F&R LivestockResource
Summer 2022 | Volume 5, Issue 4
Your direct source for livestock news and information
Published by Farmers & Ranchers Livestock, Salina, Kansas
In this Issue: 1 Fake This A few years ago, plant-based meat alternative products launched with the marketing forces of Atilla the Hun, bankrolled by millions in venture capital dollars. Depending on your trusted source for news, it isn’t all good news for investors. Consumers continue to choose beef as the preferred protein source for their families. 10 Higher Prices Looming As predicted by every ag economist, the cattle market pendulum is beginning to swing toward the cattle producer and feeder, although movement is slower than anticipated. Supply fundamentals favor higher prices going forward, but global and consumer wherewithal cloud the demand outlook. 12 Solutions Looking for Problems Much has been written and discussed relative to proposed marketing mandates. The conclusion of every analyst and peer reviewed research is the proposed bills likely create significant long-term consequences and fail to produce the perceived outcomes. 15 AHA and CSU Begin Sustainable Research The American Hereford Association and Colorado State University have begun cooperative research to better understand the genetic differences in seedstock relative to enteric methane production and nitrogen excretion. The research will ultimately identify selection tools to reduce beef’s environmental footprint. 17 Pursed and Pinched Hooter’s Aunt Pinky is living proof that earthquakes can’t compare to the fear instilled to those in shouting distance when a woman loses her purse.
Fake This Investor fascination wanes for plant-based meat alternatives. By Wes Ishmael
Despite sizzling hype the last few years surrounding plant-based alternatives to real meat, investor interest appears to be fizzling. Up front, various and sometimes conflicting sales data mean deciphering sale trends for the category is always akin to heeling a steer in dense fog. Sooner or later, you aim where it makes the most sense. In this case, consider that the share price for Beyond Meat®—the publicly traded posterchild for alternative meat protein—was about $25 on June 24. A year earlier, it was approximately 82% more at $143.92.
According to the company’s financial results for the first quarter, net revenues increased 1.2% year over year to $109.5 million and the total volume of products sold increased 12.4%. But, net loss was $100.5 million compared to $27.3 million in the first quarter last year. In its first-quarter financials, Maple Leaf Foods—Canada’s largest prepared meats and poultry producer— told investors it no longer expects spectacular growth in its alternative meat category, but does anticipate slower, steadier growth. According to data from the Good
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