Market reactions and the bump in US feed corn prices following last month’s WASDE report gained the most interaction in June.
The US Department of Agriculture’s World Agriculture Supply and Demand Estimate (WASDE) report raised questions about increases in feed prices following a drop in acres planted in corn. Wet weather delayed planting of the feed crop and prompted the USDA to shave about 3m acres from total production, with the anticipation more acres could follow.
Reports that Nutreco is working to buy Cj CheilJedang Corp’s animal feed business also garnered a good deal of attention last month. The potential deal for the South Korean producer could be worth about $1.7bn.
The negotiations reportedly concern company feed mills in China and Southeast Asia and could be concluded later this year. However, an official announcement that a deal has been reached has yet to be made.
The role of technology in the dairy industry also was of interest in June, as our third most popular article looked at both upcoming tech and the hurdles influencing widespread adoption.
Some of the challenges to mass adoption include the cost of technology and the cost of labor. However, the expansion of sensor technology that can be used for multiple animals, instead of on an individual animal basis, may provide a strong return on the investment.
Another move of interest in the industry was the decision by Archer Daniels Midland to cut about 127 positions from its recently acquired Neovia business. The positions trimmed include some employees, some vacant posts and the end of several temporary contracts.
The Illinois-based agribusiness giant reported that the job cuts arose out of company streamlining efforts and work to remain competitive in a challenging environment. The process also reduced job duplication.
The conclusion of a feed-based lawsuit also drew attention in June.
A lawsuit brought against the dairy product company Kerrygold and its North American-based affiliates complained about the kind of feed used with the dairy cows needed to produce the dairy ingredients for company products.
However, the lawsuit was dismissed in Kerrygold’s favor.
The use of big data and digital technology could help feed mills “transform” feed production and, potentially, on-farm poultry production, according to a ForFarmers’ expert.
Technology and improved access to understandable information could provide producers with an easier way to track the interaction between feed use, nutrient intake and bird output in terms of weight gain, egg mass or feed conversion.
The challenges facing US soybean producers include lower international demand for the feed ingredient stemming from the outbreak of African Swine Fever in Asia and continuing trade tensions with China, reported the US Department of Agriculture.
The feed crop also saw difficulties during a price drop for soybeans from countries in South America, which reduced any price advantage for the US crop in markets outside of China.
The global soybean market for US-based beans is expected to drop $1.5bn, the department reported in June.
US-based Cargill and the French insect protein producer InnovaFeed are teaming up to sell fish feed that uses insect protein. The arrangement is intended to support the expansion of sustainable aquaculture.
The move also is intended to provide a way for aquaculture producers using the insect-inclusive feeds to differentiate their products. The initial focus of the partnership will be on feeds for shrimp and salmon producers.
The outbreak of African Swine Fever in Asia may bring initial challenges to US feed producers as the international feed market dwindles, according to CoBank analysts.
However, the decline in swine production in countries like China also may provide US producers opportunity for increased domestic animal production and domestic feed use. The export market for animal proteins is expected to see growing demand.
Also of interest in June, was the development news that two European insect-focused companies shared as Ÿnsect won €20m in backing from the EU Commission and Protix saw its commercial facility open.
The French company, Ÿnsect, is using the funding to make progress toward a fully automated industrial facility focused on generating a mealworm-derived protein. The company had already secured more than $175m in investments and has 110 employees.
Protix’s new production facility is dedicated to raising black soldier flies. The opening of the commercial-size facilities is thought to show the “transformation” of the sector as there is increased aquaculture production using insect-based proteins.
