§ University of Missouri Agricultural Economist Ron Plain suggests that there will be a few more cattle to kill in the first quarter of 2008, as the ongoing drought in the southeastern U.S. pushes cattle from pastures to feedlots quicker than normal. This will translate into fewer cattle to slaughter in the second quarter which should have packers bidding aggressively to keep plants going, pushing cattle prices higher than what they can sell the beef at.

§ Fresh meat’s share at the grocery stores has increased. According to the Cattlemen’s Beef Board, growth of branded programs for meat increased while store brands gained predominance. Boneless product interest also grew with whole muscle beef having the largest overall share. Value-added packages (products with flavorings or ingredients added) continued to grow. Natural and organic packages remained a niche category, but their share did grow.

§ Sharply lower stocks, gold, industrial metals in tandem with weak economic indicators all suggest that beef consumption could suffer over the next few months according to Archer Financial Services.

§ Export Status: Japan - USDA Secretary Conner said recently that “overall the situation in Japan is a grim one”. “They continue to demonstrate no willingness at all to abide by international standards and we have demonstrated no willingness to let them off the hook in terms of their commitment to trade.”  South Korea – “I believe we have an opportunity to make headway with South Korea.  I think there is a desire on the part of the new transition government to work very, very closely with the United States on trade issues.”

§ After donating more than 20,000 pounds of protein products to two hunger relief agencies during a November episode of Extreme Makeover Home Edition, Tyson’s ad scored nearly four times the average of other companies with product placements.  It had the greatest impact on brand opinion in 2007, according to IAG Research, an analysis firm that tracks the success of television commercials through nationwide surveys.

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