TOP STORIES

 

Food Companies Say Combating Climate Change Comes with Costs

Food companies are investing billions of dollars into sustainability efforts, betting that costs will fall and consumers will remain interested in more environmentally friendly diets, executives said.

Nestlé SA, the world's biggest food and beverage company, has committed to paying premium prices over the next five years for recycled materials in its packaging, as it works toward achieving net-zero greenhouse-gas emissions by 2050. Agricultural giant Archer Daniels Midland Co. is offering incentives for farmers to adopt more climate-friendly practices, part of industry efforts to meet corporate and government carbon-reduction goals.

 

Agriculture Giant ADM Is Shoring Up Cyber Defenses, CEO Says

Agriculture company Archer Daniels Midland Co. is shoring up defenses against what it views as inevitable cyberattacks, its chief executive said.

Chicago-based ADM has formed a ransomware task force and is running drills as incursions against food and agriculture companies have surged in recent years, including an attack in late May on meatpacking giant JBS SA.

 

Plant-Based Products Could Capture 10%-30% of Meat Market, ADM Says -- Food Forum Market Talk

1232 ET - Plant-based meat alternatives are having a moment, but Archer Daniels Midland CEO Juan Luciano says the biggest growth may still lie ahead. Speaking at the WSJ Global Food Forum, Luciano says plant-based burgers, sausages and other meat mimics could come to represent 10% or more of the current meat market, depending on how well the alternatives can come to match consumers' expectations for traditional meat. "The world is going plant-based right now," Luciano says. (jacob.bunge@wsj.com; @jacobbunge)

 

AG Exports On Record Path, But Diversified Market Needed -- Food Forum Market Talk

1654 ET - The United States is headed towards a record export year, Tom Vilsack, US Secretary of Agriculture, says at the WSJ Global Food Forum. He adds that China is purchasing a significant amount of crops from the US, although at a level 30% below what it promised as part of the phase one trade agreement. He added that he expects increased pork sales as China rebuilds its pork industry, and that corn and soybean purchases continue to be high. But the United States still needs to diversify its export market, says Vilsack.(Krystal.Hur@wsj.com)

 

STORIES OF INTEREST

 

Farmers to Profit Off of Carbon Capture -- Food Forum Market Talk

1359 ET - Farmers will incur short-term expenses to invest in methods to offset carbon from their land, but the investments will pay off in the long-term, Land O'Lakes Inc. CEO Beth Ford says at the WSJ Global Food Forum. "We consider it an opportunity for double cropping," Ford says. A half a ton of carbon sequestration could be yielded per acre, making for a big market in the 300 million acres of row crops planted across the US, Ford says. (heather.haddon@wsj.com; @heatherhaddon)

 

Kroger Raises Quarterly Dividend 17%

Supermarket giant Kroger Co. hiked its quarterly dividend by 17%, marking the 15th consecutive year of annual payout increases.

The company said its board approved a lift in the dividend to 84 cents a year from 72 cents. The next quarterly dividend of 21 cents will be paid Sept. 1.

 

Food Price Inflation Tops Credit Investors' Worries: BofA Survey -- Market Talk

1056 GMT - Food price inflation is the main concern for credit investors, according to a survey conducted by Bank of America. "Inflation is now the 'big one', with 30% of investors flagging it as their top concern for the first time since April '18," the bank says. However, inflation worries are related to rising food prices rather than U.S. consumer price inflation, commodity prices or inflation expectations, with recent rises seen as temporary. "The 40% year on year rise in global food prices risks reversing poverty trends and ushering in higher policy uncertainty," the bank says. The next concern is debt sustainability, attracting 15% of the respondents. (lorena.ruibal@wsj.com)

 

CalPERS Concerned About Antibiotic Use In Meat Products -- Food Forum Market Talk

1642 ET - The California Public Employees' Retirement System says it has concerns about McDonald's approach to using antibiotics in meat. Anne Simpson, a managing investment director at CalPERS, says there was a sugar-related proposal on the shareholder ballot this year, adding that the fund was satisfied with where the fast-food company is headed with sugar. McDonald's says it recognizes antibiotic use is under continuous review by scientists and regulators and that it is committed to reducing the need for antibiotics in food animal production. (jaewon.kang@wsj.com)

 

FUTURES MARKETS

 

Hogs Futures Fall as U.S. Inventories Rise

Lean hog futures trading on the CME recorded another down day as the USDA's quarterly report showed that inventories of hogs have risen since the agency's last report.

According to the USDA's Hogs and Pigs report released following the market's close Thursday, inventories of all hogs and pigs rose 75.7 million head as of June 1. That's up 1% from March 1.

 

(END) Dow Jones Newswires

June 24, 2021 17:23 ET (21:23 GMT)

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