§ A survey conducted at the Iowa Power Farming Show revealed that farmers in six Midwestern states intend to plant 5% fewer corn acres and 11% more bean acres than in 2007.

§ How are increased food prices affecting other countries and food companies?

-          Flour prices have increased 60% – 80% in Afghanistan in the last year.

-          Protests of rising soy prices have occurred in Indonesia.

-          Wheat is being stockpiled in Pakistan and the military is guarding flour mills.

-          The price of corn tortillas in Mexico has increased 400%.

-          Hershey increased the price of their candy bars 4% - 6%.

-          Kraft Foods’ fourth-quarter earnings were impacted dramatically by a 40% increase in dairy prices.

-          In November, Tyson Foods expected to pay an additional $300 million in feed costs.  That number has recently been revised to $500 million.

§ A projection made by the U.S. government on Wednesday is for beef demand to decrease by 5 lbs/person over the next 10 years.

§ For the week ending 2/8/2008 - Choice beef was 4.2% higher while Select increased for the 10^th consecutive day.  This helped packers move into the black for the first time since last summer.  HedgersEdge.com estimated that packer margins were $0.19 compared to -$21.26 the previous week.

§ At the National Cattlemen’s Beef Association annual convention, an increased Checkoff of $2 compared to the current $1 was voted on and passed by members.  It will be 2010 or later before this increase goes into effect because the increase will have to be approved by Congress and voted on by the U.S. cattle industry.

§ Canadian feed manufacturer Ridley, Inc. will pay $6 million to cattle producers in Canada to settle claims dating back to the 2003 BSE case.  The suit alleged that the feed company and the government continued to use ruminant meat and bone meal for a year after the ban was put in place.  The settlement amount seems large but sources say that producers will get less than $70 per person.

NOTICE:  

Nexus Marketing (www.nexusag.org) is sending you this e-newsletter to keep you better informed.

Subscribe additional email addresses to receive the Nexus eNote by sending an email to subscribe@nexusag.org with the word “subscribe” in the subject line and the email addresses you wish to add in the body along with their name.

Unsubscribe from the Nexus eNote by sending an email to unsubscribe@nexusag.org from your email account with the word “unsubscribe” in the subject line and your name in the body.

©2007 Nexus Marketing