THE MEAT MARKET - MARCH 15.2021

Good Morning - I hope you had a good weekend; another week, another set of price increases and reduced availabilities. Higher prices continue to be driven by a shortage in availabilities and a steady dose of demand. Foodservice (Indoor dining) has reopened in major markets across the US; good news for all involved except for those who had hopes of beef prices moving lower. PRC continues to change the rules of engagement on the “fly” as it pertains to regulations for meat headed into that destination. PRC being “difficult” is not uncommon; what is uncommon for global trade is the amount of meat headed into that destination. Late last week rumors coming out of PRC indicated a new requirement in which all trims must be labeled with the source of origin along with the CL % - Supposably; this applies to all origins across all proteins! What type of trade disruption could arise from these new regulations? All in all, a buyers landscape that emulates a minefield is what is to be expected from here on in. A seasonal uptick in demand across major global markets alongside impromptu trade regulations are only two of the many variables we must learn to manage moving forward – What are your spring/summer bookings looking like? It appears to me as if the challenge moving forward will be securing the meat at market levels rather than trying to find the lowest price out there - There is no such thing as “low” prices anymore.

 Retail Ads for the current week shared a common theme in the US and CAD; there was no lead item that exceeded the $5/LB retail mark. Is this driven by seasonality? Market conditions? Disposable income? If we take into account when these Ads were written; market conditions had already begun to get challenging. What could this mean for Ads written right now? How could you go about ... FOR WEEKLY DISTRIBUTION OF THIS REPORT PLEASE CONTACT ME A [email protected]

FOR WEEKLY DISTRIBUTION OF THIS REPORT PLEASE CONTACT ME A [email protected]