Smithfield Foods Shifts Focus Amid Tariff Challenges

Smithfield Foods Shifts Focus Amid Tariff Challenges

Smithfield Foods, the leading U.S. pork processor, has announced that China is no longer a viable market due to retaliatory tariffs imposed by Beijing. This development highlights the ongoing impact of the tariff war initiated by former U.S. President Donald Trump, which has significantly disrupted global trade.

Tariff Impact

China, the world’s largest pork consumer, increased its levies on U.S. goods, pushing the effective duty rate on U.S. pork to 172%[1]. This move was in response to higher duties imposed by the U.S. on Chinese imports. As a result, Smithfield Foods has had to pivot its business strategy.

Business Pivot

Smithfield CEO Shane Smith stated on a recent earnings call, “With China no longer essentially being available, we really had to pivot our business” [1]. The company, which went public in January, reported a 9.5% rise in total sales to $3.77 billion for the first quarter ending March 30, surpassing analysts’ expectations [1].

Future Outlook

Despite the challenges, Smithfield remains optimistic about finding new markets for its products. The company is focusing on other international markets and increasing sales of more profitable products like lunch meats and dry sausages [2]. This strategic shift aims to mitigate the impact of losing access to the Chinese market.

Smithfield’s ability to adapt to these changes will be crucial as it navigates the complexities of global trade and continues to support U.S. farmers.

Original story: Reuters

References

[1] Smithfield Foods Says Tariffs Make China Unviable Market for its U.S. Pork

[2] Tariffs Mean Pork Producer Smithfield Has Had to ‘Pivot … – Investopedia

FSA Steps Up Efforts to Modernise Meat Regulation

UK Food Standards Agency Modernises Meat Industry Regulations

The UK Food Standards Agency (FSA) is rolling out several initiatives to modernise its regulatory approach to the meat industry, which contributes £10 billion annually to the UK economy. These efforts aim to uphold high food safety standards and improve efficiency amid growing challenges.

Key Projects and Innovations

One major project is the development of an online self-service portal, currently in testing. This platform will allow meat businesses to access plant-specific data, including inspection results and approvals, in real time, simplifying operations and enhancing regulatory processes. Additionally, the FSA has trialled technology to transfer post-mortem inspection data directly from business systems to the agency, reducing manual intervention and boosting efficiency.

The FSA is also exploring the use of artificial intelligence (AI) to improve meat inspection processes. AI tools could detect contamination not visible to the human eye, although these inspections are not yet legally permitted. The FSA views AI as a potential future solution.

International and Domestic Efforts

Internationally, the FSA is advising the UK government on upcoming negotiations with the EU regarding sanitary and phytosanitary (SPS) controls for food exports. The aim is to streamline processes while maintaining high food safety standards and ensuring UK exporters remain competitive.

Domestically, the FSA is addressing a shortage of trained official veterinarians, crucial for meat inspection. Despite efforts to recruit more meat hygiene inspectors, the number of UK-trained veterinarians remains insufficient. The FSA has increasingly relied on veterinarians from other countries, but rising post-Brexit recruitment and visa costs have made this less viable long-term.

Regulatory Costs and Legal Actions

In response to rising regulatory costs, the FSA has announced higher inspection charges for 2025–2026, prompting legal action from some industry groups. The FSA is also reviewing its discount scheme for small businesses, which currently offers significant cost reductions. The outcome of this review will depend on government spending assessments.

Strengthening the National Food Crime Unit

The FSA is enhancing its National Food Crime Unit (NFCU) by granting it new powers to apply for warrants and seize evidence. This will enable the unit to combat food-related crime in complex supply chains more effectively. Recent successes include prosecuting individuals involved in large-scale poultry fraud and falsification of testing certificates.

These initiatives reflect the FSA’s commitment to maintaining high food safety standards and supporting the meat industry’s efficiency and competitiveness in a challenging environment.

Original story: Food & Drink Int

Licence Revoked from Abattoir After Shocking Welfare Violations

Warwickshire Abattoir Loses Licence Following Animal Welfare Investigation

The Food Standards Agency (FSA) has revoked the operating licence of T&S Abattoir in Arley, Warwickshire, following a thorough investigation into significant animal welfare breaches. The decision comes after covert footage, captured by an animal rights activist last year, surfaced in February, corroborating earlier concerns raised by local residents who had been advocating for the facility’s closure.

While the FSA confirmed that “substantial” action had already been taken at the abattoir prior to the emergence of the footage, the subsequent investigation by an independent panel concluded that T&S Abattoir had failed to prevent serious incidents compromising animal welfare. The FSA stated that this lack of confidence in the abattoir’s ability to ensure “consistent compliance” with animal welfare standards led to the licence revocation.

A spokesperson for the FSA emphasized the seriousness of the findings, stating that the identified breaches would be referred to the Crown Prosecution Service for potential legal action.

In a statement released today, the FSA confirmed that T&S Abattoir Ltd, the operating company, has been formally notified of the licence revocation, along with the detailed reasons for the decision and their right to appeal the ruling.

The FSA also highlighted its ongoing collaboration with other relevant authorities. “We are continuing to work with the police who are carrying out their own investigation, as well as the local authority whose responsibilities include enforcing regulations on any environmental impact and any unapproved activities,” the statement read.

Reiterating its commitment to animal welfare, the FSA asserted a firm stance on the issue. “We have a zero-tolerance approach to animal welfare breaches so we will always take the necessary action to protect high animal welfare standards.”

The BBC has reached out to T&S Abattoir Ltd for comment but has yet to receive a response.

This development marks a significant step following long-standing concerns about animal welfare practices at the Arley-based abattoir and underscores the FSA’s commitment to upholding standards within the food industry. The outcome of the police investigation and any potential appeal by T&S Abattoir Ltd will be closely watched.

Original story: BBC News

Great British Beef Week Back for 15th Year

Great British Beef Week, a successful industry campaign that promotes British beef to consumers, returns for its 15th anniversary on St George’s Day, 23 April.

This nationwide campaign, running from 23-30 April, highlights the hard work and dedication of the farmers who produce British beef, while also shining a light on sustainable farming practices and the exceptional taste of British beef.

The campaign was first founded by the Ladies in Beef group, created by former NFU president Minette Batters and Devon beef producer Jilly Greed. Over the years, it has garnered support from various UK levy bodies including AHDB, Hybu Cig Cymru, the Livestock and Meat Commission, and Quality Meat Scotland. Additionally, organizations such as the NFU, the Royal Agricultural Benevolent Institution, and Red Tractor have lent their support to the campaign.

As part of this year’s campaign, AHDB is putting the faces behind British beef farming at the heart of the initiative. Baroness Minette Batters emphasized the importance of British beef, stating, “Our farmers produce naturally delicious beef – British beef is not just a staple of our cuisine, it’s a symbol of our hard work and enjoyed by many at home and abroad.”

The campaign aims to celebrate the contributions of British farmers and encourage consumers to appreciate and support locally produced beef. With its focus on sustainability and quality, Great British Beef Week continues to be a significant event in the UK’s agricultural calendar.

Australian Cattle and Sheep Market Update

Weekly Cattle and Sheep Market Wrap

Key Points

Restocker cattle demand reflects the impact of the rainfall events of the last month.
The National Mutton Indicator continues to recorrect.
National cattle slaughter lifted above 150,000 head for the first time since June 2019.

Australia is heading into a series of public holidays that are expected to disrupt regular operations at saleyards and meat processing plants across the country. Market indicators and processing volumes will be impacted over the upcoming weeks. MLA will continue monitoring the prices and markets and return to regular market commentary once all saleyards are back online.

Upcoming National Public Holidays

Easter: Friday 18 April – Monday 21 April
ANZAC Day: Friday 25 April
Labour Day (Queensland) and May Day (NT): Monday 5 May

A list of affected sales can be found in the article here.

Cattle Market

The mixed results in the cattle market this week were due to the volatility of supply in saleyards. This was caused by interrupted sales, with reduced yardings the week prior.

As the effects of the Queensland and NSW rain are realised in feed, confidence in the market has been reflected in the lifting of the Restocker Yearling Heifer Indicator and Restocker Yearling Steer Indicator. Despite a lift in indicator yardings, both indicators lifted 4¢ last week to 328¢/kg liveweight (lwt) and 401¢/kg lwt, respectively.

Finished animals did not fare well this week, with the Heavy Steer Indicator easing 16¢ to 356¢/kg lwt. This has further separated the gap between the steer indicators as the market reflects the weight of gaining confidence. The Processor Cow Indicator similarly fell, easing 13¢ to 284¢/kg lwt, a seeming correction of the spikes seen last week.

Sheep Market

The sheep market was similarly mixed this week. Similar to cattle, yardings were impacted by interrupted sales.

Finished stock remained relatively stable, with the Heavy Lamb Indicator and Trade Lamb moving sideways to 815¢ and 801¢/kg cwt.

Restocker lambs eased to 669¢/kg cwt, driven mostly by confidence in NSW markets pulling prices up last week, and a lack of competitive pulling them back down. The National Mutton Indicator continued its decline, down 78¢ to 431¢/kg cwt, despite a significant reduction in the supply of mutton through yards. Moving through autumn, it is likely we will see a continued reduction in supply.

Slaughter

Week Ending 11 April 2025

Processing volumes for the week ending 11 April lifted from last week as processors recovered from the impact of the floods in Queensland and prepared for several weeks of interrupted processing. Processing volumes tend to lift in the week before Easter, and this year’s increases are in line with this historical trend.

The next two slaughter reports will be impacted by the upcoming short weeks.

Cattle Slaughter

National slaughter lifted 6% to 152,180 head, thanks to significant lifts in NSW and Victoria. Both states had their largest kill weeks in five years, processing 37,994 and 25,411 head, respectively.

Consistent lifts across all states last week (up 0–⁠8%) also contributed:

NSW up 6% to 37,994
Queensland up 6% to 77,335
SA up 1% to 3,815
Tasmania up 1% to 5,016
Victoria up 8% to 25,411
WA steady at 2,609.

Sheep Slaughter

Lamb processing reached records, lifting 4% for a record throughput of 527,045 head, the fourth consecutive week above the half-million mark. This reflects the continued supply of the 2024 lamb cohort, many of which were retained longer due to poorer conditions and weight gain decisions.

NSW throughput lifted 5% to 131,364, its largest week since September 2024. Victoria’s throughput also lifted 3% last week to 261,758, the second-largest state throughput, just behind last month’s record. State-by-state breakdown was as follows:

NSW up 5% to 131,364
Queensland up 4% to 1,460
SA up 8% to 61,959
Tasmania up 7% to 11,563
Victoria up 3% to 261,758
WA up 1% to 58,941.

Lifts were also seen in sheep slaughter, which increased 4% to 197,580, though throughput remained below the 2025 average. Increases across both categories took the combined slaughter to 724,627 head, the third largest throughput of the year.

Attribute to: Erin Lukey, MLA Senior Market Information Analyst.

Foot-and-Mouth Threat Level Raised to ‘Medium’ Across the UK

Farmers Urged to Increase Biosecurity Measures Following Heightened Risk Assessment

Livestock farmers across the United Kingdom are being urged to bolster their biosecurity protocols following an official increase in the threat level for foot-and-mouth disease (FMD) from ‘low’ to ‘medium’. The Department for Environment, Food & Rural Affairs (Defra) announced the change earlier today, citing a heightened risk of the highly contagious animal disease entering the country.

While there are currently no confirmed cases of foot-and-mouth in the UK, the raising of the threat level reflects growing concerns within the agricultural sector and government agencies. This decision comes on the heels of recent outbreaks of the disease in mainland Europe, particularly in Hungary and Slovakia, as reported earlier this month. These incidents have increased the perceived likelihood of the virus being inadvertently introduced to the UK through the movement of animals, animal products, or even contaminated materials.

Foot-and-mouth disease is a severe and highly infectious viral illness that affects cloven-hoofed animals, including cattle, sheep, pigs, and deer. An outbreak in the UK could have devastating consequences for the agricultural industry, potentially leading to widespread culling of livestock, significant economic losses, and restrictions on trade. The memory of the 2001 foot-and-mouth crisis, which cost the UK billions of pounds and led to the slaughter of millions of animals, remains fresh in the minds of farmers and policymakers.

In response to the elevated threat level, Defra is advising all livestock keepers to review and strengthen their biosecurity measures immediately. This includes:

Strict control of access to farms and animal housing: Limiting unnecessary visitors and ensuring thorough disinfection of vehicles and footwear.
Enhanced hygiene practices: Implementing rigorous cleaning and disinfection protocols for equipment, vehicles, and personnel.
Careful sourcing of animals and animal products: Ensuring all new livestock are sourced from reputable, disease-free sources and adhering to all import regulations.
Vigilant monitoring of animal health: Regularly checking livestock for any signs of foot-and-mouth disease, such as blisters on the mouth, feet, and teats, excessive salivation, and lameness.
Prompt reporting of any suspicious signs: Contacting a veterinarian or the Animal and Plant Health Agency (APHA) immediately if any unusual symptoms are observed.

Speaking earlier today, a Defra spokesperson emphasised the importance of proactive measures: “The increase in the foot-and-mouth disease threat level to ‘medium’ is a precautionary measure to reflect the evolving situation in Europe. While the risk remains that the disease could enter the UK, taking robust biosecurity measures is the most effective way to protect our livestock and the wider agricultural economy. We urge all farmers to remain vigilant and implement the necessary steps to safeguard their animals.”

The threat level will likely lead to increased scrutiny at UK borders, with stricter checks on imports of meat and dairy products from the European Union. Travellers returning from the continent are also being reminded of the regulations regarding the import of animal products and the potential risks they pose to UK agriculture.

Organisations representing farmers across the UK have echoed Defra’s call for heightened vigilance. The National Farmers’ Union (NFU) has issued guidance to its members, stressing the need for collective responsibility in preventing the introduction and spread of the disease.

As the situation in Europe continues to be monitored closely, UK farmers are bracing themselves and implementing stricter measures to protect their livelihoods and the nation’s livestock from the potentially devastating impact of foot-and-mouth disease. The coming weeks will be crucial in ensuring that the increased threat level does not translate into a real outbreak on UK soil.

Growing Concerns Over UK-US Trade Deal and Food Standards

UK Farmers Raise Concerns Over Food Standards in Potential US Trade Deal

As the United Kingdom and the United States revive talks of a potential UK-US trade deal, British farmers are voicing strong concerns about protecting UK food standards, especially regarding hormone-treated US beef.

US-UK Trade Deal Talks Resume

Speaking recently, US Vice President JD Vance expressed optimism about a future agreement, stating there is a “good chance” of finalising a deal. However, previous negotiations stalled over major differences in food safety regulations and animal welfare standards.

British Farmers Demand Equal Standards for Imported Meat

David Barton, Livestock Chair of the National Farmers’ Union (NFU), stressed the importance of holding imported food to the same high standards required of UK farmers.

“There is no way we would accept anything that is not produced to our standards,” said Barton. “If US beef is to be imported, it must pass the same rigorous tests as British meat.”

UK Beef Farming: A Quality-Driven Model

Barton, who runs a beef cattle farm in the Cotswolds, near Cirencester, highlighted the strengths of British beef production. His cattle are largely raised on natural grass pasture and their mother’s milk, with winter feed sourced locally.

“Our temperate climate, our lush grass — the British Isles are just designed for beef. We don’t have to add much,” he explained.

While he respects the efforts of American beef producers, Barton emphasised the advantages of the UK’s natural farming conditions and traditional practices.

Trade Deal Implications for UK Agriculture

British farmers are urging the UK Government to ensure any post-Brexit trade agreements uphold the country’s high animal welfare, environmental, and food safety standards.

The inclusion of hormone-treated beef or lower-standard imports could undercut UK producers and undermine consumer trust. The outcome of these negotiations will have lasting effects on British agriculture, food integrity, and the broader UK food supply chain.

Key Takeaways:

UK farmers support fair trade but demand equal standards for imported food.
Hormone-treated beef remains a sticking point in UK-US trade talks.
The NFU calls for a level playing field to protect UK farming and consumer trust.

Original Source: BBC News

EU Beef Prices Surge as Irish Market Strengthens, Narrowing Gap with GB Prices

Average EU deadweight cattle prices have risen dramatically over the past few weeks, decreasing the difference between continental and GB prices. This article explores the reasons behind this surge and what it could mean for the UK beef market.

Key Points

The average European beef price has risen faster than the GB price, eroding the price differential, which stood at 94.8 pence for steers of R3 specification in the week beginning 31 March. This makes UK exports more competitive but increases the price of imports.
Beef supply across the EU is forecast to fall in 2025, potentially lending further support to prices.
The top supplier of beef imports in 2024 to the EU was the UK, providing 93,200 tonnes of beef, making up 31% of total beef imports into the EU and valuing £502.9 million.

Prices

In the week beginning 31 March, EU steers rose on average by 18p/kg. For R3 steers, this represents a 36% increase in price from the same time last year. Over the past few weeks, the average European beef price has risen faster than the GB price, eroding the price differential, which stood at 94.8 pence for steers in the week ending 31 March.

Selected EU Deadweight Cattle Prices (p/kg)

Young bulls category AR3
Steers category CR3
GB price is AHDB R3 steer average

Source: European Commission, AHDB

The increase in the average EU steer price has been predominantly driven by movements in the Irish market. The average price of an Irish R3 steer stood at an equivalent of 643.8 p/kg, up 26 pence from the week before, closing the gap with the GB R3 steer price to 53 pence. This was down from a historically wide differential of 117.4 pence in mid-February and is back to a position last seen in mid-2024.

Due to the beef trading relationship, the Irish beef price is closely linked with GB beef prices, with the current strength of the British market supporting averages across the Irish Sea. Irish cattle kill has been elevated so far in 2025, but supply is forecast to tighten through the year. Meanwhile, live exports of Irish cattle have grown strongly again so far in 2025, with Bord Bia reporting particular growth in shipments to Northern Ireland, Spain, and Italy.

Production

Elsewhere, beef supply across the EU is forecast to fall, as suckler herds contend with low profitability and stricter sustainability regulations. The European Commission predicts a 7.5% fall in suckler cow numbers by 2035 to 9.5 million head. Dairy herd numbers are also forecasted to fall, albeit more steadily, with a long-term declining trend of -0.3% year-on-year. This means that in the future, there are likely to be fewer beef calves entering the system.

However, 2024 saw significant variation across the bloc. Beef production decreased or remained relatively stable in states such as France, Germany, and the Netherlands but saw marked increases in Spain, Italy, and most significantly in Poland. In 2024, Poland saw production increases of 24%, primarily driven by a rapidly growing export market to Turkey.

Trade

Total external EU-27 beef exports grew by 10% year-on-year in 2024 to approximately 690,000 tonnes (including offal). The most significant destination for these exports was the UK, but export volumes to Turkey and Algeria have seen remarkable growth. EU beef exports to Turkey were up by 30,300 tonnes in 2024, representing a 70% rise from 2023 levels, and volumes to Algeria rose from 400 tonnes to 29,000 tonnes in 2024.

Meanwhile, EU import volumes of beef also grew in 2024 by 8% to 299,000 tonnes. In 2024, the top supplier of these imports was the UK, providing 113,600 tonnes of beef (including offal), making up 31% of total beef imports into the EU and valuing £577 million. 52% of the remaining import volumes into the EU originated from the South American states of Brazil, Argentina, and Uruguay.

Future Implications

Moving forward, these trading relationships could well change due to the potential implications of the EU-Mercosur trade deal. If ratified, the deal could encourage higher volumes of competitively priced South American beef into the EU, pressuring farmgate prices. However, the upcoming EU Deforestation Regulation may compromise market access, and the market impact of this is yet unclear.

Original story: AHDB

Growing Volatility in the Australian Cow Market

Australian Cow Market Sees High Volatility Amid Record Prices and Shifting Fundamentals

The Australian cow market is currently experiencing heightened volatility, driven by a combination of record prices, shifting supply and demand fundamentals, and external pressures such as adverse weather and evolving geopolitical developments.

According to Emily Tan, Market Information Analyst at Meat & Livestock Australia (MLA), producers are actively capitalising on historically high prices, although recent fluctuations reflect the delicate balance of market forces.

Market Fundamentals and Supply Trends

The recent volatility is closely tied to market fundamentals—particularly supply and demand dynamics. As supply increases, particularly of leaner cows, prices have begun to ease. However, many producers are still entering the market to take advantage of cow prices at their highest in over three years.

Cow Price Trends – March to April

Processor Cow Indicator:
- Final week of March: 304¢/kg liveweight (lwt)
- Last week: Rose by 33¢ to 319¢/kg lwt
- Current price: 10% above the previous week, and 28% above the 10-year average
Wagga Saleyards:
- 7 April: 2,150 cows yarded
- 14 April: 1,995 cows
- Heavy cow prices: 322–360¢/kg lwt
Dalby Saleyards (9 April):
- 991 cows yarded
- Prices eased by 27¢ to 285¢/kg lwt
- Previous week: 513 cows yarded, prices lifted by 31¢ to 312¢/kg lwt

Increased yardings—particularly of leaner cows—have driven price softening, while heavy cows continue to attract premiums.

Regional Price Variations

The regional cow market continues to reflect varied conditions:

Wagga: Heavy cows achieving up to 360¢/kg lwt
Dalby: Prices dipping to 285¢/kg lwt amid increased supply and easing quality

These regional differences underscore the impact of localised supply conditions, buyer demand, and market readiness.

External Influences: Weather & Geopolitics

External events are compounding market uncertainty:

US tariff policies are shifting global meat trade dynamics
Flooding in Western Queensland has disrupted supply chains and impacted livestock conditions

These factors are prompting greater caution among producers as they attempt to navigate an unpredictable marketplace.

Outlook: Uncertainty Amid Strong Demand

The Australian cow market remains robust but volatile, with producers attempting to seize favourable pricing despite uncertainty. Ongoing shifts in weather, global trade policy, and supply quality are likely to continue driving market fluctuations in the months ahead.

Key Takeaways:

Cow prices are at a three-year high, but market volatility is increasing.
Leaner cow supply is softening prices, while heavy cows remain in demand.
Regional markets show significant pricing variations.
External factors like weather and trade policy are influencing market behaviour.

Source: Emily Tan, MLA Market Information Analyst

Government Acts on Foot and Mouth Disease Threat

Government Implements New Measures to Prevent Spread of Foot and Mouth Disease

In response to a rising number of foot and mouth disease (FMD) cases across Europe, the Government has announced new measures to protect British livestock and ensure the security of farmers and the UK’s food supply. Starting Saturday 12th April, travellers will be prohibited from bringing cattle, sheep, goat, and pig meat, as well as dairy products, from EU countries into Great Britain for personal use.

This ban includes items such as sandwiches, cheese, cured meats, raw meats, or milk, regardless of whether they are packed, packaged, or purchased at duty-free shops. While FMD poses no risk to humans and there are currently no cases in the UK, it is a highly contagious viral disease affecting cattle, sheep, pigs, and other cloven-hoofed animals like wild boar, deer, llamas, and alpacas. The outbreak in Europe presents a significant threat to farm businesses and livestock in the UK.

FMD can lead to substantial economic losses due to production shortfalls in affected animals and loss of access to foreign markets for animals, meat, and dairy products. Earlier this year, the Government had already banned personal imports of cattle, sheep, other ruminants, pig meat, and dairy products from Germany, Hungary, Slovakia, and Austria following confirmed FMD outbreaks in those countries.

The new EU-wide restrictions aim to better safeguard the UK against the evolving disease risk and provide clear guidelines for travellers to help them comply with the regulations. These restrictions apply only to travellers arriving in Great Britain and do not affect personal imports from Northern Ireland, Jersey, Guernsey, or the Isle of Man.

The Government’s proactive measures underscore the importance of protecting the health of British livestock and maintaining the security of the nation’s food supply amidst the ongoing FMD threat in Europe.

AIMS Comment

The Association of Independent Meat Suppliers (AIMS) has long advocated for a ban on personal imports of meat and dairy products. They welcome the Government’s announcement, stating:

“AIMS have urged the Government to impose a ban on personal imports for meat and dairy products for a considerable time. We welcome this announcement which will help to defend our borders from imported diseases such as FMD and ASF that posed such a threat to British farming, food processing and the wider economy.

The Government now need to ensure that travellers, especially those holidaying in Europe this summer, are made aware at the point of embarkation, that they are not permitted to bring in meat and dairy products to Great Britain.”