’s CEO, Vincent Clerc, plans to focus on keeping costs down, as Maersk has been buying up warehouses and distribution centers to offer end-to-end transportation services. Maersk is one of the world’s largest container shippers, with a market share of around 17%.
Logistics Company News
Lineage Logistics
Lineage Logistics has announced its expansion of Lineage Fresh, its fresh storage solution service, to Europe. Lineage Fresh was launched in the US in November 2022 and provides storage solutions for major importers, grocers, and producers of fresh fruit and produce. The service uses Lineage Logistics’ cold storage technology and global logistics network to offer value-added services, such as re-packaging, reconditioning, restyling, and container drayage, among others.
A.P Moller – Maersk
A.P. Moeller-Maersk, the world’s largest shipping company, has sued Evergreen Marine and its owner and German technical manager in a Danish court for compensation for ship delays caused by the blockage of the Suez Canal by the Ever Given vessel two years ago. The claim was filed in the Danish Maritime and Commercial High Court in Copenhagen.
A.P. M?ller – M?rsk three years ago, you would have gained 114%. An index fund would give you the average market return, but investing in a good business at a favorable price can result in a higher return than the average market. Over the past three years, the A.P. M?ller – M?rsk stock has risen 80%, outperforming the market return of around 42%.