LIVESTOCK HIGHLIGHTS: Top Stories of the Day
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,
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. (firstname.lastname@example.org; @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
STORIES OF INTEREST
Farmers to Profit Off of Carbon Capture -- Food Forum Market
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.
Kroger Raises Quarterly Dividend 17%
Supermarket giant Kroger Co. hiked its quarterly dividend by
17%, marking the 15th consecutive year of annual payout
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
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. (email@example.com)
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)
Copyright (c) 2021 Dow Jones & Company, Inc.