Smithfield Foods completed an IPO, and started trading
January 28th on the Nasdaq under the symbol SFD. Since late 2013,
Smithfield has been a subsidiary of WH Group whose $4.7 billion deal
was one of the largest takeovers of a US company by a Chinese firm at
that time. Smithfield's ties to its parent company remain strong, as WH
Group is retaining a 90% stake in Smithfield after the listing.
Smithfield remains based in Virginia, but WH Group nominates the
majority of board directors. The company generates more than $14
billion in annual revenue and employs about 34,000 people in the US.
Smithfield's IPO was priced at $20 per share, below its target between
$23 and $27, and gives the company a market value of about $8 billion.
The average choice retail beef price for December was
reported at 837.9 cents per pound, up 5 cents from November. The
all-fresh beef price increased 2 cents from the previous month to 807.8
cents per pound. The average pork retail price in December was quoted
at 488.3 cents per pound, down about 7 cents, while the average
composite broiler price was a penny higher at 243.4 cents per pound.
Total pork supplies in cold storage at the end of
December were reported at 400.4 million pounds, down 6% from a year
prior. Pork belly stocks were down by nearly 22 million pounds, while
ham stocks increased by over 13 million pounds. Total beef stocks
decreased 5% to 457.3 million pounds, and total chicken stocks declined
8% to 801.5 million pounds.
On February 1st, the USDA Animal and Plant Health
Inspection Service announced the resumption of cattle imports from
Mexico. At the same time, President Trump announced 25% tariffs on
Mexican imports. As part of the protocol signed by both countries,
Mexico identified and prepared pre-export inspection pens on their side
of the border. After the cattle enter the pre-export inspection pens,
they will proceed to the final APHIS inspection at the Santa Teresa and
Douglas Ports of Entry. Cattle approved for importation will also be
dipped in a solution to ensure they are insect and tick-free. Both
countries are working to approve additional pre-export inspection pens
and reopen trade through other ports of entry. Then, on Monday,
February 3rd, the US and Mexico agreed to delay the tariffs for 30 days.
Grains
The USDA announced the names of the following individuals who will hold senior staff positions.
Kailee Tkacz Buller will serve as Chief of Staff.
Most recently, Buller served as President and CEO of the National
Oilseeds Processors Association and Edible Oil Producers Association.
Preston Parry will serve as Deputy Chief of Staff.
Parry most recently served at Strategic Assistant to the President and
CEO at the American First Policy Institute.
Jennifer Tiller was appointed as Chief of Staff to
the Deputy Secretary and Senior Advisor to the Secretary for Food,
Nutrition, and Customer Services. Tiller recently worked for the House
Committee on Agriculture.
Ralph Linden will serve as Principal Deputy General
Counsel. Linden served as Acting Deputy General Counsel during the
first Trump Administration.
Audra Weeks will serve as Deputy Director of
Communications. Weeks was previously the Press Secretary for Senator
Roger Marshall.
Dominic Restuccia will serve as the White House
Liaison for the USDA. He previously served as a legislative assistant
for US Representative Mike Bishop and US Senator Mike Lee.
The European Union and Mexico negotiated a new trade
deal on January 17th. The agreement still needs to be approved by
governments on both sides. Mexico is the EU's second-largest trading
partner in Latin America. A swath of goods will become duty-free under
the new deal, notably in the agriculture and food sector.
Kiowa, Kansas, canola and wheat farmers Bob and Lori
Shrock were among 67 people who died when an American Eagle flight from
Wichita collied with a Blackhawk helicopter in Washington D.C. on
January 29th. Bob and Lori were president and vice president of Premium
Grain, Inc.
President Trump announced he would place 25% tariffs on
Mexico and Canada on February 1st. Then, both countries were able to
negotiate a 30-day pause in the tariff wars on Monday, February 3rd,
while the countries continue to work on an agreement to secure both
sides of the border and to stop the flow of fentanyl into the US.